We would like to share with you a Power and Energy-related update to PDP 8 as below:
The Ministry of Industry and Trade has just issued Official Letter No. 3787/BCT-DL to report to the Prime Minister on the review of some contents of the PDP VIII. In this report, the Ministry of Industry and Trade has made specific recommendations, wishing to be approved by the Prime Minister. In specific:
Solar:
The Ministry of Industry and Trade proposes to continue to allow the implementation to be put into operation in the period up to 2030 the projects, or the completed part of the project with a total capacity of about 452.62MW and the planned projects have been approved by investors with a total capacity of about 1,975.8MW but not yet operated.
The Ministry also noted that these projects need to comply with the legal provisions on investment, and construction, closely follow the absorption capacity of the national power system and the ability to release the capacity of the power grid; comply with the electricity price mechanism at the time of operation, take responsibility for project efficiency according to the approved mechanism.
The Ministry of Industry and Trade also proposed to extend the progress of planned but unapproved projects with a total capacity of 4,136.25MW to the period after 2030.
“Annually, review and calculate the absorption capacity of the national electricity system and the ability to release local capacity and operate the economic safety of the system. In case of necessity, consider reporting to the government for allowing push to the period before 2030 if other sources are behind schedule to ensure electricity supply for the socio-economic development of the country and take advantage of the increasingly cheap price of solar power”
LNG:
As for the LNG power planning, the Ministry of Industry and Trade affirmed that LNG projects expected to develop in the PDP VIII to 2030 with a total capacity of 23,900MW (accounting for 16.4%) are necessary.
The demand for LNG imports is expected to be 14-18 billion m3 by 2030 and 13-16 billion m3 by 2045, higher than the target of Resolution 55-NQ/TW stated “Sufficient to import the LNG with the capacity of about 8 billion m3 by 2030 and about 15 billion m3 by 2045”.
The Ministry of Industry and Trade proposes the Prime Minister consider the need to seek the guidance of the Politburo or the guidance of the Central Economic Committee on the above-mentioned targets before approving the PDP VIII.
The Ministry of Industry and Trade also selected the high scenario in the Draft PDP VIII.
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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.