As the output from hydropower plants is expected to decrease due to a lack of rain, Vietnam intends to generate more electricity from fossil fuels (coal and oil) in 2020: it will increase the production from coal-fired power plants by 1.9 TWh compared with previous plans and that from oil-fired power plants by 1.2 TWh to offset hydropower generation, which is expected to be 2.7 TWh below the 2020 target. In 2018, hydropower accounted for 47% of Vietnam's power generation, coal for 33% and oil for less than 1%.
The government expects Vietnam to face power shortages in the future, as electricity consumption is planned to exceed supply by 6.6 TWh in 2021 and by 15 TWh in 2023 due to delays in the construction of new power plants. Indeed, 47 of 62 power projects of 200 MW and more are facing delays, with some of them with at least 2 years of delays. Vietnam's power generation capacity will have to rise from 43 GW in 2017 to 60 GW in 2020 and 129.5 GW by 2030 to meet rising demand. The country will need to invest an average of US$6.7bn/year to raise its power capacity by 10%/year between 2016 and 2030.
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