Decision 262/QD-TTg 2024 approve the Plan to implement the National Power Development Master Plan for 2021-2030

THE PLAN

To implement the National Power Development Master Plan for the 2021-2030 period, with a vision toward 2050

(Issued together with Decision No. 262/QD-TTg dated April 01, 2024 of the Prime Minister)

^{_________________________}

I. OBJECTIVES AND REQUIREMENTS

1. Objectives

- To effectively implement Decision No. 500/QD-TTg dated May 15, 2023, of the Prime Minister on approving the National Power Development Master Plan for the 2021-2030 period, with a vision toward 2050 (the VIII Power Development Plan). To develop a roadmap to effectively organize the implementation of schemes/projects to meet the set goals of the VIII Power Development Plan, meet electricity needs for socio-economic development in each period, and ensure electricity infrastructure is first of all completed.

- Implement a drastic energy transition from fossil fuels to new and renewable energy sources to reduce environmental pollution and greenhouse gas emissions, contributing to the fulfillment of the Nationally determined contributions and Vietnam's 2050 net zero emissions target.

- To set out  solutions to attract investment in electricity development in accordance with the VIII Power Development Plan during the planning period; coordination mechanism between ministries, branches and People's Committees of provinces and centrally-run cities in implementation.

- To orient ministries, branches and People's Committees of provinces and centrally-run cities in coordinating with the Ministry of Industry and Trade and relevant units to effectively implement the VIII Power Development Plan.

2. Requirements

- The implementation plan of the VIII Power Development Plan must closely follow the goals and orientations of the the VIII Power Development Plan, concretize the tasks assigned in Decision No. 500/QD-TTg of the Prime Minister.

- To ensure the balanced development of power sources by regions and areas, aiming to balance supply and demand within the region; ensure the feasibility, synchronization and flexibility in power source/grid development in line with the national context and resources.

- To determine specific progress and resources for implementing prioritized schemes/projects on completing policies, laws, and strengthening the scientific and technological capacity of the electricity sector during the planning period.

- To identify specific lists and progress of important and prioritized power source and grid projects of the electricity sector, including regional interconnected power grids during the planning period; lists and progress of renewable energy projects (small hydropower, onshore wind power, biomass power, electricity generated from waste, etc.) for each locality until 2025.

- To mobilize maximum resources and participation of all economic sectors for power development.

- To ensure compliance, inheritance, and synchronization with approved sector plans/plans to implement national master plans, ensuring connectivity and consistency in implementation.

II. CONTENTS OF THE PLAN TO IMPLEMENT THE VIII POWER DEVELOPMENT PLAN

1. List of electricity source projects important and prioritized for investment of the sector by 2030

- Total domestic gas-fired thermal power capacity shall be 14,930 MW. List of new construction investment projects and operating progress shall be specified in Table 1, Appendix III.

- Total LNG-fueled thermal power capacity shall be 22,400 MW. List of new construction investment projects and operating progress shall be specified in Table 2, Appendix III.

- Total coal-fired thermal power capacity shall be 30,127 MW. List of new construction investment projects and operating progress shall be specified in Table 3, Appendix III.

- Total power capacity generated from combined heat and power (CHP), unused heat, furnace air and by-products of technological lines in industrial establishments shall be 2,700 MW. List of new construction investment projects and operating progress shall be specified in Table 5, Appendix III.

- Total hydro power capacity shall be 29,346 MW. List of medium and large sized projects that require to be newly constructed and operating progress shall be specified in Table 6, Appendix III.

- Total power capacity generated from pumped hydro power storage (PHS) shall be 2,400 MW List of projects that require to be newly constructed and operating progress shall be specified in Table 7, Appendix III.

2. Power capacity generated from renewable energy sources of localities/regions and list of power source projects by 2030

- Total offshore wind power capacity shall be 6,000 MW. Offshore wind power capacity by region shall be specified in Table 1, Appendix II.

- Total onshore wind power capacity (wind power on land and near shore) shall be 21,880 MW. List of onshore wind power projects shall be specified in Table 9, Appendix III.

- Total hydro power capacity shall be 29,346 MW. List small-sized and newly constructed hydro power projects shall be specified in Table 10, Appendix III.

- Total biomass electricity capacity shall be 1,088 MW. List of newly constructed biomass electricity projects shall be specified in Table 11, Appendix III.

- Total garbage-fueled electricity capacity shall be 1,182 MW. List of newly constructed biomass electricity projects shall be specified in Table 12, Appendix III.

- Total add-up rooftop solar (self-generating and self-consuming) power capacity shall be 2,600 MW. Results of rooftop solar power distribution by provinces shall be specified in Table 6, Appendix II. The development of rooftop solar power shall be carried out in accordance with law regulations on rooftop solar power development, in accordance with the approved capacity.

- Total battery storage capacity shall be 300 MW. List of newly constructed projects shall be specified in Table 8, Appendix III. Priority shall be given to the development of renewable energy power projects combined with investment in storage batteries. Storage battery capacity of a renewable energy power plant shall not be included in the capacity of  power source projects, not be included in the battery storage capacity structure of the electricity system (by 2030 shall be 300 MW).

3. Other types of power sources by 2030

- To plan to develop 300 MW of flexible power sources. To prioritize development in areas with potential shortages of spare capacity; take advantage of existing power grid infrastructure.

- To plan to import about 5,000 MW of electricity from Laos, which can increase to 8,000 MW when there are favorable conditions with reasonable electricity prices to take advantage of Laos' export power source potential. The Ministry of Industry and Trade shall report to the Prime Minister to consider and decide on import policies and synchronous grid connection plans for each specific project.

- Renewable energy power sources for export and generation of new energies shall be as follows:

+ Locations with potential to export electricity abroad shall be the Central and Southern regions. The export volume shall range from 5,000 MW to 10,000 MW when there are feasible projects. The Ministry of Industry and Trade shall report to competent authorities to consider and decide on electricity export policies and synchronous grid connection plans for each specific case, in accordance with law regulations.

+ To use renewable energy to produce new types of energy (such as green hydrogen, green ammonia) for domestic and export needs: Prioritize development in areas with good renewable energy potential and favorable power grid infrastructure; development scale strives to reach 5,000 MW (mainly offshore wind power). The Ministry of Industry and Trade shall report and advise the  Prime Minister to consider and decide on each specific project once the technological feasibility and cost have been basically assessed. The power capacity of renewable energy sources for generation of new energies shall not be included in the structure of power sources supplying the national electricity system load.

4. List of regional power transmission and grid connection projects

The list of transmission grid projects which are important and prioritized for investment, power grid projects linked with neighboring countries shall be specified in Appendix V.

The volume of “power grids back up for arising transmission lines and transformer stations"  specified in Appendix V shall be used for:

(i) Implementing  projects of newly constructing power transmission grids or recently added investment projects to improve transmission grid capacity, ability to control and operate the power system during the implementation of the VIII Power Development Plan which have not been specified in any list in Decision No. 500/QD-TTg.

(ii) Synchronously connecting imported power projects (from Laos, China, etc.) to Vietnam's power system.

(iii) Synchronous connecting (voltage level 220 kV or higher) of renewable energy power source projects (onshore wind power, biomass power, garbage-fueled power, etc.) in the Plan to implement the VIII Power Development Plan with the national power system.

The Ministry of Industry and Trade shall be assigned to review and report to the Prime Minister for consensus when implementing specific projects.

5. Rural, mountainous and island power development program

(i) To supply electricity from the national grid or renewable energy sources to about 911,400 households (of which, about 160,000 households do not have electricity, 751,400 households need to be renovated) of 14,676 villages in 3,099 communes, of which, the number of communes in border areas and  exceptionally difficult areas is 1,075 communes (43 provinces) in the following provinces and centrally-run cities: Dien Bien, Lao Cai, Yen Bai, Ha Giang, Bac Giang, Son La, Hoa Binh, Tuyen Quang, Thai Nguyen, Thanh Hoa, Ha Tinh, Quang Binh, Quang Nam, Quang Ngai, Kon Tum, Dak Nong, Dak Lak, Bac Lieu, An Giang, Can Tho, Cao Bang, Lai Chau, Bac Kan, Lang Son, Nghe An , Thua Thien - Hue, Binh Dinh, Phu Yen, Gia Lai, Lam Dong, Binh Thuan, Binh Phuoc, Tay Ninh, Ben Tre, Tra Vinh, Kien Giang, Soc Trang, Long An, Tien Giang, Vinh Long, Dong Thap, Hau Giang, Ca Mau; the remaining area shall have 2,024 communes;

(ii) Power supply to 2,478 small- and medium-sized pumping stations (of 13 provinces) in the Mekong Delta region of the following provinces and cities: Ben Tre, Tra Vinh, An Giang, Kien Giang, Can Tho, Bac Lieu, Soc Trang, Long An, Tien Giang, Vinh Long, Dong Thap, Hau Giang, Ca Mau, combined with supplying for household use;

(iii) To supply electricity from the national grid or renewable energy sources to the remaining islands: Con Co Island (Quang Tri province); Tho Chau Island, An Son - Nam Du (Kien Giang province); Con Dao island district (Ba Ria - Vung Tau province).

The list of provinces/sub-projects in the above stated Program shall be specified in Appendix IV.

6. Plan to develop industrial ecosystem and services for renewable energy

To research to develop 2 inter-regional renewable energy industrial and service centers by 2030 as follows:

- Renewable energy industry and service center in the North region.

+ Location: In Hai Phong, Quang Ninh, Thai Binh, etc.  In the future, the expansion of such center to neighboring areas can be considered.

+ Scale: Offshore wind power shall be about 2,000 MW, onshore and offshore wind power shall be about 500 MW.

+ Plants producing equipments for developing renewable energies, seaport services, logistics for construction, installation, operation and maintenance.

+ Green and low-carbon industrial parks.

+ Research and training facilities.

- Inter-regional renewable energy industrial and service center in the South Central and Southern regions

+ Location: In the area of Ninh Thuan, Binh Thuan, Ba Ria - Vung Tau,  Ho Chi Minh City, etc. In the future, the expansion of such center to neighboring areas can be considered.

+ Scale: Offshore wind power shall be about 2,000-2,500 MW, onshore and offshore wind power shall be about 1,500-2,000 MW.

+ Plants producing equipments for developing renewable energies, seaport services, logistics for construction, installation, operation and maintenance.

Green and low-carbon industrial parks.

+ Research and training facilities.

7. List of prioritized schemes/projects on improving legal policies and strengthening the capacity of the electricity sector

List of prioritized schemes/projects on improving legal policies and strengthening the capacity of the electricity sector shall be specified in Tables 1, 2 and 3, Appendix I.

8. Land use demands by 2030

The total land use demands for power sources and transmission grids nationwide shall be approximately 90.3 thousand hectares.

9. Investment capital demands by 2030

- Investment capitals:

+ The investment capital demands for  prioritized schemes/projects on improving legal policies and strengthening the capacity of the electricity sector shall be about VND 50 billion.

+ The investment capital demands power supply programs in rural, mountainous and island areas shall be about VND 29,779 billion.  Currently, the available balance is about VND 8,915.6 billion, of which VND 7,351.9 billion VND is from the central budget, about VND 1,563 is the capital of localities and EVN, the unbalanced capital is about VND 20,857 billion (accounting for 70%).

- Other capital sources besides public investment capitals:

All investment capitals for power source and transmission grid investment projects shall capital sources other than public investment capitals. The projected total investment capital shall be VND 3,223 trillion (equivalent to USD 134.7 billion), of which investment in power source shall be about VND 2,866.5 trillion (USD 119.8 billion) and investment in power transmission network shall be about VND 356.5 trillion VND (USD 14.9 billion).

+ The projected total investment capital for the 2021-2025 shall be VND 1,366.2 trillion (USD 57.1 billion), of which for power source shall be VND 1,150.9 trillion (USD 48.1 billion), for transmission grid shall be VND 215.3 trillion (USD 9.0 billion ).

+ The projected total investment capital for the 2026-2030 shall be VND 1,856.7 trillion (USD 77.6 billion), of which for power source shall be VND 1,715.6 trillion (USD 71.7 billion), for transmission grid shall be VND 141.2 trillion  (USD 5.9 billion).

10. Measures for implementing the plan

Measures to implement the plan shall be implemented in accordance with Part VI, Article 1 of Decision No. 500/QD-TTg.

III. ORGANIZATION OF IMPLEMENTATION

1. Ministry of Industry and Trade shall:

- The Ministry of Industry and Trade shall take the full responsibility before the law and before the Prime Minister for proposals and recommendations for approval of the Plan to implement the VIII Power Development Plan, in which the contents of the Plan must closely follow the objectives of the approved  VIII Power Development Plan, and at the same time must meet the overall objectives, must be optimal, effective, and in accordance with law regulations and must ensure a solid supply of electricity for the country in general and regions, areas according to the annual electricity demand forecasts.

- Fulfill communication and dissemination works on the Plan to implement the National Power Development Plan for the 2021-2030 period, with a vision to 2050 to relevant localities, agencies and organizations, domestic and international investors and partners to create unity in vision, goals, and orientation for power development.

- Take the prime responsibility for and coordinate with ministries and branches to organize effective implementation of the Plan in accordance with the provisions of the Law on Planning and relevant laws, ensuring sufficient electricity supply for socio-economic development. For projects whose investment policies have been approved or projects decided to invest in, if they are under inspection, examination, investigation, audit, or judgment enforcement (if any), such projects can only continue  after fully implementing the conclusions of inspection, examination, audit, investigation and judgment enforcement (if any) and must be approved by competent authorities in accordance with law regulations.

- Take the prime responsibility for and coordinate with ministries, branches and localities to amend regulations of the Law on Economical and Efficient Use of Energy to create a strong transition in reducing the energy intensity of the economy, promulgate sanctions, mandatory standards and regulations on energy efficiency. It is planned to complete in the 2026-2030 period.

- Take the prime responsibility for and coordinate with ministries, branches and localities to complete the electricity price management mechanism in accordance with the market mechanism with regulation by the State, ensuring a harmonious combination of the State's political - economic - social goals and production, business and financial autonomy goals of electricity enterprises; improve and complete the current electricity tariff.

- Take the prime responsibility for and coordinate with ministries, branches and localities to research and complete to submit to competent authorities for promulgation of price frameworks for various types of power sources, especially renewable energy sources. It is planned to complete in 2025.

- Take the prime responsibility for and coordinate with relevant units to develop and promulgate price frameworks for types of power sources imported from Laos; develop transmission prices for investment projects in transmission grids in the form of socialization  to encourage economic sectors to participate in investing in power grid infrastructure.

- Take the prime responsibility for and coordinate with relevant ministries, branches and agencies to review, supplement and complete legal documents on hydrogen-derived energies in accordance with law regulations to facilitate energy development of hydrogen-derived energies, encouraging consumers to convert technology to using hydrogen-derived energies.

- Take the prime responsibility for and coordinate with ministries, branches and localities to research and promulgate regulations to strictly control the progress of power source and grid projects, determine specific responsibilities of agencies, organizations and individuals related to projects that are behind schedule; set out sanctions to handle and recover projects that are behind schedule.

- Take the prime responsibility for and research and develop a report on difficulties and obstacles during the implementation of the VIII Power Development Plan.

- Take the prime responsibility for and coordinate with relevant units to develop ancillary service market, complete regulations on ancillary service market, and regulations on appropriate ancillary service prices to encourage power plants to participate in providing auxiliary services to ensure the reliability of power supply for the system. It is planned to complete in 2025.

- Coordinate with People's Committees of localities with concentrated solar power projects which have been assigned to investors to review, evaluate and synthesize reports to the Prime Minister for consideration and decision on the implementation by 2030.

- Coordinate with localities with natural gas and LNG power source projects to urge project investors to promptly deploy and ensure such projects to be on schedule for  operation; propose solutions to ensure electricity supply for socio-economic development.

- Each year, the Ministry of Industry and Trade shall coordinate with localities to review and report on the power development situation and propose a list of projects to replace behind-schedule projects.

- Take the prime responsibility for and coordinate with localities to urgently review the lakcing power source capacity to complete the list of development projects during the planning period and submit it to the Prime Minister for approval before April 30, 2024.

2. Ministry of Planning and Investment shall:

- Research and propose to competent authorities to issue regulations on the competence to decide investment policies for offshore wind power projects, hydrogen/ammonia production projects using offshore wind power, and offshore wind power export projects.

- Coordinate to develop a public and transparent bidding mechanism to select investors to implement power projects, and provide guidelines for localities in implementation.

- Urgently research and amend the Law on Planning to overcome problems in the power development process.

3. Ministry of Finance shall:

- Coordinate with the Ministry of Industry and Trade to develop policies on electricity prices according to market mechanisms.

- Coordinate with the Ministry of Industry and Trade to research, develop and promulgate or submit to competent authorities for promulgation of financial mechanisms, electricity price mechanisms, and incentive mechanisms to support the implementation.

4. The State Bank, other ministries, sectors and the Commission for Management of State Capital at Enterprises shall:

Fulfill all functions, tasks, and authorities to implement the energy projects in the Plan to implement the VIII Power Development Plan on schedule; propose mechanisms, policies, and solutions to resolve obstacles for efficient implementation of the Plan's objectives, ensure its consistency and coherence with the 10-year socio-economic Development Strategy for the 2021-2030 period, as well as the socio-economic development plans of each sector and locality.

5. People’s Committees of provinces and centrally-run cities shall:

- Chairpersons of the People's Committees of provinces and centrally-run cities shall be fully responsible before the law and the Prime Minister for the truthfulness and accuracy of information, data and proposed contents of renewable energy projects in their locality which are included in the Plan to implement the VIII Power Development Plan  in accordance with the instructions of the Ministry of Industry and Trade, ensure law compliance on the project feasibility and efficiency and must not legalize violations.

- Review the Provincial Plan for the 2021-2030 period, with a vision to 2050 to ensure consistency and synchronization with the Plan to implement the VIII Power Development Plan.

- Coordinate with the Ministry of Industry and Trade and relevant ministries and agencies to organize the implementation of the Plan to implement the VIII Power Development Plan in accordance with their functions and competence.

- Organize the selection of investors for power projects in accordance with law provisions. For LNG-fueled thermal power projects that have not had any investors, urgently complete the selection of the investor, speed up the preparation and submission of the project's feasibility study report, and complete them in the second quarter of 2025.

- Promptly review concentrated solar power projects whose planning has been approved, whose investment policies have been approved by competent authorities and have been assigned to investors in accordance with Decision No. 500/QD-TTg and Notification No. 453/TB-VPCP dated November 3, 2023, send a document to the Ministry of Industry and Trade confirming the legal compliance and compatibility with planning and plans in their locality, including compatibility with land use planning, forest planning, mineral planning and other planning in their locality to serve as a basis for the Ministry of Industry and Trade to select and propose to the Prime Minister for approval.

- Arrange land funds for developing power works in accordance with law provisions; take the prime responsibility for and closely coordinate with investors to carry out site clearance, compensation, evacuation and resettlement for power source and power grid projects in accordance with law regulations.

- Before appraising and approving the investment policy for power source projects that are not in the list of important and prioritized projects of the electricity sector, consult the Ministry of Industry and Trade and relevant agencies on the compatibility with the planning.

- Review and complete the provision/supplement of data, propose electricity source projects to closely follow the criteria guided by the Ministry of Industry and Trade, ensure compliance with the allocated capacity scale, and strictly implement  directions of the Government and the Prime Minister on absolutely not to legalize violations and to take responsibility before the law, the Government and the Prime Minister and send to the Ministry of Industry and Trade before April 15, 2024

6. The Vietnam Electricity shall:

- Maintain a leading role in ensuring stable and safe electricity supply for socio-economic development.

- Regularly review and assess the balance of electricity supply and demand and the operational status of the national and regional power systems, and report them to relevant authorities.

- Operate the power system safely, smoothly and effectively to avoid power shortages in all situations.

- Implement power source/transmission grid projects on schedule according to assigned tasks. Concentrate all resources to deploy the project of 500 kV circuit 3 line from Quang Trach (Quang Binh) to Pho Noi (Hung Yen) guaranteed to be completed in June 2024. The Vietnam Electricity shall be take the prime responsibility if any project is behind schedule and does not ensure electricity supply security.

- Thoroughly take solutions to innovate corporate governance, enhance production and business efficiency, increase labor productivity, reduce power losses, save costs, and lower production costs.

- Research and survey conditions for offshore wind power development, ready to deploy when assigned as investor by competent authorities.

7. The Vietnam Oil and Gas Group shall:

- Strengthen search, exploration and exploitation of domestic gas sources to supply electricity generation, living up to the electricity load demand. Quickly and effectively deploy Block B, Ca Voi Xanh, Ken Bau gas fields, etc. according to the approved schedule.

- Implement solutions to build warehouse and port infrastructure, connect domestic and regional gas systems to serve the import of natural gas and LNG to ensure gas sources for power plants.

- Implement assigned power projects on schedule.

- Research and survey conditions for offshore wind power development, ready to deploy when assigned as investor by competent authorities.

8. The Vietnam National Coal - Mineral Industry Holding Corporation Limited and Dong Bac Corporation shall:

- Play a key role in ensuring coal supply for electricity generation in accordance with the energy transition roadmap. In the immediate future, improve domestic coal production capacity, combined with coal import to supply fuel for power plants.

- Promote investments in energy projects according to the assigned tasks.

During the implementation process, if there are any difficulties or problems in conducting the Plan to implement the VIII Power Development Plan, ministries, branches and localities must report to the Prime Minister and at the same time send it to the Ministry of Industry and Trade to synthesize and report to the Prime Minister for consideration and decision.

9. The unit advising on the promulgation of the Plan to implement the VIII Power Development Plan shall

Take full responsibility before law and before the Prime Minister for:

- Calculations and proposals of the Plan to implement the VIII Power Development Plan.

- Calculation methods, criteria, arguments, and legal basis in screening and proposing a list of projects.

- The honesty, accuracy, objectivity, and scientific nature of proposals and advice, as well as information and data compiled from localities and businesses.

* All Appendices are not translated herein.