Nghe An and its potential for clean energy production.
Nghe An province has rich potential for developing clean energy and is actively implementing many large-scale projects to shift its energy structure towards sustainability, modernity, and environmental friendliness.
Initial results
Given the urgent need to reduce greenhouse gas emissions, develop a low-carbon economy, and ensure national energy security, the shift to clean and renewable energy sources is becoming an inevitable global trend. Vietnam, with its commitment to achieving net-zero emissions by 2050 at COP26, is taking concrete steps to realize this goal.
Nghe An province possesses very favorable natural conditions for developing renewable energy sources. With an average of 1,800-2,000 hours of sunshine per year, particularly in coastal districts and towns such as Quynh Luu, Dien Chau, Nghi Loc, and Hoang Mai, it is ideal for solar power projects. Some areas with hilly terrain, wide valleys, and coastal regions with stable wind conditions also offer opportunities for wind power projects. Furthermore, Nghe An has a widespread river system, notably the Ca and Hieu rivers, and a dense network of streams, allowing for the efficient exploitation of small-scale hydropower with minimal environmental impact.
Furthermore, with its strengths in agricultural and forestry production, the province also has great potential in developing biomass energy, electricity from waste, and other forms of bioenergy.
With that potential, Nghe An province has actively attracted investment in projects producing input materials as a foundation for developing biomass power in the future. In Yen Xuan commune, KA-Grimex Green Energy Joint Stock Company - a unit of Nghe An Agricultural Materials Corporation - is currently building a biomass pellet production plant using advanced technology from Germany.
Expected to begin operations in Q3 2025, the plant, with an investment of over 400 billion VND and European technology, will utilize planted forests to produce wood pellets, providing fuel for biomass-fired power plants both domestically and internationally in the future. This is not only an effective solution to replace coal in thermal power plants, but also contributes to increasing the value of the local forestry industry.
Biomass Fuel Vietnam Co., Ltd. (BMFV), a Japanese investor located in the VSIP Nghe An Industrial Park, specializes in the production of wood biomass pellets – a clean and environmentally friendly fuel. Established in 2016 and operational since 2018, the company has invested approximately US$24.4 million on a 5-hectare site. Currently, the factory has a capacity of 160,000 tons of pellets per year, utilizing approximately 320,000 tons of raw materials from planted forests and wood by-products. BMFV is collaborating with the USAID-funded Sustainable Forest Management Project to implement dual FSC FM and PEFC FM certification for forest growers in Nghe An province from 2021-2025. The company's biomass pellets are of high quality and exported to Japan, South Korea, and the EU.
Provincial leaders highly appreciate the Japanese investor's project and hope to attract more high-tech, environmentally friendly industrial projects. BMFV's project clearly demonstrates a green and sustainable investment approach, making a positive contribution to local economic development.
Another entity is Thanh Chuong Wood Production and Trading Joint Stock Company, located in Hoa Quan commune (formerly Thanh Chuong district), specializing in the production of biomass pellets from wood by-products and plantation forests. The factory has a capacity of approximately 150,000 tons per year, applies modern European technology, and receives support from the province for technological innovation. Its products are primarily exported to South Korea, with plans to expand into the Japanese and European markets. The project contributes to the development of clean energy, enhances the economic value of forests, and creates jobs for local workers.
Another project is the High-Efficiency Solar Panel Manufacturing Plant of Hainan Drinda New Energy Technology Co., Ltd. (China), with a total investment of up to 450 million USD, preparing for construction in Hoang Mai II Industrial Park.
Nghe An province is gradually diversifying its energy sources. Besides developing hydropower, a sector with potential, the province has focused on proposing investment in the development of LNG, wind, solar, and biomass power, aiming for sustainable local energy development. The province is implementing a proposed plan for renewable and new energy sources (hydropower, wind, solar, biomass) to meet the criteria set out in Resolution No. 55-NQ/TW dated February 11, 2020, of the Politburo on the orientation of the National Energy Development Strategy of Vietnam to 2030, with a vision to 2045.
Currently, the People's Committee of Nghe An province is directing the review of investment procedures for two floating solar power projects: Vuc Mau Lake with a total designed capacity of 160MW and Khe Go Lake with a capacity of 200MW. They are also conducting surveys for the Nam Dan Wind Power Plant project with a capacity of 200MW and the Quynh Lap Wind Power Plant project with a capacity of 70MW. Once operational, these projects will contribute to providing a clean and stable power source for the region.
One direction that Nghe An province is focusing on is the development of rooftop solar power, especially at production facilities, businesses, and households with high electricity demand during the day. Self-producing and consuming solar power not only helps people save on electricity costs but also contributes to reducing the burden on the national power grid, reducing greenhouse gas emissions, promoting a green transition—meeting the increasingly high demands of the international market—and creating a competitive advantage for exports within the community.
Besides solar and biomass power, a major strategic project expected to contribute to the energy transition in Nghe An is the Quynh Lap LNG Power Plant Project. This is one of the key power source projects, prioritized for implementation under the National Power Development Plan for the period 2021-2030, with a vision to 2050 (Power Plan VIII), approved by the Prime Minister in Decision No. 500/QD-TTg dated May 15, 2023, and the implementation plan according to Decision No. 262/QD-TTg dated April 1, 2024. The project has a designed capacity of 1,500 MW, a total investment of approximately US$2.15 billion, and is being implemented in Tan Mai ward (formerly Hoang Mai town).
When completed, the plant will utilize approximately 1.15 million tons of LNG per year and is expected to begin commercial operation before 2030. Although LNG is still a fossil fuel, compared to coal, it has lower CO₂ emissions, making it a necessary transitional option in the energy transition period. Developing LNG power sources is a necessary transitional option in the energy transition period and aligns with the Plan for implementing the Global Declaration on the Transition from Coal to Clean Energy as stipulated in Decision No. 266/QD-TTg dated February 12, 2025, of the Prime Minister.
On February 19, 2025, the Provincial People's Committee issued Document No. 1157/UBND-CN, assigning the Department of Industry and Trade to preside over and coordinate with relevant agencies and units to implement the Plan for the implementation of the Global Declaration on the transition from coal-fired power to clean energy, in accordance with Decision No. 266/QD-TTg of the Prime Minister.
In realizing these goals, Nghe An province clearly defines the roles of businesses, communities, and social organizations. The province is encouraging the development of community-based solar power models, supporting businesses in transitioning to clean energy, and promoting communication activities to raise awareness about environmental protection and efficient electricity use. The energy database system and power transmission and distribution planning are also being reviewed and updated to meet the requirements of clean energy development in a coordinated manner.
We need clearer solutions.
Mr. Pham Van Hoa, Director of the Nghe An Department of Industry and Trade, stated: To promote the development of clean energy sources and renewable energy, and shift towards green energy development, the Department of Industry and Trade will continue to focus on planning and prioritizing proposals for clean energy and renewable energy projects that are suitable to the province's advantages; accelerate the implementation of investment and construction projects that have been approved; create all conditions for investors to access projects to facilitate the implementation process; and closely coordinate with relevant departments, agencies, and localities to advise the Provincial People's Committee during implementation to ensure that projects meet the planned schedule.
However, for clean energy to truly become a cornerstone of the province's energy structure, Nghe An still faces numerous challenges. These include difficulties in land clearance, a shortage of highly skilled technical personnel in clean energy, and the need to comprehensively address specific incentive policies for clean energy projects.
Nevertheless, with strong political determination, dynamic local government administration, and the involvement of businesses, Nghe An is gradually asserting its position as an attractive destination on the national clean energy map. The energy transition process in Nghe An is not only about meeting global trends but also about ensuring energy security, serving investors, protecting the environment, and developing a green economy.
