In May 2023 the Prime Minister issued the long-awaited Decision 500, approving the national power development plan known as ("PDP8"). Decision 500 took effect on May 15, 2023, and covers a term of 27 years (2023 to 2050). It provides general policies, objectives, plans for development of power generation and transmission lines, on land use, and with a list of important projects. It provides a general road map to implement PDP8. On April 1, 2024 the Prime Minister issued Decision 262, approving the PDP8 Implementation Plan ("Plan").
It has been reported that through 2020, total installed capacity of the power generation industry had reached 69,340 MW1. It is estimated that during 2023-2050, Vietnam's average GDP will be 6.5%-7.5%. To meet the country's GDP growth as contemplated in PDP8, Vietnam must double the current capacity of the power industry, to reach 150,500 MW in 20302. Vietnam has five (5) years from now to 2030 to double the current capacity. Time is of the essence to achieve this target. The task requires a large effort from all stakeholders (eg, developers, regulatory bodies, EVN, PVN, Vinacomin, local authorities, etc.).
The total capacity will be increased after 2031, and it may
reach 490,530MW - 573,000 MW by 2050. Below is a table that
describes the projected total capacity of the power industry by
phases and by sources of energy (including coal-fired power
plants):
|
No. |
Source of energy |
2020 |
2030 |
2050 |
|
Capacity (MW) |
Capacity (MW) |
Capacity (MW) |
||
|
1 |
Hydropower plants |
20,993 |
29,346 |
36,016 |
|
2 |
Coal-fired power plants |
21,383 |
30,127[3] |
0[4] |
|
3 |
Domestic gas-fired power plants |
9,025 |
14,930 |
- |
|
Ammonia-fired power plants |
- |
- |
25,632 |
|
|
Converted power plants by using only hydrogen |
- |
- |
7,030 |
|
|
Converted power plants by using hydrogen and LNG |
- |
- |
4,500 |
|
|
Converted power plants by using LNG |
- |
- |
7,900 |
|
|
4 |
LNG power plants5 |
- |
22,400 |
- |
|
5 |
Onshore wind power projects |
538 |
21,880 |
60,050 |
|
6 |
Offshore wind power projects |
- |
6,000 |
70,000 |
|
7 |
Solar power projects |
16,506 |
12,8366 |
168,594 |
|
8 |
Biomass and waste-to-energy projects |
- |
2,270 |
6,015 |
|
9 |
Heat and power co-generation |
- |
2,700 |
4,500 |
|
10 |
Flexible sources |
- |
300 |
30,900 |
|
11 |
Pumped-storage hydroelectricity |
- |
2,400 |
- |
|
12 |
Battery storage |
- |
300 |
- |
|
13 |
Power storage |
- |
- |
30,650 |
|
14 |
Imported electricity |
572 |
5,0007 |
11,042 |
|
15 |
Others |
325 |
- |
- |
|
Total |
69,342[8] |
150,489[9] |
490,529[10] |
To date, about 30 coal-fired power plants have been developed and are operating. Below is a table that provides the status of coal-fired power plants under the Plan.
|
No. |
Projects |
Capacity (MW) |
Province/City |
Years of Operation |
Notes |
|
1 |
Van Phong 1 Thermal Power Plant |
1,432 |
Khanh Hoa |
2024 |
|
|
2 |
Vung Ang II Thermal Power Plant |
1,330 |
Ha Tinh |
2025-2026 |
|
|
3 |
Na Duong II Thermal Power Plant |
110 |
Lang Son |
2026 |
Pre-construction stage |
|
4 |
Quang Trach I Thermal Power Plant |
1,403 |
Quang Binh |
2026 |
Under construction |
|
5 |
An Khanh - Bac Giang Thermal Power Plant |
650 |
Bac Giang |
2027 |
|
|
6 |
Long Phu 1 Thermal Power Plant |
1,200 |
Soc Trang |
2027 |
List of coal thermal power projects that are behind schedule and encounter difficulties in shareholder or capital change:
|
No. |
Projects |
Capacity (MW) |
Province/City |
Note |
|
1 |
Quang Tri Thermal Power Plant (*) |
1,320 |
Quang Tri |
The Ministry of Industry and Trade has discussed with investors, and they have been permitted an extension until June of 2024 at which point, if the project in question has not been implemented, the project will be terminated. |
|
2 |
Cong Thanh Thermal Power (**) |
600 |
Thanh Hoa |
|
|
3 |
Nam Dinh I Thermal Power Plant |
1,200 |
Nam Dinh |
|
|
4 |
Vinh Tan III Thermal Power Plant |
1,980 |
Binh Thuan |
|
|
5 |
Song Hau II Thermal Power Plant |
2,120 |
Hau Giang |
Note:
(*) The investor has applied for suspension of the project (according to Document EGATi 277/2023), the People's Committee of Quang Tri province issued Document no. 4009/UBND-KT on August 9, 2023 applying for conversion of Quang Tri Thermal Plant Power to a gas-fired power plant.
(**) The People's Committee of Thanh Hoa province issued Document no. 19346/UBND-CN on December 21, 2023 proposing a switch-over to LNG as fuel for the Cong Thanh Thermal Power Plant Project.
Footnotes
1. MOIT's letter no. 2842/TTr-BCT dated May 14, 2023 ("MOIT Letter 2842").
2. As a result of economic recovery in recent years, it is projected that the capacity of the industry may reach 183,000MW in 2030.
3. Coal fired power plants which can no longer be developed will be replaced by LNG or RE projects. This total capacity does not include the capacity of delayed/abandoned projects (Cong Thanh, Nam Dinh I, Quang Tri, Vinh Tan III, Song Hau II).
[4] Vietnam does not have a plan to develop new coal-fired plants after 2030.
5. After 2035, no new LNG power plants will be developed.
6. The capacity does not include the capacity of existing rooftop solar projects.
7. Imported volume may reach 8,000MW.
8. This statistic is stated in MOIT Letter 2842.
9. This total capacity does not include the capacity of existing rooftop solar projects, RE for new energy production and exported energy.
10. Maximum capacity may reach 573,000MW.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
