Hanoi, 03 November 2022 – The technology group Wärtsilä, a global leader in providing flexible energy solutions, today organised a seminar titled “Flexible internal combustion engines (ICE’s): technologies & solutions for Vietnam's power system" in Hanoi. The event was supported by the Embassy of Finland and was attended by key stakeholders, both public and private, of Vietnam’s energy sector.
The event aimed to share the latest developments of ICE technology and highlight the benefits of having ICE technology in the capacity mix of Vietnam’s power system. It was commenced with opening addresses from H.E. Keijo Norvanto - Finland’s Ambassador to Vietnam, Mr. Le Viet Cuong – Deputy Director, Institute of Energy, Ministry of Industry and Trade, and Mr. Nicolas Leong – Director, North & Southeast Asia, Wärtsilä Energy.
Experts at the seminar provided updates and insights into Vietnam’s current power system and the country’s cost-optimal roadmap to net zero. According to Wärtsilä’s power system modelling, flexible technologies such as ICE can play a fundamental role in the energy transition by enabling integration of increasing amounts of renewables. In addition, technical experts from Wärtsilä presented a feasibility study to develop a 300 MW ICE power plant which would provide the needed balancing power in the Vietnam’s power system.
“Vietnam will add a large amount of new power generation capacity to meet the growing demand for electricity in the coming years. At the same time, Vietnam is committed to achieving net zero target by 2050, and we will see increasing amounts of renewables to be added in the power system. Our flexible ICE power plants and energy storage solutions will help Vietnam to accelerate the energy transition by balancing the intermittent renewables and ensuring stable and reliable grid,” shared Mr. Nicolas Leong, Director, North & Southeast Asia, Wärtsilä Energy, in his opening remark.
Balancing renewables is key
Vietnam’s power demand has been growing faster than in all other Southeast Asian countries, at around 10% per year in the last decade. The latest draft of the Power Development Plan (PDP) 8 in October 2022 indicated that renewable energy will account for 25% of installed capacity in the power system by 2030 and the share of renewables will be increased significantly to 55% by 2050 in order to achieve the net zero target by 2050. The draft PDP8 has also recognised the importance of having flexible assets in a high renewable energy power system. The needed flexibility can be provided by various balancing solutions such as pumped hydro, battery energy storage and flexible gas based on ICE technology.
Speaking about the role of ICE technology in Vietnam’s power system, Mr. Le Viet Cuong, Deputy Director, Institute of Energy, Ministry of Industry and Trade (MOIT) commented: "During the process of our consultation to MOIT to develop the new Power Development Plan (PDP) 8, one of the important solutions which has been proposed is to gradually increase the amount of flexible sources in the power system. Flexible technologies have many advantages when implemented in the power system, such as quick start and stop, baseload, peak load, low minimum load, and flexibility of generation at the request of the power system operator."
In September 2022, Wärtsilä published a report titled “Rethinking Energy in Southeast Asia” that modelled cost-optimal roadmaps to reach net zero power systems in three Southeast Asian countries: Vietnam, the Philippines and Indonesia. The modelling highlighted the role of ICE technology and energy storage in reaching Vietnam’s net zero target by 2050. Key findings of the report were that a combination of renewables plus flexibility, provided by balancing engines (ICE) and energy storage (ESS), can reliably meet Vietnam’s increasing power demand, and reaching net zero is feasible with current technologies and does not need to increase the overall power system cost.
Finland’s Ambassador to Vietnam, H.E Keijo Norvanto commented: "The government of Vietnam has committed to net zero by 2050, and power sector plays an important role in achieving this target. Vietnam's next national power development plan (PDP8), will be finalised in the near future with more emphasis on renewable energy development and reduce coal step by step. This would be a very positive development in the power sector of Vietnam. Finnish technology providers such as Wärtsilä are looking forward to contributing to PDP8 implementation and supporting Vietnam in developing renewable energy, achieving net zero targets and ensuring energy security by providing the needed flexible technologies.”
Wärtsilä’s ICE power plants are modular in design and can be delivered on a fast-track basis (within 12 months) to provide the needed electricity quickly and ensure energy security. 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 reach full load in less than 2 minutes. Together with energy storage systems, ICE power plants can help support the renewable energy integration, maintain system stability and reliability, and optimise the power system.
Up to date, Wärtsilä has delivered more than 76 GW of ICE power plants in 180 countries.
Pham Minh Thanh (Mr.)
Country Manager, Energy, Wärtsilä Vietnam
Notes to Editors:
Wärtsilä Energy in brief
Wärtsilä Energy leads the transition towards a 100% renewable energy future. We help our customers in decarbonisation by developing market-leading technologies. These cover future-fuel enabled balancing power plants, hybrid solutions, energy storage and optimisation technology, including the GEMS energy management platform. Wärtsilä Energy’s lifecycle services are designed to increase efficiency, promote reliability and guarantee operational performance. Our track record comprises 76 GW of power plant capacity and 110 energy storage systems delivered to 180 countries around the world.
Wärtsilä in brief
Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve their environmental and economic performance. Our dedicated and passionate team of 17,000 professionals in more than 200 locations in 68 countries shape the decarbonisation transformation of our industries across the globe. In 2021, Wärtsilä’s net sales totalled EUR 4.8 billion. Wärtsilä is listed on Nasdaq Helsinki.