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

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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
Issuing body: Prime MinisterEffective date:
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Official number:428/QD-TTgSigner:Nguyen Tan Dung
Type:DecisionExpiry date:Updating
Issuing date:18/03/2016Effect status:
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Fields:Electricity , Industry

SUMMARY

To supplement division of electricity price in two components: output price and electrical energy price

 

On March 18, 2016, the Prime Minister signed the Decision No.  428/QD-TTg dated March 18, 2016 of the Prime Minister on approving revisions to the national power development plan from 2011 to 2020 with visions extended to 2030, in order to mobilize all domestic and global resources for electricity development to maintain the supply of ample electric power of higher quality at reasonable price for the nation's growth in economy and society; utilize varied resources of primary energy for effective production of electricity; fortify the development and use of renewable energies for electricity generation to gradually enhance the volume of electricity generated by renewable energies to alleviate dependence on coal imports for electricity production, contribute to power security, mitigate climate changes…

To achieve above targets, the Prime Minister requires ministries and relevant agencies to implement preferential finance policies and expand international cooperation to intensify the search, survey and increase of reserves and competency for exploitation of coal, gas and renewable energies, maintain and secure the supply of fuels and energy for electricity production; focus on the construction of coal entrepots in each region to optimize coal import expenses; quicken the search and negotiation for stable and long-term import of coal and LNG for power stations; mobilize more capital by issuing bonds domestically and abroad to gain investments in power works and adopt methods to convert domestic savings to investments in infrastructure. The government, at the initial stage, shall underwrite bond issues for major and urgent power projects; equitize power companies, in which the government's full holding is not essential.

On electricity price, the Prime Minister emphasizes to continue renovating and completing current electricity tariff towards adjustment of electricity price commensurate with the fluctuation of fuel price, exchange rate, electricity production and market prices; gradual cutback of cross subsidy in customer groups, regions; conduct studies on seasonal and area-based pricing; division of electricity price in two components: output price and electrical energy price, which shall first apply to major customers….
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Effect status: Known

 

THE PRIME MINISTER

No. 428/QD-TTg
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, March 18, 2016
 
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;
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