Implementing the adjusted Power Plan VIII: Proposing a mechanism to realize the set goals

Successful implementation of the adjusted Power Plan VIII will ensure sufficient electricity supply for economic development (Photo: Duc Thanh)

Building a gas-fired power plant takes 7-10 years

“In reality, implementing a gas-fired power project takes 7-10 years. With the current investment situation of LNG power projects, achieving the goal of putting all 15 gas-fired power projects into operation before 2030 according to the adjusted Power Plan VIII is a huge challenge, especially in the context of still having problems with mechanisms and policies,” said Mr. Mai Xuan Ba, Head of the Construction Investment Department, PetroVietnam Gas Corporation (PV Gas), speaking at the Forum “Realizing the goals of the adjusted Power Plan VIII and solutions for power sources until 2030”, which took place recently in Ho Chi Minh City.

Many businesses believe that adjusting the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan VIII) will help add new power sources. However, implementing this plan poses many challenges for businesses.

From the actual project implementation, Mr. Mai Xuan Ba said that the adjusted Power Plan VIII sets the target of having 15 more gas-fired power plants using LNG by 2030, with a total capacity of 25,624 MW, which is very urgent, requiring large capital sources and strong support mechanisms and policies to achieve the target.

The objective of the revised Power Plan VIII is to meet the demand for economic growth, ensuring sufficient electricity supply for economic development with an expected GDP growth rate of about 7%/year in the 2021-2030 period and about 6.5-7.5%/year in the 2031-2050 period. At the same time, the Plan aims for a net zero emission target by 2050 according to Vietnam's commitment at COP26.

Meanwhile, there is currently no mechanism to support domestic gas-fired power plants to switch to LNG with guaranteed consumption in the context of declining domestic gas resources, while imported LNG suppliers require long-term purchase contracts.

Also facing difficulties in investing in gas power plant projects, Ms. Nguyen Thi Thanh Binh, Chairwoman of T&T Energy Corporation (T&T Energy), said that the energy transition process poses many challenges, especially in terms of co-firing ratio, technology, market and hydrogen supply. This is a difficult problem not only for investors, but also for management agencies.

According to Ms. Binh, power projects require huge investment capital, and without bank loans, they are difficult to implement. However, loans for green energy projects have not been supported by the State, making banks hesitant.

Ms. Binh added that T&T Energy is cooperating with Chinese enterprises to produce storage batteries, expected to be launched on the market in early 2026. The Ministry of Industry and Trade is building a price framework for the power project combined with the production of storage batteries. However, to date, there are still no specific regulations on the price framework and "support" mechanism for storage batteries.

Not only manufacturing enterprises, even Vietnam Electricity Group (EVN) is facing difficulties in investing in power transmission projects.

Mr. Nguyen Anh Tu, Deputy Head of EVN Planning Department, shared that to implement the adjusted Power Plan VIII, the total capital demand for grid investment in the period 2025-2030 is 18.1 billion USD. EVN is developing an investment plan for the period 2026-2030, in which the expected capital arrangement capacity is 240,505 billion VND (average 36,000 billion VND/year), but can only meet a maximum of 40% of the investment volume according to Power Plan VIII. "This investment scale exceeds the implementation capacity of EVN and its units," said Mr. Tu.

Although the Electricity Law (amended) and a number of current legal regulations have paved the way for private investors to participate in investing in the transmission grid, according to Mr. Tu, the capital attraction policy, the mechanism to ensure capital recovery and investment profits are still not attractive enough. Not to mention, the procedures for implementing construction investment projects are still complicated and lengthy, especially the procedures related to approving investment policies, land use planning, converting forest use purposes, compensation and site clearance.

Strong mechanisms are needed to avoid the risk of delays.

With many mechanisms still stuck, businesses earnestly recommend that the Government , ministries and branches remove difficulties to both promote project investment to provide enough electricity for production and ensure the realization of the goals in the adjusted Power Plan VIII.

Ms. Nguyen Thi Thanh Binh proposed that it is necessary to soon issue specific mechanisms and guidelines so that LNG power projects can have a clear roadmap when operating: from ensuring fuel sources, signing long-term gas purchase and sale contracts, to preparing plans to burn hydrogen to meet the Government's Net Zero commitment.

Regarding credit, Ms. Binh said that although the Government encourages lending for green energy projects, in reality, the implementation of preferential loans for green energy and renewable energy is still unclear and ineffective. Therefore, she suggested that the Government have solutions to support loans for these projects to ensure feasibility.

Mr. Mai Xuan Ba proposed to supplement the mechanism so that existing gas-fired power plants using natural gas can mobilize the maximum amount according to the domestic gas supply capacity, the shortage will be supplemented by LNG. At the same time, consider issuing a mechanism for existing gas-fired power plants using both domestic natural gas and recycled LNG, applied according to Decree 56/2025/ND-CP and Decree 100/2025/ND-CP.

Regarding power transmission lines, Mr. Nguyen Anh Tu (EVN) recommended that the Government and relevant ministries and branches continue to develop and promulgate attractive investment mechanisms and policies to attract private capital. The policies need to ensure transparency in transmission costs, capital recovery mechanisms and reasonable profits for investors.

He also requested ministries and branches to issue coordination mechanisms and agree on responsibilities between power source investors and transmission units to ensure synchronous and effective progress; at the same time, prioritize focusing investment resources on transmission grids for feasible projects.

Source: https://baodautu.vn/thuc-hien-quy-hoach-dien-viii-dieu-chinh-de-xuat-co-che-de-hien-thuc-hoa-muc-tieu-de-ra-d364141.html