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|The Smart Energy Forum was organised in Hanoi|
The global energy market is constantly evolving. Current market trends show the energy landscape is in transition towards more flexible energy systems with a rapidly increasing share of renewable energy, declining inflexible baseload generation, and wider applications of storage technology. The declining costs of renewables have begun to reduce new investments into coal and other inflexible baseload technologies – a transition which will eventually cause renewables to become the new baseload.
At the Smart Energy Forum organised by technology group Wärtsilä, along with the Embassy of Finland and support from the Ministry and Trade today, Jaakko Eskola, president and CEO, Wärtsilä Corporation, said, “Vietnam is one of the fastest-growing economies in the world and is expected to see a good growth in power demand in the coming years. It requires proportionate addition in generation capacity. It is also blessed with a very high potential of renewable energy. We believe that now is the time for Vietnam to aim for and place itself on a trajectory that would take it towards a 100 per cent renewables future.”
Wärtsilä’s energy experts highlighted the use of modern modelling tools that help in planning for and optimising the generation mix of the future. This approach will ensure that the renewable energy potential of Vietnam is fully tapped and balanced with flexible generation, resulting in affordable, clean, and reliable energy for all of its citizens.
Obviously, the speed of change differs between the markets, but the general pace is becoming faster and faster. However, the world has already reached the first milestone now that renewables are already competitive without subsidies in many regions. The next milestone will be when renewables start to replace existing inflexible thermal capacity across the globe. This will be the ultimate tipping point and, supported by reduced energy storage costs, will enable renewables to become the new baseload, according to Nguyen Manh Cuong from the Institute of Energy under the Ministry of Industry and Trade.
Vietnam has high ambitions for renewable energy, as shown in the Revised National Power Development Master Plan VII. The plan stipulates that 21 per cent of the total energy supply should come from renewable sources by 2030. As plans for a nuclear power plant have already been postponed by the National Assembly, the country is pushing for more alternatives to satisfy its energy hunger. Foreign investors are especially welcome, as there is no foreign ownership limit and many attractive tax incentives are on offer.
“The global energy landscape is in transition towards more flexible and sustainable energy systems. Vietnam will benefit immensely by planning for a high-renewables future. Wärtsilä is leading the transition as the energy system integrator – we understand, design, build, and serve optimal power systems for future generations. Our solutions, based on engines and energy storage, will provide the needed flexibility to integrate renewables and secure reliability,” said Marco Wirén, president, Energy Business and executive vice president, Wärtsilä Corporation
Wärtsilä's offering comprises of engine-based flexible power plants and energy storage and integration solutions. In terms of total installed capacity, 70,000MW of Wärtsilä engine power plants have been constructed worldwide of which 9,000MW is in Southeast Asia.
The Wärtsilä Internal Combustion Engine power plant is globally recognised for its high flexibility with key characteristic specifications like reaching full load in 2 minutes and stopping in less than 1 minute or the quickly adjustable overall power output by turning off/turning on power modules.