Low-emissions sources are set to cover almost all the growth in global electricity demand in the next three years

Germany Hydrogen Fuel Cell Market gains momentum as policy, mobility, and R&D align; National Hydrogen Strategy, regulatory frameworks, and cost-of-ownership advances boost heavy transport, while Europe races Asia amid battery-electric competition and infrastructure scale-up.

Key Points

It is Germany and Europe's hydrogen fuel cell ecosystem across policy, costs, R&D, and mobility and freight deployments.

✅ Policy support via National Hydrogen Strategy and tax incentives

✅ TCO parity improves for heavy transport vs other low-emission tech

✅ R&D targets higher temps, compactness for road, rail, sea, air

In a new report examining the status of the German and European hydrogen fuel cell markets, the German government-backed National Platform Future of Mobility (NPM) says there is “a good chance that fuel cell technology can achieve a break-through in mobile applications,” even as the age of electric cars accelerates across markets.

However, Europe must catch up with Asian countries, it adds, even as a push for electricity shapes climate policy. For Germany and Europe to take on a leading role in fuel cell technologies, their industries need to be strengthened and sustainably developed, the report finds. In its paper, the NPM Working Group 4 – which aims to secure Germany as a place for mobility, battery cell production, recycling, training and qualification – states that the “chances of fuel cell technology achieving a break-through in the automotive industry – even in Europe – are better than ever,” echoing recent remarks from BMW's chief about hydrogen's appeal.

The development, expansion and use of the technology in various applications are now supported by “a significantly modified regulatory framework and new political ambitions, as stipulated in the National Hydrogen Strategy,” while updated forecasts show e-mobility driving electricity demand in Germany, the report stresses. In terms of cost of ownership, “hydrogen solutions can hold their own compared to other technologies” and there are “many promising developments in the transport sector, especially in heavy transport.”

If research and development efforts can help optimise installation space and weight as well as increase the operating temperature of fuel cells, hydrogen solutions can also become attractive for maritime, rail and air transport, even as other electrochemical approaches, such as flow battery cars, progress, the report notes. Tax incentives -- such as the Renewable Energy Sources Act (EEG) surcharge exemption for green hydrogen -- can contribute to the technology’s appeal, it adds.

Fuel cell drives are often seen as a way to decarbonise certain areas of transport, such as heavy trucks. However, producing the hydrogen in a sustainable way consumes a lot of renewable electricity that power companies must supply in other sectors, and experts say electricity vs hydrogen trade-offs favor battery-electric trucks because they are much cheaper to run than other low-emission technologies, including fuel cells.

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Canada Electricity Decarbonization Costs indicate challenging greenhouse gas reductions across a fragmented grid, with wind, solar, nuclear, and natural gas tradeoffs, significant GDP impacts, and Net Zero targets constrained by intermittency and limited interties.

Key Points

Costs to cut power CO2 via wind, solar, gas, and nuclear, considering grid limits, intermittency, and GDP impacts.

✅ Alberta model: eliminate coal; add wind, solar, gas; 26-40% CO2 cuts

✅ Nuclear option enables >75% cuts at higher but feasible system costs

✅ National costs 1-2% GDP; reserves, transmission, land, and waste not included

Along with many western developed countries, Canada has pledged to reduce its greenhouse gas emissions by 40–45 percent by 2030 from 2005 emissions levels, and to achieve net-zero emissions by 2050.

This is a huge challenge that, when considered on a global scale, will do little to stop climate change because emissions by developing countries are rising faster than emissions are being reduced in developed countries. Even so, the potential for achieving emissions reduction targets is extremely challenging as there are questions as to how and whether targets can be met and at what cost. Because electricity can be produced from any source of energy, including wind, solar, geothermal, tidal, and any combustible material, climate change policies have focused especially on nations’ electricity grids, and in Canada cleaning up electricity is viewed as critical to meeting climate pledges.

Canada’s electricity grid consists of ten separate provincial grids that are weakly connected by transmission interties to adjacent grids and, in some cases, to electricity systems in the United States. At times, these interties are helpful in addressing small imbalances between electricity supply and demand so as to prevent brownouts or even blackouts, and are a source of export revenue for provinces that have abundant hydroelectricity, such as British Columbia, Manitoba, and Quebec.

Due to generally low intertie capacities between provinces, electricity trade is generally a very small proportion of total generation, though electricity has been a national climate success in recent years. Essentially, provincial grids are stand alone, generating electricity to meet domestic demand (known as load) from the lowest cost local resources.

Because climate change policies have focused on electricity (viz., wind and solar energy, electric vehicles), and Canada will need more electricity to hit net-zero according to the IEA, this study employs information from the Alberta electricity system to provide an estimate of the possible costs of reducing national CO2 emissions related to power generation. The Alberta system serves as an excellent case study for examining the potential for eliminating fossil-fuel generation because of its large coal fleet, favourable solar irradiance, exceptional wind regimes, and potential for utilizing BC’s reservoirs for storage.

Using a model of the Alberta electricity system, we find that it is infeasible to rely solely on renewable sources of energy for 100 percent of power generation—the costs are prohibitive. Under perfect conditions, however, CO2 emissions from the Alberta grid can be reduced by 26 to 40 percent by eliminating coal and replacing it with renewable energy such as wind and solar, and gas, but by more than 75 percent if nuclear power is permitted. The associated costs are estimated to be some $1.4 billion per year to reduce emissions by at most 40 percent, or $1.9 billion annually to reduce emissions by 75 percent or more using nuclear power (an option not considered feasible at this time).

Based on cost estimates from Alberta, and Ontario’s experience with subsidies to renewable energy, and warnings that the switch from fossil fuels to electricity could cost about $1.4 trillion, the costs of relying on changes to electricity generation (essentially eliminating coal and replacing it with renewable energy sources and gas) to reduce national CO2 emissions by about 7.4 percent range from some $16.8 to $33.7 billion annually. This constitutes some 1–2 percent of Canada’s GDP.

The national estimates provided here are conservative, however. They are based on removing coal-fired power from power grids throughout Canada. We could not account for scenarios where the scale of intermittency turned out worse than indicated in our dataset—available wind and solar energy might be lower than indicated by the available data. To take this into account, a reserve market is required, but the costs of operating such a capacity market were not included in the estimates provided in this study. Also ignored are the costs associated with the value of land in other alternative uses, the need for added transmission lines, environmental and human health costs, and the life-cycle costs of using intermittent renewable sources of energy, including costs related to the disposal of hazardous wastes from solar panels and wind turbines.

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EV Charging Infrastructure Expansion accelerates as DC fast charging, Level 2 stations, and 150-350 kW networks grow nationwide, driven by Biden's plan, ChargePoint, EVgo, and Electrify America partnerships at retailers like Walmart and 7-Eleven.

Key Points

The nationwide build-out of public EV chargers, focusing on DC fast charging, kW capacity, and retailer partnerships.

✅ DC fast chargers at 150-350 kW cut charge times

✅ Retailers add ports: Walmart and 7-Eleven expand access

✅ Investments surge via ChargePoint, EVgo, Electrify America

Today’s battery-electric vehicles deliver longer range at a lower cost, are faster and more feature-laden than earlier models. But there’s one particular challenge that still must be addressed: charging infrastructure across the U.S.

That’s a concern that President Joe Biden wants to address, with $174 billion of his proposed infrastructure bill to be used to promote the EV boom while expanding access. About 10 percent of that would help fund a nationwide network of 500,000 chargers.

However, even before a formal bill is delivered to Congress, the pace at which public charging stations are switching on is rapidly accelerating.

From Walmart to 7-Eleven, electric car owners can expect to find more and more charging stations available, as automakers strike deals with regulators, charger companies and other businesses, even as control of charging remains contested.

7-Eleven convenience chain already operates 22 charging stations and plans to grow that to 500 by the end of 2022. Walmart now lets customers charge up at 365 stores around the country and plans to more than double that over the next several years.

According to the Department of Energy, there were 20,178 public chargers available at the end of 2017. That surged to 41,400 during the first quarter of this year, as electric utilities pursue aggressive charging plans.

The vast majority of those available three years ago were “Level 2,” 240-volt AC chargers that would take as much as 12 hours to fully recharge today’s long-range BEVs, like the Tesla Model 3 or Ford Mustang Mach-E. Increasingly, new chargers are operating at 400 volts and even 800 volts, delivering anywhere from 50 to 350 kilowatts. The new Kia EV6 will be able to reach 80 percent of its full capacity in just 18 minutes.

“Going forward, unless there is a limit to the power we can access at a particular location, all our new chargers will have 150 to 350 kilowatt capacity,” Pat Romano, CEO of ChargePoint, one of the world’s largest providers of chargers, told NBC News.

ChargePoint saw its first-quarter revenues jump by 24 percent to $40.5 million this year, a surge largely driven by rapid growth in the EV market. Sales of battery cars were up 45 percent during the first quarter, compared to a year earlier. To take advantage of that growth, ChargePoint added another 6,000 active ports — the electric equivalent of a gas pump — during the quarter. It now has 112,000 active charge ports.

In March, ChargePoint became the world’s first publicly traded global EV charging network. It completed a SPAC-style merger with Switchback Energy Acquisition Corporation. Rival EVgo plans to go through a similar deal this month with the "blank check" company Climate Change Crisis Real Impact Acquisition Corporation (CRIS), which has valued the charge provider at $2.6 billion.

“We look forward to highlighting EVgo’s leadership position and its significant opportunity for long-term growth in the climate critical electrification of transport sector,” CRIS CEO David Crane said Tuesday, ahead of an investor meeting with EVgo.

Electrify America, another emerging giant, has its own deep-pocket backer. The suburban Washington, D.C.-based firm was created using $2 billion of the settlement Volkswagen agreed to pay to settle its diesel emissions scandal. It is doling that out in regular tranches and just announced $200 million in additional investments — much of that to set up new chargers.

Industry investments in BEVs will top $250 million this decade, and could even reach $500 billion. That's encouraging automakers like Volkswagen, Ford and General Motors to tie up with individual charger companies, including plans to build 30,000 chargers nationwide.

In 2019, GM set up a partnership with Bechtel to build a charger network that will stretch across the U.S.

Others are establishing networks of their own, as Tesla has done with its Supercharger network.

Each charging network is leveraging relationships to speed up installations. Ford is offering buyers of its Mustang Mach-E 250 kilowatt-hours of free energy through Electrify America stations and is also partnering with Bank of America to “let you charge where you bank,” the automaker said.

Even if Biden gets his infrastructure plan through Congress quickly, other government agencies are already getting in to the charger business, even as state power grids brace for increased loads. That includes New York State which, in May, announced plans to put 150 new ports into place by year-end.

"Expanding high-speed charging in local markets across the state is a crucial step in encouraging more drivers to choose EVs,” said Gov. Andrew Cuomo, adding that, "public-private partnerships enable New York to build a network of fast, affordable and reliable electric vehicle public charging stations in a nimble and affordable way."

One of the big questions is how many charging stations actually are needed. There are 168,000 gas stations in the U.S., according to the Dept. of Energy. But the goal is not a one-for-one match, stressed ChargePoint CEO Romano, because “80 percent of EV owners today charge at home, and energy storage promises added flexibility, … and we expect that to continue to be the case."

But there are still many potential owners who won’t be able to set up their own chargers, and a network will still be needed for those driving long distances. Until that happens, many motorists will be reluctant to switch.

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Germany is extending its vehicle tax exemption for electric cars until 2035, a federal move aimed at boosting EV sales, supporting the auto industry, and advancing the country’s transition to cleaner, more sustainable transportation.

Why is Germany Exempting EVs from Vehicle Tax Until 2035?

Germany is exempting electric vehicles from vehicle tax until 2035 to boost EV adoption, support its auto industry, and meet national climate targets.

✅ Encourages consumers to buy zero-emission cars

✅ Protects jobs in the automotive sector

✅ Advances Germany’s clean energy transition

Germany’s federal government has confirmed plans to extend the country’s vehicle tax exemption for electric cars until 2035, as part of a renewed push to accelerate the nation’s e-mobility transition and support its struggling automotive industry. The move, announced by Finance Minister Lars Klingbeil, comes just weeks before the existing exemption was set to expire.

“In order to get many more electric cars on the road in the coming years, we need to provide the right incentives now,” Klingbeil told the German Press Agency (DPA). “That is why we will continue to exempt electric cars from vehicle tax.”

Under the proposed law, the exemption will apply to new fully electric vehicles registered until December 31, 2030, with benefits lasting until the end of 2035. According to the Finance Ministry, the measure aims to “provide an incentive for the early purchase of a purely electric vehicle.” While popular among consumers and automakers, the plan is expected to cost the federal budget several hundred million euros in lost revenue.

Without the extension, the tax relief for new battery-electric vehicles (BEVs) would have ended on January 1, 2026, creating uncertainty for automakers and potential buyers. The urgency to pass the new legislation reflects the government’s goal to maintain Germany’s momentum toward electrification, even as the age of electric cars accelerates amid economic headwinds and fierce international competition.

The exemption’s renewal was originally included in the coalition agreement between the Christian Democratic Union (CDU), the Christian Social Union (CSU), and the Social Democratic Party (SPD). It follows two other measures from the government’s “investment booster” package—raising the maximum gross price for EV tax incentives to €100,000 and allowing special depreciation for electric vehicles. However, the vehicle tax measure was previously in jeopardy due to Germany’s tight fiscal situation. The Finance Ministry had cautioned that every proposal in the coalition deal was “subject to financing,” and a plan to end EV subsidies led to speculation that the EV tax break could be dropped altogether.

Klingbeil’s announcement coincides with an upcoming “automotive dialogue” summit at the Chancellery, hosted by Chancellor Friedrich Merz. The meeting will bring together representatives from federal ministries, regional governments, automakers advancing initiatives such as Daimler’s electrification plan across their portfolios, and trade unions to address both domestic and international challenges facing Germany’s car industry. Topics will include slowing EV sales growth in China, the ongoing tariff dispute with the United States, where EPA emissions rules are expected to boost EV sales, and strategies for strengthening Germany’s global competitiveness.

“We must now put together a strong package to lead the German automotive industry into the future and secure jobs,” Klingbeil said. “We want the best cars to continue to be built in Germany. Everyone knows that the future is electric.”

The government is also expected to revisit a proposed program to help low- and middle-income households access electric cars, addressing affordability concerns that persist across markets, modelled on France’s “social leasing” initiative. Though included in the coalition agreement, progress on that program has stalled, and few details have emerged since its announcement.

Germany’s latest tax policy move signals renewed confidence in its electric vehicle transition, despite budget constraints and a turbulent global market, as the 10-year EV outlook points to most cars being electric worldwide. Extending the exemption until 2035 sends a clear message to consumers and manufacturers alike: the country remains committed to building its clean transport future—one electric car at a time.

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Electric Car Motors convert electricity to torque via rotor-stator magnetic fields, using AC/DC inverters, permanent magnets or induction designs; they power EV powertrains efficiently and enable regenerative braking for energy recovery and control.

Key Points

Electric car motors turn electrical energy into wheel torque using rotor-stator fields, inverters, and AC or DC control.

✅ AC induction, PMSM, BLDC, and reluctance architectures explained

✅ Inverters manage AC/DC, voltage, and motor speed via frequency

✅ Regenerative braking recovers energy and reduces wear

When was the last time you stopped to think about how electric cars actually work, especially if you're wondering whether to buy an electric car today? We superfans of the car biz have mostly developed a reasonable understanding of how combustion powertrains work. Most of us can visualize fuel and air entering a combustion chamber, exploding, pushing a piston down, and rotating a crankshaft that ultimately turns the wheels. We generally understand the differences between inline, flat, vee-shaped, and maybe even Wankel rotary combustion engines.

Mechanical engineering concepts such as these are comparatively easy to comprehend. But it's probably a fair bet to wager that only a minority of folks reading this can explain on a bar napkin exactly how invisible electrons turn a car's wheels or how a permanent-magnet motor differs from an AC induction one. Electrical engineering can seem like black magic and witchcraft to car nuts, so it's time to demystify this bold new world of electromobility, with the age of electric cars arriving ahead of schedule.

How Electric Cars Work: Motors
It has to do with magnetism and the natural interplay between electric fields and magnetic fields. When an electrical circuit closes allowing electrons to move along a wire, those moving electrons generate an electromagnetic field complete with a north and a south pole. When this happens in the presence of another magnetic field—either from a different batch of speeding electrons or from Wile E. Coyote's giant ACME horseshoe magnet, those opposite poles attract, and like poles repel each other.

Electric motors work by mounting one set of magnets or electromagnets to a shaft and another set to a housing surrounding that shaft. By periodically reversing the polarity (swapping the north and south poles) of one set of electromagnets, the motor leverages these attracting and repelling forces to rotate the shaft, thereby converting electricity into torque and ultimately turning the wheels, in a sector where the electric motor market is growing rapidly worldwide. Conversely—as in the case of regenerative braking—these magnetic/electromagnetic forces can transform motion back into electricity.

How Electric Cars Work: AC Or DC?
The electricity supplied to your home arrives as alternating current (AC), and bidirectional charging means EVs can power homes for days as needed, so-called because the north/south or plus/minus polarity of the power changes (alternates) 60 times per second. (That is, in the United States and other countries operating at 110 volts; countries with a 220-volt standard typically use 50-Hz AC.) Direct current (DC) is what goes into and comes out of the + and - poles of every battery. As noted above, motors require alternating current to spin. Without it, the electromagnetic force would simply lock their north and south poles together. It's the cycle of continually switching north and south that keeps a motor spinning.

Today's electric cars are designed to manage both AC and DC energy on board. The battery stores and dispenses DC current, but again, the motor needs AC. When recharging the battery, and with increasing grid coordination enabling flexibility, the energy comes into the onboard charger as AC current during Level 1 and Level 2 charging and as DC high-voltage current on Level 3 "fast chargers." Sophisticated power electronics (which we will not attempt to explain here) handle the multiple onboard AC/DC conversions while stepping the voltage up and down from 100 to 800 volts of charging power to battery/motor system voltages of 350-800 volts to the many vehicle lighting, infotainment, and chassis functions that require 12-48-volt DC electricity.

How Electric Cars Work: What Types Of Motors?
DC Motor (Brushed): Yes, we just said AC makes the motor go around, and these old-style motors that powered early EVs of the 1900s are no different. DC current from the battery is delivered to the rotor windings via spring-loaded "brushes" of carbon or lead that energize spinning contacts connected to wire windings. Every few degrees of rotation, the brushes energize a new set of contacts; this continually reverses the polarity of the electromagnet on the rotor as the motor shaft turns. (This ring of contacts is known as the commutator).

The housing surrounding the rotor's electromagnetic windings typically features permanent magnets. (A "series DC" or so-called "universal motor" may use an electromagnetic stator.) Advantages are low initial cost, high reliability, and ease of motor control. Varying the voltage regulates the motor's speed, while changing the current controls its torque. Disadvantages include a lower lifespan and the cost of maintaining the brushes and contacts. This motor is seldom used in transportation today, save for some Indian railway locomotives.

Brushless DC Motor (BLDC): The brushes and their maintenance are eliminated by moving the permanent magnets to the rotor, placing the electromagnets on the stator (housing), and using an external motor controller to alternately switch the various field windings from plus to minus, thereby generating the rotating magnetic field.

Advantages are a long lifespan, low maintenance, and high efficiency. Disadvantages are higher initial cost and more complicated motor speed controllers that typically require three Hall-effect sensors to get the stator-winding current phased correctly. That switching of the stator windings can result in "torque ripple"—periodic increases and decreases in the delivered torque. This type of motor is popular for smaller vehicles like electric bikes and scooters, and it's used in some ancillary automotive applications like electric power steering assist.

Permanent-Magnet Synchronous Motor (PMSM): Physically, the BLDC and PMSM motors look nearly identical. Both feature permanent magnets on the rotor and field windings in the stator. The key difference is that instead of using DC current and switching various windings on and off periodically to spin the permanent magnets, the PMSM functions on continuous sinusoidal AC current. This means it suffers no torque ripple and needs only one Hall-effect sensor to determine rotor speed and position, so it's more efficient and quieter.

The word "synchronous" indicates the rotor spins at the same speed as the magnetic field in the windings. Its big advantages are its power density and strong starting torque. A main disadvantage of any motor with spinning permanent magnets is that it creates "back electromotive force" (EMF) when not powered at speed, which causes drag and heat that can demagnetize the motor. This motor type also sees some duty in power steering and brake systems, but it has become the motor design of choice in most of today's battery electric and hybrid vehicles.

Note that most permanent-magnet motors of all kinds orient their north-south axis perpendicular to the output shaft. This generates "radial (magnetic) flux." A new class of "axial flux" motors orients the magnets' N-S axes parallel to the shaft, usually on pairs of discs sandwiching stationary stator windings in between. The compact, high-torque axial flux orientation of these so-called "pancake motors" can be applied to either BLDC or PMSM type motors.

AC Induction: For this motor, we toss out the permanent magnets on the rotor (and their increasingly scarce rare earth materials) and keep the AC current flowing through stator windings as in the PMSM motor above.

Standing in for the magnets is a concept Nikola Tesla patented in 1888: As AC current flows through various windings in the stator, the windings generate a rotating field of magnetic flux. As these magnetic lines pass through perpendicular windings on a rotor, they induce an electric current. This then generates another magnetic force that induces the rotor to turn. Because this force is only induced when the magnetic field lines cross the rotor windings, the rotor will experience no torque or force if it rotates at the same (synchronous) speed as the rotating magnetic field.

This means AC induction motors are inherently asynchronous. Rotor speed is controlled by varying the alternating current's frequency. At light loads, the inverter controlling the motor can reduce voltage to reduce magnetic losses and improve efficiency. Depowering an induction motor during cruising when it isn't needed eliminates the drag created by a permanent-magnet motor, while dual-motor EVs using PMSM motors on both axles must always power all motors. Peak efficiency may be slightly greater for BLDC or PMSM designs, but AC induction motors often achieve higher average efficiency. Another small trade-off is slightly lower starting torque than PMSM. The GM EV1 of the mid-1990s and most Teslas have employed AC Induction motors, despite skepticism about an EV revolution in some quarters.

Reluctance Motor: Think of "reluctance" as magnetic resistance: the degree to which an object opposes magnetic flux. A reluctance motor's stator features multiple electromagnet poles—concentrated windings that form highly localized north or south poles. In a switched reluctance motor (SRM), the rotor is made of soft magnetic material such as laminated silicon steel, with multiple projections designed to interact with the stator's poles. The various electromagnet poles are turned on and off in much the same way the field windings in a BLDC motor are. Using an unequal number of stator and rotor poles ensures some poles are aligned (for minimum reluctance), while others are directly in between opposite poles (maximum reluctance). Switching the stator polarity then pulls the rotor around at an asynchronous speed.

A synchronous reluctance motor (SynRM) doesn't rely on this imbalance in the rotor and stator poles. Rather, SynRM motors feature a more distributed winding fed with a sinusoidal AC current as in a PMSM design, with speed regulated by a variable-frequency drive, and an elaborately shaped rotor with voids shaped like magnetic flux lines to optimize reluctance.

The latest trend is to place small permanent magnets (often simpler ferrite ones) in some of these voids to take advantage of both magnetic and reluctance torque while minimizing cost and the back EMF (or counter-electromotive force) high-speed inefficiencies that permanent-magnet motors suffer.

Advantages include lower cost, simplicity, and high efficiency. Disadvantages can include noise and torque ripple (especially for switched reluctance motors). Toyota introduced an internal permanent-magnet synchronous reluctance motor (IPM SynRM) on the Prius, and Tesla now pairs one such motor with an AC induction motor on its Dual Motor models. Tesla also uses IPM SynRM as the single motor for its rear-drive models.

Electric motors may never sing like a small-block or a flat-plane crank Ferrari. But maybe, a decade or so from now, we'll regard the Tesla Plaid powertrain as fondly as we do those engines, even as industry leaders note that mainstream adoption faces hurdles, and every car lover will be able to describe in intimate detail what kind of motors it uses.
 

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ThangLong Wind Project Vietnam targets $12b, 3,400 MW offshore wind in Binh Thuan, aligned with PDP8, 2025-2028 timeline, EVN grid integration, and private transmission lines to support renewable energy growth and local industry.

Key Points

A $12b, 3,400 MW offshore wind farm off Binh Thuan, aiming first power by 2025 and full capacity by 2028.

✅ 20-60 km offshore; 30-55 m water depth site

✅ Seeks licenses for private transmission lines, beyond EVN

✅ 50% local spend; boosts supply chain and jobs

U.K. energy firm Enterprize Energy, reflecting momentum in UK offshore wind, wants to begin operating its $12-billion offshore wind power project in central Vietnam by the end of 2025.
Company chairman Ian Hatton proposed the company’s ThangLong Wind Project in the central province of Binh Thuan be included in Vietnam’s 8th National Power Development Plan, which is being drafted at present, so that at least part of the project can begin operations by the end of 2025 and all of it by 2028.

Renewable energy is a priority in the development plan that the Ministry of Industry and Trade will submit to the government next month. About 37.5 percent of new energy supply in the next decade will come from renewable energy, aligning with wind leading the power mix trends globally, it envisages.

However, due to concerns of overload to the national grid, and as build-outs like North Sea wind farms show similar coordination needs, Hatton, at a Wednesday meeting with Prime Minister Nguyen Xuan Phuc and U.K. Minister of State for Trade Policy Greg Hands, proposed the government gives Enterprize Energy licenses to develop transmission lines to handle future output.

Developing transmission lines in Vietnam has been the exclusive preserve of the national utility Vietnam Electricity (EVN), and large domestic projects such as the Hoa Binh hydropower expansion have typically aligned with this framework.

The 3,400-megawatt ThangLong Wind Project is to be located between 20 and 60 kilometers off the coast of Binh Thuan, mirroring international interest where Japanese utilities in UK offshore wind have scaled similar assets, at a depth of 30-55 meters. Enterprize Energy had said wind resources in this area exceed its expectations.

The project’s construction is expected to stimulate Vietnam’s economic growth, and experiences from U.S. offshore wind competitiveness suggest improving economics, with 50 percent of construction and operational expenses made locally.

Vietnam needs $133.3 billion over the next decade for building new power plants and expanding the grid to meet the growing demand for electricity, while regional agreements like a Bangladesh power supply deal illustrate rising demand, the ministry has estimated.

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