Expanding the electricity industry space

Engineers at the An Lac 110 kV substation ( Hai Phong ) inspect and maintain equipment. (Photo by TRAN KHANH)

This provides a foundation for localities, economic groups, and investors to implement and open up new development opportunities for Vietnam's energy sector in a sustainable, equitable direction, in line with the trends of green economy, circular economy, and low-carbon economy.

The implementation plan for the Power Development Plan VIII focuses on building a roadmap for the effective implementation of projects/programs that meet the set objectives as well as the electricity needs for socio-economic development in each period, ensuring that electricity development is one step ahead; at the same time, it aims to strongly shift energy from fossil fuels to new and renewable energy sources to reduce environmental pollution, reduce greenhouse gas emissions, and contribute to achieving Vietnam's net-zero emissions target by 2050.

Detailed information

According to experts, the Power Development Plan VIII is a complex issue, attracting attention from many levels, sectors, organizations, and units both domestically and internationally. Therefore, the implementation plan has also received many opinions during its development and refinement, aiming to create a comprehensive and feasible plan with the ultimate goal of ensuring electricity supply for socio-economic development. Deputy Director of the Electricity and Renewable Energy Department ( Ministry of Industry and Trade ) Bui Quoc Hung shared that although the Ministry has made great efforts to complete this plan on schedule, there have still been delays due to numerous difficulties and obstacles.

On April 1st, the Plan for Implementing the Power Development Plan VIII was officially approved by the Prime Minister. The Plan details the contents of Power Development Plan VIII, specifically identifying the timeline for commissioning key and priority power generation projects for the period up to 2025 and the period 2026-2030, serving as the basis for implementing and managing power generation development, including: domestic gas-fired power projects, liquefied natural gas (LNG) projects, medium and large-scale hydropower projects, pumped storage hydropower projects, etc.

In addition, the implementation plan has clearly identified two inter-regional renewable energy industrial and service centers, including: Center 1 in the Hai Phong, Quang Ninh, Thai Binh area and surrounding areas (approximately 2,000 MW) and Center 2 in Ninh Thuan, Binh Thuan, Ba Ria-Vung Tau, Ho Chi Minh City and expanding to surrounding areas in the future; and identified a list of renewable energy power projects suitable for the calculated capacity scale, allocated to localities.

Regarding offshore wind power, the Ministry of Industry and Trade is researching and addressing difficulties and obstacles, and reporting to competent authorities for consideration and specific project identification in the future. At the same time, the Ministry has also reported to the Standing Committee of the Government and the Prime Minister on the difficulties and obstacles encountered in reviewing and evaluating the legality of solar power projects, ensuring that no violations are legalized, even those projects that have already received planning approval, investment policy approval, and investor assignment.

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Dr. Ngo Tuan Kiet, Director of the Institute of Energy Science, assessed: The Power Development Plan VIII is an open plan, therefore it must have an accompanying implementation plan. Without an approved plan, projects cannot be implemented in detail. An approved plan will help accelerate the progress of investment projects from now until 2030, promptly meeting the needs of socio-economic development. It can be said that this is the guiding principle for all growth and development activities of the power grid system in the coming time.

According to Nguyen Anh Tuan, General Director of Vietnam Electricity Group (EVN), immediately after the approval of the Power Development Plan VIII, the Group proactively developed a plan and directed its units to implement the assigned tasks. Specifically, EVN directed the acceleration of progress on key power source projects such as the Ialy Hydropower Plant expansion, the Hoa Binh Hydropower Plant expansion, and the Quang Trach I Thermal Power Plant; and researched, reviewed, supplemented, and finalized the dossiers for other expanded hydropower plant projects (Tuyen Quang expansion, Son La expansion, Lai Chau expansion, etc.) to proceed with the next steps.

Regarding power grid projects, EVN has proactively instructed its units to expedite investment procedures for key power grid projects to meet the needs of increasing transmission capacity, relieving power congestion from various sources, importing electricity, and ensuring supply. Currently, EVN is focusing its resources on the construction of the 500 kV circuit 3 transmission line from Quang Trach to Pho Noi, aiming for completion by the end of June as directed by the Prime Minister. Once the plan is approved, EVN will continue to review and refine the Group's implementation plan to effectively guide its execution and meet the set objectives.

Minister of Industry and Trade Nguyen Hong Dien emphasized: The Power Development Plan VIII plays a very important role in the development of the electricity sector in particular and the energy sector in general, especially in the context of the strong energy transition taking place globally.

Ministries, sectors, and localities also need to urgently coordinate research and propose to competent authorities the issuance of regulations on the authority to decide on investment policies for gas-fired power projects, offshore wind power projects, and hydrogen/ammonia production projects using offshore wind power;… research and propose the development, amendment, and supplementation of relevant legal documents, mechanisms, and policies, especially financial mechanisms, electricity pricing mechanisms, and incentive mechanisms to support implementation.

Minister Nguyen Hong Dien also suggested that both state-owned and private economic groups should conduct research based on planning and development plans to propose suitable investment projects, including both power generation and transmission projects, especially new energy projects such as offshore wind power and gas-fired power. The Ministry of Industry and Trade will compile these proposals and submit them to the Government for decision.

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