Vietnam plans to build more coal-fired power plants, as the Iran War complicates LNG plans

The government of Vietnam said that it is looking at building more coal-fired power plants to meet its energy needs. This comes as the 'Iran war' complicates the?slow growth of LNG facilities.

Southeast Asia's manufacturing hub seeks to increase its power generation capacity in order to support the fast-growing economy. It is focusing on renewables, LNG and other sources of energy.

In a Wednesday statement, the government stated that the Middle East conflicts have had a negative impact on the security of LNG supply. This has created a need for energy security.

It may add more coal to its national energy plan.

Vietnam has set itself a goal to have a fleet?of LNG-fired energy plants with a combined capacity of 22.25 gigawatts by the year 2030.

The country has only reached 7.3% of its target due to regulatory obstacles and lack of investor interest. However, the Iran War has also raised questions about the safety of LNG supplies. Vietnam's current plan aims to reach a total installed capacity of between 183 and 236 GW in 2030. Coal-fired power plants will account for 13.1%-16.9%, while LNG will make up 9.5%-12.3%.

According to EVN, the electricity output for the first half of 2018 grew by 9.8% compared to the same period last year, to 171.5 billion kilowatt-hours. Coal-fired power stations accounted for 54.5%.

(source: Reuters)