Vietnam needs electricity pricing reform to unlock offshore wind potential

Vietnam has yet to develop offshore wind power, and experts see pricing mechanisms as the key enabler. (Photo: iStock)

Vietnam has updated its Power Development Plan VIII (PDP8) to significantly scale up renewable power generation, particularly from wind and waste-to-energy sources.

However, uncertainty around capital and regulatory frameworks continues to deter private sector investment. Experts suggest that reforming the electricity pricing system could increase transparency and profitability, restoring market confidence.

Vietnam aims to scale up renewable energy capacity

Under the revised PDP8, Vietnam’s installed power capacity is expected to reach between 156,000 and 208,000 MW by 2030—roughly triple its current level. The majority of this increase is expected to come from renewable sources, including solar, wind, biomass, waste-to-energy, and energy storage.