Local energy officials, financiers and experts from the Independent Power Producers Forum (IPPF) have gathered in HCM City for a two-day meeting to discuss the power situation in Viet Nam and plans for the country’s future nuclear power plants in the central province of Ninh Thuan.

They will exchange views on power and investment issues including global economic impact on Viet Nam’s power industry as well as foreign investment and strategic investment in sustainable power development in Viet Nam.

Pham Minh Tuan, head of the nuclear power preparation committee, said the country would face a serious power shortage during 2025-30 when power demand would pass 600TWh. "Given limited oil reserves, global warming impacts and the global energy crisis, nuclear power is a feasible option for Viet Nam," he said.

Power consumption in Viet Nam was estimated at 76 billion kWh, he said, adding that by 2020, the country would face a shortfall of 49 billion kWh.

"In this context, nuclear power becomes a solution that boosts the nation’s energy security, protects the environment and promotes development of science and technology in the country," Tuan said.

The two nuclear power plants in Ninh Thuan province, with 75 per cent of capital coming through foreign loans, is expected to go into operation in 2020 and 2021, with a total capacity of 4,000 MW.

A representative from Indochina Capital, said a large number of funds have turned their investment radars towards clean energy. The year 2008 was the first year that global investment in new power generation capacity from renewable energy projects (USD 140 billion) was more than investment in fossil-fuelled projects (USD 110 billion).

Thomas Oentoro, senior investment officer, IFC (International Finance Corporation, the private sector funding arm of the World Bank), said Viet Nam is undergoing the industrialisation process, so power needs would continue to grow in upcoming years.

Investment needs for generation, transmission and distribution of power for 2006-10 was estimated at USD 4 billion per year and the national power utility, EVN, continued to be a major investor in this process, Oentoro said.

He said the BOT investment method should be encouraged in the energy sector that is experiencing a growth in demand of 17-20 per cent every year.

The use of conventional forms of energy in the country has resulted in an increase in CO2 emissions from 6.7 per cent in 1995-2000 to 10.6 per cent from 2000-05, one of the highest in the world.

Independent Power Producers Forum is an organisation made up of senior executives and decision-makers from power generation and related firms with active business commitments in Asia.