The Prime Minister of Vietnam has approved the National Energy Development Strategy of Vietnam to 2030, with a vision to 2045. Please kindly find below our key highlights.
On March 1, 2024, the Prime Minister issued Decision No. 215/QĐ-TTg approving the National Energy Development Strategy of Vietnam until 2030, with a vision to 2045 (“Decision 215”). This decision is to implement the Politburo of the Communist Party of Vietnam’s Resolution No. 55- NQ/TW dated 11 February 2020 on orientation of the National Energy Development Strategy of Vietnam to 2030, with a vision to 2045 (“Resolution 55”). It is worth noting that the celebrated Vietnam’s National Power Development Plan 8 (“PDP8”) was known to be prepared in line with orientations and directions in relation to power sector under Resolution 55. Thus, we believe that upcoming Plan for Implementation of PDP8 and other guidelines of PDP8 would be carefully structured and adopted in line with the National Energy Development Strategy of Vietnam under Decision 215.
Development Perspective
In brief, Decision 215 aims at (i) ensuring the national energy security for socio-economic development, (ii) prioritizing fast and sustainable energy development, (iii) adapting to climate change and aligning with the net zero emissions target by 2050; and (iv) using energy efficiently, and environmentally friendly which deemed as an important national policy and the responsibility of the whole society.
Key Goals
– Satisfy domestic energy demand, serve the objective of the 10-year Socio-Economic Development Strategy 2021 – 2030, with primary energy supply reaching about 150 – 170 million tons of oil equivalent (TOE) by 2030 and about 260 – 280 million TOE by 2045.
– Achieve the proportion of renewable energy in the total primary energy supply is 15 – 20% by 2030 and 65 – 70% by 2045.
– Build a smart, efficient electricity system, capable of safely connecting to the regional power grid; ensure safe power supply, meet criteria N-1 for important load areas and N-2 for especially important load areas.
– Oil refining facilities could satisfy at least 70% of the country’s petroleum demand; encourage for petroleum reserves to reach 75 – 80 days of net import after 2030.
– Have sufficient capacity to import liquefied natural gas (LNG) of about 15 – 20 billion m3 in 2030 and about 10 – 15 billion m3 in year 2045. \
– Reduce greenhouse gas emissions from energy activities compared to the normal development scenario by 15 – 35% by 2030, up to 70 – 80% by 2045.
Legal Implementation
Decision 215 has assigned the Ministry of Industry and Trade to coordinate with relevant ministries, agencies and localities to study and propose mechanisms and policies to implement the National Energy Development Strategy. The ministry will closely monitor the balance of energy supply and demand and the implementation of key energy programs and projects; and propose mechanisms and policies to encourage development of renewable energy projects.
Key policies and legislation are proposed for implementation of the above strategy:
– Develop a synchronous and interconnected energy market between electricity, coal, oil and gas and renewable energy sub-sectors, connecting with regional and world markets.
– Review, adjust and complete policies on land, site clearance compensation, water surface use, etc. Innovate financial policies in the direction of encouraging and strongly attracting foreign investment capital sources government;
– Encourage energy investment projects in the form of public-private partnerships (PPP).
– Amend and complete specialized laws on oil and gas, electricity, economical and efficient use of energy, and legal documents related to the energy industry in accordance with international practices and the development situation.
– Research, develop and supplement content on renewable energy in the Electricity Law (amended) to create a solid, transparent and favorable legal foundation to create momentum for the sustainable development of new and renewable energy.
– Issue regulations on authority to decide investment policies for offshore wind power projects, hydrogen/ammonia production projects using offshore wind power, and offshore wind power export projects.
– Promulgate a pilot, moving towards officially building a direct power purchase contract mechanism between renewable energy power producers and consumers in synchronization with amendments to the Electricity Law and roadmap for implementing the electricity market compete.
– Research and develop fee collection regulations for direct power purchase contracts (DPPA).
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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.