Directive 05/CT-TTg 2024 on ensuring the supply of electricity, coal, and gas for power generation

DIRECTIVE

On ensuring the supply of electricity, coal, and gas for power generation in the coming period

Ensuring electricity supply and safeguarding national energy security constitute a fundamental basis and an essential prerequisite for socio-economic development, determining the success of the country’s industrialization and modernization process. In recent years, the Party and the State have consistently paid attention to, and focused on, directing measures to ensure energy security, in which electricity supply security plays a pivotal role. However, the implementation of electricity supply in the past period has, at times and in certain places, revealed shortcomings and difficulties due to both objective and subjective reasons; notably, localized power shortages occurred in the Northern region at the end of the dry season in 2023.

To firmly safeguard energy security and electricity supply security for production, business, and the daily consumption needs of the people in the coming period, the Prime Minister hereby directs:

1. The State Steering Committee for important national and key energy programs, works and projects shall:

a) Focus on directing, inspecting, coordinating, and urging the implementation of investment and construction tasks for important national and key energy programs, works and projects in strict accordance with the resolutions of the National Assembly, the Government, and the decisions and directives of the Prime Minister.

b) Direct, inspect, and urge investors of works and projects, consulting organizations, and contractors in performing the tasks identified in approved master plans and plans, investment guidelines of works and projects, or decisions on approval of each component project so as to ensure construction progress and project quality.

c) Direct and urge ministries, sectors, and People’s Committees of provinces and centrally run cities to resolve, within their competence, difficulties and obstacles related to land clearance for important national and key energy works and projects; immediately report to the Prime Minister on matters beyond their competence, while proposing solutions for the Prime Minister’s consideration and decision when urgent issues arise in connection with key projects.

2. The Minister of Industry and Trade shall:

a) Focus on leading and directing the implementation of specific tasks, in particular the plan to implement the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Development Plan VIII). In which, focus on implementing tasks to ensure supply for the Northern power system in the coming years as follows: i) Coordinate with the Committee for management of state capital at enterprises, relevant ministries, sectors, and People’s Committees of provinces and centrally run cities to direct, guide, and support the Vietnam Electricity in implementing and accelerating progress so as to complete at the earliest possible time the Circuit-3 500kV transmission line from Quang Trach to Pho Noi to supply electricity to the North (strive to ensure completion and energization in June 2024); ii) Urgently finalize and submit the dossier requesting the formulation of the Government’s Decree on mechanisms and policies to encourage the development of solar power, rooftop solar systems installed at households, public offices, and industrial zones; iii) Assume the prime responsibility for and coordinate with the Vietnam Oil and Gas Group and the Vietnam Electricity in formulating a Decree on mechanisms for the simplified purchase and sale of gas- and wind-fired power, to be completed no later than the second quarter of 2024; iv) Urgently review power sources in the Northern region and report to the Prime Minister on solutions to accelerate the progress of ongoing power source projects and on solutions for the immediate implementation of new power sources, with specific measures for each project in the Northern region.

b) Direct the Vietnam Electricity and the National Load Dispatch Center to operate the power system so as to ensure electricity supply; formulate electricity supply plans and operate the national power system with the objectives of ensuring supply, maintaining reserve capacity, and being able to respond to and control possible extreme operational scenarios.

c) Forecast and formulate plans to direct the Vietnam Oil and Gas Group, the Vietnam National Coal and Mineral Industries Group, and the Dong Bac Corporation to supply fully and continuously, ensuring timely delivery, sufficient volume, and correct types of coal for power generation in accordance with signed contracts/commitments; coordinate with relevant units to forecast fuel use and supply so as to ensure security of electricity supply.

d) Direct, inspect, and supervise the Vietnam Oil and Gas Group in taking all measures to ensure the progress of the Block B Gas-to-Power Project Chain under Power Development Plan VIII; focus on removing obstacles within its competence, and promptly report to the Prime Minister to resolve matters beyond its competence.

dd) Monitor and supervise the progress of key energy projects such as the Blue Whale Project and the Thi Vai - Nhon Trach Project; assume the prime responsibility for and coordinate with relevant ministries and sectors to promptly handle matters within its competence, and report to the Prime Minister on matters beyond its competence, so as to ensure project implementation in accordance with the planned schedules.

e) Intensify the strict, substantive, and effective implementation of the Prime Minister’s Directive on strengthening electricity saving, the National Program on economical and efficient use of energy, the demand-side management program, and the transition to green and clean energy; coordinate in researching and promoting domestic production, technology application, innovation, and labor productivity improvement in the energy sector.

g) Strictly and effectively implement state management over power sources produced, traded, and sold outside the state sector; review commitments and formulate plans for electricity supply and electricity prices in accordance with the law; strictly prohibit all forms of negative practices, corruption, and vested interests in the production, business, and trading of electricity in the non-state sector.

3. The Chairperson of the Committee for Management of State Capital at Enterprises shall:

a) Timely approve, in accordance with the law on management and use of state capital invested in production and business at enterprises, key investment projects in the energy sector of the Vietnam Electricity, the Vietnam Oil and Gas Group, and the Vietnam National Coal and Mineral Industries Group.

b) Direct and urge the Members’ Council of Vietnam Electricity, Vietnam Oil and Gas Group, and Vietnam National Coal and Mineral Industries Group to focus on implementing key energy projects; review difficulties and obstacles and resolve them within their competence; and report only to competent state agencies if matters are beyond their competence.

4. The Minister of Finance shall:

a) Assume the prime responsibility for, and coordinate with relevant agencies in, continuing to review, provide guidance, and annually formulate specific plans to inspect the implementation of legal provisions on prices applicable to the production and business of coal, gas, and oil, and the supply of coal, gas, and oil for power generation; closely coordinate with the Ministry of Industry and Trade in implementing the electricity retail mechanism in accordance with the law.

b) Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade, the Vietnam National Coal and Mineral Industries Group, Vietnam Electricity, the Vietnam Oil and Gas Group, the Dong Bac Corporation, and relevant agencies in, researching and formulating reference prices for imported coal to be applied immediately when the Law on Prices No. 16/2023/QH15 takes effect.

5. The Minister of Planning and Investment shall:

a) Advise and report to the Prime Minister on matters related to expertise, functions, and duties for the implementation of investment in power projects under Power Development Plan VIII (including forms of investment, investment implementation procedures, specific responsibilities of each relevant agency for the implementation of power projects, investor identification and selection, and bidding); at the same time, send such reports to the Ministry of Industry and Trade for study, synthesis, and submission to the Prime Minister on the implementation of the plan for Power Development Plan VIII.

b) Review and accelerate the appraisal of investment guidelines for power projects within its competence, and absolutely avoid any delay that may affect the progress of power projects.

6. The Minister of Natural Resources and Environment shall:

a) Urgently direct and guide thermal power plants in the Northeastern region (particularly thermal power plants located in Quang Ninh province) to adopt solutions related to cooling water temperature so as to ensure the available capacity of power plants during the annual dry season.

b) On the basis of the flexible operation plans of reservoirs under the Inter-reservoir Operation Procedures proposed by the Vietnam Electricity in coordination with relevant agencies and units, review the Inter-reservoir Operation Procedures in order to ensure the safety of works and downstream areas, and to use water resources efficiently for multiple purposes, thereby optimizing socio-economic development and environmental protection benefits derived from water resources.

c) Guide the People’s Committees of provinces and centrally run cities on matters concerning land use master plans and plans for energy and power projects under Power Development Plan VIII.

7. The Minister of Agriculture and Rural Development shall urgently review and resolve, within its competence, matters related to the conversion of forest use purposes in connection with energy and power projects, and report to the Prime Minister on matters beyond its competence; ensure that no delay in the settlement process occurs that may affect the implementation of energy and power projects.

8. Heads of ministries, ministerial-level agencies, governmental agencies, and Chairpersons of People’s Committees of provinces and centrally run cities shall:

a) Heads of ministries, ministerial-level agencies, and governmental agencies, based on their assigned functions and duties, and closely following the situation, proactively propose solutions to address difficulties and obstacles within their respective sectors and fields related to power activities.

b) Chairpersons of People’s Committees of provinces and centrally run cities shall: (i) Direct the review of the implementation progress of investment and construction of power source and grid works under the approved power development master plans and plans within their management areas; (ii) Direct relevant functional units to resolve difficulties and obstacles in relation to investment and construction procedures and land clearance work, so as to accelerate the progress of power source and grid works; (iii) Direct coordination with the Minister of Industry and Trade, the Minister of Planning and Investment, and relevant agencies in promptly performing tasks within their competence for the identification and selection of investors, and promptly implementing power source and grid projects in line with the approved planning schedules; (iv) For provinces whose provincial planning for the 2021-2030 period, with a vision to 2050, has been approved by the Prime Minister, direct to focus on finalizing and submitting the provincial five-year (2021-2025) land use plans to the Ministry of Natural Resources and Environment for appraisal and submission to the Prime Minister for approval; ensure that provincial People’s Committees make annual periodic reports and timely ad-hoc reports on the situation of land use for energy works for energy and power projects under the plans for the implementation of Power Development Plan VIII within their localities.

9. The Chairperson of the Vietnam Electricity shall:

a) Direct coordination with the National Load Dispatch Center in formulating plans and methods for operating the national power system with the objectives of ensuring electricity supply, with particular attention to supply reserves, hydropower availability, and adequate preparation of fuel for thermal power plants to supply electricity during the annual dry season peak periods.

b) Focus on leading and directing the acceleration of investment, construction, and commissioning of power source and grid projects for which it is the assigned investor, particularly key power source and grid works serving electricity supply for the Northern region such as the Circuit-3 500kV transmission line (strive to ensure completion and energization in June 2024), Hoa Binh Hydropower Expansion, and Quang Trach I Thermal Power Plant.

c) Proactively coordinate closely with the Vietnam Oil and Gas Group in the implementation of the Block B Gas-to-Power Project Chain so as to ensure the overall progress of the project chain.

d) Direct the updating and review of the balance of electricity supply and demand and national power system capacity, particularly for the Northern region up to 2025 and 2030, including solutions to ensure electricity supply and to handle matters within its competence; report to competent authorities on matters beyond its competence.

dd) Direct the implementation of electricity saving throughout the sector; coordinate with People’s Committees of provinces and centrally run cities and electricity consumers in implementing electricity saving solutions; intensify extensive, effective, and substantive communication on economical and efficient electricity use to each category of electricity consumers so as to raise awareness and change behaviors of people and enterprises in electricity use; concurrently, strengthen the implementation of demand-side management programs and electricity load adjustment programs.

10. The Chairperson of the Vietnam Oil and Gas Group shall:

a) Direct the focused and urgent acceleration of the Block B Gas-to-Power Project Chain, immediately report matters beyond its competence (if any), take full responsibility for delays concerning matters within its competence, ensure the Final Investment Decision (FID) is made at the earliest possible time, and ensure the schedule for first gas flow in the fourth quarter of 2026.

b) Focus on directing the implementation and removal of obstacles for power source projects for which it is the assigned investor; report to the Committee for Management of State Capital at Enterprises and relevant agencies on matters beyond its competence.

c) Closely coordinate with the gas field operator, investors of gas-fired power plants, and the Chairperson of the Vietnam Electricity in implementing solutions during the process of executing supply schemes, prioritizing gas supply for power generation to meet electricity consumption demand, thereby ensuring the optimal efficiency of the gas-to-power chain and safeguarding national interests.

d) Urgently direct research and propose solutions for restructuring the gas market and gas industry infrastructure in line with the Scheme on the competitive energy market.

11. The Chairperson of the Vietnam National Coal and Mineral Industries Group and the Director General of the Dong Bac Corporation shall:

a) Direct to thoroughly grasp and strictly, effectively implement the tasks assigned by the Prime Minister under Directive No. 29/CT-TTg dated December 2, 2019 on further strengthening state management over coal production and business activities and coal supply for power generation; and the tasks and solutions for developing the coal market under the Scheme on developing the competitive energy market.

b) Implement synchronously, resolutely, and effectively the measures of direction, administration, and production organization in order to improve the capacity, productivity, and output of domestic coal mining; closely monitor and follow weather developments to arrange and plan coal mining operations appropriately; import coal for blending to supply for power generation in a reasonable and efficient manner; the focus must be on promoting domestic coal production and business.

c) Proactively review and balance domestic coal supply and demand with priority given to ensuring sufficient coal supply for power generation in accordance with signed contracts; formulate coal production plans, transshipment depots, coal reserves, and transport means; prepare response and control measures for possible extreme scenarios so as to ensure sufficient and stable supply for coal-fired power plants, thereby contributing to safeguarding national energy security; under no circumstances shall coal shortages for power plants be permitted.

12. Investors of thermal power plants

a) Thoroughly grasp and strictly, effectively implement the tasks assigned by the Prime Minister under Directive No. 29/CT-TTg dated December 2, 2019 on further strengthening coal production and business activities and coal supply for power generation in accordance with market mechanisms.

b) Assume the responsibility for arranging adequate primary fuel to ensure stable and continuous supply in accordance with the mobilization requirements of the power system throughout the lifespan of plants; in particular, accurately calculate the volume of coal that must be self-arranged for power generation, in addition to the coal volume committed to be supplied by the Vietnam National Coal and Mineral Industries Group and the Dong Bac Corporation, so as to sufficiently and promptly prepare fuel for power generation in line with market mechanisms.

c) Regularly review, update, and calculate the demand for primary fuel for power generation to ensure alignment with actual conditions and seasonal/regional load demand, thereby preparing sufficient fuel to meet mobilization requirements of the power system and maintaining reasonable reserves for the operation of power plants. Under no circumstances shall there be any situation in which generating units are ready for operation but lack fuel, resulting in reduced output or forced shutdown.

d) Strengthen the management of input coal quality to ensure technical specifications, thereby enhancing the efficiency of generating units, minimizing incidents caused by coal quality; proactively operate generating units in a stable and reliable manner to meet the mobilization requirements of the power system.

dd) Complete the calculation of coal demand for power generation and sign annual coal purchase contracts no later than December 1 of the preceding year; report the implementation results to the Ministry of Industry and Trade before December 10 each year (including coal demand and signed coal purchase contracts with all supplying entities) to serve the preparation of the coal supply chart for power generation. Strictly comply with commitments under the signed coal purchase contracts.

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People’s Committees of provinces and centrally run cities, chairpersons of members’ councils and General Directors of the Vietnam Electricity, the Vietnam National Coal and Mineral Industries Holding Corporation Limited, the Vietnam Oil and Gas Group, the Dong Bac Corporation, and all relevant organizations and individuals shall strictly implement this Directive./.

The Prime Minister

PHAM MINH CHINH