Can Vietnam's nuclear energy ambitions finally become reality?

Tiếng Việt

Can Vietnam's nuclear energy ambitions finally become reality?

Vietnam's recent moves to reconsider nuclear energy mark a potentially important shift in its power development strategy. RMIT lecturer Dr Richard Ramsawak discusses the implications.

Vietnam has committed to net-zero emissions by 2050. In addition, based on the Power Development Plan VIII, power generation is expected to grow to 150 gigawatts in installed capacity by 2030 (more than double the 2020 figure) and to 490-573 gigawatts by 2050.

Vietnam relies heavily on coal, hydroelectric, and natural gas for its energy needs. As the country grapples with growing energy demands and ambitious climate goals, nuclear power has re-emerged as a potential solution to bridge the gap between sustainability and economic growth.

The country's interest in nuclear energy dates back to the early 2000s, with initial plans to construct nuclear power plants in Ninh Thuan Province. However, in 2016, Vietnam's National Assembly suspended the nuclear power project due to project risks, economic feasibility concerns, and public debt considerations, among other reasons.

The landscape has changed significantly since then, and the Vietnamese government has recently proposed to revisit its nuclear energy ambitions. Nuclear power could provide a stable, large-scale energy source that complements renewables like solar and wind. Countries with close economic connections to Vietnam, such as China and South Korea, are also expanding their nuclear power capacity. This may inspire Vietnam to reconsider its position, especially as the technology becomes safer and more cost-effective.

How can nuclear energy help Vietnam achieve its climate targets and energy security?

Nuclear technology has risks but can significantly reduce carbon emissions and address climate change in Vietnam if well managed. Unlike fossil fuel-based energy sources like coal and natural gas, nuclear power produces electricity without emitting greenhouse gases (GHG) during operation. This makes it a low-carbon energy option.

Nuclear power has advantages over renewable energy sources such as solar and wind, which are crucial for reducing emissions but are intermittent due to their reliance on weather conditions. Vietnam's hydropower sector, currently accounting for around 30% of electricity generation, is also increasingly vulnerable to climate change impacts such as droughts and changing rainfall patterns. Nuclear energy can provide consistent and reliable baseload power, ensuring a stable energy supply when other renewables are not generating sufficient electricity.

Cooling towers in a nuclear power plant (Photo: Unsplash)

Vietnam’s rapidly growing economy and population are driving an increasing electricity demand. If Vietnam expands fuel-based energy production to meet this demand, the country risks escalating its GHG emissions. By including nuclear energy in its energy portfolio, Vietnam can greatly enhance its chances of meeting its pledge to reduce GHG emissions and achieve net zero by 2050.

In the long term, nuclear energy could provide a more stable and cost-effective energy supply. This could improve long-term energy security by reducing vulnerability to global fuel price fluctuations and supply chain disruptions. While the initial costs of developing nuclear power plants are high, their operational costs are generally lower than those of fossil fuel plants. This could potentially lower energy costs for consumers and industries in the long run, contributing to economic competitiveness.

What are the key challenges that Vietnam faces in developing nuclear energy?

One of the main barriers to nuclear development in Vietnam is economic viability. Nuclear power plants require a huge initial investment, and Vietnam must assess whether it can afford this while balancing its budget.

Safety and environmental concerns are also important. Public perception regarding the safety of nuclear energy remains a challenge, particularly after the 2011 Fukushima disaster in Japan. Vietnam will need to ensure that rigorous international safety standards are met if it decides to proceed with nuclear projects.

Regular and transparent communication with the public regarding nuclear projects, safety measures, and potential risks is essential. Ensuring that independent safety assessments and reports are accessible to the public can also enhance accountability and trust.

Vietnam can consider emerging technologies such as Small Modular Reactors (SMRs) and Generation IV nuclear reactors, which are safer and more efficient than traditional reactors. SMRs could be well-suited for Vietnam, as they require less capital investment and offer greater flexibility in deployment.

Vietnam’s Ministry of Industry and Trade has reportedly referenced the possibility of SMRs in draft amendments to the Power Development Plan VIII. SMRs, with a capacity of around 300 megawatts per unit (about a third of traditional nuclear reactors) are an attractive option due to their shorter construction times of only 24 to 36 months.

Dr Richard Ramsawak, Lecturer of Economics, The Business School, RMIT University Vietnam

Developing a highly skilled workforce is also essential for nuclear energy development. Vietnam can partner with countries that have established nuclear industries (e.g., France, Japan, Russia) to train its engineers, technicians, and regulators in nuclear technology, safety procedures, and plant operations.

Investing in local academic and research institutions to develop expertise in nuclear science and engineering is also crucial. Establishing university programs and research centres focused on nuclear energy will help create a pipeline of qualified professionals who can support the country's nuclear ambitions.

As Vietnam considers its energy future, nuclear power presents an opportunity to address multiple challenges simultaneously: meeting growing energy demand, reducing carbon emissions, and maintaining economic growth. With proper planning and implementation, nuclear energy could play a vital role in Vietnam's transition to a sustainable energy future while supporting the country's broader economic and environmental objectives.

Story: Dr Richard Ramsawak, Lecturer of Economics, The Business School, RMIT University Vietnam

Media Release

Business and management

19 November 2024