In the coming time, many new Vietnamese coal-fired power projects may be canceled due to their investors’ inability to borrow capital from international banks and financial organizations.
According to information from Vietcombank Securities Company (VCBS), new coal power projects will face many difficulties. The reason is that international organizations no longer support loans while they are still being planned at a high rate.
Specifically, according to the draft power plan 8 developed by the Ministry of Industry and Trade, by 2035, there will still be about 30 GW (30,000 MW) of coal power to be developed. However, according to VCBS analysis, only half of these have expected to have a capital arrangement plan, and about 15 GW have not had a capital arrangement plan.
In the context that many international financial institutions are currently pursuing green credit policies, coal power projects are forecast to face difficulties in raising capital.
In addition, new projects all have to use imported coal with a high CO2 emission rate, so it is likely that many projects will be canceled or converted to using LNG and have to invest heavily in machinery for material change.
In contrast, the net-zero emissions commitments by 2050 at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) will spur heavy investment in gas thermal power LNG and renewable energy, especially offshore wind power.
According to the International Energy Agency (IEA), the electricity sector is the main emitter of CO2 with more than 50%, and 40% of which comes from coal-fired power.
To achieve the goal of “Net Zero 2050,” it is expected that renewable energy sources will be strongly increased to 88-95% in the period 2040 – 2050 along with energy sources with fewer carbon emissions such as electricity and increased energy consumption, and increase investment in upgrading the exhaust gas treatment system for activities that emit a lot of greenhouse gases.
According to the IEA, from 2030 to 2050, the world needs about 630 GW of solar power and 350-390 GW of wind power each year, of which about 70-80 GW of offshore wind power per year.
Previously, Deputy Prime Minister Le Van Thanh announced the conclusion at the conference to collect opinions on finalizing the National Power Development Plan to 2030, with a vision to 2045 (Power Plan 8) developed by the Government Office.
Accordingly, the Ministry of Industry and Trade is required to study and complete appropriate power source structure options until 2045. This agency must study on the basis of updating solutions to reduce greenhouse gas emissions to achieve net-zero emissions by 2050, as committed by the Prime Minister at COP 26.
With coal power, the Government leaders also requested to review this power source planning after 2030 in the direction of fuel conversion or not continue to develop if the project has no constraints, there is a risk of causing damage to the economy.
Thoibao.de (Translated)
Source: https://danviet.vn/khong-vay-duoc-von-nhieu-du-an-dien-than-co-the-bi-huy-bo-20220204162610924.htm
