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Wednesday, 04/05/2022 | Read more Vietnamese version

Approval of draft National Power Development Plan VIII by Appraisal Council

On April 26, 2022, at the Government Headquarters, Deputy Prime Minister Le Van Thanh chaired a meeting of the Council to appraise the National Power Development Plan for the period 2021-2030, with a vision to 2045 (NPDP VIII), an especially important national planning in the national sector planning system.

Deputy Prime Minister Le Van Thanh chairs the meeting of the NPDP 8 Appraisal Council VIII – Photo by VGP/Duc Tuan
Deputy Prime Minister Le Van Thanh chairs the meeting of the NPDP 8 Appraisal Council VIII – Photo by VGP/Duc Tuan

The draft NPDP VIII was submitted to the Prime Minister by the Ministry of Industry and Trade for the first time on March 26, 2021. After thorough analysis and evaluation, it has been shown that there are a number of shortcomings in terms of the scale of power source development, the structure of power sources, and the unreasonable regional balance, leading to the requirement for very large investment in the transmission grid, inter-regional as well as a number of problems related to mechanisms, policies and solutions to management and implementation,…

After that, the Government and Prime Minister focused on directing the completion of the NPDP VIII to overcome the remaining shortcomings as well as follow up with Vietnam’s commitments at the COP26 Conference in order to “reach the level net emissions of “zero” by 2050″.

The Appraisal Council listens to Deputy Minister of Industry and Trade Dang Hoang An presenting the appraisal report – Photo by VGP/Duc Tuan
The Appraisal Council listens to Deputy Minister of Industry and Trade Dang Hoang An presenting the appraisal report – Photo by VGP/Duc Tuan

During the development of NPDP VIII, Deputy Prime Minister Le Van Thanh has chaired more than 20 meetings and worked to comment and complete the Plan. The Government Standing Committee also has concluded on the draft Power Master Plan VIII with many important directives.

Most recently, at the Conference with localities on April 15, 2022, the opinions were basically in high agreement with the viewpoints, orientations, directions and prudent way of doing things on the principle of putting the national interest, Nationality comes first of the Government and the Prime Minister in order to firmly ensure energy security, optimize the overall efficiency of the economy, ensure the lowest electricity price, suitable to the ability of people. while still ensuring to fulfill in a very responsible manner Vietnam’s strong commitments to the international community on emission reduction and environmental protection.

The commissaries expressed their opinions – Photo by VGP/Duc Tuan
The commissaries expressed their opinions – Photo by VGP/Duc Tuan

The opinions expressed at the meeting showed high agreement with the main indicators of the NPDP VIII, especially the issues of total installed capacity, structure of power sources, policy and roadmap for energy conversion implementation and the distribution of power sources in regions, especially the issue of general economic efficiency (reducing investment costs for power sources and grids). These factors will contribute to stabilizing electricity prices at an appropriate and harmonious level between the State, investors and people.

More opportunities for wind power

Dr. Ngo Tuan Kiet, Director of the Vietnam Academy of Science and Technology, said that the NPDP VIII has been carefully built with 6 versions so far. This version of April 2022 has two new scenarios, including an energy conversion one to meet emission reduction requirements. This is a breakthrough scenario, carefully calculated the possibility of Vietnam utilising primary energy sources. “Another scenario is to calculate the possibility that if the power supply is lacking, slow, then how to operate it. This is a new and good adjustment, in line with the view that the Power Planning VIII is an open planning, in the process of implementing which will be updated, calculated and adjusted based on actual socio-economic development at each stage.” The plan has been updated with data on wind power, both onshore and offshore, however, it still requires exclusive studies and assessments instead of only updated figures from international organizations.

Assoc. Prof. Dr. Pham Hoang Luong, Commissary, assessed that the inclusion of Prime Minister Pham Minh Chinh’s commitments at the 26th United Nations Climate Change Conference of the Parties (COP26), the plan has opened up opportunities for the development of wind power, especially offshore wind power. However, Vietnam needs to plan the national marine space until 2045 on the management, exploitation and utilization of marine space for sustainable marine economic and ocean energy development activities.

Minister of Industry and Trade Nguyen Hong Dien: The plan must ensure the balance between regions – Photo by VGP/Duc Tuan
Minister of Industry and Trade Nguyen Hong Dien: The plan must ensure the balance between regions – Photo by VGP/Duc Tuan

Minister of Industry and Trade Nguyen Hong Dien emphasized that the Government and the Prime Minister have given many directions throughout the process of completing the Plan, on the principle of prioritizing the national and national interests, overcoming the existence and limitations of previous power plans, promoting the potential and advantages of localities in the overall balance.

The plan has taken into account the replacement of coal-fired power projects and those that are still pending. It also basically ensures the balance between regions; between power sources for the stable operation of the system, on the basis of developing renewable energy sources and maintaining other power sources. The plan basically does not develop the interregional transmission system until 2030. Besides, opportunities for new sources of raw materials such as hydrogen, ammonia… are “opened” as well.

After the discussion, the Council voted with a majority of votes approving the National Power Development Plan VIII.

Absolutely no mechanism or policiy to be intergrated in the Plan

Concluding the meeting, Deputy Prime Minister Le Van Thanh expressed his approval for assessments of the Appraisal Council that NPDP VIII has been prepared thoroughly and scientifically with highly responsibility, demanding on the basis of taking the most referrence of contributing oppinions from experts, scientists, business community and leaders of minitries, sectors and localities.

The Plan also adheres to the Politburo’s Resolution No. 55 on the National Energy Development Strategy to 2030, vision 2045; associated with commitments related to energy transition in then spirit of commitment at COP 26.

Up to now, it can be affirmed that the NPDP VIII has achieved the objectives, overcome some previous existences: The total scale of power capacity expected to develop to 2030 is about 146,000 MW, on the decrease of about 35,000 MW compared to the previous plan, said the Deputy Prime Minister, if it remains as before, the investment will be large and over-spreading out. “We are also highly agreed on the regional allocation structure and limiting the distanced transmission. This is very important because with that amount of electricity, but if you move from the Central to the North to use, it will lead to waste and loss…”

Deputy Prime Minister Le Van Thanh: “NPDP VIII has reached the objectives and overcome the previous limitations.” – Photo by VGP/Duc Tuan
Deputy Prime Minister Le Van Thanh: “NPDP VIII has reached the objectives and overcome the previous limitations.” – Photo by VGP/Duc Tuan

Another shortcoming that this plan has overcome is the structure of power sources, reducing coal power and increasing renewable energy.

Another shortcoming that this plan has overcome is the structure of power sources, reducing coal power and increasing renewable energy According to the Deputy Prime Minister, the Plan has an innovation in thinking and doing methods when it relates to the interests of localities and businesses, with the desire to retain many projects in the Plan. The Deputy Prime Minister emphasized that the spirit of planning it is to put the common interest first, “saving tens of billions of dollars, reducing investment in transmission lines and reducing transportation costs will help reduce electricity price”.

After the Appraisal Council’s approval on the Master Plan with a high number of votes, Deputy Prime Minister Le Van Thanh assigned the Ministry of Industry and Trade and other ministries and sectors to urgently absorb the opinions of the Appraisal Council and finalize the draft before submitting it to the Prime Minister for considering and approving in May 2022.

The Deputy Prime Minister requested all parties absolutely not to integrate any mechanisms and policies in the draft plan; the assignment of tasks to ministries and sectors must be based on the functions and tasks of national management and strictly comply with the provisions of law.

“Absolutely not to turn the Plan into a group of mechanisms and policies. The Ministry of Industry and Trade, the Ministry of Justice and the Government Office have to carefully review the draft plan and the Prime Minister’s draft Decision of NPDP VIII approval. They also have to prevent any integrating of mechanisms and policies outside the current provisions of the law,” emphasized the Deputy Prime Minister.

The Deputy Prime Minister also noted that the Ministry of Industry and Trade must develop a scheme to organize the implementation of the NPDP VIII according to the roadmap.

Source: Vietnam Government News

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