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VietinbankSC: VN’s renewable energy sector may reach $714B

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Bamboo Capital JSC’s solar power project BCG-CME Long An 1 in Thanh Hoa district, Long An province. CAFEBIZ.VN/VIET NAM NEWS

VietinbankSC: VN’s renewable energy sector may reach $714B

The value of the Vietnamese renewable energy sector may reach $714 billion and it may keep developing for at least 25 years, Vietinbank Securities JSC (VietinbankSC) said in a report.

The value of the solar and wind power sub-sectors may be up to $280 billion and $434 billion, respectively, the company said.

The industry has room for development, VietinbankSC said, adding that power production is projected to grow strongly in the next 25 years and account for 30.8 per cent of national power output in 2045.

At the moment, renewable energy accounts for 12 per cent of the total output.

The cost of production recorded by renewable energy plants is decreasing sharply, especially solar farms, allowing companies in the industry to compete with oil and gas-used power producers, the company said.

VietinbankSC said the renewable energy sector would be a potential investment target for construction firms, power distributors and banks.

“The renewable energy sector will grow at an annual rate of 20 per cent in the next 10 years, doubling the power sector’s average growth rate of nine per cent,” the company forecast.

In 2020-2030, the value of the solar power market will grow 12.8 per cent each year and that of the wind power market will increase by 34.2 per cent each year.

VietibankSC said: “The main reason behind such a fast growth rate is the government’s attempts to become less dependent on thermal and coal power, switching to solar and wind power.

“Renewable energy production may surpass coal power output in 2030,” the company projected.

Vietnam is on course to face the shortage of power in the coming years. Meanwhile, the slow implementation of thermal power projects will affect the supply in the short term.

Therefore, the demand for solar and wind power will increase as those projects are time-saving and cost-saving.

The brokerage firm said: “We believe the government will give priority to the renewable energy sector to support the country’s socio-economic development amid the coming shortage of power supply.

“Power consumption will rise by 10.5 per cent on average each year from 2020 to 2030. The shortage of power will peak in 2023 but decline gradually when large suppliers come into operation.”

Listed companies involved in the renewable energy sector have seen their shares leap in recent months.

Bamboo Capital JSC shares (HoSE: BCG) have soared nearly 40 per cent in the last three months to 7,890 dong ($0.34) apiece on Thursday.

Sao Mai Group shares (HoSE: ASM) gained as much as 110 per cent in more than two months to 10,250 dong apiece early last month before sliding to 9,140 dong on Thursday.

VIET NAM NEWS/ASIA NEWS NETWORK

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