Coal-fired power and green transition challenge

No sufficient biomass energy sources for replacement

At a recent seminar organized by the United Nations Development Program (UNDP), Le Xuan Chung from the Ministry of Industry and Trade’s Institute of Energy provided insights into the availability of alternative fuels, such as biomass and green ammonia, as outlined in Vietnam’s National Power Development Plan VIII.

The 40-year-old Pha Lai 1 Thermal Power Plant

According to Chung, Vietnam’s biomass fuel resources are scattered. Current research shows that about 80 companies produce approximately 4.4 million tonnes of biomass per year, with most of it being exported to the Republic of Korea (RoK) and Japan. Additionally, some biomass production plants are planned for construction and development.

Regarding the transition to ammonia, he noted that the technology is not yet fully developed or commercially viable on a large scale, leading to high costs. Furthermore, no pilot projects for ammonia-based power generation have been implemented in Vietnam. Both ammonia and green hydrogen are emerging fuel sources that are not yet readily available and will heavily depend on advancements in production technologies and the growth of renewable energy, particularly offshore wind power projects.

Energy expert Ha Dang Son, Director of the Center for Energy and Green Growth Research, emphasized, “The National Power Development Plan VIII outlines a transition to ammonia, meaning that we are looking toward the availability of green hydrogen, which will then be used to produce green ammonia from renewable energy projects, especially offshore wind power. However, this is a long-term vision, not something achievable in the next 5-10 years. In the meantime, the transition for coal-fired power plants will primarily focus on co-firing with supplemental and alternative biomass fuel sources.”

Central control room of Pha Lai Thermal Power Plant

Significant resources needed for green transition

Experts suggest that the simplest way to make coal-fired power plants more environmentally friendly is to continue using coal while upgrading to better technology. However, for coal power plants that have been operating for around 20 years, upgrading to meet modern emission standards presents significant investment challenges. This is particularly relevant given the upcoming revisions to the Ministry of Natural Resources and Environment’s emission standards for coal-fired power plants (QCVN22:2009/BTNMT).

Vu Quang Chien, Deputy Director of Uong Bi Thermal Power Company, stated, “We can transition from traditional electricity production to green electricity production, but it requires significant investment. Without supportive mechanisms, even if the plants have the technical capability, they cannot proceed with the transition. I think the Government should establish green banks. If power plants transition, instead of paying standard loan interest rates of around 10 percent per year, they could access green bank loans at just 2 percent,” he suggested.

The financial burden for investment in energy transition is immense. According to coal power transition scenarios outlined in the National Power Development Plan VIII, the estimated total investment needed to reach net-zero emissions by 2050 ranges from US$533.9 billion to US$657.8 billion, with power generation investments alone requiring US$499.1 billion to US$631 billion.

While awaiting the full implementation of energy transition plans and revisions to QCVN22:2009/BTNMT, the Ministry of Industry and Trade has instructed coal-fired power plants to upgrade their equipment and environmental protection systems. This aims to ensure compliance with increasingly stringent environmental regulations based on regional environmental planning.

Additionally, coal-fired power plants have been directed to explore blending domestic coal with imported coal to enhance economic efficiency, operational safety, and environmental protection by reducing emissions, ash, and air pollutants. The focus is also on maximizing power generation from new high-efficiency coal plants that meet stringent environmental standards./.