Private funding opportunities for renewable energy and energy efficiency investments in Viet Nam
Viet Nam has significant exploitable renewable energy potential, particularly solar photovoltaic, wind, biomass and hydropower. It is estimated that Viet Nam can deploy 85,000 megawatt of solar photovoltaic generation capacity and more than 21,000 megawattt of onshore, near-shore and further offshore wind energy generation.
Viet Nam has a large potential for saving on electricity-use “energy efficiency” of up to 7.0% relative to the business-as-usual, through to year 2035, with the manufacturing sector offering the largest potential for such savings. The (technical) energy saving potential of some of the industry sectors such as cement production is estimated at 40% of present day consumption per unit of output.
At the moment, at least 10 billion USD of external capital is believed to be available, amounting to almost 50% of the total investments needed, to support Viet Nam’s transition to cleaner energy and energy saving. This figure was obtained from interviews with just 13 banks, institutions and investors. This investment is possible if the current barriers constraining such investments are addressed- especially low price of electricity that lowers the incentives for efficient use and existing format of power purchase agreements that deter investors from investing in the country.
Expanding the renewable energy capacity and enhancing energy efficiency will improve Viet Nam’s energy independence, lesser expenditures on fossil fuel purchase, and reduce environmental pollution.