American companies are supposed to compete against cheap coal with expensive wind and solar power. From Vijay Jayaraj at realclearwire.com:
Vietnam and other Asian countries are on a coal spree! Given the dynamics of energy use in the rapidly developing industrial sector there, it is no surprise that these nations have backpedaled on big promises made at international climate conferences to reduce emissions of carbon dioxide from fossil fuels.
Vietnam’s projected 2024 growth rate for Gross Domestic Product (GDP) stands at 5.8%, the sixth highest in Asia. Among the biggest contributors to GDP is the industrial sector (38 percent), especially manufacturing. S&P Global has noted a considerable improvement in Vietnam’s manufacturing sector in the fourth quarter of 2023 and is expecting Vietnam to perform well this year.
Electricity is a cornerstone of manufacturing operations in Vietnam. In 2023, coal produced more than 40% of all electricity in the country, while the country’s abundant hydro reserves contributed around 30%. Natural gas accounted for about 10%.
However, 2024 is expected to see a shortfall in hydroelectric generation because of less rainfall. Simultaneously, electricity production with natural gas is being complicated by forecasts of higher gas prices. Bloomberg reports that state-run PetroVietnam Gas “recently decided not to purchase a cargo for June due to high offer prices.”
