Vietnam's coal share rises to over half of power generation despite 2050 phase-out goal
Coal supplied about 50.6% of Vietnam's electricity from January to August 2026, up 1.3 points from the previous year, even as the country aims to end coal use by 2050.
Vietnam's reliance on coal intensified in 2026, with coal-fired stations delivering 50.6% of the nation's electricity between January and August, a rise of 1.3 percentage points over the previous year. This shift occurs as overall power demand climbs and alternative-fuel projects lag behind schedule. Conflict in the Middle East has exposed the volatility of imported LNG, whose spot prices surged from around $10 to $26-30 per MMBtu during 2026, challenging planners who had expected gas to take a larger share.
State utility Vietnam Electricity (EVN) recorded total generation and imports of roughly 322.81 bn kWh for 2025, with coal contributing 144.78 bn kWh (44.85%). Existing coal capacity stood at about 28,100 MW, representing 32.1% of installed capacity, and the revised Power Development Plan VIII projects coal capacity to reach about 31,055 MW by 2030 under strict conditions. Energy experts suggest retaining part of one outlet coal fleet for reliability while setting clear retirement timelines, and the government plans to commission two nuclear plants with a combined capacity of 4,000-6,400 MW between 2030 and 2035.
Why it matters
Vietnam's growing coal dependence challenges its climate targets and raises energy-security concerns amid volatile gas markets.
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