Vietnam to Expand Solar Targets, Cut Offshore Wind Amid Surging Demand

Vietnam is revamping its energy strategy, significantly increasing its solar energy target to 16 percent, more than triple its previous goal of 5 percent.

The country is shifting focus from offshore wind and liquefied natural gas (LNG) projects, which have faced high costs and delays, towards large solar farms, onshore wind, rooftop solar, and energy storage.

With electricity demand now projected to exceed 211 GW by 2030 i.e. 40 percent higher than earlier estimates and surpassing Germany’s current capacity. Vietnam is prioritising faster, more cost-effective renewable solutions. The nation saw rapid solar expansion between 2018 and 2020, but grid limitations stalled progress, leading to increased reliance on coal. As one of the world’s top five coal importers, Vietnam faces challenges in balancing clean energy growth with grid stability, particularly as droughts impact hydropower generation.

Authorities have encouraged industrial consumers to buy power directly from renewable energy producers, but limited land availability near factories remains a hurdle. The government is also focusing on upgrading the electricity grid to accommodate the growing share of renewables.

Despite its clean energy push, Vietnam continues to expand coal power to meet rising demand from its growing industrial sector. Experts note that phasing out coal will take time, given the country’s relatively young coal plants and the need for stable energy supplies as manufacturing investments increase.

By accelerating solar and wind projects while addressing infrastructure challenges, Vietnam aims to transition towards a more sustainable energy future without compromising economic growth.