SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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THE PRIME MINISTER
No: 500/QĐ-TTg
Ha Noi, May 2023
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DECISION
APPROVAL OF NATIONAL POWER DEVELOPMENT PLAN FOR 2021 - 2030 PERIOD, WITH A VISION TO 2050
Article 1. To approve the National Power Development Plan for the 2021 - 2030 period, with a vision to 2050 (NPDP 8), with the following contents:
I. SCOPE OF PLANNING
To develop the power sources and transmission grid at the voltage levels of 220kV or higher, renewable and new energy industries and services in Viet Nam for the 2021 – 2020 period, with a vision to 2050, including grid interconnection with neighboring countries.
II. DEVELOPMENT VIEWPOINTS AND OBJECTIVES
1. Development viewpoints:
a. Electricity is an essential infrastructure sector. Developing the electricity sector one step ahead creates the foundation for rapid and sustainable national development, an independent and self-reliant economy, improving people's living standards, and ensuring national defense and security. Electricity development must have a long-term, effective, and sustainable vision and prioritize the nation's and people's interests first and foremost.
b. Electricity development shall be based on the principle of optimizing factors related to power sources, electricity transmission and distribution, economical and efficient use of energy, following a suitable roadmap coupled with resources conservation and environmental protection, and shifting economic model, ensuring national energy security at an affordable price.
c. Electricity development planning must be science-based, inheritant, dynamic, and open without legitimizing transgressions. Efficiently exploit and use domestic power resources, incorporating rational electricity import and export, as well as economical and efficient use of energy. To consider renewable and new energy development as an opportunity to develop the comprehensive energy industry ecosystem.
d. The State focuses on investment and encouraging all economic sectors to participate in the development of the electricity sector on the basis of healthy competition, implement market-based mechanism for electricity pricing, ensuring the benefits of all actors who invest in electricity development or use electricity, and meet the development requirements of regions and areas.
dd. To align electricity development with scientific and technological advancements in the world, especially renewable and new energy, contributing to the country's transition towards a green, circular, and low-carbon economy. The energy transition needs to be in line with the global trend, ensuring sustainability, equity, and justice.
2. Development Targets:
a) Overall targets
- To ensure national energy security for socio-economic development, industrialization, and modernization.
- To successfully carry out just energy transition in conjunction with modernizing electricity generation, establishing smart electricity grid, managing advanced power systems towards the green transition, emissions reduction, and scientific and technological development.
- To formulate the energy industry ecosystem based on renewable and new energy.
b) Specific targets
- Regarding national energy security assurance:
+ To ensure adequate electricity supply for the domestic demand, meeting the national socio-economic development goals with average GDP growth of approximately 7%/year in the 2021 – 2030 period and about 6.5 – 7.5%/year in the 2031 – 2050 period:
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Commercial electricity is expected to reach about 335.0 billion kWh by 2025; about 505.2 billion kWh by 2030; about 1,114.1 – 1,254.6 billion kWh by 2050.
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Domestic electricity generation and electricity imports: reaching about 378.3 billion kWh by 2025; about 567.0 billion kWh by 2030; about 1,224.3 – 1,378.7 billion kWh by 2050.
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Peek capacity: reaching about 59,318 MW by 2025; about 90,512 MW by 2030; about 185,187 – 208,555 MW by 2050.
+ To ensure safe and trusted power supply, meeting N-1 standard for important load areas and N-2 standard for special important load areas. By 2030, the reliability of the electricity supply is expected to rank among the top four countries in ASEAN, with an electricity access index among the top three.
+ By 2030, 50% of office buildings and 50% of residential dwellings shall use self-consumption rooftop solar power (for on-site consumption, not for sale into the national electricity system).
- Regarding just energy transition: Regarding renewable energy industry ecosystem and services development:
+ By 2030, the share of renewable energy is expected to reach about 30.9-39.2%, or 47% provided that partners fully implement their commitments under the Political Declaration on establishing the Just Energy Transition Partnership (JETP) with Viet Nam. By 2050, the share of renewable energy is projected to increase to 67.7–71.5%.
+ To control greenhouse gas emissions from power generation at around 204-254 million metric tons (MT) by 2030 and around 27-31 million MT by 2050. The goal is to achieve peak emissions of no more than 170 million tons by 2030 in the condition that international partners fully implement the JETP commitments.
+ Build smart electricity grid system capable of integrating and operating large-scale renewable energy sources safely and effectively.
+ By 2030, it is expected to establish two inter-regional renewable energy industry and services hubs for electricity production, transmission, and consumption; renewable energy equipment manufacturing, construction, installation, related services, and building renewable energy industrial ecosystems in certain well-positioned regions such as the Northern, South Central, and the Southern regions.
+ To develop electricity sources from renewable energy and produce new exportable energy. Electricity export capacity is expected to reach approximately 5,000 - 10,000 MW by 2030.
III. ORIENTATIONS FOR NATIONAL ELECTRICITY DEVELOPMENT
1. Development plan for power source
a. Development orientations
- To develop a synchronised and diversified range of power sources with rational structure to ensure energy security, increase the self-reliance of the power sector, and decrease the dependence on imported fuel.
- To continue to promote the development of renewable power sources (hydropower, onshore and offshore wind power, solar power, biomass power), new energy, clean energy (hydrogen, green ammonia...) that suitable for ensuring system safety with rational electricity prices, especially self-sufficiency and self-consumption power sources and rooftop solar power.
- To efficiently exploit and use domestic fossil energy sources in combination with export: Gradually decrease the proportion of coal-fired power, prioritizing the development of domestic gas-fired power, and developing imported LNG gas power sources on an appropriate scale. To align energy transition with global technology development trend and cost.
- To rationalize power sources in regions and areas in order to ensure reliable on-site power supply, reduce technical losses, and reduce long-distance power transimission.
- To develop new power sources, using modern technology coupled with the technological innovation of operating plants, towards decommissioning of existing factories that do not meet the environmental standard.
- Diversify investment forms for developing power sources to enhance competition and improve economic efficiency.
b. Development plan
- To accelerate the development of renewable energy sources (wind power, solar power, biomass power…), increasing the proportion of renewable energy in the structure of power source and electricity production:
+ To promote the development of onshore and offshore wind power, solar power in accordance with the absorption capacity of the grid, the ability of the power grid to release capacity, reasonable electricity prices and transmission cost attached to ensure safe operation and the efficiency of the power system, utilizing existing power grid's infrastructure. To prioritize and encourage the development of wind power, solar power self-sufficiency and self-consumption (including rooftop solar on residential houses and constructions, solar power at manufacturing facilities, business establishments and on-site consumption without connecting or selling electricity to the national power grid). Solar power development must be linked with the development of battery storage.
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By 2030, onshore wind power capacity is projected to reach 21,880 MW (in comparision with Viet Nam's total technical potential of about 221,000 MW).
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To fully tap the technical potential of offshore wind power (about 600,000 MW) to produce electricity and new energy.
By 2030, offshore wind power capacity to serve domestic electricity demand will reach about 6,000MW; a larger scale can be achieved in case of rapid technological development, and rational electricity and transmission costs. The capacity may reach 70,000 - 91,500 MW by 2050.
Offshore wind power will be developed in combination with other renewable energies (solar power, onshore wind power…) to produce new energy (hydrogen, green ammonia…), serving domestic needs and exports. There are no limits to the development of renewable energy sources for new energy production for domestic needs and exportation, on the basis of ensuring national defense, and energy security, ensuring high economic efficiency, and becoming a new economic sector of the country.
The offshore wind power capacity for new energy production is estimated about 15,000 MW by 2035 and about 240,000 MW by 2050.
+ Viet Nam's solar power potential is about 963,000 MW (about 837,400 MW land-based, 77,400 MW on the water surface, and about 48,200 MW on the rooftop). By 2030, the total capacity of solar power sources is expected to increase by 4,100 MW. By 2050, the total capacity is oriented to reach 168,594 - 189,294 MW, producing 252.1-291.5 billion kWh, including:
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To prioritize and create breakthrough policy in promoting rooftop solar power on residential houses and constructions, especially in the areas vulnerable to power shortage such as the Northern region, and self-sufficiency, self-consumption solar power. By 2030, the capacity of these power sources is estimated to increase by 2,600 MW. This type of power source is prioritized for unlimited capacity development in case of rational price, and utilizing existing power grid without having to upgrade.
+ To prioritize and encourage the development of different types of biomass energy (about 7,000 MW), energy generated from waste, and solid waste (about 1,800 MW) to utilize agroforestry and wood processing by-products, promoting afforestation, environmental treatment in Viet Nam. By 2030, the capacity of these power sources will reach 2,270 MW, and 6,015 MW by 2050. These figures may be further increased if there are sufficient material sources, efficient land utilization, environmental processing requirements, power grid condition, reasonable electricity prices, and transmission costs.
- To fully exploit the potential of hydropower (Viet Nam's total hydropower potential is about 40,000 MW) while ensuring the environment, forest protection, and water source security. Conduct study on selective expansion of existing hydropower plants to reserve capacity and exploit hydropower in irrigation lakes and reservoirs to take advantage of hydroelectricity. By 2030, the total hydropower capacity, including small hydropower plants, is projected to reach 29,346 MW, producing 101.7 billion kWh. This capacity can be developed further if economic and technical conditions allow (see potential projects in Appendix III). By 2050, total capacity is oriented to reach 36,016 MW, producing 114.8 billion kWh.
- Power storage sources:
+ By 2030, develop pumped storage hydropower (PSH) plants with capacity of about 2,400 MW to regulate the load, reserve capacity, and support the integration of large-scale renewable energy sources.
+ Storage battery will be developed when its price is reasonable, installed in close proximity to wind and solar power sources or load centers. By 2030, the capacity is projected to reach about 300 MW.
+ By 2050, the capacity of pumped storage hydropower and storage batteries is oriented to reach 30,650 - 45,550 MW in alignment with the high proportion of renewable energy.
- To prioritize and encourage the development of cogeneration power plants, power plants using excess heat, blast furnace gas and by-products of technological chains in industrial establishments. The capacity of these sources is projected to reach 2,700 MW by 2030, and about 4,500 MW by 2050. The scale can be larger, in accordance with the demand and potential of industrial facilities throughout the contry to increase energy efficiency.
- Coal-fired power:
Only implement the existing projects included in the revised Power Development Plan VII and others currently under construction until 2030. Coal-fired power plants which have operated for 20 years will be converted from coal to biomass and ammonia when cost-effective. Plants with over 40 years of operation will be closed if fuel conversion is not feasible.
+ In 2030, the total capacity of operational plants and projects under construction, with the possibility of completion and commissioning is about 30,127 MW. To urgently complete the construction of 6 coalf-fired power plants with combined capacity of 6,125 MW: Na Duong II, An Khanh - Bac Giang, Vung Ang II, Quang Trach I, Van Phong I, and Long Phu I.
Other coal-fired projects with combined capacity of 13,220 MW will not be deployed: Quang Ninh III, Cam Pha III, Hai Phong III, Quynh Lap I, II, Vung Ang III, Quang Trach II, Long Phu II, III, Tan Phuoc I, II.
Quang Trach II coal-fired power project will be converted to using LNG before 2030.
+ By 2050, it is oriented to phase out coal for power generation, completely switching coal to biomass and ammonia, with a total capacity of 25,632 - 32,432 MW, producing 72.5 - 80.9 billion kWh.
- Gas-fired power:
To prioritize to maximize the usage of domestic gas for power generation. In case of a decline in domestic gas output, it can be supplemented by import of natural gas or LNG. To develop projects using LNG and synchronous LNG import infrastructure with appropriate scale, using modern technology. Implement a fuel-to-hydrogen conversion roadmap when the technology is commercialized and cost-effective.
+ Domestic gas-fired power: To accelerate the implementation of Block B and Ca Voi Xanh gas-power project chains, in which investing in installing 6,900 MW of gas-fired thermo power plants: O Mon II, III, IV (3,150 MW), Central Region I, II, and Dung Quat I, II, III (3,750 MW); converting O Mon I (660 MW) to using Block B gas. To implement Quang Tri gas turbine combined cycle (GTCC) power plant (340 MW) using gas from the Bao Vang field. To accelerate the exploration and appraisal of Ken Bau gas field to plan for gas field development and additional downstream hydropower plants (in Hai Lang - Quang Tri, Chan May - Thua Thien Hue) if conditions permit. Kien Giang 1 and 2 projects (2x750 MW) were not implemented due to unidentified fuel sources.
The Southeast Region: To implement solutions, focus on infrastructure development, research domestic and regional connections for the import of natural gas and LNG to ensure gas sources for Phu My, Ba Ria, and Nhon Trach power plants.
The Southwest Region: To implement solutions, invest in infrastructure development, research domestic and regional connections for the import of natural gas and LNG to ensure gas source for Ca Mau power plants.
By 2030, the total capacity of domestic gas-fired power plants shall reach 14,930 MW, producing 73 billion kWh. By 2050, about 7,900 MW will continue to use domestic gas or transition to LNG, generating 55.9 - 56.9 billion kWh; 7,030 MW is projected to fully convert to hydropower, producing 31.6 - 31.9 billion kWh.
+ LNG thermal power: To limit the development of power sources using LNG if alternative options are available to reduce dependence on imported fuels, extending the LNG Long Son project (1,500 MW) which has been approved in the revised Power Development Plan VII for the period of 2031 to 2035. By 2030, the maximum capacity of LNG power sources shall reach a maxmimum of 22,400 MW, producing 83.5 billion kWh. By 2050, plants using LNG shall gradually convert coal to hydrogen, reaching a total capacity of 25,400 MW, producing 129.6 - 136.7 billion kWh.
To continue implementation of LNG storage and terminal projects in Thi Vai (supplying gas for Nhon Trach 3 and 4, and supplement gas for plants in the Southeast region), Son My (supplying gas for Son My I, II). To develop imported LNG storage and terminal systems, synchronizing power plants in the development plan.
- Flexible power source (fast start source): To invest in developing flexible power sources to regulate the load and maintain the stability of the power system to absorb large-scale renewable energy. By 2030, it is projected to develop 300 MW. By 2050, the capacity is expected to reach 30,900 - 46,200 MW.
- Import and export of electricity: To effectively implement the interconnection, and power exchange with countries in the region, ensuring mutual benefits, and enhancing the power system's safety; promote electricity imports from Southeast Asian countries (ASEAN) and the Great Mekong Subregion (GMS) with hydropower potential. To focus on investment and exploitation of foreign countries' electricity sources to supply to Viet Nam. By 2030, about 5,000 MW shall be imported from Laos according to the two Governments' signed agreement, producing 18.8 billion kWh; with a potential increase to 8,000 MW. By 2050, power imports are expected to reach about 11,000 MW, producing 37 billion kWh on a balanced basis with exports to ensure overall optimal efficiency.
No cap is imposed on the development of renewable energy sources for export and production of new energy (hydrogen, green ammonia…) on the condition of ensuring energy security and high economic efficiency. By 2030, the scale of electricity export capacity will reach about 5,000 - 10,000 MW.
To continue implementation of projects of small hydropower, wind power, cogeneration power source, power source using excess heat, by-products from industrial technology lines, biomass power, biogas, electricity production from waste, solid waste, and approved interconnection plans, in line with legal regulations and prioritized project criteria and justifications.
Large and medium-sized coal, gas, and hydropower projects in the revised Power Development Plan VII that have not yet been operationalized are included in NPDP 8.
For solar power projects that have been included in the planning and approved by the competent authority and assigned to investor, specific progress will be considered in the NPDP8's Implementation Plan in accordance with the regulations on planning, investment, and other relevant provisions of law in order to ensure security, balancing sources and loads, appropriate power grid infrastructure, economic efficiency, electricity prices, and rational transmission costs.
Solar power projects planned for the period 2021 - 2030 that have not been assigned to investors are not allowed to be implemented and will be considered after 2030, except for self-consumption and self-sufficiency projects that do not violate regulations on planning, land, and other regulations (Appendix IV).
c) Structure of power sources:
- By 2030:
The total capacity of power plants for domestic demand is 150,489 MW (excluding export, existing rooftop solar power, and renewable energy for new energy generation), of which:
+ Onshore wind power: 21,880 MW (14.5% of the total capacity of power plants);
+ Offshore wind power: 6,000 MW (4.0%), with the potential for larger scale if there are rapid technological advancements and reasonable electricity prices.
+ Solar power: 12,836 MW (8.5%, excluding existing rooftop solar power), including 10,236 MW concentrated solar power sources, 2,600 MW self-sufficiency and self-consumption solar power sources. To prioritize the development of self-sufficiency and self-consumption solar power sources without capacity limitations.
+ Biomass power, waste-to-energy power: 2,270 MW (1.5%), with the potential for larger scale in case of sufficient material sources, efficient land use, environmental treatment requirements satisfied, suitable grid infrastructure, reasonable electricity prices, and transmission costs;
+ Hydropower: 29,346 MW (19.5%), which can be further developed if economic-technical conditions allow;
+ Pumped hydropower storage: 2,400 MW (1.6%);
+ Storage battery 300 MW (0.2%);
+ Cogeneration electricity, utilizing excess heat, blast furnace gas, by-products of technological chains in industrial establishments 2,700 MW (1.8%), with the potential for larger scale in accordance with the industrial facilities' capacity;
+ Coal-fired power: 30,127 MW (20.0%), excluding projects in Table 3 Appendix II;
+ Domestic gas-fired thermo power: 14,930 MW (9.9%);
+ LNG-fired power: 22,400 MW (14.9%);
+ Flexible power source: 300 MW (0.2%);
+ Imported power: 5,000 MW (3.3%), and it can reach up to 8,000 MW.
For coal-fired power sources facing difficulties in implementation, coal may be replaced with LNG or renewable energy.
- Orientations towards 2050:
The total capacity of power plants is 490,529 - 573,129 MW (excluding export, renewable energy for new energy generation), of which:
+ Onshore wind power: 60,050 - 77,050 MW (12.2 - 13.4%);
+ Offshore wind power: 70,000 - 91,500 MW (14.3 - 16%);
+ Solar power: 168,594 - 189,294 MW (33.0 - 34.4%);
+ Biomass power, waste-to-energy power: 6,015 MW (1.0 - 1.2%);
+ Hydropower: 36.016 MW (6.3 - 7.3%);
+ Energy storage: 30,650 - 45,550 MW (6.2 - 7.9%);
+ Cogeneration electricity, utilizing excess heat, blast furnace gas, by-products of technological chains in industrial establishments: 4,500 MW (0.8 - 0.9%);
+ Coal-fired power: 0 MW (0%), no longer using coal for electricity generation;
+ Biomass and ammonia-fired power: 25,632 - 32,432 MW (4.5% - 6.6%);
+ Domestic gas-fired thermo power and LNG conversion power: 7,900 MW (1.4 - 1.6%);
+ Domestic gas-fired thermo electricity with fully hydrogen-powered: 7,030 MW (1.2 - 1.4%);
+ LNG-fired power with hydrogen co-firing: 4,500 - 9,000 MW (0.8 - 1.8%);
+ LNG-fired thermo electricity completely converted to hydrogen: 16,400 - 20,900 MW (3.3 - 3.6%);
+ Flexible power source: 30,900 - 46,200 (6.3 - 8.1%);
+ Imported power: 11,042 MW (1.9 - 2.3%).
2. Plan for power grid development
a) Development orientations:
- To develop a synchronous power transmission system with the progress of power sources, the requirements of load development in all localities, using modern technology, ensuring international standards, and readiness for regional interconnections. To develop smart grids capable of carrying large-scale renewable energy, meeting the requirements of safe, stable and economical power system operation.
- To develop 500kV or 220 kV transmission grids capable of handling the output of power plants, enhance the reliability of electricity supply, reduce power losses, and meet N-1 standard for important load areas and N-2 standard for special important load areas.
To develop a long-term backup power power transmission power grid, increase the use of multi-circuit and multi-voltage poles to minimize land use. To encourage the construction of transmission substations providing electricity to neighboring loads.
- 500 kV transmission grid plays the main role in connecting regional power systems and exchanging electricity with regional countries. To limit interregional transmission with rational proportion, reduce long-distance electricity transmission, and minimize the construction of new interregional transmission lines before 2030.
- To build a reliable 220 kV power grid, substations in high load density areas designed for flexible operation. To build automated 220 kV substations. To promote the construction of GSI substations, 220/22 kV substations and underground substations in load centers.
- To study the application of Back-to-Back system and flexible power transmission equipment to enhance transmission capability, and minimize land use. To conduct research on AC and DC power transmission technology with voltage over 500 kV.
- By 2030, it is oriented to develop the high-voltage direct current (HVDC) lines connecting the Central, South Central, and Northern regions to exploit offshore wind power potential. Study on connections throughout Asia - Pacific.
The power grid transmission projects in the revised Power Development Plan VII that have not yet been operationalized are included in this Plan.
b) Volume of transmission grid construction
- Period 2021 - 2030: New construction of 49,350 MVA and renovatation of 38,168 MVA of 500 kV substation; construct 12,300 km of new transmission lines and renovate 1,324 km of 500 kV transmission line; and construct 16,285 km of new tranmission lines and renovate 6,484 km of 220 kV transmission lines.
- Orientation for the period 2031 - 2050: To construct new HVDC stations with capacity of 40,000 - 60,000 MW and HVDC lines of 5,200 - 8,300 km; build new 90,900 - 105,400 MVA and renovate 117,900 - 120,150 MVA of 500 kV substations; build new 9,400 - 11, 152 km and renovate 801 km of 500 kV lines; build new 124,875 - 134,125 MVA and renovate 105,375 - 106,750 MVA of 220 kV substations; build new 11,395 - 11,703 km and renovate 504 - 654 km of 220 kV lines. The exact volume of the power grid in the period 2031 - 2050 will be specified in the next power development plans.
3. Grid interconnection with countries in the region
- To continue to study and cooperate on power grid interconnection with the Greater Mekong Subregion (GMS) and ASEAN countries at 500 kV and 220 kV voltage levels to enhance system's connectivity, power exchange and leverage the resource strengths of each nation.
- To establish power grid connections with Laos through 500 kV and 220 kV transmission lines to import electricity from Laos' power plants in accordance with the memorandum of understanding signed between the two governments.
- To maintain power grid connection with neighboring countries through existing voltage levels of 220 kV, 110 kV, and medium voltage; research and implement solutions to synchronous harmonization between power systems through AC-DC converter stations at the voltage level of 220-500 kV.
- To build infrastructure to connect power export projects with high economic efficiency on the basis of ensuring energy security and national defense and security.
4. Orientations for rural electricity development
To build a new program on electricity supply for rural, mountainous, and island areas to supply households without electricity and renovate existing rural electricity grids. To supply electricity from the national grid in combination with power generated from renewable energy for rural, mountainous, and island areas; striving for 100% of rural households to access to electricity by 2025.
5. Orientation for renewable energy industrial and service ecosystem
- By 2030, it is projected to establish two inter-regional renewable energy industrial ecosystems and service centers in potential areas such as the Northern region, South Central region, and Southern region when conditions allow.
- An inter-regional renewable energy industrial ecosystems and service center is expected to include renewable energy power plants with a capacity of 2,000 - 4,000 MW (mainly offshore wind power); facilities manufacturing renewable energy equipment, new energy production equipment, equipment and transportation vehicles for renewable energy installation and construction, ancillary services, low-carbon emission green industrial parks, and research centers and training institutions for renewable energy.
6. Investment capital demand
- Period 2021 - 2030: Total investment capital for developing power sources and transmission grid is estimated at US$134.7 billion, of which investment in power source development is about US$119.8 billion (average US$12 billion per year), transmission grid is about US$14.9 billion (average US$1.5 billion per year).
- Orientation for 2031 - 2050 period: Total investment capital for power source development and transmission grid is estimated at US$399.2 - 523.1 billion, of which investment in power source development is about US$364.4 - 511.2 billion (average US$18.2 - 24.2 billion per year), and investment in transmission grid is approximately US$34.8 - 38.6 billion (average US$1.7 - 1.9 billion per year). These figures will be specified in the subsequent planning phases.
IV. ORIENTATIONS OF LAND ALLOCATION FOR THE DEVELOPMENT OF ELECTRICITY WORKS AND ENVIRONMENTAL PROTECTION ACTIVITIES, CLIMATE CHANGE ADAPTATION, AND CONSERVATION OF ECOSYSTEMS, LANDSCAPES, AND MONUMENTS
1. Land allocation for power development
The land use demand for electricity infrastructure development is about 89.9 - 93.36 thousand hectares in the 2021 - 2030 period and about 169.8 - 195.15 thousand hectares in the 2031 - 2050 period, in accordance with the land allocation target enshrined in Resolution No. 39/2021/QH15 to ensure the implementation of power development goals.
2. Environmental protection, climate change adaptation, and conservation of ecosystems, landscapes, and relics
To implement a strong energy transition from fossil fuels to renewable energy and new energy to reduce air pollution and greenhouse gas emissions, striving to achieve net zero emissions target by 2050.
Apply new and advanced technologies towards transitioning to a low-carbon, reducing energy consumption and emissions, meeting regulations regarding carbon emissions per unit of exported goods and carbon markets.
Avoid and minimize the development of energy facilities and infrastructure in areas that may pose risks to forests, natural reserves and biodiversity, natural heritages, listed relics and cultural heritages.
To take into account solutions to deal with climate change and extreme weather phenomena such as droughts, floods, storms, landslides, heatwaves, rainfalls, and sea-level rise…during the implementation of power projects to ensure safe and stable operation of the power plants, while minimizing risks and damages.
V. LIST OF IMPORTANT PROJECTS, INVESTMENT PRIORITIES OF THE ELECTRICITY SECTOR, AND IMPLEMENTATION PRIORITY ORDER
1. Criteria and rationale for the list of important projects and investment priorities of the power sector
The list of important projects and investment priorities of the power sector is formulated based on the following criteria and rationale:
- Projects that play a crucial role in balancing the power supply and demand in the country, aand in important regions, areas, and load centers, to ensure power supply security and meet socio-economic development needs.
- Projects that ensure national defense and security; economic synergies combined with defense and security.
- Projects that need to be implemented to ensure consistency between power development plans and other energy plans.
- Projects that help enhance power supply for areas at risk of power shortage.
- Projects to ensure the national power system safety and security between baseload power sources, renewable energy sources, and loads (Pumped storage hydropower, battery energy storage…).
- Projects that contribute to climate change adaptation, greenhouse gas emissions reduction, and environmental protection (biomass, waste-to-energy power, solid waste, cogeneration, excess heat utilization…), fulfilling climate commitments.
- Self-production and self-consumption projects.
- Projects that contribute to formation of a comprehensive ecosystem for the renewable energy industry and services.
- Projects that export electricity and new energy produced from renewable energy.
- Effective land use projects.
- 500 kV and 220kV power grid projects.
- Projects feasible in implementation.
- Projects applying advanced and environmentally friendly technologies.
- Projects with high socio-economic efficiency.
2. List of important projects, prioritized for investment
List of important projects, prioritized for investment is stated in Appendices I, II.
VI. SOLUTIONS AND RESOURCES FOR IMPLEMENTATION OF THE PLAN
1. Solutions for ensuring power supply security
- To diversify the fuel sources used for power generation, harmoniously combine domestic and imported primary energy sources.
- To promote exploration to increase reserves and output of domestic coal and oil for power generation to reduce dependence on imported fuels.
- To invest in technical infrastructure for importing natural gas, LNG, and imported coal in accordance with the structure of thermal power sources and the energy transition trend.
- To strongly develop renewable energy sources in replacement of fossil fuels. Promptly update scientific and technological advances in the world on new energy sources (hydrogen, ammonia…) for power generation.
- To study and apply fuel conversion technologies for coal-fired power plants to biomass, ammonia, hydrogen…
- To conduct research and evaluation of the potential of non-conventional energy sources.
2. Solutions for creating capital sources and mobilizing investment capital for power sector development
- To study and finalize the financial and capital mobilization mechanism for investment in power sector development.
- To diversify capital sources, forms of capital mobilization, effectively attract domestic and foreign capital for power development, ensuring defense, security, and competitiveness in the electricity market. To call for, and effectively use international assistance (JETP, AZEC…), green credits, climate credits, green bonds…
- To diversify forms of investment (public, private, public-private partnership…) in power projects. To promote further the role of state-owned enterprises and strongly attract the domestic and foreign private sectors to invest in power development. To continue to negotiate and effectively utilize funding sources, and support international partners to arrange capital in implementing Viet Nam's energy transition, toward net zero emissions.
-To encourage citizens and businesses to invest in rooftop solar power and self-production, self-consumption power sources.
- To stablish a favorable, transparent environment to attract and encourage private sector participation in investment, and development of power projects.
- Gradually increase the financial mobilization capacity of companies in the electricity sector at the request of domestic and international financial institutions.
- Implement flexible and effective credit policies, creating favorable conditions for enterprises to access capital sources for the development of power projects.
3. Solutions on laws and policies
- To finalize the policy and legal framework on electricity development, renewable energy development (including rooftop solar power, self-sufficiency and self-consumption solar power), efficient use of electricity and other relevant regulations:
+ To establish the revised Electricity Law to finalize the policy on investment, planning, electricity price, develop a competitive electricity market, address issues, institutionalize development mechanism, create breakthroughs to encourage and enhance the development of electricity sources using renewable energy; separate the role of state management from production and business of enterprises.
+ To research and develop mechanisms for auctioning and bidding to select investors aligned with electricity prices in the process of revising the Electricity Law and completing the competitive electricity market model.
+ To study and concretize policies on the socialization of investment in power transmission grids.
+ To promulgate the pilot mechanism and proceed to officially establish the mechanism of direct power purchase agreement between renewable energy producers and consumers in sync with the revised Electricity Law and the roadmap for implementing competitive electricity markets. Study and develop regulations on charging fees for direct power purchase agreement (DPPA).
+ To continue to finalize the electricity price management mechanism based on a state-regulated market mechanism to ensure a harmonious combination of the state's social, economic and political goals and the business production and financial autonomy of the enterprises. The electricity price ensures the recovery of sufficient costs, rational profits, and attracts investment in electricity development, encourages competition in production, transmission, distribution, retail, and electricity usage, and prevents electricity wastage. Continue to improve and finalize the existing electricity tariff. Continue to ensure transparency in electricity prices.
+ To study, formulate, and promulgate Law on renewable energy.
+ To revise Law on Economical and Efficient Use of Energy to drastically reduce the energy intensity of the economy, promulgate sanctions and mandatory standards and regulations on energy efficiency.
- To develop mechanisms and policies to encourage domestic businesses to participate in the development of renewable energy, renewable energy industry, new energy for domestic usage and export, and the development of the electrical equipment manufacturing industry.
- To develop policies to raise localization rate in the electricity industry to improve independence and reduce costs.
- Develop mechanisms and policies to promote electricity imports, especially from Laos via agreements, memorandums of understanding between the two governments…
4. Solutions on environmental protection and natural disaster prevention
- To implement an energy transition, with a focus on shifting from fossil fuels to renewable and new energy; increase the size of absorption tanks and promote the application of carbon capture technology.
- To study, apply and develop waste treatment technology, especially from renewable energy industry on the principle of reduction, recovery, reuse, and recycle to minimize waste and utilize waste as materials for other economic sectors.
- To implement solutions to prevent disaster, respond to climate change, and extreme weather events from the process of project site selection, design, construction, and operation.
- To minimize the development of electrical works and infrastructure in locations that may affect natural forests, nature reserves and biodiversity, ranked monuments, natural and cultural heritages, in line with national environmental protection zoning.
5. Solutions on science and technology
- To invest in research and development (R&D) on electricity. Establish basic research centers and development centers on renewable energy, new energy, and carbon storage technology in Viet Nam to enhance capabilities, technology transfer and absorption, and governance solutions in order to accelerate and scale up the deployment of renewable energy and clean power system management in Viet Nam and the region.
- To use modern technology for new electrical works; step by step upgrading, renovating, and converting existing works.
- To renovate and upgrade the electricity transmission and distribution system in order to improve reliability and reduce losses. Accelerate the implementation of the smart grid roadmap.
- To modernize data information systems, automation, and control systems for the dispatch and operation of power systems and the electricity market. Access to new scientific and technological achievements, artificial intelligence, and the Internet of Things (IoT), including digital transformation in the electricity industry.
- To step by step apply encourage and compulsory measures to innovate technologies and equipment of power-intensive economic sectors.
6. Solutions for economical and efficient use of electricity
- To raise awareness about the economical and efficient use of electricity, environmental protection is an important national policy and society's responsibility as in the spirit of Resolution No. 55-NQ/TW dated February 11, 2020, of the Politburo.
- To encourage investment and usage of energy-saving technologies and equipment; enhance energy audits; promote the implementation of energy service companies (ESCO) models.
- To apply mandatory standards and regulations, along with sanctions on the efficient use of electricity to power-intensive sectors and industries.
- To enhance the implementation of Demand Side Management (DSM) programs, programs on economical and efficient use of energy.
7. Solutions for human resource development
- To develop high-quality human resources, especially in power generation, transmission, distribution, electricity market, and smart grid…
- To build a team of highly skilled experts, and scientists in the electric sector; build units with strong expertise in electricity science and technology.
- To organize training and retraining programs for technical and managerial personnel in the electricity sector, comparable to other countries in the region and the world.
- To innovate content, training programs, diversify training methods, and integrate training with practical productions, ensuring qualification to operate large-scale power systems, intergrate a high proportion of renewable energy sources, and apply smart grid technology. .
8. Solutions for international cooperation
- To actively and effectively implement the contents of the Political Declaration on establishing a Just Energy Partnership (JETP) with international partners, utilizing the support of international partners in technology transfer, governance, and human resource training, financing support, considering JETP as an important solution for the energy transition in Viet Nam.
- To implement flexible, efficient, equitable, and mutually beneficial energy and climate foreign policy. Expand and deepen energy cooperation with strategic and important partners.
- To promote cooperation in research and deployment of power grid connectivity with neighboring countries in Southeast Asia and Mekong Sub-region of Expansion (GMS).
- To expand international cooperation in scientific research and development of electricity technology, taking advantage of technology transfer and capital from foreign partners.
9. Solutions on domestic capabilities enhancement, localization of power sector's equipments and develop electricity mechanical industry
- To establish renewable energy centers, and create a complete renewable energy industrial ecosystem, associated with production and manufacturing, auxiliary services, and concentrated industrial parks.
- To concentrate on developing the manufacturing industry for renewable energy equipment, energy storage equipment, and technology for carbon recovery, absorption, storage, and usage… in the country to actively exploit the potential of Viet Nam, increasing independence and autonomy, reducing the cost of electricity production from renewable energy.
- To encourage domestic enterprises to implement complex and high-tech power projects.Improve the capacity of domestic enterprises in the design, procurement, project management, and operation, capable of being the general contractor of large-scale power projects.
- To improve domestic equipment design and manufacture capacity to increase the proportion of domestic equipment in power source and grid projects; improve the capacity to repair, maintain, and inspect domestic electrical equipment.
10. Solutions on management, enhancing efficiency of power activities
- To strongly innovate the management of the electricity sector towards openness, transparency, competitiveness, efficiency, increasing labor productivity, and reducing costs in alignment with the socialist-oriented market economy.
- To reform the power sector in accordance with the approved roadmap for a competitive electricity market.
- To innovate and improve the efficiency of state-owned businesses in the electricity sector, applying advanced management models and practices, raising international credit rating, and ensuring openness, transparency in operations.
11. Solutions for implementing and monitoring the power development plan
- To urgently develop an implementation plan following the approval of the Power Development Plan VIII. Prioritize projects based on criteria and arguments mentioned in Clause 1, Section V, Article 1 of this Decision.
- To develop a database for the electricity sector, including data on the plan and its implementation to serve as a basis for monitoring the implementation of the plan. Regularly review the situation of load development in nationwide and localities, the implementation progress of power source and grid works to propose necessary adjustments to the power source structure and schedule, ensuring electricity supply and demand of the economy.
- To effectively manage the development of self-sufficiency and self-consumption power sources, cogeneration power sources, power sources using excess heat, blast furnace gas, by-products of technological chains in industrial establishments, rooftop solar power sources and others from direct power purchase agreements between power generation and purchasing units..
- To further promote the role of the National Steering Committee for Electricity Development in inspecting and urging key projects, and timely resolving obstacles and difficulties.
- To develop and apply institutions on discipline and compliance for implementing the Power Development Plan VIII, applying for investors, ministries, branches, and Commissions for the Management of State Capital at Enterprises and localities. To develop sanctions to handle and withdraw projects that are delayed or not complied with the assigned schedule.
Article 2. Implementation Arragement
1. The Ministry of Industry and Trade
a. To take responsible for the accuracy of data, documents, the system of diagraphs, maps, and databases in the planning file compilation, and ensure the consistency with this Decision..
b. To announce the issuance of PDP8 in accordance with the prevailing regulations and implement this Decision in conjunction with the implementation of socio-economic development tasks as prescribed by law; develop a plan to implement PDP8 based on criteria and rationale stipulated in this Decision to implement the targets and tasks set out in the plan; organize the evaluation of plan implementation in accordance with the provisions of the Law on Planning. Complete and submit the plan to implement PDP8 in June 2023 to the Prime Minister.
c. To kake charge of and cooperate with ministries, branches and localities to finalize and submit to the government the revised Electricity Law and Law on Renewable Energy submission to the National Assembly in 2024. Propose to the government for issuance of policies on direct power purchase.
d. To take charge of and cooperate with Ministries, branches, and People's Committee of provinces and centrally run cities to work with investors, carefully reviewing regulations, commitments, and agreements to completely resolve the difficulties faced by the projects in Table 3 of Apendix II during implementation, and report to the Prime Minister on issues beyond authority.
2. Ministries, branches, and Commission for the Management of State Capital at Enterprises
To fulfill their functions, tasks, and powers to implement PDP8's projects on schedule; propose mechanisms, policies, and solutions to remove obstacles for effectively achieving the objectives of the plan, ensuring consistency and coherence with the implementation of the 10-year socio-economic development strategy for 2021-2030, and the socio-economic development for each sector and locality.
3. People's Committees of provinces and centrally run cities
To organize the selection of investors for power projects; allocate land funds for electricity projects in accordance with legal regulations; take charge of and closely coordinate with investors on land clearance, compensation, resettlement, and relocation for power source and power grid projects according to the prevailing regulations.
4. Viet Nam Electricity (EVN)
- To play the main role in ensuring stable and safe power supply for socio-economic development. Carry out investment in power source and transmission power grid projects according to assigned tasks.
- To regularly review and assess power supply and demand balance, assess the operation of the national and regional systems, and report to competent authorities.
- To thoroughly implement innovative corporate governance solutions, improve production and business efficiency, increase labor productivity, reduce power losses, save costs, and reduce prices.
5. Viet Nam Oil and Gas Group (PVN)
- To increase searching, exploring, and exploiting domestic gas sources to supply power generation, aligned with the power load demand. Implement efficiently and promptly the approved schedules for gas fields such as Block B, Ca Voi Xanh, Ken Bau…
- To implement solutions for building infrastructure facilities such as warehouses, ports, and connecting domestic and regional gas system serving natural gas, LNG imports to ensure gas supply for power plants.
- To carry out projects assigned on the schedule.
6. Viet Nam National Coal and Mineral Industries Group (Vinacomin), Dong Bac Corporation
- Play the main role in ensuring the coal supply for power generation in accordance with the energy transition roadmap. In the short term, enhance domestic coal production capacity and coal imports to supply fuel for power plants.
- Invest in power source projects following assigned tasks.
Article 3. This Decision is in effect starting from the date it is promulgated
Article 4. Ministers, Head of ministerial-level organs, Heads of Governmental bodies; Chairpersons of the People's Committees of provinces and centrally-run cities; Chairpersons of Member Council, General Directors of EVN, PVN, Vinacomin; Chairpersons and General Directors of Dong Bac Corporation and relevant agencies shall be responsible for executing this Decision./.
(For reference only)
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