On 1 April 2024, the Prime Minister of Vietnam (the “PM“) issued Decision No. 262/QD-TTg on approving the plan to implement the National Power Development Plan for the period of 2021 – 2030, with a vision to 2050 (“Decision 262”), with immediate effect. Accordingly, the plan attached to Decision 262 (“PDP8 Implementation Plan”) aims to:

(i) effectively implement the approved National Power Development Plan for the period of 2021 – 2030, with
a vision to 2050 (“PDP8”);
(ii) vigorously implement the energy transition from fossil fuel to other new energy sources and renewable energies; and
(iii) determine solutions to attract investments in electricity development.

To achieve such goals, the PDP8 Implementation Plan outlines a number of the following key objectives:.

1. Total capacity of power sources to 2030

Following the issuance of the PDP8 Implementation Plan, on 2 April 2024, the PM issued Decision No. 270/QD-TTg approving the list of national major programs, construction works, and projects in the energy sector subject to the direction of the State Steering Committee. The list is considered comprehensive since it specifies all major programs, construction works, and projects in the energy sector recognized in relevant plannings for the period to 2030 with a vision to 2050, comprising the following:

(i) 12 power generation projects, focusing on thermal power and hydropower plants;
(ii) 28 power grid projects;
(iii) strategic gas-electricity project chains;
(iv) LNG storage facilities and LNG to gas to power plants;
(v) refinery and petrochemical projects; and
(vi) national schemes aimed at promoting energy conservation and efficiency.

2. Plan for developing the ecosystem for industries and renewable energy services

Research to build two centers for industries and renewable energy services for the period to 2030:

3. Roadmap for the completion of legal policies and reinforcement of the electricity industry’s capacity

For the period from 2023 – 2025, Decision 262 sets out the key legislative mandate for:

(i) developing the tariff for electricity import from Laos. Based on the conference on 6 April 2024 between the Minister of the Ministry of Industry and Trade (“MOIT”) of Vietnam and the Minister of the Ministry of Energy and Mine of Laos, the MOIT’s Minister said that: “Tentatively, in early Quarter II of this year (2024), the tariff for power import from Laos after 2025 will be officially issued”; developing the tariff for types of power sources;

(ii) developing the mechanism for direct power purchase agreement;

(iii) developing the mechanism for encouraging the development of distributed/rooftop solar power projects for self-consumption;

(iv) amending the Electricity Law 2004 and Law on Efficient Use of Energy 2010; and

(v) developing the mechanism for developing carbon credit market.

4. Land requirement to 2030

By 2030, the aggregate land area required for power sources and national transmission power grid will occupy nearly 90.3 thousand ha.

5. Investment capital requirement to 2030

6. Miscellaneous contents supporting the key objectives as aforementioned

To support these key objectives, the PDP8 Implementation Plan identifies contents including the power sector capacity, power sources and transmission network as follows:

(i) List of projects prioritised to completion of legislative policies and enhancement of the capacity of the power sector (e.g. enhancement of the technology capacity and the quality of the human resources);

(ii) Distribution of the capacity of the renewable power sources according to regions/local areas, specifically, the capacity of the (i) offshore/onshore wind power, (ii) small-scale hydropower, (iii) biomass,  (iv) waste to energy, and (v) the rooftop solar;

(iii) List of the types of power sources operating during the period from 2023 to 2030, notably (i) domestic gas thermal power, (ii) LNG, (iii) coal thermal power, (iv) medium/large-scale hydropower, (v) small-scale hydropower, (vi) waste to energy, (vii) solar power considered after 2030;

(iv) Electricity supply program for the rural mountainous and island regions; and

(v) List of new and renovated transmission network projects from 220 kV to 500 kV.

The information provided is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.