Vietnam's Coal Dependency in Energy Transition

Vietnam's electricity generation is heavily reliant on coal, which constituted approximately 44.85% of the total generation in 2025, with coal plants generating 144.78 billion kWh. Despite plans to end coal use by 2050, the country is still grappling with rising electricity demand and slow progress in alternative energy projects.

The revised Power Development Plan VIII anticipates a coal capacity of around 31,055 MW by 2030, which will represent a significant portion of the energy mix. However, the Ministry of Industry and Trade has suggested a reevaluation of this plan to incorporate viable baseload power sources and maintain coal generation at a sustainable level.

As Vietnam navigates its energy transition, the need for a balanced approach that includes both renewable energy and traditional sources like coal remains crucial. The volatility of LNG prices and the geopolitical risks associated with natural gas supply further complicate the energy landscape, prompting discussions on alternative energy solutions.

Source: The Investor. Read the full article.