LNG-Fired Power Plants Emerge as Key Solution for Vietnam's Energy Transition

The energy transition in Vietnam is gaining momentum, with liquefied natural gas (LNG)-fired power plants emerging as an optimal solution to meet rising electricity demand and ensure a stable power system.

Bui Quoc Hung, Deputy Director of the Electricity Department under the Ministry of Industry and Trade, notes that LNG-fired power is seen as a strategic transitional source in the years ahead due to its flexibility in raising or lowering output to offset fluctuations in renewable generation.

The revised Power Development Plan VIII (PDP8) targets a total LNG-fired thermal power capacity of 22,524 MW by 2030, accounting for around 9.5-12.3% of total installed capacity. This plan also calls for developing around 2,000-3,000 MW of flexible power sources capable of rapid start-up.

However, LNG-fired power projects continue to face significant challenges, including infrastructure bottlenecks and financial viability concerns. Le Ba Quy, Director of the Power Project Management Board under PetroVietnam Power Corporation (PV Power), highlights the need for a stable and long-term electricity market, as well as the development of a competitive and transparent PPA mechanism.