Abstract

Energy consumption levels in Vietnam have kept pace with the country’s economic growth rate - growing on average 12 percent per year from 2006 to 2015. The energy demand is intensifying along with the growth of the Vietnamese population. By the end of 2015, the state-owned power corporation, Vietnam Electricity (EVN), provided electricity to 23.68 million customers – an increase of 6.2 million compared to 2010. As Vietnam’s electricity demand increases, the three largest power generating sources – coal, gas, and hydropower – are being depleted. As of December 2015, renewable energy – which includes wind, biomass, and solar – only accounted for 0.4 percent of power generated in the country. These factors have become a threat to the country’s energy security. To address these issues, the Vietnamese government has implemented policy changes that promote the country’s renewable energy sector. For example, the 7th Power Development Plan for 2011 to 2030 calls for a stronger emphasis on and liberalization of the renewable energy market, particularly in regard to the solar energy sector. In addition, in an effort to attract capital and technology from other countries, these government sponsored programs have been open to both direct and indirect foreign investment. By examining the history of the renewable energy market in Vietnam, the government’s recent policy shifts toward growing their renewable energy sector, and the growth in private sector involvement in the Vietnamese renewable energy market, this research explores the country’s commitment to and engagement in the global renewable energy market.

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