Energy is indispensable to economic development and nationalindustrialisation and modernisation but Vietnam is facing with a loomingenergy shortage that could dramatically hinder its future progress,radio The Voice of Vietnam (VOV) reported.
The Energy Instituteunder the Ministry of Industry and Trade (MoIT) warns the total energyneeded for trading activities will reach 78.8–83.6 million tonnes of oilequivalent (TOE) by 2020 and 152–175 million TOE by 2030. The 2020demand is around 2.2–2.4 times higher than current levels.
Vietnamexploits a diverse range of energy sources but most cannot beconsidered abundant. Operational hydroelectricity plants and plantsscheduled for construction between now and 2017 have an estimated annualproduction capacity of 65–70 billion Kwh.
The coal industry’s plans suggest a production output of less than 72 billion kWh per annum, even between 2025–2030.
Offshoregas sources could fuel electricity production exceeding 100 billion kWhper year as well as 3–5 percent of the gas volume required for otherindustrial sectors. Crude oil output is estimated at an annual 17–18million tonnes but is expected to ebb after 2015.
Vietnam’senergy systems rest on the standard three pillars of oil, gas, and coal.These pillars will not be able to meet Vietnam’s burgeoning energydemands alone.
Coal shortages are expected in a magnitude of 5.8million tonnes by 2015, 25 million by 2016 tonnes, and 66 milliontonnes by 2020. This will necessitate compensatory coal imports from2015 onwards.
Electricity demand could surge by as much as an annual 15–20 percent.
If Vietnam cannot discover new oil fields with large reserves, its oil and gas will essentially run dry by as early as 2025.
Dependence on imported energy will become a major issue over the next 10–15 years.
Expertswarn Vietnam’s inefficiency has wasted huge amounts of energy. Only28–32 percent of the power produced from coal and oil power plantsreaches the national grid, 10 percent lower than developed countryaverages. The 60 percent efficiency of the country’s industrial boilersis also 20 percent lower than global standards.
Vietnam’s industries use 1.5–1.7 times more energy than their counterparts in Thailand and Malaysia.
Energy consumption is growing at the double the rate of Vietnam’s GDP. In developed countries the ratio is less than one.
Obsoletetechnology, outdated equipment, aging infrastructure, and poormanagement all contribute to Vietnam’s energy waste and inefficiency.
Energy shortages already force Vietnam’s annual energy imports from China and Laos.
Mostother countries get their electricity from coal, oil, and gas, withless than 20 percent created using hydropower. Half of Vietnam’s energyoriginates in hydropower, meaning the instability of seasonalvacillations has a much more pronounced effect.
The nationalenergy strategy should focus on adjusting energy policies and consumerbehaviours, upgrading technology, encouraging business investment,improving pricing and tax information, and ensuring energy is stillaccessible for the disadvantaged.
The Vietnam Energy Associationhas asked the Government to finalize its 2011–2020 plans for the energysector and include a vision towards 2030 so that the industry can beguided by set targets.
A decree encouraging and promoting thedevelopment of renewable energy is of the utmost importance. A RenewableEnergy Law should be prepared for submission to the National Assembly.
Theenergy sector needs to expand its exploration of domestic and foreignenergy sources and research renewable energy strategies to limitpollution and protect the environment.
Other priorities include keeping energy prices at reasonable levels and increasing competition within the energy market itself.-VNA
The Energy Instituteunder the Ministry of Industry and Trade (MoIT) warns the total energyneeded for trading activities will reach 78.8–83.6 million tonnes of oilequivalent (TOE) by 2020 and 152–175 million TOE by 2030. The 2020demand is around 2.2–2.4 times higher than current levels.
Vietnamexploits a diverse range of energy sources but most cannot beconsidered abundant. Operational hydroelectricity plants and plantsscheduled for construction between now and 2017 have an estimated annualproduction capacity of 65–70 billion Kwh.
The coal industry’s plans suggest a production output of less than 72 billion kWh per annum, even between 2025–2030.
Offshoregas sources could fuel electricity production exceeding 100 billion kWhper year as well as 3–5 percent of the gas volume required for otherindustrial sectors. Crude oil output is estimated at an annual 17–18million tonnes but is expected to ebb after 2015.
Vietnam’senergy systems rest on the standard three pillars of oil, gas, and coal.These pillars will not be able to meet Vietnam’s burgeoning energydemands alone.
Coal shortages are expected in a magnitude of 5.8million tonnes by 2015, 25 million by 2016 tonnes, and 66 milliontonnes by 2020. This will necessitate compensatory coal imports from2015 onwards.
Electricity demand could surge by as much as an annual 15–20 percent.
If Vietnam cannot discover new oil fields with large reserves, its oil and gas will essentially run dry by as early as 2025.
Dependence on imported energy will become a major issue over the next 10–15 years.
Expertswarn Vietnam’s inefficiency has wasted huge amounts of energy. Only28–32 percent of the power produced from coal and oil power plantsreaches the national grid, 10 percent lower than developed countryaverages. The 60 percent efficiency of the country’s industrial boilersis also 20 percent lower than global standards.
Vietnam’s industries use 1.5–1.7 times more energy than their counterparts in Thailand and Malaysia.
Energy consumption is growing at the double the rate of Vietnam’s GDP. In developed countries the ratio is less than one.
Obsoletetechnology, outdated equipment, aging infrastructure, and poormanagement all contribute to Vietnam’s energy waste and inefficiency.
Energy shortages already force Vietnam’s annual energy imports from China and Laos.
Mostother countries get their electricity from coal, oil, and gas, withless than 20 percent created using hydropower. Half of Vietnam’s energyoriginates in hydropower, meaning the instability of seasonalvacillations has a much more pronounced effect.
The nationalenergy strategy should focus on adjusting energy policies and consumerbehaviours, upgrading technology, encouraging business investment,improving pricing and tax information, and ensuring energy is stillaccessible for the disadvantaged.
The Vietnam Energy Associationhas asked the Government to finalize its 2011–2020 plans for the energysector and include a vision towards 2030 so that the industry can beguided by set targets.
A decree encouraging and promoting thedevelopment of renewable energy is of the utmost importance. A RenewableEnergy Law should be prepared for submission to the National Assembly.
Theenergy sector needs to expand its exploration of domestic and foreignenergy sources and research renewable energy strategies to limitpollution and protect the environment.
Other priorities include keeping energy prices at reasonable levels and increasing competition within the energy market itself.-VNA
