Decision 500/QD-TTg 2023 National Power Development Master Plan for the 2021-2030 period, with a vision to 2050

DECISION

Approving the National Power Development Master Plan for the 2021-2030 period, with a vision toward 2050^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 24, 2017 Planning Law;

Pursuant to the December 3, 2004 Electricity Law; and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Electricity Law;

Pursuant to the National Assembly’s Resolution No. 61/2022/QH15 of June 16, 2022, on continuing to improve the effectiveness and efficiency of the implementation of planning policies and laws and a number of solutions to tackle difficulties and problems, and to accelerate the formulation and improve the quality of master plans for the 2012-2030 period;

Pursuant to the National Assembly’s Resolution No. 81/2023/QH15 of January 9, 2023, 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 of May 7, 2019, detailing the implementation of a number of articles of the Planning Law;

Pursuant to the Government’s Decree No. 137/2013/ND-CP of October 21, 2013, detailing the implementation of a number of articles of the Electricity Law and the Law Amending and Supplementing a Number of Articles of the Electricity Law;

At the proposal of the Ministry of Industry and Trade in Report No. 2842/TTr-BCT of May 14, 2023, and Official Letter No. 2851/BCT-DL of May 15, 2023; and Appraisal Report No. 62/BC-HDTDQHD of May 13, 2023, of the Council for Appraisal of the National Power Development Master Plan for the 2021-2030 period, with a vision toward 2050,

DECIDES:

Article 1. To approve the National Power Development Master Plan for the 2021-2030 period, with a vision toward 2050, known as Master Plan VIII (below referred to as the Master Plan) with the following principal contents:

I. SCOPE AND BOUNDARIES OF THE MASTER PLAN

The Master Plan aims to develop electricity sources and transmission grids of the voltage of 220 kV or higher, and renewable energy and new energy industries and services in the territory of Vietnam for the 2021-2030 period, with a vision toward 2050, including also works connecting the domestic electricity grid with the neighboring countries.

II. DEVELOPMENT VIEWPOINTS AND OBJECTIVES

1. Development viewpoints

a/ Electricity is an important infrastructure sector and the development of this sector must take one step ahead in order to create a foundation to promote national rapid and sustainable development, build an independent and self-generating economy, improve the people’s living standards, and assure national defense and security. The power development master plan must have a long-term vision, ensure efficiency and sustainability, and give the first and foremost priority to the interests of the country and the nation.

b/ To develop electricity on the principle of generally optimizing the elements of electricity sources, transmission, distribution, and efficiency and conservation under an appropriate roadmap in parallel with the protection of natural resources and the environment and transformation of economic models, thereby ensuring national energy security at the lowest cost.

c/ To ensure that the power development master plan is based on scientific grounds and of successive, dynamic and open nature which, however, is not intended to legalize violations; to efficiently exploit and use domestic energy resources in combination with rational energy import and export and energy efficiency and conservation; to consider the development of renewable and new energies an opportunity to comprehensively develop the energy industry ecosystem.

d/ The State shall focus on investing in, and encourage all economic sectors to rapidly develop, the electricity sector on the principle of fair competition, and apply the market mechanism with regard to electricity selling prices, ensuring the harmony of interests among subjects that invest in and use electricity and meeting development requirements of regions and areas.

dd/ To ensure that the electricity development keeps abreast of the science and technology development trend in the world, particularly in renewable and new energies, in association with the national economic transformation toward green economy, circular economy and low-carbon economy; to ensure that energy transition conforms to the international trend and is carried out in a sustainable, just and rational manner.

2. Development objectives

a/ General objectives

- To firmly maintain national energy security, meeting requirements of national socio-economic development and industrialization and modernization.

- To successfully carry out just energy transition in association with the modernization of production, building of smart electricity grids, and management of the advanced electricity system following the trend of green transition, emission reduction and science and technology development around the world.

- To form the energy industry’s general ecosystem based on renewable and new energies.

b/ Specific targets

- Regarding assurance of national energy security:

+ To fully meet the domestic electricity demand, thereby achieving the socio-economic development objectives with the average GDP growth rate of around 7%/year in the 2021-2030 period and 6.5-7.5%/year in the 2031-2050 period, specifically as follows:

·    The commercial electricity output will be around 335 billion kWh, 505.2 billion kWh and 1,114.1-1,254.6 billion kWh by 2025, 2030 and 2050, respectively.

·    The generated and imported electricity output will be around 378.3 billion kWh, 567 billion kWh and 1,224.3-1,378.7 billion kWh by 2025, 2030 and 2050, respectively.

·    The maximum capacity will be 59,318 MW, 90,512 MW and 185,187-208,555 MW by 2025, 2030 and 2050, respectively.     

+ To ensure the safe and reliable electricity supply to meet N-1 criterion for important load areas and N-2 criterion for particularly important load areas. By 2030, the country’s electricity supply reliability will be among top 4 ASEAN countries, while the electricity access index will be among top 3 ASEAN countries.

+ To strive for the target that by 2030, half of public office buildings and half of people’s private houses will have self-generating rooftop photovoltaic systems (for self-consumption and not for sale to the national power system).

- Regarding just energy transition:

+ To vigorously develop renewable energy sources to serve electricity generation, accounting for 30.9-39.2% of total energy sources by 2030, aiming at around 47% of total energy sources, on the condition that the commitments under the Political Declaration on Establishing the Just Energy Transition Partnership (JETP) with Vietnam are fully and substantially fulfilled by international partners. By 2050, renewable energy sources will account for 67.5-71.5% of total energy sources.

+ To control greenhouse gas emissions from electricity generation activities at 204-254 million tons by 2030 and 27-31 million tons by 2050. To strive for the target that the peak emission level will not exceed 170 million tons by 2030 on the condition that the JETP commitments are fully and substantially fulfilled by international partners.

+ To build smart electricity grids capable of integrating and safely and efficiently operating large-scale renewable energy sources.

- Regarding development of the renewable energy industry and service ecosystem:

+ By 2030, to form 2 inter-regional renewable energy industry and service centers for electricity generation, transmission and consumption; the industry of renewable energy equipment manufacturing, building and installation, and related services; to build the renewable energy industry ecosystem in regions with great potential, such as the North, southern Central Vietnam and the South when favorable conditions are available.

+ To develop electricity sources from renewable energies and generate new energies for export; to strive for the target that by 2030, the total electricity capacity for export will reach 5,000-10,000 MW.

III. NATIONAL ELECTRICITY DEVELOPMENT PLANS

1. Electricity source development plans

a/ Development orientations

- To synchronously develop and diversify electricity sources of a rational structure in order to assure energy security, raise the electricity sector’s autonomy, and reduce its dependence on imported fuels.

- To continue promoting the development of renewable energy sources (hydropower, onshore and offshore wind power, solar power, biomass-fueled electricity, etc.), new energies, clean energies (hydrogen, green ammonia, etc.) as appropriate to the ability to ensure the electricity system safety and with reasonable electricity prices, particularly self-generating and self-consuming electricity sources and rooftop photovoltaic systems.

- To exploit and efficiently use domestic fossil fuel sources together with imported energy sources: To gradually reduce the proportion of coal-fired thermal power and prioritize the development of domestic gas-fueled electricity, and develop imported LNG-fueled electricity sources on an appropriate scale; to carry out energy transition following the technological development trend and production costs in the world.

- To develop region-based balanced electricity sources, aiming to ensure the intra-regional supply-demand balance; to rationally arrange electricity sources in regional localities in order to efficiently exploit these sources, ensure the reliable on-spot electricity supply and reduce technical losses and long-distance electricity transmission.

- To develop new electricity sources with modern technologies in parallel with technology renewal for operating electricity plants; to eventually terminate the operation of electricity plants that no longer meet environmental standards.

- To diversify forms of investment in the development of electricity sources in order to promote competition and raise the economic efficiency.

b/ Development plans

- To promote the development of electricity sources from renewable energies (wind power, solar power, biomass-fueled electricity, etc.) and continue to increase the proportion of renewable energies in the structure of electricity sources and the generated electricity output:

+ To promote the development of onshore and offshore wind power and solar power as appropriate to the absorption capacity of the electricity system, the output release capacity of the electricity grid and electricity generation costs, and with reasonable transmission prices, in association with assurance of the operation safety and general economy of the electricity system and optimal use of existing grid infrastructure facilities; to prioritize and promote the development of self-generating and self-consuming wind power and solar power (including photovoltaic systems on rooftops of the people’s private houses and other construction works, solar power panels at production and business establishments for their own consumption and not for connection and sale to the national electricity grid). Orientations for solar power development must be combined with those for production of storage batteries at appropriate costs.

·       By 2030, the onshore wind power capacity will reach 21,880 MW (Vietnam’s total technical potential is around 221,000 MW).

·       To bring into the fullest play the offshore wind power’s technical potential (around 600,000 MW) for generation of electricity and new energies.

By 2030, the offshore wind power capacity meeting the domestic electricity demand will reach around 6,000 MW; this output may be increased in case of rapid technological development and reasonable electricity prices and transmission costs. By 2050, the offshore wind power capacity will reach 70,000-91,500 MW.

Offshore wind power will be strongly developed in combination with other renewable energies (solar power, onshore wind power, etc.) for the generation of new energies (hydrogen, green ammonia, etc.) for domestic consumption and export. Renewable energy-fueled electricity sources for the generation of new energies to serve domestic consumption and export will be prioritized or permitted to develop in an unlimited manner on the basis of assuring security, national defense and energy security and bringing about high economic efficiency as a new economic sector of the country.

The projected capacity of offshore wind power sources for the generation of new energies will be around 15,000 MW by 2035 and around 240,000 MW by 2050.

+ Vietnam’s solar power potential is around 963,000 MW (around 837,400 MW from ground solar panels, 77,400 from water surface solar panels, and around 48,200 MW from rooftop photovoltaic systems). From now to 2030, the total capacity of solar power sources is projected to add up 4,100 MW. By 2050, the total solar power capacity will be 168,594-189,294 MW, with a production output of 252.1-291.5 billion kWh, specifically as follows:

- To prioritize and adopt breakthrough policies to promote the development of photovoltaic systems on rooftops of the people’s private houses and construction works, particularly those in areas prone to electricity shortage such as the North, and self-generating and self-consuming solar power systems. From now to 2030, the capacity of electricity sources of this type will add up 2,600 MW. This type of electricity sources is prioritized for development with an unlimited capacity and at reasonable costs for connection to the existing electricity grid without having to be upgraded.

+ To prioritize and promote the development of types of biomass-fueled electricity (with a potential capacity of around 7,000 MW) and electricity generated from garbage and solid wastes (with a potential capacity of around 1,800 MW) in order to make the exhaustive use of agro-forestry and wood processing by-products, thereby promoting forestation and environmental treatment in Vietnam. By 2030 and 2050, the capacity of these electricity sources will reach 2,270 MW and 6,015 MW, respectively. These electricity sources may be developed on a larger scale if material sources are sufficient, land use efficiency is high, environmental treatment requirements, and electricity grid, prices and transmission costs are reasonable.

- To bring into the fullest play the potential of hydropower sources (Vietnam’s total hydropower potential is around 40,000 MW) on the basis of protecting the environment and forests and ensuring the watercourse security; to study selectively expanding the existing hydropower plants in order to have a contingency capacity; to generate hydro-electricity on hydraulic and storage reservoirs. By 2030, the total capacity of hydropower sources, including also small-sized hydropower plants, will reach 29,346 MW producing 101.7 billion kWh or higher if econo-technical conditions permit (potential projects are provided in Appendix III to this Decision). By 2050, the total capacity of these sources will reach 36,016 MW producing 114.8 billion kWh.

- Storage electricity sources:

+ To develop pumped hydropower storage (PHS) plants with a total capacity of around 2,400 MW by 2030 in order to regulate the load, provide a contingency capacity and help integrate large-scale renewable energy sources.

+ To develop storage batteries at reasonable costs with production plants located close to wind power and solar power source centers or load centers. By 2030, the projected total capacity of this source will be around 300 MW.

+ By 2050, the total capacity of PHS and storage batteries will reach 30,650-45,550 MW to be suitable to the high proportion of renewable energies.

- To prioritize and promote the development of combined heat and power (CHP) generation plants and plants operated by unused heat, furnace air and by-products of technological lines in industrial establishments. By 2030 and 2050, the projected total capacity of these sources will be 2,700 MW and 4,500 MW, respectively. The development scale of this type of electricity may be larger to meet the use demand and development potential of industrial establishments throughout the country so as to improve the energy use efficiency.

- Coal-fired thermal power: To continue implementing only projects specified in adjusted Power Master Plan VII and currently under construction through 2030. Subsequently, to use biomass and ammonia at reasonable costs instead of using fuels for plants that have operated for 20 years or more. To stop the operation of plants that have operated for over 40 years if it is impossible to change to new fuels.

+ By 2030, the total capacity of operating electricity plants and projects currently under construction and expected to be completed and put into operation will be around 30,127 MW; to expeditiously complete 6 projects with a total capacity of 6,125 MW currently under construction, namely Na Duong II, An Khanh-Bac Giang, Vung Ang II, Quang Trach I, Van Phong I, and Long Phu I; not to implement coal-fired thermal power plants (with a total capacity of 13,220 MW) of Quang Ninh III, Cam Pha III, Hai Phong III, Quynh Lap I, Quynh Lap II, Vung Ang III, Quang Trach II, Long Phu II, Long Phu III, Tan Phuoc I, and Tan Phuoc II; to shift to use LNG before 2030 for Quang Trach II project.

+ By 2050, not to use coal for electricity generation and totally shift to use biomass and ammonia, with a total capacity 25,632-32,432 MW producing 72.5-80.9 billion kWh.      

- Gas-fired thermal power: To prioritize the use of domestic gases for electricity generation; in case the output of domestic gases sees a decrease, natural gas or LNG will be imported to make up for the deficit; to develop LNG-fueled projects and synchronous infrastructure facilities for LNG import on an appropriate scale and with modern technologies; to follow the roadmap for shifting the use of fuel to hydrogen as soon as hydrogen-using technology is commercialized and costs become reasonable.

+ Domestic gas-fired thermal power: To concentrate efforts on accelerating the implementation of gas-fired power plants from Lot B and Blue Whale Lot, investing in the building of gas-fired thermal power plants (with a total capacity of 6,900 MW) of O Mon II, O Mon III and O Mon IV (with a total capacity of 3,150 MW), Mien Trung I and Mien Trung II and Dung Quat I, Dung Quat II and Dung Quat III (with a total capacity of 3,750 MW); to shift to use gas from Lot B for O Mon I plant (with a capacity of 660 MW); to implement the combined-cycle gas turbine plant of Quang Tri (with a capacity of 340 MW) using gas from Bao Vang mine; to accelerate the exploration and assessment of Ken Bau gas field’s deposit in order to formulate a plan on gas field development and additionally build power plants in downstream areas (planned to be located in Hai Lang, Quang Tri and Chan May,Thua Thien Hue) when conditions permit; to refrain from implementing Kien Giang 1 and Kien Giang 2 plants (each with a capacity of 750 MW) for the reason that it is impossible to determine fuel sources.

In the southeastern region: To implement solutions and attach importance to building infrastructure facilities and studying domestic and regional connections to serve import of natural gases and LNG to ensure gas supply for Phu My, Ba Ria and Nhon Trach power plants.

In the southwestern region: To implement solutions and attach importance to building infrastructure facilities and studying domestic and regional connections to serve import of natural gases and LNG to ensure gas supply for power plants in Ca Mau.

By 2030, the total capacity of power plants using domestic gases will reach 14,930 MW, producing 73 billion kWh. By 2050, around 7,900 MW will be generated using domestic gases or LNG, producing 55.9-56.9 billion kWh; and 7,030 MW will be generated totally using hydrogen, producing 31.6-31.9 billion kWh.

+ LNG-fueled thermal power: To limit the development of electricity sources generated with the use of LNG if there are alternative sources to reduce dependence on imported fuels, and extend the implementation schedule of Long Son LNG-fueled electricity plant (with a capacity of 1,500 MW) additionally approved under adjusted Power Master Plan VII for the 2031-2035 period. By 2030, the total capacity of LNG-fueled electricity sources will reach 22,400 MW, producing 83.5 billion kWh. By 2050, LNG-fueled electricity plants will gradually shift to use hydrogen fuel with a total capacity of 25,400 MW producing 129.6 - 136.7 billion kWh.   

To continue implementing projects on building of warehouses and ports for LNG import in Thi Vai area (for supply of gas for Nhon Trach 3 and Nhon Trach 4 power plants and additional supply of gas for power plants in the southeastern region), and in Son My area (Son My I and Son My II power plants); to develop a complete system of LNG import warehouses and ports compatible with power plants under the Master Plan.

- Flexible electricity sources (quick-start sources): To invest in developing flexible electricity sources for regulating the load and maintaining the stability of the electricity system for absorbing large-scale renewable energy-powered electricity sources. By 2030 and 2050, the total capacity of these sources will reach 300 MW and 30,900-40,000 MW, respectively. 

- Electricity import and export: To make efficient electricity connections and exchanges with the regional countries, guaranteeing interests of stakeholders and enhancing the electricity system’s safety; to boost import of electricity from the ASEAN and Greater Mekong Sub-region (GMS) countries that have great hydropower potential; to pay attention to investing in and exploiting overseas electricity sources for supply of electricity to Vietnam. By 2030, to import around 5,000 MW (which may be increased to 8,000 MW) from Laos under the Agreement between the two Governments for producing 18.8 billion kWh. By 2050, to import around 11,000 MW for producing 37 billion kWh on the basis of ensuring import-export balance in order to ensure the overall optimal efficiency.

To prioritize the unlimited growth of capacity of electricity sources generated from renewable energies for export and generation of new energies (hydrogen, green ammonia, etc.) while ensuring energy security and bringing about high economic efficiency; to strive for the target that by 2030, the total electricity capacity for export with reach 5,000-10,000 MW.   

To continue implementing projects on small-sized hydropower, wind power, and CHP generation plants using unused heat, furnace air and by-products of technological lines in industrial establishments, and biomass, biogas, garbage and solid waste-fueled electricity plants, and grid-connection plans approved under the Master Plan, ensuring their compliance with law and satisfaction of requirements on criteria and feasibility for priority projects.

Medium- and large-sized coal- and gas-fired electricity and hydropower source projects under adjusted Power Master Plan VII not yet been put into operation are adjusted in this Master Plan.

Specific implementation schedules of solar power projects having their master plans and investment policy approved by competent agencies and assigned to their owners shall be considered in plans on implementation of the Master Plan in accordance with the planning and investment laws and other relevant laws, ensuring security and balance of sources and load, compatibility with power grid infrastructure, economic efficiency, and reasonable electricity prices and transmission costs. Solar power projects planned for the 2021-2030 period but not yet assigned to their owners shall not be permitted for implementation but shall be considered for the beyond-2030 period, unless they are implemented in the form of self-generation and self-consumption and on the basis of non-legalization of violations of the planning and land laws and other relevant law (details are provided in Appendix IV to this Decision).

c/ Structure of electricity sources

- By 2030:

The total capacity of power plants to meet the domestic demand will be 150,489 MW (excluding the capacity for export, capacity of existing rooftop photovoltaic systems and capacity generated by renewable energies for generation of new energies), in which:

+ Onshore wind power capacity: 21,880 MW (14.5% of the total capacity);

+ Offshore wind power capacity: 6,000 MW (4% of the total capacity), which may be developed on a larger scale in case of rapid technology development and reasonable electricity prices and transmission costs;

+ Solar power capacity: 12,836 MW (8.5% of the total capacity, excluding the capacity of existing rooftop photovoltaic systems), including concentrated solar power sources (10,236 MW) and self-generating and self-consuming solar power sources (around 2,600 MW). Self-generating and self-consuming solar power sources will be prioritized for development with an unlimited capacity;

+ Biomass and garbage-fueled electricity capacity: 2,270 MW (1.5% of the total capacity), which may be developed on a larger scale if material sources are sufficient, land use efficiency is high, environmental treatment and power grid infrastructure conditions permit, and electricity prices and transmission costs are reasonable;

+ Hydropower capacity: 29,346 MW (19.5% of the total capacity), which may be developed on a larger scale if econo-technical conditions permit;

+ PHS capacity: 2,400 MW (1.6% of the total capacity);

+ Storage battery capacity: 300 MW (0.2% of the total capacity);

+ Capacity of CHP generation plants using unused heat, furnace air and by-products of technological lines in industrial establishments: 2,700 MW (1.8% of the total capacity), which may be increased to suit capacity of industrial establishments;

+ Coal-fired thermal power capacity: 30,127 MW (20% of the total capacity), except the projects specified in Table 3 provided in Appendix II to this Decision;

+ Domestic gas-fired thermal power capacity: 14,930 MW (9.9% of the total capacity);

+ LNG-fueled thermal power capacity: 22,400 MW (14.9% of the total capacity);

+ Capacity of flexible power sources: 300 MW (0.2% of the total capacity);

+ Imported electricity capacity: 5,000 MW (3.3% of the total capacity), which may be increased to 8,000 MW.

For coal-fired power projects that are facing difficulties in their implementation, the treatment process shall be updated for replacement of coal with LNG or another renewable energy.

- Orientations toward 2050:

The total capacity of power plants will be 490,529-573,129 MW (excluding the capacity for export and capacity generated by renewable energies for generation of new energies), in which:

+ Onshore wind power capacity: 69,050-77,050 MW (12.2-13.4% of the total capacity);

+ Offshore wind power capacity: 70,000-91,500 MW (14.3-16% of the total capacity);

+ Solar power capacity: 168,594-189,294 MW (33-34.4% of the total capacity);

+ Biomass and garbage-fueled power capacity: 6,015 MW (1 - 1.2% of the total capacity);

+ Hydropower capacity: 36,016 MW (6.3-7.3% of the total capacity);

+ Storage electricity capacity: 30,650-45,550 MW (6.2-7.9% of the total capacity);

+ Capacity of CHP generation plants using unused heat, furnace air and by-products of technological lines in industrial establishments: 4,500 MW (0.8-0.9% of the total capacity);

+ Coal-fired thermal power capacity: 0 MW; coal will no longer be used for electricity generation;

+ Biomass and ammonia-fueled electricity capacity: 25,632-32,432 MW (4.5-6.6% of the total capacity);

+ Domestic gas-fired and LNG-fueled thermal power capacity: 7,900 MW (1.4-1.6% of the total capacity);

+ Capacity of totally hydrogen-fueled thermal power converted from domestic gas-fired thermal power: 7,030 MW (1.2-1.4% of the total capacity);

+ Mixed LNG and hydrogen-fueled thermal power capacity: 4,500-9,000 MW (0.8-1.8% of the total capacity);

+ Capacity of totally hydrogen-fueled thermal power converted from LNG-fueled thermal power: 16,400-20,900 MW (3.3-3.6% of the total capacity);

+ Capacity of flexible electricity sources: 30,900-46,200 MW (6.3-8.1% of the total capacity);

+ Imported electricity capacity: 11,042 MW (1.9-2.3% of the total capacity).

2. Plans on development of power grids

a/ Development orientations

- To develop the electricity transmission system in synchrony with the development of electricity sources and load development needs of localities, using modern technologies up to international standards and getting ready for regional connections; to develop smart grids for integrating large-scale renewable energy sources to meet requirements of safe, stable and economical operation of the power system.

- To develop the 500 kV and 220 kV transmission grids to facilitate the release of capacity of power plants, improve the reliability of electricity supply, reduce the electricity loss and satisfy N-1 criterion for important load areas and N-2 criterion for particularly important load areas; to develop transmission grids with long-term backups and intensify the use of multiple-circuit and multiple-voltage poles to reduce land occupancy; to promote the building of transformer stations for transmission and supply of electricity for adjacent load areas.

- To consider the 500 kV transmission grid as the backbone of the interconnected regional electricity systems and for the electricity exchange with regional countries; to keep the inter-regional electricity transmission limit at a reasonable level, reduce long-distance electricity transmission and minimize the building of new inter-regional transmission lines before 2030.

- To build the reliable 220 kV transmission grid and transformer stations in areas with a high load intensity designed according to diagrams for flexible operation; to build 220 kV transformer stations capable of automatically operating; to accelerate the building of GIS and 220/22 kV transformer stations and underground stations at load centers.

- To apply the back-to-back system and flexible electricity transmission equipment in order to raise the transmission capacity and reduce the land occupancy; to research technologies for alternating and direct current transmission at a voltage of over 500 kV.

- For the after-2030 period, to develop ultra-high voltage direct-current electricity transmission lines connecting the central and south areas of Central Vietnam and the North for tapping the offshore wind power potential; to study the trans-Asia-Pacific connections.

Electricity transmission grid projects under adjusted Master Plan VII not yet put into operation are adjusted under this Master Plan.

b/ Electricity transmission grid building volumes

- During the 2021-2030 period: To build 500 kV transformer stations with a total output of 49,350 MVA and renovate the existing ones with a total output of 38,168 MVA; to build 12,300 km of 500 kV transmission lines and renovate 1,324 km of the existing ones; to build 220 kV transformer stations with a total output of 78,525 MVA and renovate the existing ones with a total output of 34,997 MVA; to build 16,285 km of 220 kV transmission lines and renovate 6,484 km of the existing ones.

- Orientations for the 2031-2050 period: To build high-voltage direct current (HVDC) transformer stations with a total output of 40,000-60,000 MW and 5,200-8,300 km of HVDC transmission lines; to build 500 kV transformer stations with a total output of 90,900-105,400 MVA and renovate the existing ones with a total output of 117,900-120,150 MVA; to build 9,400-11,152 km of 500 kV transmission lines and renovate 801 km of the existing ones; to build 220 kV transformer stations with a total output of 124,875-134,125 MVA and renovate the existing ones with a total output of 105,375-106,750 MVA; to build 11,395-11,703 km of 220 kV transmission lines and renovate 504-654 km of the existing ones. The volume of electricity grids for the 2031-2050 period shall be accurately calculated in power master plans for subsequent periods.

3. Connection of electricity grids with the regional countries

- To continue studying cooperation and connection of electricity grids with the Greater Mekong Sub-region’s countries and ASEAN countries at the voltages of 500 kV and 220 kV in order to enhance the system connectivity and electricity exchange and bring into full play the advantages of natural resources of these countries.

- To make electricity grid connections with Laos via 500 kV and 220 kV lines for import of electricity from power plants in Laos according to the signed memoranda of understanding on cooperation between the two Governments.   

- To maintain electricity grid connections with the neighboring countries via the existing 220 kV and 110 kV lines and medium-voltage lines; to study implementing the solution of asynchronous grid interconnection among electricity systems via direct current/alternating current transformer stations at the voltages of 220 kV-500 kV.

- To build works for connecting electricity export projects with high economic efficiency on the basis of ensuring energy security and security and national defense.

4. Orientations for rural electricity development

To formulate the Program on electricity supply to rural and mountainous areas and islands so as to supply electricity to households not yet accessible to electricity and renovate the existing rural electricity grids; to supply electricity from the national power grid in combination with supply of electricity from renewable energy sources for rural and mountainous areas and islands; to strive for the target that by 2025 all rural households will have access to electricity.

5. Orientations for development of the renewable energy industry and service ecosystem  

- By 2030, to form 2 inter-regional renewable energy industry and service centers in regions with great potential such as the North, the south Central Vietnam and the South when conditions permit.

- Inter-regional renewable energy industry and service centers are projected to include renewable energy-powered power plants of a capacity of between 2,000 MW and 4,000 MW (mainly offshore wind power); plants manufacturing renewable energy equipment and equipment for generation of new energies; equipment and vehicles for transportation, building and installation of renewable energy equipment; auxiliary services; green and low-carbon industrial parks; and renewable energy research centers and training institutions.

6. Investment capital demand

- For the 2021-2030 period: The total investment capital for development of electricity sources and transmission grids is estimated at USD 134.7 billion, in which investment capital for electricity sources will be around USD 119.8 billion (USD 12 billion/year on average) and that for electricity transmission grids will be around USD 14.9 billion (USD 1.5 billion/year on average).

- Orientations for the 2031-2050 period: The demand for investment capital for  development of electricity sources and transmission grids is estimated at USD 399.2-523.1 billion, in which investment capital for electricity sources will be USD 364.4-511.2 billion (USD 18.2-24.2 billion/year on average) and that for electricity transmission grids will be USD 34.8-38.6 billion (USD 1.7-1.9 billion/year on average), which shall be accurately calculated in subsequent master plans.

IV. ORIENTATIONS FOR LAND ALLOCATION AND USE FOR DEVELOPMENT OF ELECTRICITY WORKS AND ENVIRONMENTAL PROTECTION, CLIMATE CHANGE RESPONSE AND ECOLOGICAL, LANDSCAPE AND RELIC CONSERVATION ACTIVITIES

1. Land allocation and use for electricity development

The land demand for development of electricity establishments and infrastructure facilities will be 89,900-93,360 ha for the 2021-2030 period and 169,800-195,150 ha for the 2031-2050 period, in conformity with the land allocation criteria set out in Resolution No. 39/2021/QH15, in order to achieve the electricity development objectives.

2. Environmental protection, climate change response and ecological, landscape and relic conservation activities

To carry out energy transition from fossil fuels to renewable energies and new energies in order to reduce polluting gas and greenhouse gas emissions, thereby achieving the goal of net-zero emissions by 2050.

To apply new and modern technologies in the direction of transition to a low-carbon economy, reduction of energy consumption and emissions and satisfaction of requirements on carbon emissions per export product unit and the carbon market.

To avoid and limit to the utmost the development of energy works and energy infrastructure facilities in locations that are likely to exert adverse impacts on forests, nature and biodiversity reserves, natural heritages, and ranked cultural relics and heritages.

To take into account solutions to combat climate change and respond to such extreme weather events as drought, water inundation, storms, floods, landslides, heat waves, heavy precipitation, sea level rise, etc., in the course of implementation of electricity projects so as to ensure their safe and stable operation and minimize risks and damage.

V. THE ELECTRICITY SECTOR’S LIST OF IMPORTANT PROJECTS PRIORITIZED FOR INVESTMENT AND PRIORITY ORDER FOR IMPLEMENTATION

1. Criteria and scientific grounds for formulation of the electricity sector’s list of important projects prioritized for investment

The electricity sector’s list of important projects prioritized for investment shall be formulated based on the following criteria and scientific grounds:

- Projects that play an important role in balancing national and regional power supply and demand, and important load centers in order to assure power supply security and meet socio-economic development needs.

- Projects that assure national defense and security; projects that assure general economic benefits associated with national defense and security.

- Projects that need to be implemented to ensure the consistency between electricity development master plans and other energy master plans.

- Projects that increase the supply of electricity to areas prone to electricity shortage.

- Projects that assure the national electricity system safety and security among base-load electricity sources, renewable energy-powered electricity sources, and loads (PHS, energy storage batteries, etc.).

- Projects that contribute to climate change adaptation, reduction of greenhouse gas emissions, and environmental protection (biomass, waste-to-energy, solid waste, CHP generation, excessive gas utilization, etc.) for fulfilling climate commitments.

- Self-generation and self-consumption projects.

- Projects that contribute to creating a comprehensive renewable energy industry and service ecosystem.

- Projects that export electricity and new energies generated from renewable energies.

- Projects with efficient land use.

- 500 kV and 220 kV electricity grid projects.

- Projects that are feasible for implementation.

- Projects applying advanced and environmentally friendly technologies.

- Projects with high socio-economic efficiency.

2. List of important projects prioritized for investment

The list of important projects prioritized for investment is provided in Appendices I and II to this Decision.

VI. SOLUTIONS AND RESOURCES FOR IMPLEMENTATION OF THE MASTER PLAN

1. Solutions to ensure the electricity supply security

- To diversify fuel sources used for electricity generation, and harmoniously combine domestic and imported primary energy sources.

- To intensify prospection and exploration so as to increase domestic coal and oil and gas reserves and exploitation output for electricity generation in order to reduce dependence on imported fuels.

- To invest in technical infrastructure facilities for import of natural gases, LNG and coal based on the structure of thermal power sources and the energy transition trend.

- To strongly develop renewable energy sources in order to replace fossil fuels; to promptly update global scientific and technological advances for use of new energy sources (hydrogen, ammonia, etc.) for electricity generation.

- To research and apply technologies for conversion of power plants fired by coal and gases into those using biomass, ammonia, hydrogen, etc.

- To organize study and evaluation of potential of non-conventional energy sources.

2. Solutions to create capital sources and mobilize investment capital for electricity sector development

- To study and improve financial mechanisms and mobilize capital for investment in the electricity sector development.

- To diversify capital sources and forms of capital mobilization, and efficiently attract domestic and foreign funding sources for electricity development, thereby assuring national defense, security, and competitiveness in the electricity market; to call for, and efficiently use, international support (JETP, AZEC, etc.), green credits, climate credits, green bonds, etc.

- To diversify investment forms (public, private, public-private partnership, etc.) in electricity projects; to promote the role of state enterprises and strongly attract domestic and foreign sole proprietorships to invest in electricity development; to continue negotiating with, efficiently using donation sources and channeling funds provided by, international partners in the course of implementing Vietnam’s energy transition toward net zero emissions.

- To encourage citizens and enterprises to invest in developing rooftop photovoltaic systems and self-generation and self-consumption electricity sources.

- To create a favorable and transparent environment to attract and encourage individuals to invest in and develop electricity projects.

- To gradually increase enterprises’ capacity to mobilize financial sources for the electricity sector at the request of domestic and international financial institutions.

- To implement flexible and efficient credit policies, thereby creating favorable conditions for enterprises to access capital sources for the development of electricity projects.

3. Law and policy solutions

- To improve framework policies and regulations on electricity and renewable energy development (including rooftop photovoltaic systems, self-generation and self-consumption solar power), and economical and efficient use of electricity, and other relevant regulations:

+ Formulating the revised Electricity Law in order to improve policies on investment, planning and regulation of electricity prices, development of the competitive electricity market, address problems, institutionalize development mechanisms, and create breakthroughs to promote the development of electricity sources using renewable energies; and separating the role of state management from enterprises’ production and business operations.

+ Studying and formulating a mechanism for auction and bidding to select project owners based on electricity prices in the process of revision of the Electricity Law and improvement of the competitive electricity market model.

+ Studying and concretizing policies on mobilization of social resources for investment in electricity transmission grids.

+ Promulgating a pilot mechanism before formulating an official mechanism for direct power purchase agreements (DPPAs) between renewable energy-powered electricity producers and consumers in consistency with the revised Electricity Law and the roadmap for implementing a competitive electricity market; studying and formulating regulations on collection of charges for DPPAs.

+ Continuing to improve the mechanism for administering electricity prices based on the State-regulated market mechanism, ensuring a harmonious combination of the State’s politico-socio-economic objectives and electricity enterprises’ production and business targets and financial autonomy; ensuring that electricity prices help fully recover costs, generate reasonable profits, attract investment in electricity development, facilitate competition in electricity generation, transmission, distribution, retail and use, and prevent electricity waste; continuing to renovate and complete the existing electricity tariff; studying the application of two-part electricity prices at a proper time; continuing to ensure the transparency of electricity prices.

+ Studying, formulating and promulgating the Law on Renewable Energy.

+ Revising the Law on Economical and Efficient Use of Energy to drastically reduce the energy intensity of the economy; setting sanctions and mandatory standards and technical regulations on efficient energy use.

- To formulate mechanisms and policies to encourage domestic enterprises to participate in the development of renewable energies, renewable energy and new energy industry for domestic use and export, and the electrical equipment manufacturing industry.

- To formulate policies to raise the electricity sector’s localization rate in order to increase its self-reliance and reduce costs.

- To formulate mechanisms and policies to promote electricity import, especially from Laos under agreements and memoranda of understanding between the two governments, etc.

4. Environmental protection and disaster prevention and control solutions

- To carry out energy transition, focusing on transition from fossil fuels to renewable and new energies; to increase the size of carbon absorption tanks and intensify the application of carbon sequestration technology.

- To study, apply and develop technologies for treatment of wastes, particularly those from the renewable energy industry on the principles of reducing, recovering, reusing and recycling so as to minimize waste volumes and utilize discarded materials as materials for other economic sectors.

- To implement solutions to prevent and control disasters and respond to climate change and extreme weather phenomena right from the stage of selecting project locations, work engineering and construction to production operation.

- To limit the development of electrical works and infrastructure facilities in locations that are likely to affect natural forests, nature reserves, biodiversity, natural heritages and ranked relics and cultural heritages in conformity with the zoning of national environmental protection areas.

5. Scientific and technological solutions

- To invest in electricity research and development (R&D); to establish centers for fundamental research and development of renewable energies, new energies, and carbon sequestration technology in Vietnam in order to increase the technological level, technology transfer, absorption and governance in order to accelerate and expand the scale of the renewable energy generation and manage the clean electricity system in Vietnam and the region.

- To apply modern technologies to new electrical works; to step by step upgrade, renovate and transform existing works.

- To renovate and upgrade the electricity transmission and distribution system in order to improve its reliability and reduce electricity loss; to speed up the building of smart electricity grids.

- To modernize information and data systems, automation and control systems that serve the load dispatch and operation of power systems and the electricity market; to access new scientific and technological achievements, artificial intelligence, and the Internet of Things (IoT), including digital transformation in the electricity sector.

- To step by step implement measures to promote or compel the renovation of technologies and equipment of electricity-intensive economic sectors.

6. Solutions on economical and efficient use of electricity

- To raise the awareness about economical and efficient use of electricity and environmental protection which is an important national policy and the entire society’s responsibility as stated in the Political Bureau’s Resolution No. 55-NQ/TW of February 11, 2020.

- To promote investment and use of energy-efficient technologies and equipment; to intensify energy audit; to step up the application of energy service company model.

- To apply mandatory standards and technical regulations together with sanctions for electricity-intensive fields and sectors regarding the efficient use of electricity.

- To speed up the implementation of demand-side management (DSM) programs and programs on energy efficiency and conservation.

7. Human resource development solutions

- To develop high-quality human resources, especially in electricity generation, transmission, distribution, load dispatch, electricity market and smart electricity grid, etc.

- To build a contingent of highly skilled experts and scientists in the electricity sector; to build units with electricity science and technology strength.

- To provide training and retraining for technicians and managers of the electricity sector up to standards of the region and the world.

- To renew training programs and contents, diversify human resource training methods, and combine training with the production reality so that workers are qualified for the operation of large-scale electricity systems with a high proportion of renewable energy sources and application of smart grid technology.

8. International cooperation solutions

- To actively and efficiently implement the contents of the Political Declaration on Establishing the JETP with international partners, making the best use of international partners’ support in technology transfer, governance, human resource training and financing, considering JETP an important solution for energy transition in Vietnam.

- To implement flexible, efficient, equitable and mutually beneficial external policies on energy and climate; to expand and deepen energy cooperation relations with strategic and important partners.

- To promote cooperation in research and deployment of power grid connectivity with the neighboring countries, Southeast Asian nations and Greater Mekong Sub-region (GMS) countries.

- To expand international cooperation on scientific research and technological development for the electricity sector, taking advantage of technology and capital transfer from foreign partners.

 9. Solutions to raise the domestic capacity, localize the electricity sector’s equipment, and build and develop the electrical mechanical engineering

- To establish renewable energy industry centers, and create a complete renewable energy industry ecosystem associated with the manufacturing and auxiliary service provision and industrial parks.

- To focus on developing industries that manufacture renewable energy equipment, electricity storage equipment, and carbon sequestration, storage and use technologies in the country in order to take the initiative in exploiting the country’s potential, increasing the electricity sector’s independence and autonomy and reducing renewable energy-powered electricity generation costs.

- To encourage domestic enterprises to implement complex and hi-tech electricity projects; to increase the capability for project engineering, procurement, management and operation of domestic enterprises to be able to act as general contractors of large-scale electricity projects.

- To raise the domestic equipment designing and manufacturing capacity in order to increase the proportion of domestic equipment in electricity source and grid works; to raise the domestic electrical equipment repair, maintenance and inspection capacity.

10. Solutions to organize the management and raise the efficiency of electricity operations

- To vigorously renew the management of the electricity sector toward openness, transparency, competitiveness, efficiency, higher labor productivity and lower costs in all stages in conformity with the socialist-oriented market economy institutions.

- To restructure the electricity sector in accordance with the approved roadmap for building a competitive electricity market.

- To renovate and raise the efficiency of state enterprises in the electricity sector, apply advanced governance models and practices, improve international credit ratings, and ensure the operation publicity and transparency of these enterprises.

11. Solutions to organize and monitor the implementation of the Master Plan

- To promptly formulate a plan on implementation of the Master Plan after it is approved. Priority projects shall be selected on the basis of criteria and scientific grounds mentioned in Clause 1, Section V, Article 1 of this Decision.

- To develop the electricity sector’s database that contains data on the Master Plan and the implementation of the Master Plan to serve as a basis for monitoring the implementation of the Master Plan; to regularly review national and local load development and progress of the building of electricity source and grid works so as to propose solutions to adjust the electricity source structure and building schedule when necessary, thereby ensuring electricity supply-demand for the economy.

- To efficiently manage the development of self-generation and self-consumption electricity sources, CHP generation sources, electricity generation using excessive heat, blast furnace gases, by-products of technological chains in industrial establishments, rooftop solar power sources and other electricity sources under DPPAs between electricity generation units and electricity purchasers.

- To further promote the role of the National Steering Committee for Electricity Development in inspecting and urging national key electricity projects, and promptly removing obstacles and difficulties.

- To formulate and apply institutions of discipline and compliance for organizing the implementation of the Master Plan which are applicable to project owners, ministries, sectors, and the Commission for the Management of State Capital at Enterprises, and localities; to set sanctions for handling or revoking projects that are delayed or fail to keep up with set schedules.

Article 2. Organization of implementation

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 their consistency with this Decision.

b/ Announce the Master Plan under regulations and implement this Decision in association with the performance of socio-economic development tasks in accordance with law; formulate a plan to implement the Master Plan based on criteria and scientific grounds mentioned in this Decision in order to fulfill objectives and tasks set forth in the Master Plan; evaluate the implementation of the Master Plan in accordance with the Planning Law; and finalize and submit to the Prime Minister a plan to implement the Master Plan in June 2023.

c/ Assume the prime responsibility for, and coordinate with ministries, sectors and localities in, completing and submitting the revised Electricity Law and the Law on Renewable Energy to the Government for subsequent submission to the National Assembly in 2024; and propose the Government to promulgate direct power purchase policies.

d/ Assume the prime responsibility for, and coordinate with ministries, sectors, and provincial-level People’s Committees in, working with project owners and carefully reviewing regulations, commitments and agreements among concerned parties so as to completely remove difficulties facing projects specified in Table 3 in Appendix II to this Decision in the course of implementation, and report issues falling beyond its competence to the Prime Minister.

2. Ministries, sectors and the Commission for the Management of State Capital at Enterprises shall  perform their functions, tasks and powers in order to implement projects under the Master Plan on schedule; propose mechanisms, policies and solutions to address problems for efficiently achieving the objectives set forth in the Master Plan, ensuring consistency with the 2021-2030 socio-economic development strategy and socio-economic development plans of sectors and localities.

3. Provincial-level People’s Committees shall organize the selection of project owners for electricity projects; arrange land areas for electricity works in accordance with law; assume the prime responsibility for, and closely coordinate with project owners in, carrying out land clearance, compensation, population relocation and resettlement for electricity source and grid projects under regulations.

4. The Vietnam Electricity (EVN) Group shall:        

- Play the leading role in securing stable and safe electricity supply for socio-economic development; invest in electricity source and transmission grid projects according to its assigned tasks.

- Regularly review and evaluate the electricity supply and demand balance, the operation of national and regional electricity systems, and report thereon to competent authorities.

- Thoroughly implement solutions to renovate corporate governance, raise the production and business efficiency, increase labor productivity, reduce electricity loss and electricity generation costs and electricity prices.

5. The Vietnam Oil and Gas Group (PVN) shall:

- Intensify prospecting, exploration and exploitation of domestic gas sources for electricity generation to meet the electricity load demand; efficiently and promptly operate gas fields of Block B, Blue Whale and Ken Bau under approved schedules.

- Implement solutions to build infrastructure facilities of warehouses and ports, and connect the domestic and regional gas systems to serve the import of natural gases and LNG in order to ensure gas supply for electricity plants.

- Implement electricity source projects on schedule.

6. The Vietnam National Coal and Mineral Industries 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, and raise the domestic coal production capacity in the immediate future in association with coal import to supply sufficient fuels for electricity plants;

- Invest in electricity source projects according to its assigned tasks.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, chairpersons of Members’ Councils and Chief Executive Officers of the Vietnam Electricity, Vietnam Oil and Gas Group, and Vietnam National Coal and Mineral Industries Holding Corporation Limited; and the President and Chief Executive Officer of the Dong Bac Corporation and related agencies shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
TRAN HONG HA

* The Appendices to this Decision are not translated.