Decision 338/QD-TTg 2024 Plan on implementation of the National Overall Master Plan on Energy for 2021-2030

PLAN

On implementation of the National Overall Master Plan on Energy

for the 2021 - 2030 period, with a vision toward 2050

(Attached to the Decision No. 338/QD-TTg

dated April 24, 2024 of the Prime Minister)

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I. OBJECTIVES AND REQUIREMENTS

1. Objectives

- To effectively implement the Decision No. 893/QD-TTg dated July 26, 2023 of the Prime Minister approving the National Overall Master Plan on Energy for the 2021-2030 period, with a vision toward 2050.

- To identify list of specific projects, to determine the progress of implementing programs and projects in each period from now to 2030; to determine methods, resources, and coordination mechanisms between the ministries, the sectors, and the People's Committees of centrally-affiliated cities and provinces in implementation.

- To provide guidance to the ministries, the sectors, and the People's Committees of centrally-affiliated cities and provinces in implementing the objectives, tasks and solutions for implementing the planning in each period.

2. Requirements

- To ensure compliance with and successiveness of the Resolutions, action programs, sectoral plans and plans on implementation of relevant sectoral plans that have been approved; not legalize violations in projects with approved investment policies or investment decisions.

- To ensure development of overall optimization of the factors of energy exploitation, production, distribution and economical and efficient use as suitable to spaces and comparative advantages of regions and localities.

- To continue to promote the development of exploitation and effective use of domestic energy resources in combination with reasonable energy import and export. To develop energy in parallel with protection of natural resources, the environment and ecology. To regard development of renewable energies and new energies as an opportunity for comprehensively developing the ecosystem of energy industry.

- To encourage all economic sectors to participate in investing in sustainable development of energies on the principle of fair competition and implement the market mechanism for energies of all types, ensuring the harmony of interests among subjects participating in energy investment and use and meeting development requirements of all regions and localities.

- To closely follow the world’s science and technology development trends, especially regarding renewable energies, new energies and non-energy products, in association with transformation of the country’s economic model toward green growth, green economy, circular economy and low-carbon economy.

II. PRINCIPAL CONTENTS

The National Energy Master Plan covers the sub-sectors of petroleum, coal, electricity, and new and renewable energies, with such tasks as basic survey, prospecting, exploration, exploitation, production, storage, distribution and use of energy and other related activities. The energy master plans in the Resolution No. 110/NQ-CP dated December 2, 2019 of the Government which are integrated into the National Energy Master Plan, including the Petroleum Development Master Plan, Gas Development Master Plan, Coal Development Master Plan, and Renewable Energy Master Plan, shall not be continued to be implemented as stipulated at Point c, Clause 1, Article 59 of the Planning Law.

1. Public investment projects and investment projects financed by sources other than public investment ones

All energy sector investment projects use sources other than public investment ones. Schemes on completing legal policies and enhancing the capacity of the electricity sector using public investment capital (according to the National Master Plan on Electricity Development for the 2021-2030 period, with a vision toward 2050 approved by the Prime Minister).

a) Oil and gas sub-sector

The oil and gas sub-sector includes the following areas: (i) oil and gas prospecting, exploration and exploitation; (ii) gas industry; (iii) oil and gas processing; (iv) transportation, storage and distribution of oil and gas products.

The list of projects and specific schedules for important projects with investment priority shall comply with the Appendix IA, the important projects with potential investment priority shall comply with the Appendix IB, other projects (other than important projects with investment priority) shall comply with the Appendix II attached to this Plan.

b) Coal sub-sector

The coal sub-sector includes projects/schemes on: (i) coal exploration; (ii) coal exploitation; (iii) coal screening, sorting and processing; (iv) infrastructure for coal industry development (including coal import and export terminal and other infrastructure projects); (v) mine closure.

The list of projects and specific schedules for important projects with investment priority shall comply with the Appendix IA, the important projects with potential shall comply with the Appendix IB, other projects (other than important projects with investment priority) shall comply with the Appendix II; the coordinates of closed angle boundaries of some coal mine investment projects (updated compared to the Decision No. 893/QD-TTg dated July 26, 2023 of the Prime Minister) shall comply with the Appendix III attached to this Plan.

In addition, the list of production maintenance projects, the coordinates of closed angle boundaries of coal resource exploration schemes, and other coal mine investment projects shall be implemented according to Appendix II and Appendix III issued together with the Decision No. 893/QD-TTg dated July 26, 2023 of the Prime Minister.

c) New energy and renewable energy sub-sector

The new energy and renewable energy sub-sector includes the following areas: (i) wind power; (ii) solar power; (iii) biomass energy, biofuels, biogas; (iv) solid waste energy; (v) small hydropower; (vi) other renewable energies (tidal, ocean waves, geothermal); (vii) new energies (hydrogen, ammonia, hydrogen-derived fuels, synthetic fuels, etc.).

Orientations for vigorous development of offshore wind power in combination with other renewable energies (solar power, onshore wind power, etc.) for production of new energies (hydrogen, blue ammonia, etc.) to meet the domestic consumption and export demand. Renewable energy-fueled power sources for production of new energies to meet the domestic consumption and export demand will be prioritized/permitted for unlimited development on the basis of assuring national security and defense and energy security and bringing about high economic efficiency, thereby turning the energy sector into a new economic sector of the country.

The list of projects and specific schedules for important projects with investment priority shall comply with the Appendix IA, the important projects with potential shall comply with the Appendix IB, other projects (other than important projects with investment priority) shall comply with the Appendix II attached to this Plan.

d) Electricity sub-sector

The electricity sub-sector shall comply with the Plan on implementation of the National Master Plan on Electricity Development for the 2021-2030 period, with a vision toward 2050 approved by the Prime Minister.

2. Estimated land use demand (plan)

The land demand for development of establishments and infrastructure facilities of the energy sector will be 93.54 - 97.24 thousand hectares and 171.41 - 196.76 thousand hectares for the 2021-2030 period and 2031-2050 period, respectively. The sea surface area for offshore works will be around 334,800 hectares and 1,302,000-1,701,900 hectares by 2030 and 2050, respectively.

3. Determination of resources and use of resources to implement master plan

All investment capital for energy sector projects uses sources other than public investment ones. The investment capital demand of the energy sector for the 2021-2030 period will be approximately: VND 4,133 - 4,808 trillion. Investment capital amounts phased out for the two periods are as follows:

- For the 2021-2025 period: about VND 1,640 - 1,887 trillion.

- For the 2026-2030 period: about VND 2,493 - 2,921 trillion.

The schemes on completing legal policies and enhancing the capacity of the electricity sector shall use public investment capital.

III. POLICIES AND SOLUTIONS FOR IMPLEMENTATION OF MASTER PLAN

The solutions for implementing the National Energy Master Plan shall comply with the Part VI, Article 1 of the Decision No. 893/QD-TTg.

- Solutions for mobilization and allocation of investment capital

- Solutions regarding mechanisms and policies

- Solutions regarding environment, science, and technology

- Solutions for human resource development

- Solutions for international cooperation

- Solutions for organizing, implementing and monitoring the implementation of the master plan

IV. IMPLEMENTATION ORGANIZATION

1. The Ministry of Industry and Trade shall:

- Assume the prime responsibility for and coordinate with ministries and sectors in effectively implementing the Plan in compliance with the Planning Law and relevant laws, ensuring adequate energy supply for socio-economic development.

- Build the energy database, covering data on the master plan and data on the implementation thereof, which shall serve as a basis for supervising the implementation of the master plan. Regularly review the energy supply-demand and progress of implementation of energy projects in order to propose necessary adjustments thereto, ensuring the energy supply-demand of the economy. Provide data on the National Energy Master Plan to serve the development of the Information System and National Database on Master Plan.

- Review, supplement and complete legal documents on energy sub-sectors (petroleum, coal, electricity, renewable energy) to facilitate energy development.

- Develop and implement solutions for economical and efficient use of electricity according to the Directive No. 20/CT-TTg dated June 8, 2023 of the Prime Minister on enhancing electricity savings in the 2023-2025 period and beyond, and the National Program on economical use of energy in the 2019 - 2030 period.

- Assume the prime responsibility for and coordinate with relevant ministries, sectors and localities in reviewing and ensuring the following principles: For projects that have been approved for investment policies or have made investment decisions but are in the process of inspection, examination, investigation, audit, and judgment enforcement (if any), they can only continue to be implemented after fully implementing the conclusions of the inspection, examination, investigation, audit and judgment enforcement (if any) and must be approved by competent authorities in accordance with the law.

- Take full responsibility before the law and the Prime Minister for the content of the Plan on implementation of the Energy Master Plan.

2. The Ministry of Planning and Investment shall:

- Develop mechanisms and policies to attract foreign investment, ODA capital and private investment capital for the development of the energy sector in a synchronous, balanced and sustainable manner.

- Coordinate with relevant ministries and sectors in developing a public and transparent bidding mechanism to select investors to implement energy projects, and guide localities in implementation.

- Assume the prime responsibility for and coordinate with the Ministry of Industry and Trade in issuing documents regulating and guiding the implementation of investment in green projects and pilot projects (offshore wind power, production of new energies such as hydrogen, ammonia, etc.) in the energy sector.

3. The Ministry of Finance shall:

- Coordinate with the Ministry of Industry and Trade in developing policies on energy prices under market mechanisms.

- Coordinate with the Ministry of Industry and Trade in researching, issuing and submitting to the competent authorities for issuance of mechanisms, policies and financial instruments in the energy sector.

4. The Ministry of Natural Resources and Environment shall:

- Assume the prime responsibility for and coordinate with the Ministry of Industry and Trade in completing preferential policies on land use and use of marine areas for energy infrastructure.

- Complete the policy framework, develop and supplement the system of national standards and regulations on emissions and waste in the energy sector towards approaching the standards of developed countries.

- Assume the prime responsibility for and coordinate with the Ministry of Industry and Trade in researching amendment of environmental taxes, developing appropriate carbon tax policies for the production and use of fossil fuels.

- Proactively review mineral (coal) activities according to the granted Mineral Exploration and Exploitation Licenses to promptly remove difficulties and obstacles in the implementation process; assume the prime responsibility for and coordinate with the Ministry of Industry and Trade and relevant agencies in the process of reviewing the (surface, in depth) boundaries of projects included in the National Energy Master Plan to serve the grant of Mining Licenses according to regulations, ensuring effective and economical exploitation of the country's coal resources.

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

Fulfill their functions, tasks and powers to ensure the progress of implementation of projects in the Plan on implementation of the National Energy Master Plan; propose mechanisms, policies, and solutions to remove obstacles to effectively implement the National Energy Master Plan’s objectives, ensuring consistency and synchronization with the Strategy for socio-economic development for the 2021-2030 period and socio-economic development plan of each sector and locality.

6. The People's Committees of centrally-affiliated cities and provinces shall:

- Review the Provincial Master Plan for the 2021-2030 period, with a vision toward 2050, to ensure consistency and synchronization with the Plan on implementation of the National Energy Master Plan.

- Organize the selection of project owners for energy projects and allocate land for the development of energy facilities in accordance with law, with the priority given to land allocation for energy projects under the National Energy Master Plan; assume the prime responsibility for, and closely coordinate with project owners in, conducting ground clearance, compensation, population relocation and resettlement for energy projects under regulations.

7. The Vietnam Electricity shall:

- Play a leading role in ensuring stable and safe electricity supply for socioeconomic development.  Invest in electricity source projects and electricity grid projects in a synchronous manner according to its assigned tasks.

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

- Thoroughly take solutions to innovate corporate governance, improve production and business efficiency, increase productivity, reduce electricity losses, costs and production costs.

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

8. The Vietnam Oil and Gas Group shall:

- Take the initiative in formulating and adjusting its development strategies and plans in conformity with the approved Plan on implementation of the National Energy Master Plan; intensify capital mobilization from domestic and foreign organizations for implementation of investment projects, particularly key oil and gas projects. Promote investments in energy projects according to its assigned tasks.

- Coordinate with oil and gas contractors to formulate optimal exploitation plans for oil and gas resources from the fields of Lot B and Blue Whale, etc. as well as planned infrastructure projects in the oil and gas sector, including LNG import terminal projects.

- Intensify prospecting; exploration and exploitation of domestic oil and gas resources for supply to industrial sectors.

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

9. The Vietnam National Coal-Mineral Industries Holding Corporation Limited and Dong Bac Corporation shall:

- Take the initiative in formulating and adjusting their development strategies and plans in conformity with the the approved Plan on implementation of the National Energy Master Plan. Promote investments in energy projects according to its assigned tasks.

- Further assume the primary responsibility for implementation of the National Energy Master Plan regarding the coal sub-sector and for sustainable development of the coal sub-sector; efficiently perform their role as the main suppliers of domestically produced coal for household consumers; take the initiative in selecting and determining the appropriate time for the preparation and investment work under regulations to ensure that exploration schemes, coal mine projects, and infrastructure projects under their management are put into production/operation on schedule as specified in the National Energy Master Plan.

- Extract, process, and supply coal in accordance with the approved orientations on development of the coal sub-sector; ensure sufficient supply of coal to household consumers under signed coal purchase and sale/supply contracts, particularly sufficient supply of coal for electricity production under long-term, medium-term and short-term coal purchase and sale/supply contracts signed with thermal power plant project owners.

- Continuously update with the developments of domestic and world coal markets; actively and proactively seek reputable coal suppliers in the world who possess long-term stable coal sources so as to diversify coal import sources.

- Coordinate with domestic and foreign capable investors to study the investment in constructing coal transshipment terminals.

- Actively and proactively seek and coordinate with, domestic and foreign organizations and individuals that have adequate capability and appropriate technologies in studying to select technologies and appropriate exploration methods so as to implement themes/schemes/projects on trial exploitation of Red River coal basin, then formulate an efficient industrial exploitation plan according to the Master Plan. Coordinate with domestic and overseas enterprises and organizations in studying the use of coal for non-energy purposes, coal gasification, etc.

- Study and apply science and technology to turn coal into clean energy and other products (for use in metallurgy or coal gasification to produce appropriate gas products for the energy and industrial sectors, etc.) to diversify coal-based products.

- Research, develop, and apply science and technology focusing on minimizing impacts on environment and ensuring worker safety.

10. The Vietnam National Petroleum Group and other energy enterprises shall:

- Take the initiative in formulating and adjusting their development strategies, master plans and plans in conformity with the overall development of the energy sector; formulate plans to enhance capital mobilization from both domestic and foreign financial institutions.

- Organize the implementation of the tasks and solutions specified in the Plan on implementation of the National Energy Master Plan according to the competence and functions specified in their charters and relevant regulations.