Vietnam – Power Development Plan 8 – Finalizing the plan – what you must know:

On 31 March 2022, the Government Office issued Notice No. 92/TB-VPCP on the conclusion of the Cabinet at the meeting on finalizing the National Power Development Plan for the 2021 – 2030 period, with a vision to 2045 (PDP VIII). Deputy Prime Minister Le Van Thanh is in charge of directing the Ministry of Industry and Trade to finalize Power Planning VIII to soon organize a conference with localities on its content and implement the next procedures in April 2022.

Key points in the Notice include:

– PDP VIII must make an important contribution to the implementation of Vietnam’s commitment to bring net emissions to “zero” by 2050, closely following the development of a green and circular economy

– For solar power projects already included in the revised Power Master Plan VII but not yet implemented: MOIT must provide the criteria and conditions for electricity purchase price, economic efficiency, stability of the national power system, etc. and report to the Government Standing Committee for consideration and decision but must ensure consistency with the criteria and principles of the new PDP.

MOIT to thoroughly review the transfer of solar power capacity already included in the revised Power Master Plan VII but have not yet been implemented and do not meet the economic efficiency targets, especially the electricity purchase price, to consider adjusting the planning.

– For rooftop solar power that has been invested, if it is in accordance with regulations, for the right purposes, and does not take advantage of the mechanism for profit: MOIT, EVN and the Committee for Management of State Capital at Enterprises to calculate the balance for electricity consumption (not including the capacity of 7,755 MW of rooftop solar power into the data of total power capacity in the planning).

– For the policy of nuclear power development to ensure long-term energy security and ensure the energy conversion process, MOIT to continue research and report to the competent authorities for consideration and comments – this shall not be included in the calculation in the PDP VIII.

– Development must gears towards an independent and self-sufficient economy, improving the autonomy of the energy industry, minimizing dependence on foreign countries. This is directly related to the duty of maximizing and rationally exploiting primary energy resources in the country for electricity production such as natural gas, wind energy, solar energy, ocean waves…; at the same time, balance the use of imported LNG sources reasonably.

– To reduce long-distance power transmission and reduce investment in interregional transmission grids.

Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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