Power Plan VIII prioritizes renewable energy development

Power Plan VIII plans the development of power sources and transmission grids at voltage levels of 220kV and above, industry and services on renewable energy and new energy in Vietnam for the period 2021-2030, with a vision to 2050, including grid connection projects with neighboring countries. Power Plan VIII sets the goal of firmly ensuring national energy security, meeting the requirements of socio-economic development and industrialization and modernization of the country. Along with that, successfully implementing a fair energy transition associated with production modernization, building a smart grid, advanced power system management, in line with the trend of green transformation, emission reduction, and science and technology development of the world. At the same time, forming a comprehensive energy industry ecosystem based on renewable energy and new energy.

Regarding the goal of ensuring national energy security, the Power Plan VIII aims to provide enough electricity for domestic demand, meeting the socio-economic development target with an average GDP growth rate of about 7%/year in the 2021-2030 period, about 6.5-7.5%/year in the 2031-2050 period; ensuring safe and reliable electricity supply. By 2030, Vietnam's electricity supply reliability will be among the top 4 countries in ASEAN, the electricity access index will be among the top 3 countries in ASEAN; striving by 2030, 50% of office buildings and 50% of houses will use self-produced and self-consumed rooftop solar power (serving on-site consumption, not selling electricity to the national power system).

For a just energy transition, the Power Plan VIII aims to strongly develop renewable energy sources for electricity production. The target is for renewable energy sources to account for about 31-39% of the system, equivalent to 5,000-10,000MW by 2030. This ratio can be increased to 47% with the conditions of commitment under the political declaration on establishing a just energy transition partnership with Vietnam (JETP). The proportion of this power source in the system is expected to increase to 67.5-71.5% by 2050.

According to this plan, by 2030, it is expected to form two inter-regional renewable energy industrial and service centers including electricity production, transmission and consumption; renewable energy equipment manufacturing industry, construction, installation, related services, building a renewable energy industrial ecosystem in areas with great potential such as the North, South Central, and South when there are favorable conditions. In addition, developing power sources from renewable energy and producing new energy for export. By 2030, the scale of electricity export capacity is expected to reach about 5,000-10,000MW.

To achieve the above goals, Vietnam will need nearly 135 billion USD to develop power sources and transmission grids by 2030. Capital demand for power development (sources, grids) will increase to 399-523 billion USD by 2050, of which more than 90% will be for building new power sources and the rest will be for transmission grids. To mobilize capital for the power sector, the Power Plan VIII said that the State will focus on investing and encouraging economic sectors to rapidly develop the power sector on the principle of fair competition and implementing a market mechanism on electricity prices, ensuring the harmony of interests of entities participating in investment and electricity use and meeting the development requirements of regions.

KHANH AN

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