Denmark to help Vietnam realize its energy and sustainable development targets

This statement was emphasized by Thomas Egebo, Permanent Secretary of State in the Danish Ministry of Energy, Utilities and Climate, at the launch of the Vietnam Energy Outlook Report 2017 in Hanoi on September 20.

Surging energy demand

The Vietnam Energy Outlook Report 2017 is one of the outstanding cooperation results between the Vietnamese Ministry of Industry and Trade and the Danish Ministry of Energy, Utilities and Climate under the “Low carbon transition in the energy efficiency sector in Vietnam” project financed by the Danish Government. The report was based on updated forecast information on macro-economic development, increase in primary energy demand, and power source development. Notably, the optimal energy planning program in the report is based on Denmark’s Balmorel model to provide power source development scenarios and focus on renewal energy resources.

According to Hoang Quoc Vuong, Deputy Minister of Industry and Trade, along with its average annual economic growth rates of 7.26% in the 2001-2010 period and 5.91% in the 2011-2015 period, Vietnam is also seeing a surging energy demand. Especially, Vietnam’s power consumption has soared significantly in the recent past, up to 13%/year from 2001-2010 and 11%/year from 2011-2015. From 2016, Vietnam has shifted from being an energy exporter to an energy importer. Experts have also anticipated the country’s increasing dependence on imported primary energy resources.

The Vietnam Energy Outlook Report 2017 indicates that by 2035, the total final energy demand will be nearly 2.5 times higher than in 2015. In 2035, the energy consumption in the transportation sector (covering 27.5%) is projected to achieve the highest growth (5.7%/year), while the industrial sector (covering 45.3%) will grow at 5.0%/year in the period 2016-2030.

The report also presents that in 2000, renewable energy including both biomass and hydro made up 53% of the country’s total primary energy supply. However, this share dropped to 24% in 2015. In the same period, the coal share grew from 15% to 35% of the total supply. This trend is expected to continue far into the future as the domestic supply of hydro and biomass seems to be unable to meet the increasing demand.

Energy consumption efficiency as “first fuel”

In order to ensure energy security and national energy resources, the Vietnamese Government has implemented policies to sustainably develop its energy sector, including focusing on approaches to develop renewable energy and boosting economical and efficient energy usage. These fields are the top priority in energy cooperation between Vietnam and Denmark over the past years.

Particularly, the two countries signed a cooperation agreement in the 2017-2020 period with a total investment of USD 3 million, focusing on three areas: Sustainable energy development strategy in Vietnam, Integrating renewable energy into the national grid of Vietnam, and Developing low-carbon power industry, added Deputy Minister Hoang Quoc Vuong.

Translated by Van Hieu