The Prime Minister of Vietnam has approved the National Energy
Development Strategy of Vietnam to 2030, with a vision to 2045.
Please kindly find below our key highlights.
On March 1, 2024, the Prime Minister issued Decision No.
215/QĐ-TTg approving the National Energy Development Strategy
of Vietnam until 2030, with a vision to 2045 ("Decision
215"). This decision is to implement the Politburo of the
Communist Party of Vietnam's Resolution No. 55- NQ/TW dated 11
February 2020 on orientation of the National Energy Development
Strategy of Vietnam to 2030, with a vision to 2045
("Resolution 55"). It is worth noting that the celebrated
Vietnam's National Power Development Plan 8 ("PDP8")
was known to be prepared in line with orientations and directions
in relation to power sector under Resolution 55. Thus, we believe
that upcoming Plan for Implementation of PDP8 and other guidelines
of PDP8 would be carefully structured and adopted in line with the
National Energy Development Strategy of Vietnam under Decision
215.
Development Perspective
In brief, Decision 215 aims at (i) ensuring the national energy
security for socio-economic development, (ii) prioritizing fast and
sustainable energy development, (iii) adapting to climate change
and aligning with the net zero emissions target by 2050; and (iv)
using energy efficiently, and environmentally friendly which deemed
as an important national policy and the responsibility of the whole
society.
Key Goals
– Satisfy domestic energy demand, serve the objective of the
10-year Socio-Economic Development Strategy 2021 – 2030, with
primary energy supply reaching about 150 – 170 million tons
of oil equivalent (TOE) by 2030 and about 260 – 280 million
TOE by 2045.
– Achieve the proportion of renewable energy in the total
primary energy supply is 15 – 20% by 2030 and 65 – 70%
by 2045.
– Build a smart, efficient electricity system, capable of
safely connecting to the regional power grid; ensure safe power
supply, meet criteria N-1 for important load areas and N-2 for
especially important load areas.
– Oil refining facilities could satisfy at least 70% of the
country's petroleum demand; encourage for petroleum reserves to
reach 75 – 80 days of net import after 2030.
– Have sufficient capacity to import liquefied natural gas
(LNG) of about 15 – 20 billion m3 in 2030 and about 10
– 15 billion m3 in year 2045. \
– Reduce greenhouse gas emissions from energy activities
compared to the normal development scenario by 15 – 35% by
2030, up to 70 – 80% by 2045.
Legal Implementation
Decision 215 has assigned the Ministry of Industry and Trade to
coordinate with relevant ministries, agencies and localities to
study and propose mechanisms and policies to implement the National
Energy Development Strategy. The ministry will closely monitor the
balance of energy supply and demand and the implementation of key
energy programs and projects; and propose mechanisms and policies
to encourage development of renewable energy projects.
Key policies and legislation are proposed for implementation of the
above strategy:
– Develop a synchronous and interconnected energy market
between electricity, coal, oil and gas and renewable energy
sub-sectors, connecting with regional and world markets.
– Review, adjust and complete policies on land, site
clearance compensation, water surface use, etc. Innovate financial
policies in the direction of encouraging and strongly attracting
foreign investment capital sources government;
– Encourage energy investment projects in the form of
public-private partnerships (PPP).
– Amend and complete specialized laws on oil and gas,
electricity, economical and efficient use of energy, and legal
documents related to the energy industry in accordance with
international practices and the development situation.
– Research, develop and supplement content on renewable
energy in the Electricity Law (amended) to create a solid,
transparent and favorable legal foundation to create momentum for
the sustainable development of new and renewable energy.
– Issue regulations on authority to decide investment
policies for offshore wind power projects, hydrogen/ammonia
production projects using offshore wind power, and offshore wind
power export projects.
– Promulgate a pilot, moving towards officially building a
direct power purchase contract mechanism between renewable energy
power producers and consumers in synchronization with amendments to
the Electricity Law and roadmap for implementing the electricity
market compete.
– Research and develop fee collection regulations for direct
power purchase contracts (DPPA).
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.