THE PRIME MINISTER
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, May 15, 2023
On approving the National Power Development Master Plan for the 2021-2030 period, with a vision to 2050
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;
Pursuant to the Law on Planning dated November 24, 2017;
Pursuant to the Electricity Law dated December 3, 2004; the Law Amending and Supplementing a Number of Articles of the Electricity Law dated November 20, 2012;
Pursuant to Resolution No. 61/2022/QH15 dated June 16, 2022, of the National Assembly, on continuing to enhance the effectiveness and efficiency of the implementation of policies and laws on planning and a number of solutions to remove difficulties and obstacles, accelerate the formulation, and improve the quality of planning for the period of 2021 - 2030;
Pursuant to Resolution No. 81/2023/QH15 dated January 9, 2023, of the National Assembly, on the National Overall Master Plan for the 2021–2030 period, with a vision toward 2050;
Pursuant to the Government’s Decree No. 37/2019/ND-CP dated May 7, 2019, detailing a number of articles of the Planning Law;
Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013, detailing a number of articles of the Electricity Law and the Law Amending and Supplementing a Number of Articles of the Electricity Law;
At the request of the Ministry of Industry and Trade in Report No. 2842/TTr-BCT dated May 14, 2023, and Official Dispatch No. 2851/BCT-DL dated May 15, 2023; Appraisal Report No. 62/BC-HDTDQHD dated May 13, 2023, of the Council for Appraisal of the National Power Development Master Plan for the 2021–2030 period, with a vision to 2050.
Article 1. To approve the National Power Development Master Plan for the 2021–2030 period, with a vision to 2050 (hereinafter referred to as the Power Master Plan VIII) with the following main contents:
I. SCOPE AND BOUNDARIES OF THE MASTER PLAN
Master plan on development of power sources and transmission grids at voltage level of 220 kV or higher, industry and services in renewable energy, new energy in the territory of Vietnam in the period of 2021-2030, with a vision to 2050, including works to connect the grid with neighboring countries.
II. PERSPECTIVES, OBJECTIVES OF DEVELOPMENT
1. Development perspectives
a) The electricity is an important infrastructure sector, electricity development must go one step ahead, creating a foundation for promoting rapid and sustainable development of the country, building an independent and self-reliant economy, improving the people’s life and ensuring national defense and security. The electricity development master plan must bring a long-term, effective, sustainable vision and put the interests of the country and nation first and foremost.
b) Develop electricity on the principle of optimizing the overall factors related to power generation, transmission, electricity distribution, economical and efficient use of electricity, with a suitable roadmap that aligns with resource conservation, environmental protection and economic model transformation, ensuring national energy security at the minimum cost.
c) The electricity development master plan must rely on scientific ground, have inheriting nature, be dynamic and open without legitimize violations. Exploit and effectively use domestic energy resources, in combination with reasonable import and export, economical and efficient use of energy. Consider the development of renewable energy and new energy as an opportunity to develop the entire energy industry ecosystem.
d) The State focuses on investing and encouraging all economic sectors to rapidly develop the electricity sector on the principle of healthy competition and implementation of the market mechanism on electricity selling prices, the harmonization of the interests of the entities involved in the investment and use of electricity and meeting the development requirements of the regions and areas.
dd) The electricity development must follow the development trend of science and technology in the world, especially in renewable energy and new energy trend, in association with the transition of the country's economy towards a green economy, circular economy, low-carbon economy. The energy transition must be in line with international trends and ensure sustainability, fairness and justice.
2. Development objectives
a) Overall objectives
- Firmly ensure national energy security, meet the requirements of socio-economic development and industrialization and modernization of the country.
- Successfully implement equitable energy transition associated with production modernization, smart grid construction, advanced power system management, in line with the trend of green transition, emission reduction, scientific and technological development of the world.
- Form overall energy industry ecosystem based on renewable energy, new energy.
b) Specific objectives
- For national energy security assurance:
+ Supply enough domestic electricity demand, meeting socio-economic development objectives with an average GDP growth rate of about 7%/year in the period of 2021-2030, about 6.5-7.5%/year in the period of 2031-2050;
. Commercial electricity: About 335.0 billion kWh by 2025; about 505.2 billion kWh by 2030 and about 1,114.1-1,254.6 billion kWh by 2050.
. Generated and imported electricity: About 378.3 billion kWh by 2025; about 567.0 billion kWh by 2030 and about 1,224.3-1,378.7 billion kWh by 2050.
. Maximum capacity: About 59,318 MW by 2025; about 90,512 MW by 2030; about 185,187-208,555 MW by 2050.
+ Ensure safe and reliable electricity supply, meeting N-1 criterion for important load areas and N-2 criterion for extremely important load areas. By 2030, the reliability of electricity supply will be in the group of 4 leading countries in ASEAN, and the electricity access index will be in the group of 3 leading countries in ASEAN.
+ Strive to have 50% of office buildings and 50% of residential houses by 2030 utilizing rooftop solar power for self-generation and self-consumption (serving on-site consumption without selling excess electricity back to the national grid).
- For just energy conversion:
+ Strongly develop renewable energy sources for electricity production, reaching the rate of about 30.9-39.2% by 2030, towards the target of reaching the renewable energy rate of 47%, provided that the commitments under the Political Declaration on establishing the Just Energy Transition Partnership (JETP) with Vietnam are fully and substantively implemented by international partners. Reach a renewable energy share of about 67.5-71.5% by 2050.
+ Control greenhouse gas emissions from electricity production to reach about 204-254 million tons by 2030 and about 27-31 million tons by 2050. Aim to reach peak emissions of no more than 170 million tons by 2030, provided that the commitments under JETP are fully and substantively implemented by international partners.
+ Build smart grid system, capable of safely, effectively integrating, and operating large-scale renewable energy sources.
- For development of the industrial ecosystem and renewable energy services:
+ By 2030, it is projected to establish two inter-regional renewable energy service and industry centers that encompass electricity production, transmission, and consumption; renewable energy equipment manufacturing, construction, installation, and related services, creating an ecosystem for the renewable energy industry in regions with high potentials, such as the Northern, South Central, and Southern regions of Vietnam, when there are favorable conditions.
+ Develop power sources from renewable energy and produce new energy for export purposes. The goal is to achieve an electricity export capacity of approximately 5,000-10,000 MW by 2030.
III. NATIONAL POWER DEVELOPMENT MASTER PLAN
1. Power source development plan
a) Development orientations
- Synchronously develop and diversify types of power sources with a reasonable structure to ensure energy security, improve the self-reliance of the electricity sector, and reduce dependence on imported fuels.
- Continue to promote the development of renewable energy sources (hydropower, onshore and offshore wind power, solar power, biomass power, etc.), new energy, clean energy (hydrogen, green ammonia, etc.) that are suitable for ensuring the safety of the system at a reasonable cost, especially self-generated and self-consumed electricity sources, rooftop solar.
- Efficiently exploit and use domestic fossil fuel sources in combination with imported sources: Gradually reduce the proportion of coal-fired power, prioritize the development of domestic gas-fired power, and develop imported LNG power sources on a suitable scale. Implement energy transition in line with the global technology development trends and costs.
- Develop a balanced electricity supply by region and area to balance the internal supply and demand. Rationally allocate electricity sources in localities within the region to effectively exploit different power sources, ensure reliable on-site electricity supply, reduce technical losses, and decrease long-distance power transmission.
- Develop new power sources, using modern technology and technology innovation at the existing plants. End operations of the plants that do not meet environmental standards.
- Diversify investment forms for developing power sources to enhance competition and improve economic efficiency.
b) Development plan
- Accelerate the development of renewable energy sources (wind power, solar power, biomass power, etc.), and continue to increase their proportion in the power generation mix and production output:
+ Promote the development of onshore and offshore wind power, solar power in accordance with the absorption capacity of the system, the capacity to release capacity of the grid, reasonable electricity prices and transmission costs associated with ensuring operation safety and general economy of the electricity system, making full use of the existing grid infrastructure. Prioritize and encourage the development of self-generated and self-consumed wind power, solar power (including solar power on the rooftop of residential houses and construction works, solar power at production and business establishments, for on-site consumption, without connecting or selling electricity to the national power grid). Solar power development orientation must be integrated with energy storage when the cost is reasonable.
. By 2030, onshore wind power capacity will reach 21,880 MW (the total technical potential in Vietnam is approximately 221,000 MW).
. Maximize the technical potential of offshore wind power (about 600,000 MW) for electricity and new energy production.
By 2030, offshore wind power capacity to serve domestic demand will reach around 6,000 MW, and the number can be higher in case of rapid technological advancements and changes with reasonable electricity prices and transmission costs. The target for 2050 is 70,000-91,500 MW.
The strong development orientation of offshore wind power in combination with other renewable energy sources (solar power, onshore wind power, etc.) for new energy production (hydrogen, green ammonia, etc.) is aimed at serving domestic demand and exports. The development of renewable energy capacity for new energy production is prioritized/not limited as long as their development can ensure national defense and energy security, result in high economic efficiency, and is considered a new economy of the country.
It is expected that offshore wind power capacity for new energy production will reach around 15,000 MW by 2035 and around 240,000 MW by 2050.
+ The solar power potential in Viet Nam is approximately 963,000 MW (837,400 MW land-based, 77,400 MW floating, and 48,200 MW rooftop solar). By 2030, total solar power capacity is expected to increase by 4,100 MW. The 2050 development target aims to reach a capacity of 168,594-189,294 MW, producing 252.1-291.5 billion kWh. In which:
. Prioritize and adopt breakthrough policies to promote the development of solar power on the rooftop of residential houses and construction works, especially in areas facing the risk of power shortage like the Northern region of Vietnam and self-produced and self-consumed solar power. From now to 2030, the capacity of these power sources is estimated to increase by 2,600 MW. These power sources will be prioritized for development with no capacity limit, provided that the cost is reasonable, and the existing power grid is utilized without upgrades.
+ Prioritize and encourage the development of biomass power (with around 7,000 MW potential), and electricity production from waste and solid waste (with around 1,800 MW potential) to utilize agroforestry and wood processing by-products, promote forestation and environmental management in Vietnam. In 2030, the capacity of these power sources is expected to reach 2,270 MW, with a target of 6,015 MW by 2050. They can be developed further on a larger scale if there is a sufficient source of raw materials and efficient land utilization, driven by environmental processing needs, grid conditions, electricity prices, and reasonable transmission costs.
- Maximize the potential of hydropower sources (about 40,000 MW in total in Viet Nam) while ensuring environmental protection, forest protection, and water source security. Research and selectively expand existing hydropower plants to reserve capacity; exploit hydroelectricity on reservoirs to utilize water resources. By 2030, the total capacity of hydropower sources, including small hydropower is expected to reach 29,346 MW, producing 101.7 billion kWh, which can be further developed if economic and technical conditions permit (see potential projects in Appendix III). The goal for 2050 is to achieve a capacity of 36,016 MW and produce 114.8 billion kWh.
- Power storage:
+ By 2030, develop pumped storage hydropower plants with a capacity of about 2,400 MW for load
regulation, reverse capacity and support large-scale RE integration
+ Storage batteries are developed when they are reasonably priced, distributed in close proximity to wind and solar power sources or load centers. By 2030, it is expected to reach a capacity of about 300 MW.
+The 2050 target is to achieve a power capacity for pumped storage hydropower and energy storage batteries of 30,650-45,550 MW matching the high share of renewable energy.
- Prioritize and encourage the development of combined heat and power plants, power plants using waste heat, blast furnace gas, and by-products of technological chains in industrial facilities. The target is to achieve 2,700 MW by 2030 and around 4,500 MW by 2050. The scale can be even larger, in line with the demand and potential of industrial facilities throughout the country in order to increase energy efficiency.
- Coal-fired power plants: Only continue implementing projects already in the revised Power Master Plan VII and under construction until 2030. Orient to implement fuel conversion to biomass and ammonia with plants that have been operating for 20 years when the price is suitable. Stop operating plants that are over 40 years old if fuel conversion is not feasible.
+ By 2030, the total capacity of operating power plants and projects being constructed and expected to be completed and entering operation is about 30,127 MW. Urgently complete 6 projects/6,125 MW under construction: Na Duong II, An Khanh - Bac Giang, Vung Ang II, Quang Trach I, Van Phong I, Long Phu I. Not deploy 13,220 MW of coal-fired power: 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. Convert Quang Trach II project to use LNG before 2030.
+ Under orientation to 2050, no longer use coal for power generation, completely convert fuel to biomass and ammonia, with a total capacity of 25,632-32,432 MW, producing 72.5-80.9 billion kWh.
- Gas-fired power plants: Prioritize the maximum use of domestic gas for power generation. If there is a domestic gas shortage, natural gas or LNG should be additionally imported. Synchronize the development of LNG projects and LNG import infrastructure, using modern technologies. Implement a fuel-to-hydrogen conversion roadmap when the technology is commercialized with the affordable cost.
+ Domestic gas-fired power: Focus on accelerating the implementation of Lot B and Ca Voi Xanh gas exploitation projects, in which, invest in building 6,900 MW of gas-fired power plants: O Mon II, III, IV (3,150 MW), Central I, II and Dung Quat I, II, III (3,750 MW); convert O Mon I (660 MW) to using gas from Lot B source. Implement Quang Tri combined gas-turbine power plant (340 MW) using gas from Bao Vang mine. Accelerate the exploration and appraisal of the Ken Bau gas field to plan the gas field development and supplement the downstream power plants if applicable (expected in Hai Lang - Quang Tri, Chan May - Thua Thien Hue areas). Kien Giang 1 and 2 projects (2x750 MW) were not implemented due to unidentified fuel sources.
Southeast region: Implement solutions, focus on infrastructure construction, research on 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.
Southwest region: Implement solutions, invest in infrastructure construction, research on domestic and regional connections for the import of natural gas and LNG to ensure gas sources for power plants in Ca Mau.
In 2030, the total capacity of domestic gas-using plants will reach 14,930 MW, producing 73 billion kWh. The 2050 target is to reach around 7,900 MW using domestic gas or through conversion into LNG, producing 55.9-56.9 billion kWh; 7,030 MW is expected to be completely converted to use hydrogen, producing 31.6-31.9 billion kWh.
+ LNG thermal power: Limit the development of power sources using LNG if there are substitutions to reduce dependency on imported fuels, extension of the progress of Long Son LNG project (1,500 MW) has been approved, supplementing the revised Power Master Plan VII to the period of 2031-2035. By 2030, the total capacity of LNG power sources will reach a maximum of 22,400 MW, producing 83.5 billion kWh. By 2050, power plants using LNG will gradually convert to using hydrogen, with a total capacity of 25,400 MW, producing 129.6-136.7 billion kWh.
Continue to implement LNG storage and import terminal projects at Thi Vai (supplying gas to Nhon Trach 3 and 4 and supplementing gas to plants in the Southeast region), Son My (supplying gas to Son My I, II). Synchronously developing LNG storage and import terminals with power plants in the master plan.
- Flexible power source (quick starting power source): Invest and develop flexible power sources for load regulation, maintain the stability of the power system to absorb large-scale renewable energy. Flexible power sources are expected to reach 300 MW by 2030, and target 30,900-46,200 MW by 2050.
- Export and import of electricity: Effectively connect and exchange electricity with countries in the region, ensuring the interests of the parties, enhancing the safety of the power system; boosting electricity imports from Southeast Asian countries (ASEAN) and the Greater Mekong Subregion (GMS) with hydropower potential. Focus on investing and exploiting electricity sources abroad to supply electricity to Vietnam. In 2030, import about 5,000 MW from Laos under the Agreement between the two Governments, producing 18.8 billion kWh; could increase to 8,000 MW. By 2050, import about 11,000 MW, produce 37 billion kWh based on balancing with exporting to ensure overall optimal efficiency.
Prioritize the unlimited capacity development of renewable energy sources for export and new energy production (hydrogen, green ammonia, etc.) on the basis of ensuring energy security and bringing high economic efficiency. The goal is to achieve an electricity export capacity of approximately 5,000-10,000 MW by 2030.
Continue to implement projects of small hydropower, wind power, combined heat and power source, power source using waste heat, blast furnace gas, by-products of technological lines in industrial facilities, biomass electricity, biogas, electricity produced from waste and solid waste and connection plans that have been approved in the master plan, but must comply with the provisions of law, the requirements on criteria, justification for priority projects.
Medium and large coal, gas and hydro power projects in the revised Power Master Plan VII that have not yet been put into operation are adjusted in this Master Plan.
For solar power projects that have been approved for planning, with investment policies approved by competent agencies and assigned to investors, the specific progress will be considered in the Implementation Plan of the Power Master Plan VIII according to the provisions of the law on planning, the law on investment and other relevant provisions of law, ensuring security, balance of sources, loads, suitable with power grid infrastructure, economic efficiency, reasonable electricity price and transmission cost. Solar power projects that have been planned for the period of 2021-2030 but have not been assigned to investors are not allowed to be deployed and will be considered after 2030, except for the case of self-production and self-consumption on the basis of non-legalization if there are violations of planning, land and other provisions of law (Appendix IV).
c) Power generation mix
- By 2030:
Total capacity of power plants serving domestic demand is 150,489 MW (excluding export, existing rooftop solar power, renewable energy to produce new energy). The breakdown of the capacity is as follows:
+ Onshore wind power: 21,880 MW (14.5% of total capacity of power plants);
+ Offshore wind power: 6,000 MW (4.0% of total capacity), If there are rapid technological advancements, reasonable electricity prices, and efficient transmission costs, the development of offshore wind power can be scaled up to a higher capacity;
+ Solar power: 12,836 MW (8.5%, excluding existing rooftop solar power), including 10,236 MW of concentrated solar power sources, about 2,600 MW of self-produced and self-consumed solar power sources. Self-produced and self-consumed solar power sources are prioritized for unlimited capacity development;
+ Biomass electricity, electricity produced from waste: 2,270 MW (1.5%), in case of sufficient raw materials, efficient land use, environmental treatment requirements, suitable electricity grid infrastructure, reasonable electricity prices, and transmission costs, the scale of development can be larger
+ Hydropower: 29,346 MW (19.5%), which can be developed higher if economic - technical conditions allow;
+ Pumped hydropower storage: 2,400 MW (1.6%);
+ Energy storage batteries: 300 MW (0.2%);
+ Combined heat and power source, power source using waste heat, blast furnace gas, by-products of technological lines in industrial facilities: 2,700 MW (1.8%), the scale can be further increased according to the capabilities of industrial facilities;
+ Coal-fired thermal power: 30,127 MW (20.0%), except for the projects in Table 3 Appendix II;
+ Domestic gas-fired power: 14,930 MW (9.9%);
+ LNG-based thermal power: 22,400 MW (14.9%);
+ Flexible power sources: 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 that are facing difficulties in deployment, the treatment process will be updated to replace it with LNG or renewable energy sources.
- Orientation towards 2050:
Total capacity of power plants is 490,529-573,129 MW (excluding exports, renewable energy for new energy production), including:
+ 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 and waste-to-energy: 6,015 MW (1.0-1.2%);
+ Hydropower: 36,016 MW (6.3-7.3%);
+ Power storage: 30,650-45,550 MW (6.2-7.9%);
+ Combined heat and power source, power source using waste heat, blast furnace gas, by-products of technological lines in industrial facilities: 4,500 MW (0.8-0.9%);
+ Coal-fired thermal power: 0 MW (0%), no longer using coal for electricity generation;
+ Thermal power using biomass and ammonia: 25,632-32,432 MW (4.5-6.6%);
+ Domestic gas-fired and LNG-based thermal power: 7,900 MW (1.4-1.6%);
+ Domestic gas-fired thermal power plants completely converted to hydro: 7,030 MW (1.2-1.4%);
+ LNG-fired thermal power plants co-firing with hydrogen: 4,500-9,000 MW (0.8-1.8%);
+ LNG-fired thermal power plants completely converted to hydrogen: 16,400-20,900 MW (3.3-3.6%);
+ Flexible power sources: 30,900-46,200 MW (6.3-8.1%);
+ Imported electricity: 11,042 MW (1.9-2.3%).
2. Power grid development plan
a) Development orientations
- Develop the power transmission system in sync with the progress of power sources, the needs of local load development, using modern technology, ensuring international standards, and readiness for regional interconnections. Develop smart grids to integrate renewable energy sources on a large scale, meeting the requirements of safe, stable and economic power system operation.
- Develop 500 kV and 220 kV transmission grids ensure the system’s hosting capacity, improve the reliability of power supply, reduce power loss, meet N-1 criterion for important load areas and N-2 criterion for extremely important load areas. Develop a long-term backup power transmission grid and increase the use of multi-circuit and multi-voltage-level poles to reduce land use. Encourage the construction of transmission substations that also supply power to neighboring loads.
- The 500 kV transmission grid plays a key role in connecting regional power systems and exchanging electricity with neighboring countries. Cross-regional transmission is limited to a reasonable level, reducing long-distance transmission, and minimizing the construction of new cross-regional transmission lines before 2030.
- Build a reliable 220 kV transmission grid, with substations in high-density load areas designed for flexible operation. Build 220 kV substations capable of automatic unmanned operation. Promote the construction of GIS substations, 220/22 kV substations, underground stations at load centers.
- Research and apply Back-to-Back system, flexible power transmission equipment to improve transmission capacity, minimize land use. Organize research on AC and DC power transmission technologies with voltage over 500 kV.
- Beyond 2030, the plan is to develop high-voltage direct current transmission lines connecting the Central Highlands, the South Central, and the North to exploit the potential of offshore wind power. Research cross-Asia-Pacific connections.
The transmission grid projects in the revised Power Master Plan VII that have not yet been put into operation are adjusted in this Master Plan.
b) Volume of transmission grid construction
- The period of 2021-2030: newly construct 49,350 MVA and renovate 38,168 MVA of 500 kV substations; newly construct 12,300 km and renovate 1,324 km of 500 kV lines; newly construct 78,525 MVA and renovate 34,997 MVA of 220 kV substations; newly construct 16,285 km and renovate 6,484 km of 220 kV lines.
- Orientation for the period of 2031-2050: newly construct 40,000-60,000 MW of HVDC station capacity and 5,200-8,300 km of HVDC transmission lines; newly construct 90,900-105,400 MVA and renovate 117,900-120,150 MVA of 500 kV substations; newly construct 9,400-11,152 km and renovate 801 km of 500 kV transmission lines; newly construct 124,875-134,125 MVA and renovate 105,375-106,750 MVA of 220 kV substations; newly construct 11,395-11,703 km and renovate 504-654 km of 220 kV transmission lines. The exact volume of the power grid for the period 2031-2050 will be determined in the next power planning periods.
3. Grid interconnection with countries in the region
- Continue to research and cooperate on power grid interconnection with Mekong sub-region countries and ASEAN countries at voltage levels of 500 kV and 220 kV to enhance the system's connectivity, and power exchange, and take advantage of the countries' resource strengths.
- Establish power grid connections with Laos through 500 kV and 220 kV transmission lines to import electricity from power plants in Laos, according to the memorandum of understanding signed between the two governments.
- Maintain power grid connections with neighboring countries through existing voltage levels of 220 kV, 110 kV, and medium voltage; research and implement solutions to synchronize power systems through AC-DC converter stations at the 220-500 kV voltage levels.
- Build connection facilities for high economic efficiency power export projects to ensure energy security and national defense and security.
4. Orientation for rural electricity development
Develop a new program on electricity supply in rural, mountainous and island areas to provide electricity to households without electricity and to renovate the existing rural electricity grid. Provide electricity from the national grid, combined with electricity supply from renewable energy sources for rural, mountainous and island areas; By 2025, ensure that 100% of households in rural areas have access to electricity.
5. Orientation for developing an industrial and service ecosystem for renewable energy
- By 2030, two cross-regional renewable energy industrial and service centers are expected to be established in the areas with high potential such as the Northern, Central and Southern regions, when conditions permit.
- The inter-regional renewable energy industry and service centers are expected to include renewable energy power plants with a capacity of 2,000-4,000 MW (mainly offshore wind power); factories producing renewable energy equipment and new energy production equipment; equipment and means of transportation, construction and installation of renewable energy equipment; ancillary services; green, low-carbon industrial parks; research centers, training institutions on renewable energy.
6. Investment capital demand
- The period of 2021-2030: It is estimated that the total investment in development of power source and transmission grid is equivalent to 134.7 billion USD, of which: around 119.8 billion USD (12.0 billion USD/year on average) for power sources; and 14.9 billion USD (1.5 billion USD/year on average) for the transmission grid.
- Orientation for the period of 2031-2050: It is estimated that the total investment capital for the development of power sources and transmission grid is equivalent to 399.2-523.1 billion USD, of which: around 364.4-511.2 billion USD (18.2-24.2 billion USD/year on average) for power sources; and 34.8-38.6 billion USD (1.7-1.9 billion USD/year on average) for the transmission grid. The numbers will be determined accurately in the next power planning periods.
IV. ORIENTATION FOR LAND USE ALLOCATION FOR THE DEVELOPMENT OF POWER FACILITIES AND ENVIRONMENTAL PROTECTION ACTIVITIES, CLIMATE CHANGE ADAPTATION, AND CONSERVATION OF ECOSYSTEMS, LANDSCAPES AND MONUMENTS
1. Land use allocation for power development
The land demand for electricity infrastructure and infrastructure development is about 89.9-93.36 thousand hectares in the period of 2021-2030 and about 169.8-195.15 thousand hectares in the period of 2031-2050, in line with the land allocation target in Resolution No. 39/2021/QH15, to ensure the realization of electricity development goals.
2. Activities of environmental protection, climate change adaptation, and conservation of ecosystems, landscapes and monuments
Implement a strong transition from fossil fuels to new and renewable energy to reduce air pollution and greenhouse gas emissions and meet the net-zero emissions target by 2050.
Apply new and modern technologies towards a low-carbon economy transition, reducing energy consumption and emissions, aiming to comply with regulations on carbon emissions per unit of exported goods and carbon markets.
Avoid and limit the development of energy infrastructure in locations that may affect forests, natural reserves, biodiversity, natural heritage, and cultural heritage sites that have been ranked.
Take into account climate change mitigation and adaptation measures for extreme weather events such as droughts, floods, storms, landslides, heatwaves, precipitation, sea level rise, etc. during the implementation of power projects to ensure safe and stable operation and minimize risks and losses.
V. LIST OF IMPORTANT PROJECTS AND INVESTMENT PRIORITIES OF THE ELECTRICITY SECTOR AND THEIR IMPLEMENTATION PRIORITY ORDER
1. Criteria and rationale for developing the list of important projects and investment priorities of the electricity sector
The list of important projects and investment priorities of the electricity sector is formulated based on the following criteria and rationale:
- Projects that play an important role in balancing the national power supply and demand, as well as those in regions, areas, and important load centers, to ensure power supply security and meet socio-economic development needs.
- Projects that ensure national defense and security and the combined economic benefits and national defense and security.
- Projects that need to be implemented to ensure consistency between the development planning of the electricity sector and other energy planning.
- Projects that enhance the power supply for areas at risk of power shortage.
- Projects that ensure the safety and security of the national electricity system between base-load power sources, renewable energy sources, and loads (such as hydroelectric power, energy storage batteries, etc.).
- Projects that contribute to climate change adaptation, greenhouse gas emissions reduction, environmental protection (biomass, waste-to-energy, solid waste-to-energy, combined heat and power, utilization of surplus gas, etc.), and climate commitments fulfillment.
- Self-production and self-consumption projects.
- Projects that contribute to creating an overall ecosystem for the renewable energy industry and service sectors.
- Projects that export electricity and newly produced energy from renewable sources.
- Projects that use land efficiently.
- 500 kV and 220 kV power grid projects.
- Feasibility in implementation process.
- Application of advanced, environmentally friendly technologies.
- High socio-economic efficiency.
2. List of important projects, investment priorities
The list of important projects, investment priorities is stated in Appendices I and II.
VI. SOLUTIONS AND RESOURCES FOR IMPLEMENTATION OF THE MASTER PLAN
1. Solutions for ensuring power supply security
- Diversify fuel sources used for power generation, harmoniously combine domestic and imported primary energy sources.
- Step up search and exploration in order to increase the reserves and output of domestic coal and oil exploitation for electricity production in order to reduce dependence on imported fuels.
- Invest in technical infrastructure for the import of natural gas, LNG, and coal, in accordance with the structure of thermal power sources and the trend of energy transition.
- Strongly develop renewable energy sources in order to maximally replace fossil energy sources. Timely update scientific - technological progress in the world on new energy sources (hydrogen, ammonia, etc.) to use for power generation.
- Research and apply technology to convert coal-fired and gas-fired power plant fuel to biomass, ammonia, hydrogen fuel, etc.
- Research and evaluate potential non-conventional energy sources.
2. Solutions for creating capital sources and mobilizing investment capital for electricity sector development
- Research and complete financial mechanisms and mobilize capital for investment and development of the electricity sector.
- Diversify capital sources, capital mobilization forms, effectively attract domestic and foreign capital sources into electricity development, ensure national defense, security and competition in the electricity market. Strengthen calling and effectively use international support commitments (JETP, AZEC, etc.), green credit sources, climate credits, green bonds, etc.
- Diversify (state, private, public-private partnership, etc.) investment forms for electricity projects. Promote the role of state-owned enterprises, strongly attract domestic and foreign private sectors to participate in electricity development investment. Continue to negotiate, effectively use funding sources, support capital arrangement of international partners in the process of energy transition and towards net-zero emissions of Vietnam.
- Encourage people and enterprises to invest in the development of rooftop solar power, self-generated and self-consumed electricity sources.
- Facilitate a favorable, transparent environment, attract and encourage private participation in investment and development of electricity projects.
- Gradually increase the financial mobilization capacity of enterprises 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 electricity projects.
3. Solutions on law and policy
- Complete the policy and legal framework on electricity development, renewable energy development (including rooftop solar power, self-production and self-consumption solar power), economic and efficient use of electricity and other relevant regulations:
+ Formulate the amended Electricity Law to complete policies on investment, planning and administration of electricity prices, develop competitive electricity markets, handle problems, institutionalize development mechanisms, create breakthroughs to encourage and promote the strong development of electricity sources using renewable energy; separate the role of state management from production and business of enterprises.
+ Research and develop auction and bidding mechanisms to select investors with electricity prices in the process of amending the Electricity Law and completing the competitive electricity market model.
+ Research and concretize policies on the socialization of investment in power transmission grids.
+ Promulgate the pilot mechanism and proceed to officially build the mechanism of direct power purchase agreements between renewable energy power producers and consumers in sync with amendments to the Electricity Law and the roadmap for the implementation of the competitive electricity market. Research and develop regulations on charging fees for direct power purchase agreements (DPPAs).
+ Continue to perfect the electricity price management mechanism according to the State-regulated market mechanism, ensuring a harmonious combination between the State's political and socioeconomic objectives, production and business objectives, and financial autonomy of electricity enterprises. Electricity prices must recover sufficient costs, have reasonable profits, attract investment in electricity development, encourage competition in the stages of production, transmission, distribution, retail, electricity use, and combat electricity waste. Continue to improve and complete the current electricity tariff. Research and implement two-component electricity prices at an appropriate time. Continue to implement electricity price transparency.
+ Research, develop and promulgate the Law on renewable energy.
+ Amend the 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.
- Develop mechanisms and policies to encourage domestic enterprises to participate in the development of renewable energy, the development of the renewable energy industry, new energy for domestic service and the export and the development of the electrical equipment manufacturing industry.
- Develop policies to increase the localization rate in the electricity sector to improve independence and reduce costs.
- Develop mechanisms and policies to promote electricity imports, especially from Laos through Agreements and Memorandums of Understanding between the two Governments, etc.
4. Solutions for environmental protection, natural disaster prevention and control
- Implement an energy transition, with a focus on transitioning from fossil fuels to renewables and new energy; increase the size of absorption tanks and promote the application of carbon capture technology.
- Research, apply and develop waste treatment technology, especially from the renewable energy industry according to the principle of reduction, recovery, reuse and recycling to minimize waste, make full use of discarded materials as raw materials for other economic sectors.
- Implement solutions to prevent and combat natural disasters and respond to climate change and extreme weather phenomena from the process of project site selection, design, and construction to production and operation.
- Minimize the development of electrical works and infrastructure in locations likely to affect natural forests, nature reserves and biodiversity, natural heritages, monuments and cultural heritages already classified, per the national environmental protection zoning.
5. Solutions for science and technology
- Invest in research and development (R&D) on electricity. Establish basic research centers and development centers on renewable energy, new energy, and carbon storage technologies in Vietnam to improve the level, receive and transfer of technology and governance solutions in order to accelerate and scale up the deployment of renewable energy and clean power system management in Vietnam and the region.
- Use modern technology for new construction electrical works; step by step upgrade, renovate and transform existing works.
- Renovate and upgrade the electricity transmission and distribution system, improve reliability, reduce power loss. Accelerate the smart grid construction roadmap.
- Modernize information and data systems, automation and control systems to serve the dispatching and operation of the power system and the electricity market. Access to new scientific and technological achievements, artificial intelligence, Internet of things, including digital transformation in the electricity sector.
- Step by step apply measures to encourage and compel the renewal of technology and equipment of electricity-intensive economic sectors.
6. Solutions on economical and efficient use of electricity
- Raise awareness of economical and efficient use of energy, environmental protection is an important national policy and responsibility of the whole society as the spirit of Resolution No. 55-NQ/TW dated February 11, 2020 of the Political Bureau.
- Encourage investment in and use of energy-saving technologies and equipment; strengthen energy audits; promote the deployment of the model of energy service companies.
- Apply mandatory standards and regulations together with sanctions on efficient use of electricity to sectors and industries with high electricity consumption.
- Promote the implementation of electricity demand side management (DSM) programs, economical and efficient use of energy.
7. Solutions for human resource development
- Develop high-quality human resources, especially in the fields of power generation, transmission, distribution, dispatching, electricity market, smart grid, etc.
- Build a team of highly qualified experts and scientists in the electricity sector; build strong units in electricity science - technology.
- Organize training and re-training of technical staff and managers of the electricity sector at the same level as other countries in the region and the world.
- Innovate training programs and contents, diversify forms of human resource training, associate training with actual production, ensure sufficient capacity to operate large-scale power systems, integrate a high proportion of renewable energy sources, and apply smart grid technology.
8. Solutions for international cooperation
- Actively and effectively implement the contents of the Political Declaration on establishing the Just Energy Transition Partnership (JETP) with international partners, make the most of the support of international partners in technology transfer, management, human resource training, and financial provision, considering JETP as an important solution for the energy transition in Vietnam.
- Implement flexible, efficient, equitable and mutually beneficial energy and climate foreign policies. Expand and deepen energy cooperation with strategic partners, important partners.
- Promote cooperation in research and deployment of power grid connection with neighboring countries, countries in Southeast Asia, and countries in the Greater Mekong Sub-region (GMS).
- Expand international cooperation in scientific research and development of electricity technology, take advantage of technology transfer and capital sources from foreign partners.
9. Solutions for enhancing domestic capabilities, localizing the equipment in the electricity sector and developing the electrical mechanical industry
- Form renewable energy industrial centers, create a complete renewable energy industrial ecosystem, associated with production, manufacturing, auxiliary services, and concentrated industrial parks.
- Focus on developing the industry of manufacturing renewable energy equipment, power storage equipment, technology for recovering, absorbing, storing and using carbon, etc. in the country to actively exploit the available potential of the country, increase independence and self-reliance, reduce the cost of electricity production from renewable energy.
- Encourage domestic enterprises to implement complex and high-tech power projects. Improve the capacity of design, procurement, project management and administration of domestic enterprises, capable of taking on the role of general contractor for large-scale power projects.
- Improve the capacity of domestic equipment design and manufacture to increase the proportion of domestic equipment in power source and grid projects; improve the capacity of repair, maintenance and inspection of domestic electrical equipment.
10. Solutions for organization and management, improvement of the efficiency of electricity operation
- Strongly renovate the management of the electricity sector in the direction of openness, transparency, competition, efficiency, increase labor productivity, reduce cost of all stages, in line with the socialist-oriented market economy institution.
- Reform the electricity sector in accordance with the approved roadmap for building a competitive electricity market.
- Innovate and improve the efficiency of state-owned enterprises in the electricity sector, apply advanced governance models and practices, improve the international credit coefficient, implement publicity and transparency in operation.
11. Solutions for organizing, implementing and monitoring the implementation of the master plan
- Urgently develop the master plan implementation plan after the Power Master Plan VIII is approved. Select priority projects based on the criteria and rationale mentioned in Clause 1, Section V, Article 1 of this Decision.
- Develop a database of the electricity sector, including data on planning and organizing the implementation of the master plan, to serve as a basis for monitoring the implementation of the master plan. Regularly review the national and local load development situation, the progress of power source and grid projects to propose solutions to adjust the power generation mix, progress, if necessary, ensure the electricity supply and demand of the economy.
- Effectively manage the development of self-produced and self-consumed power sources, combined heat and power sources, power sources using residual heat, blast furnace gas, by-products of technological chains in industrial facilities, rooftop solar power sources and power sources directly negotiated and agreed between power generation and purchasing units.
- Further promote the role of the National Steering Committee on electricity development in inspecting and urging key electricity projects, promptly removing difficulties and obstacles.
- Develop and apply institutions on discipline and compliance in the implementation of Power Master Plan VIII for investors, Ministries, branches, Commission for the Management of State Capital at Enterprises and localities. Develop sanctions for handling and withdrawing projects that are slow, not implemented according to the assigned schedule.
Article 2. Implementation organization
1. The Ministry of Industry and Trade shall
a) Take responsibility for the accuracy of data, documents, diagrams, maps and databases in the master plan dossier, ensuring consistency with the contents of this Decision.
b) Organize the announcement of the master plan according to regulations and the implementation of this Decision in association with the performance of socio-economic development tasks according to the provisions of law; formulate a plan for implementation of the planning based on the criteria and rationale specified in this Decision to implement the objectives and tasks set out in the master plan; organize the assessment of the implementation of the planning in accordance with the Law on Planning. Complete and submit to the Prime Minister the master plan implementation plan in June 2023.
c) Assume the prime responsibility for, and coordinate with ministries, branches and localities in, completing and submitting to the Government the revised Law on Electricity and the Law on Renewable Energy for submission to the National Assembly in 2024. Submit to the Government for promulgation of policies on direct electricity purchase and sale.
d) Assume the prime responsibility for, and coordinate with ministries, branches and the People's Committees of centrally-affiliated cities and provinces in, continuing to work with investors, carefully reviewing the provisions of law, commitments and agreements between the parties to completely resolve the difficulties faced by the projects in Table 3 of Appendix II during implementation, and report to the Prime Minister on issues beyond their authority.
2. Ministries, branches and Commission for the Management of State Capital at Enterprises shall
Fully perform functions, tasks and powers to implement on schedule projects in Power Master Plan VIII; propose mechanisms, policies and solutions to remove obstacles to effectively implement the objectives of the master plan, ensure consistency and synchronization with the implementation of the 10-year socio-economic development strategy in the period of 2021-2030, socio-economic development plans of each sector and locality.
3. People's Committees of centrally-run cities and provinces shall
Organize the selection of investors for power projects, allocate land funds for the development of electricity works in accordance with the provisions of law; assume the prime responsibility for, and closely coordinate with investors in, performing site clearance, compensation, migration and resettlement for power source and grid projects according to regulations.
4. Vietnam Electricity shall
- Play the main role in ensuring stable and safe electricity supply for the socio-economic development. Invest in power source and transmission grid projects according to assigned tasks.
- Regularly review and evaluate the balance of electricity supply - demand, the state of the national and regional electricity system operation, and report to the competent authorities.
- Thoroughly implement solutions to innovate corporate governance, improve production and business efficiency, increase labor productivity, reduce power loss, save costs, and reduce costs.
5. Vietnam Oil and Gas Group (PVN) shall
- Enhance the exploration, survey, and exploitation of domestic gas sources to supply power generation, fitting power load demand. Implement efficiently and promptly the approved schedules for gas fields such as Lot B, Ca Voi Xanh, Ken Bau, etc.
- Implement solutions for building infrastructure facilities such as warehouses, and ports, connecting domestic and regional gas systems serving natural gas and LNG imports to ensure gas supply for power plants.
- Carry out power source projects assigned on schedule.
6. Vietnam National Coal and Mineral Industries Group (Vinacomin), Dong Bac Corporation shall
- Play a leading role in ensuring the supply of coal for power production 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 according to assigned tasks.
Article 3. This Decision takes effect from the date of its signing.
Article 4. Ministers, Heads of Governmental Agencies, Heads of Departments under the Government; Chairpersons of People's Committees of centrally-run cities and provinces; Chairpersons of Councils of Members, General Directors of EVN, PVN, Vinacomin; Chairpersons and General Directors of Dong Bac Corporation and relevant agencies shall be responsible for the implementation of this Decision./.
FOR THE PRIME MINISTER
THE DEPUTY PRIME MINISTER
Tran Hong Ha
* All Appendices are not translated herein.