Vietnam Sets Eyes on Renewable Development Surge
The Vietnamese renewables industry has been gaining traction lately as the country recognises greener energy will play a pivotal role in achieving the optimistic Power Development Plant (PDP). The PDP is envisaged to improve electricity infrastructure and expand renewable energy generation in the power mix to accelerate the journey to zero emissions. Against this backdrop, solar PV and wind is expected to steer the Vietnamese power sector towards decarbonisation, as the cost of solar PV systems and wind projects will drop by 25 per cent and 17 per cent respectively by 2030 according to GlobalData, a data and analytics company.
Achievable energy goals
Ankit Mathur, Practice Head of Power at GlobalData, said: “Vietnam’s installed power capacity is likely to reach approximately 135 Gigawatts, growing by more than two folds from 55GW at the end of 2019. The renewable sources (including hydropower) are likely to fuel about half of the new overall capacity built of estimated 80GW by 2030. Solar PV and wind are likely to be the renewable flag bearers with more than 80 per cent of the anticipated renewable capacity to be dominated by these two technologies. So far, solar PV has witnessed a staggering growth of about 1,000 times from a meagre 7.4 MW to an estimated 7GW+ by the end of 2020.”
The country has revealed a clear roadmap that has attracted investor interest and boosted the confidence of an attractive and sizeable renewable market among the Southeast Asian counterparts in the future. Although COVID-19 is continuing to unfold in unpredictable ways, it has a limited impact on investor sentiment. Vietnam’s renewable sector witnessed an improvement in the deal volume with 19 asset transactions deals recorded by end November 2020 against the 16 deals during 2019.
- Vietnam’s power capacity likely to reach 135GW by 2030
- Reduction costs helping SE Asia to realise benefits of decarbonisation
- Cost of wind power set to decrease by 17 per cent in the next decade
Work still needed to pursue targets
Mathur concludes: “Amid the pandemic, the country has to review the PDP blue-print providing more support and transparency to the power sector players and investors with cost benefits and flexible approach for developing projects. To achieve the power sector decarbonisation and energy sustainability, Vietnam should also compliment the renewable expansion by providing multiple provisions and mechanisms for greater transparency for the investors. Some of these mechanisms include encouraging technological developments, simplifying regulatory approvals and expansion of transmission, and grid infrastructure for a successful implementation of the renewables in the power grid.”
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Gartner: Leaders Lack Skilled Smart Manufacturing Workers
With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.
While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.
“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.
“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”
Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.
“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.
Technology and People
While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.
“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.
Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.