Volume 51

Stranded asset from city level energy transition in Hanoi, Vietnam Nguyen Thi Quynh Trang, Takuro Kobashi

Abstract

We employed a techno-economic analysis to assess the feasibility and implications of a green energy transition at the city level, focusing on the potential for stranded assets. We explore the integration of rooftop photovoltaics (PV) and electric vehicles (EVs), highlighting a promising future where self-consumption can reach 100% and energy self-sufficiency can rise to 60%, alongside a 52% reduction in CO2 emissions and cost savings of up to 10%. The transition in Hanoi is estimated to result in $7.4 billion in stranded assets, while also generating 5,000 new jobs in the PV supply chain and achieving a net present value (NPV) of $4.7 billion. Despite the PV+EV system’s inability to fully meet the city’s electricity demand, our research confirms that it is a cost-effective solution, with the levelized cost of electricity (LCOE) reaching a low of 6.59 cents/kWh. However, considerations regarding stranded assets and grid integration capacities are crucial for a rapid transition.

Keywords Energy transition, urban decarbonization, rooftop PV, Stranded asset