According to the recently released power industry report of VNDirect Securities, the analysis team pointed out that the issuance of Power Plan VIII has clarified the picture of Vietnam's electricity industry in the coming time, and also opened up new growth opportunities. bright for businesses in this industry group.
On May 15, 5, the Prime Minister officially approved the Power Master Plan VIII, opening a new chapter for Vietnam's power sector, officially eliminating about 2023MW of coal power. Accordingly, coal power is expected to achieve a low compound growth rate of 13.220% in the period 2-2021 and then decrease by 2030% in the period 1-2030, accounting for 2050% and 19% of total power capacity, respectively.
In terms of gas power, this will be the spearhead of Vietnam's development plan for the 2021-2030 period with a compound growth rate of 26%, accounting for 27% of the total power capacity. In 2030-2050, gas power development will slow down to 4%, accounting for 15% of total capacity in 2050.
Besides, wind power is also a top development target in both short and long term. In which, onshore wind power will grow at a compound rate of 25% in 2021-2030, and 6% in 2030-2050, accounting for 14% and 13% of the total capacity in this period, respectively.
PDP8 prioritizes the development of wind power and gas power in 2021-2030 after further promoting the development of renewable energy after 2030 (Unit: MW) (Source: VNDirect).
It is expected that Vietnam will develop the first 6.000MW of offshore wind power between now and 2030, then a strong growth of 15% in 2030-2050, accounting for 16% of total power capacity.
And solar power is expected to be limited in development after the massive growth period of 2020-2021. However, the Government still encourages the development of solar power for self-consumption purposes. Accordingly, solar power capacity will increase modestly in 2021-2030 and then increase sharply by 13% from 2030-2050, accounting for 33% of total capacity.
VNDirect emphasized that businesses in the field of electricity infrastructure construction and installation will benefit most clearly thanks to the relatively high workload in the plan of Power Master Plan VIII, especially in the electricity, gas and renewable energy sectors. .
Accordingly, the power construction industry group including lines and substations will also record a corresponding increase to ensure the absorption capacity and efficiency of the system.
However, for the renewable energy group, the new renewable energy price policy is the factor that makes the outlook of this sector clearer.
Some of the prominent listed companies in the power infrastructure construction group include PC1 Group JSC (HoSE: PC1), FECON JSC (HoSE: FCN), Power Construction Consultant Joint Stock Company 2 (HoSE: TV2) will be the earliest beneficiaries of this thesis.
Some leading players in the renewable energy industry will have an advantage in the next development phase of this industry group (Source: VNDirect).
In the longer term, PetroVietnam Technical Services Corporation (HNX: PVS) is also expected to benefit from participating in offshore wind power construction, with experience in recent projects such as Thang Long, La Gan.
Gas power enterprises in general and LNG power plants in particular have brighter prospects due to their ownership of approved projects in Power Plan VIII including Nhon Trach 3 & 4 (PetroVietnam Power Corporation (HoSE: POW) is in charge of; or Long Son LNG project by Power Generation Corporation 3 (HoSE: PGV) and Power Construction Consultant Joint Stock Company 2 (TV2); O Mon 3,4 project of Power Generation Corporation. 2 (GE2).
Vietnam Gas Corporation (HoSE: GAS) will also be the main beneficiaries in this development phase due to the implementation of LNG terminal projects.
“The approved Power Plan VIII will speed up the progress of long-stalled billion-dollar gas field projects such as Block B, Blue Whale in the coming years to ensure domestic gas sources and reduce dependence on domestic gas. the import of LNG for power generation in Vietnam”, the analysis team said.
