Decision 266/QD-TTg 2025 Plan for Implementation of the Global Coal to Clean Power Transition Statement

PLAN

For implementation of the Global Coal to Clean Power
Transition Statement

(Attached to the Decision No. 266/QD-TTg dated February 12, 2025 of the Prime Minister)

^__________

I. OBJECTIVES

1. General objectives

To proactively follow the global trend of low-carbon development; mobilize all domestic and international resources for power development; conduct research and apply co-firing technology with clean fuels to gradually reduce emissions in coal-fired power plants; establish a roadmap to decommission coal-fired power plants that have reached the end of their economic life or use outdated technology; promote the exploitation and maximum use of renewable energy sources for electricity generation, ensuring a sufficient, stable, and increasingly high-quality electricity supply at reasonable prices for socio-economic development, contribute to exerting efforts to respond to global climate change. To work out and perform tasks and comprehensive solutions to respond to climate change and speed up energy transition so as to realize the commitment to achieving net-zero emissions by 2050.

2. Specific objectives

a) The period through 2030

- To conduct pilot studies on the installation of carbon capture and storage systems for coal-fired power plants using outdated and low-efficiency technologies.

- To consider decommissioning around 540 MW of coal-fired capacity (including 440 MW at Pha Lai Thermal Power Plant and 100 MW at Ninh Binh Thermal Power Plant) if the coal-fired power plants, having reached the end of their economic life and utilizing outdated, low-efficiency technology, cannot resolve issues related to efficiency and emissions.

- To research and pilot the application of co-firing technology using biomass and ammonia at coal-fired power plants to reduce CO₂ emissions. To encourage coal-fired power plants to adopt co-firing and to gradually transition to the use of biomass and ammonia as fuels.

- To prioritize the comprehensive and efficient exploitation and utilization of renewable energy sources for power generation; to increase the share of electricity produced from renewable energy sources (including hydropower) to approximately 29.2–37.7%.

- To accelerate the implementation of the National Program on Economical and Efficient Use of Energy to achieve a target of saving 8–10% of the total national energy consumption.

- To strive to complete the investment in the Ninh Thuan nuclear power plant project within approximately 5 years, contributing to energy security, development, and environmental protection.

b) The 2031 - 2040 period

- To decisively cease operations of coal-fired power plants with low efficiency, outdated technology, and that have reached the end of their economic life and cannot be renovated.

- Not to grant permits for or construct new coal-fired power plants. To encourage coal-fired power plants to convert their fuel to co-firing or complete replacement with biomass or ammonia. To implement fuel conversion for coal-fired power plants to co-fire with biomass or ammonia after 20 years of operation, starting with a co-firing rate of 20%, gradually increasing to 100%.

- To promulgate mechanisms and policies to support the widespread application of carbon capture systems at coal-fired power plants if pilot implementations prove effective.

- To continue to promote the development of renewable energy sources to efficiently exploit national resources and enhance the autonomy of the power sector.

- To focus on developing the domestic renewable energy industry to increase independence and self-reliance and reduce costs.

c) The 2041 - 2050 period

(i) By 2045:

- To develop a minimum of 1,160 MW of clean power sources to replace and compensate for decommissioned sources, ensuring sufficient electricity supply for the national grid, in order to consider decommissioning around 1,160 MW¹ of coal-fired power capacity from plants that have reached the end of their economic life (if not converted to alternative fuels).

- To continue the transition of fuel at coal-fired power plants after 20 years of operation to co-fire with biomass and ammonia, with a total capacity of 18,642 MW; fully convert coal-fired power plants to biomass and ammonia with a total capacity of 6,990 MW.

(ii) By 2050:

- To develop sufficient clean power sources to replace and compensate for decommissioned sources, with a minimum capacity of 3,335 MW, ensuring adequate electricity supply for the national grid, in order to consider decommissioning around 3,335 MW² of coal-fired power capacity from plants that have reached the end of their economic life (if not converted to alternative fuels or equipped with carbon capture systems).

- To convert fuel sources at coal-fired power plants to fully use biomass and ammonia, with a total capacity ranging from 25,632 MW to 28,832 MW; install carbon capture systems at the coal-fired power plants.

d) From 2050 onwards

To orient to cease the use of coal as fuel for electricity generation.

II. TASKS AND SOLUTIONS

1. In terms of policies and legal frameworks

- Formulate mechanisms and policies to support the transition from coal-fired power to clean energy in a manner that ensures fairness and equity, benefits affected organizations and individuals, and aligns with international commitments to which Vietnam is a party.

- Formulate breakthrough mechanisms and policies to strongly encourage and promote the development of renewable energy sources to the maximum extent possible as substitutes for fossil energy sources.

- Finalize policies and legal provisions on electricity development, renewable energy development, economical and efficient use of electricity, and other related regulations to address difficulties and obstacles in electricity sector investment and development.

- Implement measures to eliminate subsidies, monopolies, unfair competition, and lack of transparency in the energy sector.

- Accelerate the implementation of the national program on electricity demand management.

2. In terms of technologies and techniques

- Research and apply technologies and techniques for co-firing biomass and ammonia in coal-fired power plants, progressing toward full fuel conversion at an appropriate time.

- Research, master, and apply carbon capture systems (CCS) in coal-fired power plants; develop carbon reuse technologies.

- Research and apply new technical methods in power system operation to ensure safety during the transition from coal-fired power to clean energy.

- Gradually apply measures to encourage and compel the renovation of technologies and equipment of the electricity-intensive industries; restrict the use of outdated and low-efficiency equipment in energy production and consumption.

- Develop the renewable energy industry; establish renewable energy centers for carbon storage, sequestration and utilization, production of equipment and storage batteries for renewable energy, production of green hydrogen, and development of offshore wind power integrated with offshore aquaculture.

- Focus on developing the domestic renewable energy industry, including manufacturing of renewable energy equipment and electricity storage devices, etc., to enhance the independence and self-reliance of the power sector and the economy, and to reduce costs.

- Upgrade and complete the power grid system to facilitate the connection of power sources from renewable energy projects, thereby maximizing the efficiency of these energy sources during the transition process.

3. In terms of finance and funding

- Mobilize to the fullest extent all domestic and international resources, from both public and private sectors, to ensure financial sources for the implementation of the plan.

- Maximize the use of support from foreign countries, international organizations, and multilateral mechanisms (such as the Political Declaration on Establishing the Just Energy Transition Partnership (JETP), the Asia Zero Emission Community (AZEC) initiative, etc.) for the implementation of commitments made at COP26 and the Global Coal to Clean Power Transition Statement.

- Encourage and create all favorable conditions for all economic sectors, especially the private sector, to participate in energy development.

4. In terms of human resources

- Train and develop human resources to meet the requirements of management, science, and technology for the implementation of the coal-to-clean energy transition plan.

- Develop and implement training and retraining programs for staff and workers of coal-fired power plants; livelihood generation programs for individuals and communities directly and indirectly affected by the transition process; training programs for high-quality human resources in the renewable energy industry with the goal of mastering technology and fostering the development of Vietnamese enterprises in manufacturing equipment for renewable energy projects in the domestic market, with a view to future export.

- Cooperate in the training of high-quality engineers, technical staff, and workers to serve the renewable energy industry and develop the carbon capture, storage, and utilization industry to meet the target of net-zero emissions by 2050.

- Integrate research and development activities into energy development strategies, master plans, and plans.

5. In terms of international cooperation

- Strengthen cooperation with international organizations, governments, and foreign enterprises to: acquire and apply advanced and modern technologies in transitioning from coal power to clean energy; enhance management capacity and formulate relevant policies and regulations; mobilize maximum financial support in accordance with the laws.

- Expand the international cooperation in scientific research and the development of electricity and renewable energy technologies. Increase participation in cooperative programs with international organizations and foreign enterprises in supporting technology transfer and mobilizing capital from foreign partners for the development of the energy sector in general and the electricity sector in particular.

6. In terms of just transition and assurance of social security

- Conduct studies and assessments on the impacts of the coal-to-clean energy transition to formulate support programs for affected organizations and individuals, ensuring fairness, equality, and benefits for these subjects.

- Seek funding sources to formulate social security fund to ensure the livelihood of affected workers.

III. IMPLEMENTATION RESOURCES

The funding for the implementation of this Plan shall be allocated from the state budget according to current laws; socialized resources; funds mobilized from organizations and individuals; International aid and official development assistance (ODA); multilateral mechanisms (such as the Political Declaration on Establishing the Just Energy Transition Partnership (JETP), the Asia Zero Emission Community (AZEC) initiative, etc.); funds from domestic and international financial institutions and funds, as per legal provisions and fund-balancing capacity.

IV. IMPLEMENTATION ORGANIZATION

1. The Ministry of Industry and Trade shall:

- Assume the prime responsibility for researching and proposing mechanisms and policies to encourage coal-fired power plants to transition to clean fuels or install carbon capture systems to ensure the achievement of set objectives.

- Assume the prime responsibility for and coordinate with relevant ministries and sectors in seeking support from other countries and international organizations for the implementation of the Global Coal to Clean Power Transition Statement.

- Every five years, conduct a preliminary review and assessment of the implementation of the Plan and report to the Prime Minister for consideration and adjustment of the Plan in accordance with the actual development of the global energy sector.

- Assess the impact of energy transition in general, and coal-fired power plants in particular, on electricity prices by 2030 and by 2045 to develop an appropriate roadmap for electricity price adjustment, and report to the competent authorities for review and decision.

2. The Ministry of Finance shall:

Allocate and balance regular expenditure funding for the ministries and the central agencies to implement the Plan in accordance with the Law on State Budget and the budget-balancing capacity of the central budget.

3. The Ministry of Science and Technology shall:

- Coordinate with corporations and groups supporting research and application of global scientific, technical, and technological advances in transitioning from coal fuel to co-firing with biomass and ammonia; master technologies and apply carbon capture systems (CCS) in coal-fired power plants; carbon reuse technologies.

- Promote research and application of technologies from the Fourth Industrial Revolution and digital transformation in the management, exploitation, production, distribution, and efficient use of energy; master the technologies for manufacturing equipment in the clean energy and renewable energy sectors, as well as advanced, environmentally friendly energy storage devices suitable to Vietnam’s conditions, etc. through Science and Technology Programs.

- Continue to improve the national standards system and national technical regulations in line with the orientation of Vietnam’s National Energy Development Strategy through 2030 with a vision toward 2045, including the development and supplementation of national standards and technical regulations in the fields of recycling and using waste from energy production processes.

4. The Ministry of Labor, Invalids and Social Affairs shall:

Coordinate with the ministries, the sectors, and the local authorities in researching and assessing the impacts of implementing the Global Statement on organizations and workers in relevant sectors, in order to propose plans and programs that ensure a just transition, benefits for these subjects and ensure social security.

5. Vietnam Electricity (EVN), Vietnam Oil and Gas Group (PVN), Vietnam National Coal and Mineral Industries Holding Corporation Limited (VINACOMIN), and the investors of coal-fired power plants shall:

- Study and formulate plans for transitioning the fuel of thermal power plants to clean energy sources, ensuring the economic efficiency of the plants; develop plans on decommission for coal-fired power plants that have reached the end of their economic life and cannot implement fuel transition or carbon capture to meet required standards.

- Study and formulate solutions to ensure safe operation of the power system during the transition from coal-fired power to clean energy.

6. The People’s Committees of centrally-affiliated cities and provinces with coal-fired power plants shall:

- Assume the prime responsibility for and coordinate with relevant agencies in developing, approving, and directing the implementation of the plan within their respective localities.

- Annually summarize and evaluate the implementation status and results of the Plan in their localities, and report to the Ministry of Industry and Trade for consolidation and submission to the Prime Minister.

7. The relevant ministries, sectors, and agencies shall:

Carry out the assigned tasks as stipulated in the Appendix of key tasks issued together with this Plan.

^{________________________}

¹ The thermal power plants include: Pha Lai 2 (600 MW); Na Duong (110 MW); Formosa Dong Nai (450 MW).

² The thermal power plants include: Uong Bi MR Thermal Power Plant (600 MW); Hai Phong 1 Thermal Power Plant (600 MW); Quang Ninh Thermal Power Plant (1,200 MW); Cao Ngan Thermal Power Plant (115 MW); Cam Pha 1&2 Thermal Power Plants (600 MW); Son Dong Thermal Power Plant (220 MW).