Reporter: Thank you for joining us, Mr. Chandru. Many people see electrification as the backbone of the energy transition. For Vietnam, how does switching to electric power in our homes, transportation, and factories solve the problem of climate change while keeping the economy growing?
Chandru Bharadhwajan: There are three major contributors of CO2 emissions: energy generation, transportation, and industry. If we can electrify all three—if we can get enough renewable power and can use it by having a robust distribution grid—we will eliminate a lot of emissions.
When we talk about the transportation sector, we know the ambitious vision of the Vietnam government of building high-speed rail links and metro lines in Ho Chi Minh City and Hanoi. If those projects are implemented and are powered by renewable energy, it will reduce CO2 emissions significantly by reducing the amount of daily petrol use in the cities.
On the industrial scale, some companies are already planning to invest in manufacturing green steel. This is a pioneer project. If such a project happens in Vietnam, it will not only reduce CO2 emissions, it will put Vietnam in the forefront of steel manufacturing.
So overall, electrification can solve the goals of energy security and net-zero by 2050.
Reporter: For electrification, Vietnam needs advanced "wires and stations", which refers to the physical infrastructure that constitutes the electrical grid for distributing power from generation sources to end-users. How is Hitachi Energy filling that gap, and can things like digital substations and battery storage (BESS) create grid stability?
Chandru: Digital substations and battery storage systems are both critical for ensuring a sustainable and optimized grid, but they’re just two factors in sustainable energy. The transmission grid needs to be more reliable, with support systems like Grid-Forming STATCOM, which can ensure that renewable power is being transmitted without much intermittency. Recently, several EVN distribution companies have planned BESS systems. BESS can support the grid at the distribution level. Digital substations are a way to ensure optimized asset performance in the long run. These technologies need to be part of the energy system in Vietnam.
Green Growth Blueprint:
· 2050 is Vietnam’s deadline for Net-Zero emissions.
· 12% is the annual surge in Vietnam’s power demand—one of the fastest in Asia.
· Tech giants like Apple and Google now require 100% green energy. To keep these investors, Vietnam’s grid must modernize.
· Under the Vietnam Power Development Plan (PDP8), the goal is for renewables to power over 30% of the nation by 2030.
Reporter: Welcome back. Mr. Chandru, speaking of the modern grid, we often hear the term "Smart Grid" associated with AI. From your perspective, how soon will AI actually be able to manage Vietnam’s power?
Chandru: Regarding AI playing a role in smartening the grid, I’m still seeing a few more years before it can happen. Why? Because the power generation and transmission infrastructure of the majority of national assets is not connected to the internet or to the cloud, so AI doesn’t have direct access, real-time data access. So, AI can do very little right now. However, I believe as cyber security increases, as the networks become much more secure, I’m sure the government will make policies in which real-time data is being fed into AI and they can help us. But that’s still, I would say, at least five years away.
Reporter: As imported LNG becomes more expensive and harder to get, what is Hitachi Energy’s “Plan B” in Vietnam?
Chandru: Sourcing LNG is very challenging right now. The price is increasing and increasing and we never know where the price of crude oil is going to go. There is sufficient power generation capacity in central-south Vietnam – say, Ninh Thuan to Vung Tau – that if a dedicated power transmission corridor using a new technology like HVDC (High-Voltage Direct Current) is implemented, which can be done in 5-7 years, the scarcity in the northern part of Vietnam can be addressed in a timely manner. When I say ‘a timely manner’, it will still take 5-7 years but it’s still better than waiting for an LNG turbine or LNG generator supplier to supply that equipment. Hitachi Energy comes into the picture here, as we’ve supplied more than half of the world’s HVDC and we can support Vietnam in that transition.
Reporter: Amid the ongoing global conflict and instability, how urgent do you think it is for Vietnam to speed up the transition from imported fuels to domestic, sustainable electric power?
Chandru: Vietnam has an abundance of renewable power. The amount of offshore potential in Vietnam is more than that of several ASEAN countries combined. But it’s a new technology. It’s a new domain. We observed that, after the Russia-Ukraine conflict started, the European Union sped up its renewables investment plan. They announced substantial investments in renewable energy generation, beefing up the transmission grid, enforcing new technologies like Grid-Forming STATCOM and HVDC. All that takes time and it’s a matter of urgency that we take steps so that the growth of the economy isn’t restricted by a lack of power. But, as I said earlier, if the PDP8 revised draft is implemented in a timely manner, that won’t happen.
Reporter: Thank you, Mr. Chandru Bharadhwajan, for sharing your insights with us today.
