The sum will include 17 GW of onshore wind energy and 39 GW of solar energy, according to the “Pathways to Net Zero” report, the fourth biennial edition of Vietnam Energy Outlook Report, released on Wednesday.

With huge potential in solar and onshore and offshore wind power, Vietnam is well positioned to shift from fossil energy to renewables. The country can conduct green transition cost effectively and achieve the net-zero goal by 2050 by expanding renewables, electrify industries and transport, according to the report.

The authors warn that any delay in the green transition will lead to unnecessary costs due to increasingly severe impacts of climate change.

“To reach CO2 peak by 2030, new capacity in the power sector should primarily come from solar and wind before 2030,” it notes, arguing that renewables will soon be cheaper than fossil fuels across the globe and also be possible soon in Vietnam.

To ensure the energy transition, the report calls for a stable investment climate before 2030 and support for early investments in renewable energy with a focus on improving the regulatory framework.

For Vietnam to reach an ambitious goal of developing 84 GW of offshore wind power by 2050 in a net-zero scenario, Vietnam needs to issue a clear and predictable legal framework to lure big-ticket investments in this industry. The government can start by identifying locations for offshore wind installations, prepare port infrastructure, and enhance the transmission grid.

They also recommend that coal-fired power plants in the country, which is highly vulnerable to climate change, should be more flexible, so that their capacities can be reduced to give priority to greener energies while being an underlying backup source as storage solutions are deployed.

Also, LNG can play a critical role with large capacity additions towards 2050, but this form of energy is sensitive to higher prices.

They argue that co-firing of hydrogen, ammonia or biomass, Carbon Capture and Storage (CCS) on power plants are not cost-efficient.

They recommend investigating the role of nuclear in a system with high renewable share and further exploring potential for use of land for onshore wind and solar power. In addition, it is recommendable to develop standards and regulations to promote rooftop solar power connecting to the grid.

Addressing the launch of the report, Denmark Ambassador to Vietnam Nicolai Prytz called on Vietnam to take swift, robust and sustainable action to achieve the net-zero target. This will not only be critical in dealing with increasing energy demand but also in helping attract more foreign direct investment when access to renewables becomes more relevant in making investment decisions.

Denmark is committed to supporting Vietnam in this green transition, the diplomat affirmed.