The Prime Minister of Vietnam on April 1, 2024 approved the Plan for Implementation of National Power Development Plan to 2030, with a vision to 2050 ("PDP8"). Please kindly find below our key highlights.
On April 1, 2024, the Prime Minister issued Decision No.
262/QD-TTg approving the Plan for Implementation of PDP8 (the
"Implementation Plan"). Some take-aways:
" The Implementation Plan sets out specific tasks and
assignments for the line ministries to coordinate and implement
PDP8 from now through 2025. For example, it sets out a timeline for
adoption of new prioritized regulations.
" The Implementation Plan does not provide guidelines to
address existing issues and concerns over power project bankability
such as identifying a mechanism for selection of investors, feed-in
tariffs, regulations for encouragement of development of renewable
energy projects or bankable transaction templates.
" The Implementation Plan lists important power generation
projects as described further below, however we understand from
sources in the Ministry of Industry and Trade ("MOIT")
that the MOIT has not yet collected all necessary information from
all provincial People's Committees to finalize all relevant
lists of power projects.
A. IMPORTANT POWER GENERATION PROJECTS
The Implementation Plan maintains the planned total capacity of
important generation sources in line with PDP8. However, schedules
to the Implementation Plan list the exact expected operating years
of relevant power projects (instead of the more generic year range
as disclosed in PDP8) and the progress toward completion of each
project.
The total important power generation projects capacity up to 2030
is approved as follows:
Generation Sources Capacity
Domestic gas thermal power capacity 14,930 MW
LNG thermal power capacity 22,400 MW
Coal-fired power capacity 30,127 MW
Cogeneration power sources, power sources using residual heat,
blast furnace gas, and by-products of the technology line 2,700
MW
Hydropower capacity 29,346 MW
Pumped storage hydropower capacity 2,400 MW
B. RENEWABLE ENERGY PROJECTS
1. Wind Power Projects
Approved capacity for offshore wind power projects is 6,000 MW by
2030 in line with PDP8. The Implementation Plan does not list the
approved offshore wind power projects. Instead, the list allocates
the approved capacity to regions of Vietnam by 2030, i.e., Northern
region (2,500 MW), Southern region (1,000 MW), Southern Central
region (2,000 MW) and Central Middle (500 MW).
Approved capacity of onshore wind power projects (including
nearshore wind power projects) is 21,880 MW by 2030. The
Implementation Plan provides a list of onshore wind power projects
with respective capacity, location, expected operation years
(period) and current status.
2. Solar Power Projects
Total capacity of rooftop solar power projects (for
self-consumption) is increased by 2,600 MW by 2030.
There is no list of rooftop solar power projects. However, the
Implementation Plan maintains the same list of solar power projects
to be implemented after 2030 (but could be conducted within
2024-2030 if the electricity is self-consumed) as provided in
PDP8.
3. Other types of power sources until 2030
The Implementation Plan sets a target of 300 MW for flexible power
sources. This target is stated as intended to take advantage of
existing power grid infrastructure. The purpose is to remediate
areas with potential shortages of spare capacity.
The Implementation Plan includes a decision to import approximately
5,000 MW of electricity from Laos, which can be increased to 8,000
MW when there are favorable conditions including reasonable
electricity prices. The Ministry of Industry and Trade is directed
to report to the Prime Minister to consider and decide on import
policies and synchronous grid connection plans for each specific
project.
C. PRIORITIZED LEGAL FRAMEWORK UNTIL 2025
The Implementation Plan plans to develop the following laws and
regulations to implement PDP8 from now through 2025:
– Price range for power importation from Laos;
– Power generation price ranges;
– Direct Power Purchase Agreement mechanism;
– Regulations for encouragement of development of rooftop
solar power project for self-consumption;
– Amended Electricity Law and Amended Law on Efficient Use of
Energy; and
– Mechanism for development of market of carbon credit.
It is worth noting that Implement Plan also assigns relevant line
Ministries to review and develop other regulations to finalize the
legal framework for development of power generation, renewable
energy and transmission grids up to 2030 as required by PDP8.
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.