In line with global trends, Vietnam is undergoing significant shifts in its electricity production structure.

According to the International Renewable Energy Agency (IREA), Vietnam is estimated to have 1.2 terawatts of renewable energy potential, which is 15 times the current installed capacity.

A report by Statista projects that Vietnam’s electricity generation in 2024 will amount to 282.40 billion kWh, with an expected annual growth rate of 2.99% (CAGR 2024 – 2029). Within this, electricity generation from renewable energy is expected to reach 120.30 billion kWh in 2024, with an annual growth rate of 3.39% (CAGR 2024-2029).

The International Energy Agency (IEA) forecasts that global electricity demand grow by around 4% in 2024, with a similar growth rate expected in 2025.

Renewable sources of electricity are also set to expand rapidly, with their share of global electricity supply projected to rise from 30% in 2023 to 35% in 2025.

Peter Lundberg, Executive Director at the Asia Pacific Urban Energy Association highlighted the enormous potential for renewable energy in Vietnam.

He noted that harnessing even a small portion of this potential, such as 10% of solar photovoltaic energy, could meet the entire national electricity production capacity of 80 GW.

At COP28, Vietnam made strong commitments to reducing greenhouse gas emissions, developing renewable energy, and addressing climate change through the "Global Cooling Pledge".