ELECTRICITY PLAN VIII IMPLEMENTATION PLAN APPROVED

Decision 262/QD- TTg dated 1 April 2024 by the Prime Minister approving the Plan to implement the National Power Development Plan for the period 2021 – 2030, with a vision to 2050 under Decision No. 500/QD- TTg dated May 15, 2023 of the Prime Minister. This plan, also known as PDP VIII, sets investment priorities for the power sector, with a focus on expanding the capacity of various energy sources.

According to the plan, by 2030, Vietnam is expected to have a total gas thermal power capacity of 14,930 MW, LNG capacity of 22,400 MW, and coal capacity of 30,127 MW. In addition, the project also expects to develop the total capacity of cogeneration power source and use of residual heat, blast furnace gas, and by-products up to 2,700 MW, while total hydroelectric capacity and pumped storage hydropower are 29,346 MW and 2,400 MW, respectively.

Prioritize the development of renewable energy

The project to develop renewable energy sources in localities and territories until 2030 is progressing with significant capacity targets. The total expected capacity for offshore wind power is 6,000 MW, while onshore wind power, including onshore and nearshore wind power, will reach 21,880 MW. Hydropower will have a total capacity of up to 29,346 MW. As for other renewable energy sources, biomass power and electricity produced from waste will have a total capacity of 1,088 MW and 1,182 MW, respectively. The project also aims to increase rooftop solar power capacity to 2,600 MW and develop a battery storage system with a total capacity of 300 MW.

Two inter-regional renewable energy industry and service centers will be built, one in the North with an offshore wind power capacity of about 2,000 MW and onshore and offshore wind power of about 500 MW, and one in the South Central and South region with a scale of 2,000 to 2,500 MW for offshore wind power and from 1,500 to 2,000 MW for onshore and offshore wind power. These centers not only focus on power generation but also develop renewable energy-related industries and services, such as equipment manufacturing, construction and installation, contributing to the overall goal of Vietnam on a sustainable energy future.

Take advantage of electricity export potential

At the same time, in order to take advantage of Vietnam’s electricity export potential, new energy production will prioritize locations with potential to export electricity abroad in the Central and Southern regions, with an estimated export scale of 5,000 – 10,000 MW when there are feasible projects. Vietnam will also develop flexible power sources with a total expected capacity of 300 MW, prioritizing development in areas with potential shortages of spare capacity; take advantage of existing power grid infrastructure; Importing electricity from Laos with the ability to expand from 5,000 MW to 8,000 MW based on favorable conditions and reasonable prices.

To support this plan, Vietnam will also invest in important transmission grid projects and power grids linked to neighboring countries, to ensure synchronization and efficiency in power transmission from imported sources and renewable energy.

Require large investment capital

According to the draft of the Ministry of Industry and Trade, this plan requires a significant amount of land, about 86.5 thousand hectares, to develop power source and transmission grid projects. This includes the use of sea surface area, with an estimated need of up to 111.6 thousand hectares for the period up to 2030. To implement this plan, the total investment capital is estimated at 134.7 billion USD , of which the power source portion is about 119.8 billion USD and the power transmission grid investment is about 14.9 billion USD.

With the set plans and goals, PDP VIII is not only an important step forward in providing energy for Vietnam but also part of a larger effort in energy transition and sustainable development. This is a far-sighted plan that reflects Vietnam’s commitment to ensuring national energy security, aiming to reduce carbon emissions, and increase the use of renewable energy. This is also an important step in supporting the country’s economic growth, while contributing to global efforts to minimize the impact of climate change.