Decision No. 428/QD-TTg dated March 18, 2016 of the Prime Minister on approving the adjusted master plan on national electricity development in the 2011-2020 period, with considerations up to 2030

DECISION

Approving the adjusted master plan on national electricity development in the 2011-2020 period, with considerations up to 2030[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

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

Pursuant to the Government’s Decree No. 137/2013/ND-CP of 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;

Considering Report No. 13649/TTr-BCT of December 31, 2015, and Official Dispatch No. 1703/BCT-TCNL of February 29, 2016, of the Ministry of Industry and Trade, and opinions of various ministries and sectors on the scheme on the adjusted master plan on national electricity development in the 2011-2020 period, with considerations up to 2030,

DECIDES:

Article 1.To approve the scheme on the adjusted master plan on national electricity development in the 2011-2020 period, with considerations up to 2030 (Adjusted Electricity Master Plan VII), with the following principal contents:

1. Development viewpoints:

a/ To develop the electricity sector one step ahead to ensure adequate supply of electricity for socio-economic development and people’s daily life;

b/ To effectively utilize domestic primary energy sources in combination with rational import of electricity and fuel in order to diversify primary energy sources for electricity generation. To prioritize the development of electricity sources generated from renewable energy, create breakthroughs in maintaining national energy security and contributing to the conservation of energy resources and minimizing negative environmental impacts in electricity generation;

c/ To synchronously develop electricity sources and grids based on available resources and socio-economic development requirements; to make balanced investment in the development of electricity sources and electricity demands among areas and regions on the basis of rational and efficient use of primary energy resources of each area and region;

d/ To develop the 220 kV and 500 kV transmission networks of the national electricity system in order to ensure safe, reliable and efficient transmission from electricity centers to load centers; to concurrently attach importance to the development of small electricity sources using renewable energy connected to the power grid, thus contributing to reducing power loss;

dd/ To step by step increase the electricity quality so as to supply electricity services of increasing quality. To set electricity sale prices under the market mechanism, aiming to encourage investment in the electricity sector development; to encourage electricity conservation;

e/ To develop a competitive electricity market on schedule in order to diversify modes of electricity investment and trading. The State shall only monopolize the electricity transmission grid in order to ensure security of the national energy system.

2. Objectives:

a/ General objectives:

To mobilize all domestic and international sources for electricity development to ensure adequate supply of electricity of increasing quality and at reasonable prices for national socio-economic development; to efficiently use diversified primary energy sources for electricity generation; to step up the development and use of renewable energy sources in electricity generation to gradually increase the proportion of electricity produced from renewable energy and reduce reliance on the imported coal-fired electricity, ensuring energy security, mitigating climate change, protecting the environment and facilitating sustainable socio-economic development; to form and develop a smart electricity system capable of connecting with large renewable energy sources;

b/ Specific objectives:

- To supply adequate electricity for domestic demand, achieving the socio-economic development target with an average GDP growth rate of around 7 %/year in the 2016-2030 period:

+ Commercial electricity will reach around 235-245 billion kWh by 2020; around 352-379 billion kWh by 2025; and around 506-559 billion kWh by 2030;

+ Generated and imported electricity will reach around 265-278 billion kWh by 2020; around 400-431 billion kWh by 2025; and around 572-632 billion kWh by 2030;

- To prioritize the development of renewable energy sources for electricity generation; to raise the rate of electricity generated from these energy sources (excluding large- and medium-sized hydropower sources and pumped storage hydroelectricity) to around 7% in 2020 and over 10% by 2030.

- To develop a flexible and automatic power grid system from transmission to distribution with automatic and semi-automatic transformer stations to raise the electricity sector’s productivity.

- To accelerate the program on electrification in rural and mountainous areas, ensuring that by 2020 most of rural households will have access to electricity.

3. The master plan on national electricity development:

a/ Master plan for development of electricity sources:

- Development orientations:

+ To develop a balanced capacity of power sources in each region: northern, central and southern, ensuring reliable electricity supply in each regional electricity system so as to reduce transmission losses, share reserve capacity of sources and efficiently exploit hydropower plants in rainy and dry seasons;

+ To rationally develop power centers together with regional medium- and small-sized electricity sources nationwide, aiming to ensure reliable electricity supply on site and reduce losses on the national electricity grid as well as to ensure the efficiency of projects, contributing to regional and national socio-economic development;

+ To develop new power sources in couple with intensive investment in and technology renewal of operating power plants; to build new power plants that meet environmental standards and use modern technologies;

+ To diversify forms of investment in the development of electricity sources, aiming to boost competition and increase efficiency.

- The master plan for development of electricity sources:

+ To speed up the development of electricity sources generated from renewable energy (hydropower, wind energy, solar energy, biomass energy, etc.), and incrementally raise the proportion of electricity generated from renewable energy in the structure of electricity sources:

. To prioritize development of hydropower sources, particularly projects of multiple purposes (flood control, water supply and electricity generation); to study and operate pumped-storage hydropower plants in conformity with the development of national electricity system, aiming to raise the operational efficiency of the system. The total hydropower output (including also small- and medium-sized and pumped-storage hydropower) will increase from almost 17,000 MW at present to around 21,600 MW by 2020, around 24,600 MW by 2025 (1,200 MW from pumped-storage hydropower); and around 27,800 MW by 2030 (2,400 MW from pumped-storage hydropower). The proportion of hydropower sources will make up around 29.5% by 2020, around 20.5% by 2025 and around 15.5% by 2030.

. To raise the total wind electricity output from the current 140 MW to around 800 MW by 2020, around 2,000 MW by 2025 and around 6,000 MW by 2030. The proportion of electrical energy generated from wind power will increase to 0.8% in 2020, around 1% in 2025 and around 2.1% in 2030;

. To develop biomass electricity: To effect co-generation of electricity in sugar mills and food and foodstuff processing plants; to use biomass and coal in coal-fired electricity plants; to generate electricity from solid waste, etc. The output ratio of this electricity source will reach around 1% in 2020, around 1.2% in 2025 and around 2.1% in 2030;

. To speed up the development of electricity sources generated from solar energy, including the centralized source installed on the ground and the dispersed source installed on rooftop: To raise the total solar electricity output from the current negligible level to around 850 MW by 2020, around 4,000 MW by 2025 and around 12,000 MW by 2030. The proportion of electricity generated from solar power will represent around 0.5% in 2020, around 1.6% in 2025 and around 3.3% in 2030.

+ To develop a rational number of thermo-power plants suitable to the supply capacity and distribution of fuel sources:

. Natural gas-fired and liquefied natural gas (LNG)-fired thermo-electricity: By 2020, the total output will reach around 9,000 MW, generating around 44 billion kWh of electricity, accounting for 16.6% of the electricity output; which is oriented to rise to about 15,000 MW, generating about 76 billion kWh of electricity, accounting for 19% of the electricity output by 2025. By 2030, the total output will reach around 19,000 MW, generating around 96 billion kWh of electricity, representing 16.8% of the electricity output.

Southeastern region: To ensure a stable gas supply for power plants in Phu My, Ba Ria and Nhon Trach.

Southwestern region: To expeditiously carry gas from lot B ashore in 2020 to feed power plants in Kien Giang and O Mon power centers with a total capacity of about 4,500 MW.

Central region: To plan the development of power plants with a total capacity of 3,000-4,000 MW after 2020, consuming around 3-4 billion cubic meters of gas a year.

To develop imported LNG ports and warehouses in Son My (Binh Thuan) to supply additional gas for Phu My and Nhon Trach power centers when natural gas sources in the eastern region are exhausted; to study an additional gas supply source for Ca Mau and O Mon power centers through gas pipelines connecting southeastern and southwestern regions;

· Coal-fired thermo-electricity: To tap to the utmost domestic coal sources for development of thermo-power plants, prioritizing the use of domestic coal for thermo-power plants in the north. By 2020, the total coal-fired thermo-electricity capacity will approximate 26,000 MW, generating some 131 billion kWh, accounting for 49.3% of electricity generation, and consuming 63 million tons of coal. By 2025, the total coal-fired thermo-electricity capacity will approximate 47,600 MW, generating some 220 billion kWh, accounting for 55% of electricity generation, and consuming about 95 million tons of coal. By 2030, the total coal-fired thermo-electricity capacity will be about 55,300 MW, generating some 304 billion kWh, accounting for 53.2% of electricity generation, and consuming about 129 million tons of coal. Due to limited domestic coal sources, thermo-power plants operated by imported coal should be built in Duyen Hai, Long Phu, Song Hau, Long An power centers;

+ To develop nuclear power plants to ensure stable electricity supply in the future when domestic primary energy sources are exhausted:  To put the first nuclear power generation unit into operation in 2028; by 2030, the nuclear power capacity will reach 4,600 MW, generating about 32.5 billion kWh, accounting for 5.7% of electricity generation;

+ Electricity import and export: To efficiently exchange electrical energy with regional countries, ensuring mutual interests, intensifying exchanges to maintain the electricity system safety, increasing the import of electricity from potential regions of hydropower, primarily other ASEAN nations and Greater Mekong Sub-region (GMS) countries.

- Structure of electricity sources:

+ By 2020:

. The total capacity of power plants will approximate 60,000 MW, of which large- and medium-sized and pumped-storage hydropower will account for around 30.1%; coal-fired thermo-power, 42.7%; gas-fired (including LNG) thermo-power, 14.9%;  electricity generated from renewable energy (including small hydropower, wind power, solar power, biomass power), 9.9%; and imported electricity, 2.4%;

. Generated and imported electricity will approximate 265 billion kWh, of which large- and medium-sized and pumped-storage hydropower will account for around 25.2%; coal-fired thermo-power, 49.3%; gas-fired (including LNG) thermo-power, 16.6%;  electricity generated from renewable energy (including small hydropower, wind power, solar power, biomass power), 6.5%; and imported electricity, 2.4%.

+ By 2025:

. The total capacity of power plants will approximate 96,500 MW, of which large- and medium-sized and pumped-storage hydropower will account for around 21.1%; coal-fired thermo-power, 49.3%; gas-fired (including LNG) thermo-power, 15.6%;  electricity generated from renewable energy (including small hydropower, wind power, solar power, biomass power), 12.5%; and imported electricity, 1.5%;

. Generated and imported electricity will approximate 400 billion kWh, of which large- and medium-sized and pumped-storage hydropower will account for around 17.4%; coal-fired thermo-power, 55%; gas-fired (including LNG) thermo-power, 19.1%;  electricity generated from renewable energy (including small hydropower, wind power, solar power, biomass power), 6.9%; and imported electricity, 1.6%.

+ By 2030:

. The total capacity of power plants will approximate 129,500 MW, of which large- and medium-sized and pumped-storage hydropower will account for around 16.9%; coal-fired thermo-power, 42.6%; gas-fired (including LNG) thermo-power, 14.7%;  electricity generated from renewable energy (including small hydropower, wind power, solar power, biomass power), 21%; nuclear power, 3.6% and imported electricity, 1.2%;

. Generated and imported electricity will approximate 572 billion kWh, of which large- and medium-sized and pumped-storage hydropower will account for around 12.4%; coal-fired thermo-power, 53.2%; gas-fired (including LNG) thermo-power, 16.8%;  electricity generated from renewable energy (including small hydropower, wind power, solar power, biomass power), 10.7%; nuclear power, 5.7% and imported electricity, 1.2%.

The list and operation schedule of electricity source projects is provided in Appendix I to this Decision(not translated).

b/ Master plan for development of the national electricity grid:

- Development orientations:

+ To build and upgrade the electricity grid to gradually meet technical standards of the electricity transmission grid; by 2020 the electricity transmission grid will comply with the N-1 criterion for major devices and the prescribed quality standard;

+ To tackle the situation of overload, congestion and poor quality of the electricity transmission grid, ensure electricity supply with rising reliability for load centers;

+ The 500 kV transmission grid will be built for transmitting electricity from major power centers to load centers, linking regional electricity systems and exchanging electricity with regional countries;

+ The 220 kV transmission grid will be built using double circuits and regional transformer stations with a high loading density will be designed under reasonable diagrams to ensure flexible operation. To study the construction of GIS transformer stations, 220/22kV transformer stations, underground stations and automatic transformer stations at load centers. To apply smart grid technology to electricity transmission.

- The volume of transmission grid built in each period in Table 1 below:

Table 1. Volume of transmission grid to be built up to 2030

- Important electricity grids in the 2016-2020 period that should ensure construction schedule to meet southern provinces’ electricity demand include:

+ 500 kV works: To upgrade 500 kV capacitor banks on the 500 kV north-center-south line; to build 500 kV Vinh Tan-Re Song May-Tan Uyen, Duyen Hai-My Tho-Duc Hoa, Long Phu-O Mon, Song Hau-Duc Hoa lines; to build 500 kV Pleiku 2 transformer station (to operate in 2016);

+ 220 kV Ha Tinh-Da Nang (to operate in 2017), Binh Long-Tay Ninh (2016-2017); Vinh Tan-Thap Cham-Nha Trang and Vinh Tan-Phan Thiet-Ham Tan-Tan Thanh lines.

The list and schedule of projects on building and upgrading electricity transmission grids are provided in Appendix II to this Decision (not translated).

c/ Connection to electricity grids of regional countries:

- To further cooperate and connect to the electricity grids of other ASEAN nations and GMS countries;

- To connect to the electricity grid of Laos via 220 kV lines to import electricity from southern and central Lao hydropower plants;

- To maintain the connection to Cambodia’s grid via the existing 220 kV line; to study the possibility to enhance the connection of electricity grids between Vietnam and Cambodia via bilateral and multilateral cooperation programs;

- To maintain electricity trading between Vietnam and China through existing 220 kV and 110 kV lines; to study the non-synchronous connection method among electricity systems by direct current - alternating current converter stations. To further study electricity exchange with China via 500 kV electricity grid.

d/ Supply of electricity to rural and mountainous areas and islands:

To continue implementing the program on electricity supply in rural and mountainous areas and islands under the Prime Minister’s decision; to supply electricity from the national grid and new energy sources for rural and mountainous areas and islands; by 2020, almost all rural households will be supplied with electricity.

dd/ Total investment capital:

The total investment capital for electricity sources and grids (excluding electricity sources invested under BOT contracts) in the 2016-2030 period is estimated at VND 3,206.6 trillion (equivalent to USD 148 billion), for the following periods:

- The 2016-2020 period will require VND 858.6 trillion (approximately USD 40 billion, an average of USD 7.9 billion/year) of which 75% will be invested in electricity sources; and the remaining, in electricity grids;

- The 2021-2030 period will require around VND 2,347.9 trillion (approximately USD 108 billion, an average of more than USD 10.8 billion/year) of which 74% will be invested in electricity sources; and the remaining, in electricity grids.

4. Solutions for implementation of the master plan:

a/ Solutions for ensuring national energy security:

- The Electricity Vietnam (EVN), Vietnam Oil and Gas Group (PetroVietnam) and Vietnam National Coal-Mineral Industries Holding Corporation (Vinacomin) shall assume the main responsibility for developing electricity sources. The National Electricity Transmission Corporation shall assume the responsibility for the development of the electricity transmission grid;

- To diversify fuel and primary energy sources supplied for electricity generation;

- To raise the proportion of electricity sources generated from renewable energy: to develop mechanisms, policies and legal documents and appropriate incentives to speed up the development of electricity sources generated from renewable energy sources with a focus on subsidy mechanisms for projects using wind, solar, biomass, geothermal energy, etc.

- To carry out the nuclear power development plan in accordance with law and top security and efficiency priorities. To coordinate with other countries and international organizations in accelerating the use of nuclear energy; to incrementally master the technology and develop nuclear power for peaceful uses;

- To adopt financial incentives and expand international cooperation to intensify exploration work for increasing coal, gas and renewable energy deposits and exploitation capability, ensuring security in the supply of fuel and energy for electricity generation;

- To actively seek additional gas sources to existing ones which will decrease and be exhausted in the coming period. To speed up negotiations with other countries for conclusion of stable and long-term coal import contracts for thermo-power plants;

- To focus on building coal transshipment ports in each region to optimize coal import costs; to speed up search and negotiations for stable and long-term import of coal and LNG for power plants.

b/ Solutions for raising investment capital for electricity sector development:

- To speed up the equitization of EVN, PetroVietnam  and Vinacomin electricity generation corporations and companies;

- To incrementally raise the capability for mobilization of internal finance from enterprises in the electricity sector through improving the operational efficiency and efficacy of the enterprises, ensuring capital accumulation and the ratio of equity capital for development investment as required by domestic and international financial institutions. Eventually, the main funding source of electricity works will be capital accumulated by the enterprises;

- To develop economic groups and corporations in the electricity sector with high financial ratings in order to reduce costs of raising capital for electricity projects, which will be able to raise capital without government guarantee;

- To raise further capital through issuing bonds at home and abroad for investment in electricity works, applying the measure of converting domestic savings into investment in infrastructure. At the initial stage, the State shall guarantee the issuance of bonds for key and urgent electricity projects;

- To enter into domestic and foreign joint ventures to attract domestic and foreign investors into the development of electricity projects, transshipment ports for coal import; infrastructure for LNG development projects;

- To equitize enterprises in the electricity sector in which the State does not need to hold 100% capital;

- To further attract foreign direct investment (FDI) in developing electricity projects. To prioritize FDI projects for which payments can be made in VND or in barter without government guarantee;

- To further attract funds from overseas, including concessional and non-concessional official development assistance loans, foreign commercial loans, etc., to develop electricity works.

c/ Solutions regarding electricity price:

- To apply electricity sale prices under the State-regulated market mechanism, ensuring harmonious combination between the political-economic-social objectives of the State and the production-business-financial autonomy objectives of enterprises in the electricity sector. Electricity sale prices should stimulate electricity development, create an environment conducive to investment and encouraging competition at all stages of generation, transmission, distribution, retail and use of electricity.

- Electricity sale prices must ensure retrieval of costs and reasonable profits (including investment in expanded production) to ensure financial autonomy of enterprises in the electricity sector.

- To renovate and improve the current electricity price tariff toward:

+ Adjusting electricity sale prices according to changes in fuel price, exchange rate, structure of electricity generation and electricity market price;

+ Gradually reducing and eventually eliminating cross offsetting among customer groups and among regions; studying the application of different seasonal and regional electricity sale price tariffs;

+ Supplementing a two-component electricity price tariff: capacity price and electricity price, first of all applying it to major electricity users.

- Electricity sale prices should take into account the particularities of regions and inhabitants in border, island, rural and mountainous areas, etc., with necessary price subsidies and tax subsidies in order to reduce the gap in electricity consumption, promote socio-economic development and urbanization among regions and segments of the population, between mountainous and delta regions and between rural and urban areas;

- Electricity prices will be gradually adjusted to achieve the long-term marginal cost of the electricity system, ensuring sustainable development of the electricity sector and meeting the demand for electricity system development investment;

- The pricing of electricity must aim to conserve energy and avoid waste of non-renewable energy sources, encourage the rational use of various types of energy and the use of domestic energy, reducing reliance on imported energy.

d/ Solutions for renovating management and raising effectiveness of electricity activities:

- To study and apply appropriate management models in the electricity sector to raise productivity, speed up investment in electricity projects, and raise reliability in the operation of the electricity system;

- To restructure the electricity sector in order to step by step form a sound competitive electricity market on the basis of ensuring electricity supply security, reducing costs and raising efficiency in electricity generation and trading activities; to introduce price signals in a public and transparent manner to attract investment in  developing a sustainable electricity sector.

dd/ Environmental protection solutions:

- To implement the law on assessment of environmental impacts of projects and assessment of strategic environment of master plans.

- To consolidate environmental management organizations of state management agencies in charge of environment and enterprises in the electricity sector.

- To use ash and cinder from thermo-power plants in building material production and other industries, aiming to reduce dump sites of thermo-power plant projects under regulations.

- To fully perform environmental monitoring and observation, measurement and management of environmental criteria; to inspect and examine the implementation of regulations on environmental protection by electricity enterprises.

- To effectively implement the electricity conservation program and raise efficacy in the generation, transmission, distribution and use of electricity.

- To combine electricity sector development with environmental protection:

+ The State shall adopt policies on investment and tax supports for development of types of energy with minimal environmental impacts, contributing to environmental improvement: new and renewable energies; use of agricultural and forest waste as well as urban garbage to generate electricity, etc.

+ To strictly manage electricity generation technologies in environmental aspects. Selected technologies must be advanced and high-performance and exert low environmental impacts.

- To issue financial regulations on the electricity sector’s environment, fully and correctly accounting environmental expenses in investment and production costs.

- To encourage cooperation between large energy generation and consumption enterprises and foreign countries in the implementation of clean development mechanism (CDM) in the form of developing new and renewable energies; raising the efficiency of energy use; and developing energy conservation projects.

e/ Solutions and policies for science and technology development:

- To complete, modernize and innovate electricity equipment and technologies to develop energy for the immediate time and long-term future.

- To determine appropriate models and roadmaps for electricity source technologies and grids, ensuring stable and suitable development under Vietnam’s conditions of natural resource potential and investment capability, affordable price and environmental protection.

- New electricity facilities must have modern technologies suitable to Vietnam’s economic conditions; to incrementally upgrade and renovate existing facilities to ensure technical, economic and environmental standards.

- To combine new modern technologies with improving existing ones to raise energy efficiency and conservation.

- To encourage the use of new technologies at thermo-power plants: Spraying combustion chamber, fluidizing bed, supercritical and ultra-supercritical steam parameters, gas turbine combined cycle; waste disposal, etc., in order to increase efficiency and environmental protection and reduce ash and cinder dump areas.

- To renovate, upgrade and modernize electricity transmission and distribution grids in order to reduce losses and ensure safety and reliability.

- To modernize dispatch, operation, communication, control and automation systems to serve the dispatch of domestic electricity grids and regional connection;

- To step by step apply recommended and compulsory measures to renew technologies and equipment of power-intensive industries (steel, cement and chemicals); to limit and eventually ban the import of used and low-efficient equipment in electricity generation and use.

g/ Human resources development solutions:

- Human resources training: To develop specialized electricity schools, striving to build a number of these schools up to international standards; to develop uniform standard curricula on specialized disciplines.

- To concentrate on training human resources for key electricity generation, transmission and distribution activities. To attach importance to vocational training for skilled technicians and operators fully capable of mastering and expertly handling modern technical equipment and technologies. To organize retraining for technicians and managers, gradually raising the training quality to regional and global levels.

- To renovate the curriculum on training of human resources for the electricity sector, diversify forms of training and link training with actual production; to attach importance to the recruitment of scientists and managers for overseas training in spearhead fields. To organize supplementary training in missing or weak disciplines, particularly nuclear power and new energies. To work out satisfactory treatment mechanisms to attract quality human resources.

- To restructure and reorganize production models in a scientific and rational manner to ensure effective labor use and high productivity.

h/ To build and develop the electrical engineering industry and localization:

- To increase investment in, and diversify sources of capital, attract foreign countries’ participation in the research, design and manufacture of equipment and parts for the electricity sector. Electrical equipment and part manufacturers will strive to turn out products of international standards.

- To form a number of electrical equipment research, design and manufacturing complexes with the core being mechanical manufacturing factories.

- To build modern electrical equipment repair and maintenance centers to be able to repair and verify electrical equipment.

- To renew and modernize existing electrical engineering plants, to expand joint ventures and build new factories, creating electrical equipment manufacturing zones.

i/ Solutions for electricity conservation:

- To enhance the communication, dissemination and implementation of the Law on Energy Conservation, aiming to raise energy use efficiency in general and electricity consumption in particular in production, business and residential consumption.

- To widely implement, and increase the effectiveness of, the national target program on electricity conservation for saving more than 10% of total commercial electricity consumption in the 2016-2020 period.

Article 2.Tasks of related ministries, sectors, localities and units

1. The Ministry of Industry and Trade shall:

a/ Guide, periodically inspect and urge investors and contractors and related units to effectively implement on schedule projects that have been approved in this Decision; to report on delayed projects that affect power supply to the Prime Minister for consideration and handling;

b/ Strictly monitor the electricity supply-demand, progress of implementation of electricity source and grid projects in order to decide and adjust the schedules of projects in the approved master plan or consider and report to the Prime Minister for permission to add new projects to or remove unnecessary projects from the master plan in conformity with the practical requirements of socio-economic development in each period;

c/ Guide the formulation, appraisal and approval of master plans on locations, detailed master plans of coal- and gas-fired thermo-power centers, and master plans on hydropower and hydropower cascade on rivers to call on domestic and foreign investors to invest in their construction. Direct the development and import of natural gas, LNG and coal for electricity generation, industry and other essential demands;

d/ Guide the development of coal transshipment ports, LNG infrastructure, and consider and put forward solutions to attract domestic and foreign capital for investment in such works;

dd/ Assume the prime responsibility for, and coordinate with ministries, sectors and related localities in, developing and completing mechanisms and policies to encourage development investment in renewable energy projects;

e/ Assume the prime responsibility for, and coordinate with ministries and sectors in, negotiating and concluding electricity cooperation and exchange agreements with neighboring countries and Vietnam’s participation in the connected electricity system among GMS countries;

g/ Direct and urge localities and investors to properly implement electricity source and grid development projects (including rural electricity grid projects) according to approved plans and schedules;

h/ Accelerate the construction and complete necessary conditions (legal basis and technical infrastructure) for the development of wholesale and retail electricity markets under the approved roadmap;

i/ Direct the research and manufacture of equipment for coal-fired thermo-power, nuclear power and hydropower plants;

k/ Study and issue regulations on types of imported coal and thermo-power plant technologies to ensure environmental standards and reduce carbon dioxide emission;

l/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, implementing the 2016-2020 program on electricity conservation;

m/ Work with provincial-level People’s Committees on land areas for power projects to ensure schedule under the approved master plan;

n/ Continue settling the issues related to the short circuit current in the electricity system; enhance the connection of the electricity transmission grid and the method of electricity transmission with the alternating or direct current; N-1 criterion of the electricity transmission grid and to propose areas to satisfy N-2 criterion; and enhance angle, frequency and voltage stability of the national electricity system;

o/ Introduce a mechanism to handle delayed electricity projects;

p/ Assume the prime responsibility for research and propose amendments to legal documents, authorization and decentralization mechanisms and submit them to the Prime Minister for decision to ensure schedule of electricity projects;

q/ Research the connection of the national electricity grid with those of regional countries on the basis of improving the reliability of the electricity system;

r/ Study and plan Long An, Tan Phuoc and Bac Lieu power centers, making clear the feasibility and necessity of electricity plants in these power centers.

2. The Ministry of Planning and Investment shall develop mechanisms and policies to attract investment and ensure rational use of ODA funds for the comprehensive, balanced, rational and sustainable development of the electricity sector.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors in, building mechanisms for raising investment capital for the electricity sector development, aiming to promptly and fully satisfy the whole society’s electricity demand under the approved adjusted Electricity Master Plan VII.

4. The State Bank of Vietnam shall guide domestic commercial banks to balance capital and consider extending loans for investors of electricity projects according to each project’s practical requirements, ensuring sustainable development of the electricity sector.

5. Vietnam Electricity (EVN) shall:

a/ Play a major role in ensuring stable and secure electricity supply for socio-economic development. Invest in electricity source projects under its assigned tasks and developing synchronous electricity grids to raise investment efficiency;

b/ Adopt solutions for further reducing electricity losses, implement programs on  electricity conservation in production and consumption;

c/ Continue raising productivity to optimize costs in electricity generation, transmission, distribution and sale activities;

d/ For a number of important electricity grid projects, guide project owners to plant corridor markers after the project feasibility study report is approved.

6. The Vietnam Oil and Gas Group (PetroVietnam) shall:

a/ Assume the prime responsibility for researching plans on the extraction of gas from Blue Whale and lot B fields and a rational LNG import scheme ensuring efficiency and meeting consumption demand before reporting them to the Ministry of Industry and Trade for consideration and submission to the Prime Minister. Invest in electricity source projects as assigned;

b/ Coordinate with domestic and foreign private investors in building LNG import infrastructure facilities.

7. The Vietnam National Coal-Mineral Industries Holding Corporation (Vinacomin) shall:

a/ Play a major role in ensuring the supply of domestic and imported coal for electricity generation and other demands of the national economy. Invest in electricity source projects as assigned;

b/ Coordinate with domestic and foreign private investors in building coal transshipment ports.

8. Provincial-level People’s Committees shall:

a/ Assume the prime responsibility for, and closely coordinate with investors in, ground clearance, compensation, inhabitant relocation and resettlement for electricity source and grid projects under regulations;

b/ Update and arrange land areas for the approved electricity works in land use master plans and make public these areas;

c/ Enhance land administration to avoid disputes and complaints that delay the identification of the origin of land, and inventory, formulate and approve compensation schemes and hand over construction grounds to investors for construction; speed up the survey, making and approval of compensation unit prices so as not to affect the schedule of approval of compensation schemes and payment of compensations to affected households;

d/ Issue regulations and timely guide the implementation thereof in line with the projects’ schedule; apply strict sanctions to those that deliberately build annexes and architectural objects and plant trees within the projects’ corridors in order to claim more compensation money or those that refuse to receive compensation money under the approved scheme.

Article 3.This Decision takes effect on the date of its signing and replaces the Prime Minister’s Decision No. 1208/QD-TTG of July 21, 2011, approving the master plan for national power development in the 2011-2020 period, with considerations up to 2030.

Article 4.Ministers, heads of ministerial-level agencies and government-attached agencies, chairmen of provincial-level People’s Committees, chairmen of the Members’ Councils and directors-general of Vietnam Electricity, Vietnam Oil and Gas Group, Vietnam National Coal-Mineral Industries Holding Corporation, and related agencies shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG