en.Wedoany.com Report on Mar 21st, Against the backdrop of rising energy prices, Vietnam is expected to reduce its coal and natural gas import expenditure by nearly $600 million through the development of solar power. In a report released on March 16, research institute Zero Carbon Analytics pointed out that the country's 25.9 TWh of solar power generation, calculated based on maintaining current benchmark prices for one year, could help save on fossil fuel import costs.
The analysis shows that approximately $545 million of the saved expenditure came from reduced coal imports, and $49 million from reduced natural gas imports. This data was derived after Vietnam eliminated import tariffs on fuels to stabilize the market. The country's Ministry of Finance stated that the policy adjustment aims to help stabilize the domestic market and ensure national energy security.
Vietnam possesses the highest share of solar and wind power generation in Southeast Asia. In 2024, these renewable sources generated 38.7 TWh of electricity, accounting for about 13% of the power output, which is higher than the regional average. This achievement benefited from the feed-in tariff policy introduced in 2017, which increased solar installed capacity from 28 MW to 16.7 GW by 2020.
Amy Kong, an energy transition researcher at Zero Carbon Analytics, said: "Vietnam's solar power generation has already brought clear economic benefits by reducing the country's exposure to volatile fossil fuel markets. When global energy prices surged due to geopolitical conflicts, domestic renewable energy provided a crucial buffer."
Despite strong solar growth, Vietnam's power system remains dominated by coal and natural gas. In 2024, coal accounted for 50.3% of power generation, with about half of it being imported. According to plans, liquefied natural gas power generation capacity will increase by 22.4 GW by 2030, but this could also make over one-third of the electricity supply dependent on imported fuels.
Yu Sun Chin, Senior Asia Regional Researcher at Zero Carbon Analytics, stated: "Expanding domestic clean energy such as solar and wind can help provide stable electricity while reducing dependence on volatile imported fuels. Solar power is already one of the cheapest sources of electricity in most parts of Southeast Asia. Scaling it up, alongside developing batteries and grid upgrades, can help countries lower energy costs and enhance energy security."
