Leading the energy transition

Wärtsilä Energy, a global leader in providing flexible energy solutions based on internal combustion engine (ICE) technologies and Energy Storage Systems, today attended the launch event of a report titled “The need for flexible internal combustion engine power plants and their applications in Vietnam’s future power system”. The event took place at the Meliá Hanoi Hotel in Hanoi, and included a presentation by Wärtsilä on how its flexible energy solutions based on ICE technology could support Vietnam’s power supply system. The event was co-hosted by the Embassy of Finland and the Institute of Energy (IE) under the Ministry of Industry and Trade, and was attended by key stakeholders, both public and private, of Vietnam’s energy sector.

The report had been prepared by IE, with the support of energy professionals from Finland, to study how flexible power plants could support the power system of Vietnam in the coming years. The report addresses the current challenges being faced by Vietnam’s power system, including the high electricity demand growth rate, power shortages, renewable energy integration, and the potential application of ICE power plants in the future power development plan of Vietnam. The report considers various scenarios in different planning horizons: long-term (2020 – 2050), medium-term (2020 – 2030) and short-term (2020 – 2025).

Wärtsilä’s experts at the event included Mr. Frederic Carron, Vice President, Middle East & Asia, Wärtsilä Energy Business, who delivered the opening remarks; Mr. Nicolas Leong, Energy Business Director, North & South East Asia, who offered insights into the global energy transition and the implications for power systems with a high content of renewables; and Mr. Pham Minh Thanh, Country Manager, Vietnam, who presented Wärtsilä’s fast-track and flexible gas-to-power solutions based on ICE technology for Vietnam.

Vietnam is one of the world’s fastest growing economies with a high energy demand growth rate. This has required the country to add more electricity generation capacity to support its social-economic development. Currently, many of the large thermal power plant projects planned have been significantly delayed, thus putting Vietnam at risk of facing severe power shortages over the next few years.

Vietnam has been taking advantage of falling costs of renewable energy technologies. The extremely rapid increase in the share of electricity production from solar PV and wind by early 2020 has far exceeded the objective set out in the revised National Power Development Plan VII (PDP 7). However, the power generation sources are dominated by traditional thermal capacity (coal and combined cycle gas turbines), while at the same time, the potential for large hydro power plants is already reaching its limit. It is quite clear that the current power system is facing challenges to integrate these renewable energy plants reliably and efficiently into the grid.

Wärtsilä’s engine power plants are modular in design and can be delivered on a fast-track basis (within 12 months) to provide the needed electricity quickly. At the same time, these plants are renowned for their high level of flexibility as they can synchronise to the grid in less than 30 seconds from start-up, and can reach full load in less than 2 minutes. Together with energy storage systems, ICE power plants can help to balance the renewable energy supply, maintain system stability and reliability, and optimise the power system.

“Our ICE power plants should be an important part of the solution to tackle the challenges that Vietnam’s power system is facing. In the short-term, ICE power plants can help meet the growing energy demand efficiently, while over the long-term they can provide reserve capacity and balance the renewables in the grid as part of the transition towards a high-renewable energy future”, said Mr. Pham Minh Thanh, Country Manager, Vietnam, Wärtsilä.

Finland’s Ambassador to Vietnam, H.E. Kari Kahiluoto commented; “The Embassy of Finland has been working closely with major Finnish energy companies and key stakeholders in Vietnam’s energy sector to promote the increased use of renewable and clean energy. Both play a vital role in Vietnam as the country is among the most vulnerable nations to be impacted by climate change. Wärtsilä is a front runner in developing sustainable solutions and a leader in the energy transition. I look forward to seeing Wärtsilä’s solutions supporting the increasing share of renewables in the power mix, enabling a sustainable growth of Vietnam’s energy system, and meeting the demands of the growing economy”.

To date, Wärtsilä has delivered a total capacity of more than 72 GW in 180 countries of which nearly 10 GW is within the South East Asia region.

Full report is available at:
www.wartsila.com/vietnamenergy(English)
www.wartsila.com/vi/nangluong (Vietnamese)

Press contact:

Pham Minh Thanh (Mr.)
Country Manager, Vietnam, Wärtsilä
Email: thanh.pham@wartsila.com

Nguyen Minh Phuong (Ms.)
Jolen Consulting
Email: phuong@jolenconsulting.com

Wärtsilä Energy Business in brief
Wärtsilä Energy Business leads the transition towards a 100% renewable energy future. We help our customers unlock the value of the energy transition by optimising their energy systems and future-proofing their assets. Our offering comprises flexible power plants, energy management systems, and storage, as well as lifecycle services that ensure increased efficiency and guaranteed performance. Wärtsilä has delivered 72 GW of power plant capacity in 180 countries around the world.
www.wartsila.com/energy

Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2019, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com