MOIT VIETNAM | The diverse dispatch capabilities from Laos to Vietnam need more defined markets and systems

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The diverse dispatch capabilities from Laos to Vietnam need more defined markets and systems

4th July 2022 post by MOIT Vietnam

With rising global climate change and carbon lock-in concerns comes an amazing opportunity for Southeast Asia to boost its economy and position as a global leader by developing a regional low-carbon electricity grid. As a group, the ASEAN countries have both the solar energy resources and the technical know-how to make batteries for energy storage and electric automobiles, making them leaders in the clean energy transition. In light of the Paris Agreement, several ASEAN countries have revised their plans for electricity growth to include aggressive targets for cutting carbon emissions. The ASEAN member states have agreed to generate 20% of their electricity from clean sources by 2026. Floating solar projects in the amount of 2.7 GW are being built in Thailand, while new wind farms in excess of 10 GW have been approved for operation in Vietnam.

These developments are important, but they're not enough to fully reap the benefits of switching to renewable energy. Regional cooperation, trust building, and open dialogue among ASEAN member nations are all necessary for a full decarbonization of the region's energy systems. Increased transmission interconnections throughout Southeast Asia might facilitate cleaner, more cost-effective power trade across countries, as proposed by the new Energy Hub 4.0 Strategy. Nonetheless, a more interconnected ASEAN power system requires better forecasting and crediting, as well as the development of new technologies. Regional study on renewable energy readiness highlights both the difficulties and potential of integrating renewable energy grids across ASEAN states. Large-scale integration of solar and wind energy is hampered by the fact that many countries lack the forecasts required to guarantee flawless grid operations.

From Laos to Singapore, dispatch capabilities in various nations require better-established markets and procedures. Rapid development is occurring in several countries; for instance, Vietnam has now surpassed Thailand, the Philippines, and Malaysia in total installed solar capacity, surpassing its target of 18.6 GW by 2030 by 10 years. These decarbonization targets serve as a roadmap for financial commitments, and the implementation of these initiatives requires coordinated investments in enabling technologies such as energy storage, transmission, forecasting, and crediting systems.

The lack of dedicated supercomputer research facilities able to foresee and improve future power systems is a challenge. While the National Renewable Energy Laboratory in Vietnam follows the same protocols as their American counterparts, their results take several weeks longer to arrive. Investment, education, and the free flow of knowledge throughout the globe might all help speed up this transition.

Developing a crediting system to verify and authenticate low-carbon energy might assist distinguish between environmentally hazardous coal-fired power plants and safer traditional hydropower dam building and development. The creation of international grid rules and standards may increase the usage of renewable power sources while reducing integration costs. Low-carbon electricity might be traded between countries with strong demand and those with growing networks and limited transmission capacity. The 600 MW Monsoon wind power exchange agreement between Laos and Vietnam is evidence of this.

The 912 MW Pak Beng dam threatens river health and prevents least-cost power generation from solar and wind from participating in pre-negotiated energy trading agreements; a well-designed credit system should deter megaprojects like this. Successful emission reduction projects may be eligible for rewards under this plan. If the carbon reductions from the 100 MW power trading agreement between Laos, Thailand, Malaysia, and Singapore are verified, it might serve as a model for further expansion of the power grid across ASEAN. This deal is set to begin in 2022.

If green hydrogen production is implemented as part of a fossil fuel phase-out strategy in Southeast Asia, it will be vital to verify the associated greenhouse gas emissions. Possible contributors include certification procedures and standardized life cycle assessments, such as those used to validate biofuels' stated GHG emission reductions.

The transition to green hydrogen might hasten the elimination of natural gas imports for several ASEAN countries. States in the region may use power generated by decarbonizing their electrical sectors to advance electrolyser technology for meeting industrial energy demands. As a result, renewable energy infrastructure in the area may be able to grow.

Coal-fired power stations are gradually replacing renewable energy sources throughout Southeast Asia, despite the difficulty of obtaining financing for new coal facilities in the region. Greater usage of renewable energy requires greater market-based planning for the power system. Although it has not been thoroughly explored, reducing coal output or encouraging the early retirement of coal plants might help achieve low-carbon electricity goals in the region more quickly.

The global planning community is in agreement that efficient cooperation is crucial to accomplishing these goals. Cross-sector cooperation is necessary to prevent ecological disasters brought on by the overuse of hydropower and the consequent drying up of water sources. The widespread adoption of electric vehicles and the accompanying construction of battery energy storage infrastructure may lead to economic growth and the creation of new employment opportunities.

However, cooperation on energy storage and electrical system transmission is required to create a low-carbon power network throughout Southeast Asia.