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Vietnam may lower 2030 target for gas, LNG-fired power

output

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Set to postpone offshore wind projects to next decade

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And seeks to boost coal capacity by 2030

By Khanh Vu and Francesco Guarascio

HANOI, Feb 5 (Reuters) - Vietnam has lowered its

power-production targets for gas and offshore wind this decade,

with coal and other renewables expected to fill the gap until

nuclear reactors are included to the energy mix by 2035, a draft

industry ministry document showed.

The document, released late on Tuesday and still subject to

changes, aims to replace the 2023 power generation plan for this

decade. This comes as the Southeast Asian export hub strives to

meet the growing electricity demand from domestic manufacturers

and multinationals operating in the country.

Under the revised plan, Vietnam will have no offshore wind

project in place this decade, against an initial goal of

installing 6 gigawatt (GW) by 2030, which has now been pushed

back to 2035, in line with downbeat expectations in the

industry.

The installed capacity to convert gas into electricity will

also be less significant than initially expected due to

forecasted lower supplies of domestic gas and imported liquefied

natural gas (LNG).

Imports of LNG, which officials have said are part of

ongoing discussions with the U.S. administration to avoid trade

tariffs on Vietnam, are set to power production capacity of 18

GW by 2030, down from the 22.4 GW initially planned.

Electricity production from LNG is set to begin this year,

with the first power plants expected to come online,

contributing a total capacity of 0.8 GW, according to the draft

document. Developer PetroVietnam Power said last week two of the

first LNG power plants with combined capacity of 1.5 GW will

start commercial operations from June.

Supplies of domestic natural gas will support installed

capacity of 10.8 GW by 2030, down from the previously planned

nearly 15 GW.

Among the reasons for the lowered target are difficulties at

Exxon Mobil's ( XOM ) Blue Whale field, off Vietnam's central

coast, the largest in the country, the document said, confirming

Reuters' earlier reports on the matter.

COAL, RENEWABLES NUCLEAR

The Communist-run country expects to make up for the lost

output from gas and offshore wind by boosting capacity to

produce electricity from coal, hydropower and other renewables

such as solar and onshore wind.

Total capacity is expected to grow to 175 GW by 2030 from

the initially planned 150 GW.

To avoid power cuts experienced during a heat wave in 2023,

Vietnam boosted its imports of coal last year, and plans to

expand its installed capacity by 2030 before shutting down coal

plants by mid-century, according to the document.

Coal-fired power plants could generate 31 GW by the end of

the decade, up from the initial forecast of 30.1 GW. An

additional 7.2 GW in provisional capacity can boost the

potential total by over a quarter, making coal the country's

primary energy source.

Solar power capacity is expected to more than double from

the current goal to 30.4 GW by 2030.

Nuclear reactors, recently reintroduced into the power

mix, are expected to begin operations in 2035, with a target of

generating nearly 5 GW by mid-century, the draft showed.

The government said on Tuesday it aims to complete the

construction of the country's first nuclear power plant by the

end of 2030.