The Prime Minister executed Decision No. 500/QD-TTG, dated 15 May 2023 approving the National Power Development Plan for the period of 2021 – 2030, with a vision to 2050 (the “PDP 8”).
PDP 8 confirms Vietnam’s national commitment to forward-looking electricity development “building an independent and self-reliant economy, improving the people’s livings standards and… quality of life.”
This legal update discusses the most notable points of the PDP 8.
1. Development Objectives
a) To satisfy the electricity demand requirements resulting from the socio-economic development goals:
- GDP growth of approximately 7% annually (2021 – 2030) and 6.5 – 7.5% annually (2031 – 2050);
- Maximum installed electricity capacity of: 59,318 MW by 2025;
90,512 MW by 2030; and
185,187 – 208,555 MW by 2050
- Rooftop solar for self-consumption on 50% of residences and 50% of offices by 2030; and
- Meeting N-1 and N-2 transmission continency plans.
b) To develop renewable energy and renewable energy transition:
- 30.9 to 39.2% renewable energy by 2030 and up to 67.5 – 71.5% by 2050;
- Implementing commitments made under the Just Energy Transition Partnership (JETP); and
- Smart grid development for renewable energy integration.
2. Electricity generation portfolio development plan
PDP 8 identifies generation portfolio targets as follows:
Power Source Development Plan
Table 1. PDP 8 – Generation source and target capacity (2030 and 2050)
Table 2. PDP 7 revised and PDP 8 – Power source structure by percentage in 2030
(Statistics shown in Table 1 and Table 2 are taken from the PDP 7 revised and PDP 8)
3. Power grid transmission plan
PDP 8 identifies the following grid objectives:
- 100% rural electrification by 2025;
- Adding 12,300km of 500kV transmission lines by 2030;
- Introducing HVDC lines: 5,200 – 8,300km by 2050 and dedicated lines for offshore wind by 2030; and
- Improved grid interconnection in the Mekong region and in ASEAN.
4. Legal and policy changes
PDP 8 recognizes the resultant necessity for policy and legislation reformation, giving effect to PDP 8, including:
- An amended Electricity Law;
- A new Law on Renewable Energy;
- A bidding scheme for investor selection and power tariffs, to be done concurrently with the Electricity Law amendment;
- Improving the price management mechanism;
- Regulations on direct power purchase agreements (DPPA);
- Transmission compensation policies/regulations; and
- Mechanisms and policies to promote electricity imports, especially from Laos through Agreements and Memorandums of Understanding between the two Governments.
The information provided in this email is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations