DECISION

APPROVING THE NATIONAL ELECTRICITY DEVELOPMENT PLANNING OF 2021 - 2030 AND VISION FOR 2050

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendment to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Planning dated November 24, 2017;

Pursuant to the Law on Electricity dated December 3, 2004; the Law on amendment to the Law on Electricity dated November 20, 2012;

Pursuant to Resolution No. 61/2022/QH15 dated June 16, 2022 of the National Assembly on further improvement of efficiency and effectiveness of implementation of policies and regulations pertaining to planning and several solutions for resolving difficulties, issues, boosting planning progress, and increasing planning quality for the period of 2021 - 2030;

Pursuant to Resolution No. 81/2023/QH15 dated January 9, 2023 of the National Assembly on National Planning of the period of 2021 - 2030 and vision for 2050;

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Pursuant to Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government elaborating the Law on Electricity and the Law on amendments to the Law on Electricity;

At request of the Ministry of Industry and Trade under Presentation No. 2842/TTr-BCT dated May 14, 2023 and Official Dispatch No. 2851/BCT-DL dated May 15, 2023; Assessment Report No. 62/BC-HDTDQHD dated May 13, 2023 of the Council for assessment of National Electricity Development Planning of the period of 2021 - 2030 and vision for 2050.

HEREBY DECIDES:

Article 1. Approving the National Electricity Development Planning of the period of 2021 - 2030 and vision for 2050 (hereinafter referred to as “the VIII Electricity Planning” or “the Planning”) as follows:

I. PLANNING SCOPE AND SUBJECTS

The Planning covers electricity sources and transmission grids of a minimum voltage of 220 kV, renewable energy and new energy industries and services in Vietnamese territory during the period of 2021 - 2030 and vision for 2050, including structures connecting the electrical grid with neighboring countries.

II. DEVELOPMENT PRINCIPLES AND OBJECTIVES

1. Development principles

a) Electricity is an important industry, electricity development must be one step ahead in order to promote rapid and sustainable development of the country, develop an independent and self-sufficient economy, improve people’s lives, and secure national defense and security. The Planning must provide a long-term, effective, and sustainable vision which puts national and people interest first.

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c) Electricity development planning must rely on scientific ground, have inheriting nature, be dynamic and open without legalizing violations. Effectively extract and use domestically available power resources, combine with reasonable import and export, and efficiently, effectively use energy. View the development of renewable energy and new energy as an opportunity to comprehensively develop energy industry ecosystem.

d) The Government shall focus on investing and encouraging economic sectors to rapidly develop electricity industry on the basis of healthy competition, implement market-based electricity price, ensure equal benefits for entities investing, using electricity, and satisfy development demands of Vietnam’s regions.

dd) Electricity development must adhere to worldwide scientific - technological development trends, especially in terms of renewable energy, new energy, and be associated with national economy shift towards green economy, circular economy, and low-carbon economy. Energy transition must conform to international trends while remaining sustainable, fair, and legitimate.

2. Development objectives

a) General objectives

- Ensure national power security and satisfy socio-economic development, industrialization, modernization requirements.

- Successfully implement fair energy transition associated with modernizing production, develop smart electrical grids, and govern electrical systems advanced, conforming to worldwide trends of green transition, emission reduction, and science and technology development.

- Establish general power industry ecosystem based on renewable energy and new energy.

b) Specific objectives

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+ Meet domestic electricity demands, satisfy socio-economic development goals with average GDP of around 7%/year for the period of 2021 - 2030, around 6,5 - 7,5%/year for the period of 2031 - 2050;

. Commercial electricity: Around 335,0 billion kWh by 2025; around 505,2 billion kWh by 2030; around 1.114,1 - 1.254,6 billion kWh by 2050.

. Manufactured and imported electricity: Around 378,3 billion kWh by 2025; around 567,0 billion kWh by 2030; around 1.224,3 - 1.378,7 billion kWh by 2050.

. Peak capacity: Around 59.318 MW by 2025; around 90.512 MW by 2030; around 185.187 - 208.555 MW by 2050.

+ Provide electricity safely, reliably, and in a manner that satisfies N-1 requirement for important load zones and N-2 requirement for especially important load zones. By 2030, Vietnam’s electricity reliability is placed among ASEAN’s top 4 countries, Vietnam’s electricity access is placed among ASEAN’s top 3 countries.

+ By 2030, 50% of office buildings and 50% of houses use self-consumption solar power models (power is consumed in the area where it is generated instead of being sold to national electricity system).

- Regarding just energy transition:

+ Extensively develop renewable energy sources for electricity production so that percentage of renewable energy reaches around 30,9 - 39,2% by 2030 and aim towards 47% so long as commitments under the Political Declaration on establishing the Just Energy Transition Partnership (JETP) with Vietnam are adequately and practically complied with by international partners. Attempt to increase percentage of renewable energy to 67,5 - 71,5% by 2050.

+ Control the level of greenhouse gas produced by modern production processes down to around 204 - 254 million tonne by 2030 and down to around 27 - 31 million tonne by 2050. Aim to limit peak emission level at 170 million tonne by 2030 so long as commitments under the Political Declaration on establishing the Just Energy Transition Partnership (JETP) with Vietnam are adequately and practically adhered to by international partners.

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- Regarding development of renewable energy industry and service ecosystem:

+ By 2030, establish 2 centers for interregional renewable energy industry and services for producing, transmitting, and consuming electricity; manufacturing industry for renewable energy equipment, construction, installation, related services and establish renewable energy industry ecosystem in potential areas such as the Northern region, the South Central coast, and the Southern region when conditions are right.

+ Develop electricity sources from renewable energy and produce new energy for export; By 2030, electricity export capacity reaches around 5.000 - 10.000 MW.

III. NATIONAL ELECTRICITY DEVELOPMENT SOLUTIONS

1. Electricity source development solutions

a) Development direction

- Synchronously develop and diversify electricity source models with reasonable composition in order to assure energy security, increase independence of electricity sector and reduce dependence on imported fuel.

- Continue to promote development of renewable energy (hydroelectricity, land and offshore wind power, solar power, biomass, etc.), new energy, clean energy (hydro, green ammonia, etc..) in a manner that suits system safety assurance with reasonable electricity price, especially self-consumption electricity sources and rooftop photovoltaic installation.

- Effectively utilize and use domestic and import fossil fuel: Gradually reduce the percentage of coal-fired electricity, prioritize domestic development of gas-fired electricity, and develop electricity sources from imported LNG at appropriate scale. Implement energy transition in a manner that closely adheres to worldwide technological and pricing trends.

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- Develop new electricity sources with modern technologies and renovating existing technology in active plants. Proceed to cease operation of plants that do not meet environmental standards.

- Diversify models of investment in electricity source development in order to increase competitiveness and improve economic effectiveness.

b) Development solutions

- Promote development of electricity sources from renewable energy (wind power, solar power, biomass power, etc.), continue to increase the percentage of renewable energy in the composition of electricity sources and produced electricity:

+ Promote development of land and offshore wind power, solar power depending on absorption capacity of the system, uncurtailed output, reasonable electricity price and transmission cost together with maintaining operation safety and general economy of electrical system, and maximize existing electrical grid infrastructures. Prioritize and encourage the development of self-consumption wind power and solar power (including rooftop photovoltaic installation of civilian houses and construction buildings, solar power produced and consumed by business and manufacturing facilities without connecting to or selling electricity to the national electrical grid). Development direction of solar power must incorporate battery storage when price is reasonable.

. By 2030, land-based wind power capacity reaches 21.880 MW (with Vietnam's total potentials around 221.000 MW).

. Exhaustively utilize offshore wind power potentials (around 600.000 MW) to produce electricity and new energy.

By 2030, offshore wind power capacity serving domestic electricity demand reaches around 6.000 MW; the scale may increase if the technology develops rapidly, electricity price and transmission costs are reasonable. Reaches around 70.000 - 91.500 MW by 2050.

Aim for extensive development of offshore wind power in combination with other forms of renewable energy (solar power, land-based wind power, etc.) in order to produce new energy (hydro, ammonia, etc.) for domestic and export purposes. Renewable electricity for production of new energy for domestic and export purposes shall be prioritized/permitted for unlimited development on the basis of assuring national defense, energy security and yielding high economic effectiveness and becoming a new economic sector of Vietnam.

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+ Vietnam’s solar power potential is around 963.000 MW (where land-based solar power is around 837.400 MW, floating solar power is around 77.400 MW, and rooftop solar power is around 48.200 MW). By 2030, total capacity of solar power sources is expected to increase by an additional 4.100 MW; by 2050, total capacity is around 168.594 - 189.594 MW and around 252,1 - 291,5 billion kWh is produced. Where:

. Prioritize and promulgate innovative policies in order to promote development of rooftop photovoltaic installation in houses and construction buildings, especially in areas where risk of electricity shortage is present such as the Northern region and self-consumption solar power. By 2030, these forms of electricity are expected to increase by an additional 2.600 MW in capacity. These forms of electricity sources are prioritized for development with unlimited capacity and reasonable market price and shall utilize existing electrical grid without upgrade.

+ Prioritize and encourage the development of biomass electricity (with potential of around 7.000 MW), electricity generated from waste, solid waste (with potential of around 1.800 MW) in order to extensively utilize by-products of agriculture, forestry, wood processing, promote afforestation and environmental remediation in Vietnam. By 2030, capacity of these electricity sources reaches 2.270 MW; by 2050, capacity of these electricity sources reaches 6.015 MW. Development at a larger scale is possible with sufficient resources, high land use effectiveness, and reasonable environmental remediation requirements, electricity price and transmission costs.

- Extensively utilize sources of hydroelectricity (with Vietnam’s potential at around 40.000 MW) on the basis of preserving the environment, forest, water source security. Study and selectively expand existing hydroelectricity plants for reserve capacity; practice hydroelectricity in reservoirs in order to utilize available running water. By 2030, total capacity of hydroelectricity, including small-scale hydroelectricity, is expected to reach 29.346 MW, produce around 101,7 billion kWh and potentially higher if permitted by economic - technical conditions (see potential projects under Appendix III). By 2050, reach 36.016 MW of total capacity and produce 114,8 billion kWh.

- Reserve electricity sources:

+ Develop pumped-storage hydroelectricity plants which have capacity of around 2.400 MW by 2030 in order to regulate load, reserve capacity, and assist renewable energy on a large scale.

+ Storage batteries are developed if market price is reasonable, located close to wind power, solar power centers or load centers. By 2030, reach around 300 MW of capacity.

+ By 2050, capacity of pumped-storage hydroelectricity and storage battery reaches 30.650 - 45.550 MW to match high percentage of renewable energy.

- Prioritize and encourage the development of cogeneration plants, power plants that use waste heat, blast furnace gas, and by-products of technology lines in industrial facilities. By 2030, capacity of these sources is expected to reach 2.700 MW; by 2050, capacity of these sources is expected to reach around 4.500 MW. Development scale of this model can be increased to match use demand and potentials of industrial facilities in Vietnam in order to increase energy use effectiveness.

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+ By 2030, total capacity of operating power plants and projects under construction, soon to be completed and brought into operation is around 30.127 MW. Rapidly complete 6 projects /6.125 MW under construction: Na Duong II, An Khanh - Bac Giang, Vu Ang II, Quang Trach I, Van Phong I, Long Phu I. Do not implement 13.220 MW of coal-fired electricity: Quang Ninh III, Cam Pha III, Hai Phong III, Quynh Lap I and II, Vung Ang III, Quang Trach II, Long Phu II and III, Tan Phuoc I and II. Quang Trach II project makes the transition to LNG before 2030.

+ By 2050, coal-fired electricity is no longer present, the energy transition to biomass and ammonia is complete, reach 25.632 - 32.432 MW of total capacity and produce 72,5 - 80,9 billion kWh.

- Gas-fired electricity: Prioritize domestically available gas for generation. If domestic gas quantity is low, import additional natural gas or LNG. Develop projects utilizing LNG with matching LNG import infrastructures in appropriate scales and utilizing modern technology. Implement the roadmap for transition to hydrogen fuel when the technology is commercialized with reasonable market price.

+ Domestic gas-fired electricity: Boost progress of gas-fired electricity projects such as Lo B, Ca Voi Xanh, invest in construction of 6.900 MW of gas-fired electricity plants: O Mon II and III and IV (3.150 MW), Mien Trung I and II, Dung Quat I and II and III (3.750 MW); converts O Mon I (660 MW) to using Lo B gas. Mandate the use of gas produced by Bao Vang mine in Quang Tri gas turbine combined cycle plant (340 MW). Promote surveying and quantification of Ken Bau gas mine to produce mine development plan and build additional downstream power plants (currently aiming for Hai Lang - Quang Tri, Chan May - Thua Thien Hue areas) if conditions allow. No longer implement Kien Giang 1 and 2 projects (both 750 MW) due to inability to locate fuel sources.

With respect to the Southeast region: Implement solutions, prioritize infrastructure construction, study national connection and regional connection for the purpose of importing natural gas and LNG for use in Phu My, Ba Ria, and Nhon Trach power plants.

With respect to the Mekong Delta: Implement solutions, invest in infrastructure construction, study national connection and regional connection for the purpose of importing natural gas and LNG for use in power plants in Ca Mau.

By 2030, power plants using domestically available gas reach 14.930 MW of total capacity and produce 73 billion kWh. By 2050, around 7.900 MW continues to use domestically available gas or LNG and produce 55,9 - 56,9 billion kWh of electricity; 7.030 MW is expected to use entirely hydrogen to produce 31,6 - 31,9 billion kWh of electricity.

+ LNG-fired electricity: Restrict the development of electricity sources using LNG if any alternative is available in order to reduce dependence on imported fuel, stretch progress of Long Son LNG project (1.500 MW) approved under the amended VII Electricity Planning to 2031 - 2035. By 2030, LNG sources reach a maximum 22.400 MW of total capacity and produce 83,5 billion kWh. By 2050, power plants using LNG are making gradual transition to hydrogen, reach 25.400 MW of total capacity, and produce 129,6 - 136,7 billion kWh.

Continue to implement LNG import storage facility and port projects in Thi Vai (to supply gas for Nhon Trach 3 and 4 and additional gas for plants in the Southeast region), Son My (to supply gas for Son My I and III). Develop LNG import storage facility and port system to match power plants in the planning.

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- Electricity import and export: Connect and implement effective electricity exchange with other countries in the region, ensure benefits of the parties, increase safety of electrical system; increase electricity import from ASEAN countries and the Greater Mekong Subregion (GMS) with hydroelectricity potentials. Focus on investing and utilizing electricity sources in foreign countries in order to transmit electricity to Vietnam. By 2030, import around 5.000 MW from Laos under Agreement between Governments of the two countries and produce 18,8 billion kWh; potentially increase to 8.000 MW. By 2050, import a round 11.000 MW, produce 37 billion kWh while balancing with import to achieve overall optimization.

Prioritize unlimited development of electricity sources from renewable energy for import, production of new energy (hydrogen, ammonia, etc.) on the basis of assuring energy security and yielding high economic effectiveness. By 2030, electricity export capacity reaches around 5.000 - 10.000 MW.

Continue to implement projects of small-scale hydroelectricity, wind power, cogeneration power, electricity sources utilizing waste heat, blast furnace gas, by-products of technology lines in industrial facilities, biomass, biogas, electricity produced from waste, solid waste, and connection solutions approved under planning while complying with regulations and law, requirements pertaining to requirements, and proof of priority projects.

Medium-scale and large-scale coal-fired electricity, gas-fired electricity, and hydroelectricity in the amended VII Electricity Planning that have not been brought into operation are regulated under this Planning.

With respect to solar power projects which have planning approved and investment guidelines approved by competent authorities and are handed over to project developers, these projects will have their specific progress reviewed under the Plan for implementation of the VIII Electricity Planning in a manner that complies with planning laws, investment laws, other relevant law provisions, assures security, balances sources and load, suits electrical grid infrastructure, and yields economic effectiveness with reasonable electricity price and transmission costs. Solar power projects which have planning in the period of 2021 - 2030 but have not been handed over to project developers are not allowed to be implemented but instead reviewed after 2030, except for self-consumption models in a manner where a project is not legalized if violations of planning laws, land laws, other laws are found (Appendix IV).

c) Electricity source composition

- By 2030:

Total capacity of power plants serving domestic demand is 150.489 MW (excluding export, existing rooftop photovoltaic installation, renewable energy for production of new energy), including:

+ 21.880 MW of land-based wind power (14,5% total capacity of power plants);

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+ 12.836 MW of solar power (8,5%, not including existing rooftop photovoltaic installation), including 10.236 MW of consolidated solar power sources, around 2.600 MW of self-consumption solar power sources. Self-consumption solar power sources are prioritized for unlimited development;

+ 2.270 MW of biomass electricity and electricity produced from waste (1,5%), or at a higher scale if resource is sufficient, land use effectiveness is high, environmental remediation is required, electrical grid infrastructures permit, electricity price and transmission costs are reasonable;

+ 29.346 MW of hydroelectricity (19,5%), or at a higher scale if economic - technical conditions permit;

+ 2.400 MW of pumped-storage hydroelectricity (1,6%);

+ 300 MW of storage batteries (0,2%);

+ 2.700 MW of cogeneration electricity, electricity using waste heat, blast furnace gas, by-products of technology lines in industrial facilities (1,8%), or at a higher scale in order to match capability of industrial facilities;

+ 30.127 MW of coal-fired electricity (20,0%), except for projects under Schedule 3 of Appendix II;

+ 14.930 MW of domestic gas-fired electricity (9,9%);

+ 22.400 MW of LNG electricity (14,9%);

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+ 5.000 MW of electricity import (3,3%), and up to 8.000 MW.

Coal-fired electricity sources that are facing difficulty in implementation will be replaced with LNG electricity sources or renewable energy.

- Direction to 2050:

490.529 - 573-129 MW of total capacity of power plants (excluding imported electricity, renewable energy serving production of new energy), in which:

+ 60.050 - 77.050 MW of land-based wind power (12,2 - 13,4%);

+ 70.000 - 91.500 MW of offshore wind power (14,3 - 16%);

+ 168.594 - 189.294 MW of solar power (33,0 - 34,4%);

+ 6.015 MW of biomass electricity and electricity produced from waste (1,0 - 1,2%);

+ 36.016 MW of hydroelectricity (6,3 - 7,3%);

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+ 4.500 MW of cogeneration electricity, electricity using waste heat, blast furnace gas, by-products of technology lines in industrial facilities (0,8 - 0,9%);

+ 0 MW of coal-fired electricity (0%), gas is no longer used for electricity generation;

+ 25.632 - 32.432 MW of thermal electricity using biomass and ammonia (4,5 - 6,6%);

+ 7.900 MW of domestic gas-fired electricity transitioned to LNG (1,4 - 1,6%);

+ 7.030 MW of domestic gas-fired electricity transitioned to hydrogen (1,2 - 1,4%);

+ 4.500 - 9.000 MW of LNG and hydrogen co-firing thermal electricity (0,8 - 1,8%);

+ 16.400 - 20.900 MW of LNG thermal electricity transitioned to hydrogen entirely (3,3 - 3,6%);

+ 30.900 - 46.200 MW of flexible electricity sources (6,3 - 8,1%);

+ 11.042 MW of imported electricity (1,9 - 2,3%).

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a) Development direction

- Develop transmission system in a similar development pace of electricity sources, load demand of areas, use modern technologies, meet international demand, and be ready to connect with the region. Develop smart electrical grid in order to integrate renewable energy sources at a large scale and meet the requirement for a safe, stable, and economic electrical system.

- Develop transmission grids of 500 kV and 220 kV in order to meet uncurtailed output of power plants, improve electricity supply reliability, reduce electricity losses, and meet N-1 requirement for important load zone and N-2 requirement for especially important load zone. Develop transmission grids with long-term reserve capacity, increase the use of poles carrying multiple circuits, voltage levels in order to reduce land use area. Encourage construction of substations which transmit electricity and supply electricity to adjacent load.

- 500 kV transmission grids act as the core in connecting regional systems and exchanging electricity with other countries in the region. Restrict interregional transmission at a reasonable value, reduce long-distance transmission, and minimize construction of new interregional transmission lines before 2030.

- Build 220 kV electrical grids with sufficient reliability and electrical substations in the area with high load density in accordance with charts to ensure flexible operation. Build 220 kV electrical substations eligible for unmanned automatic operation. Promote the construction of GIS substations, 220/22 kV substations, and underground substations close to load centers.

- Study the application of back-to-back system and flexible transmission equipment in order to improve transmission capability and reduce land use area. Study transmission technology for AC and DC with voltage higher than 500 kV.

- After 2030, develop super-high voltage DC transmission lines connecting the Central region, the South Central Coast, and the Northern region to extensively utilize offshore wind power potential. Study Asia - Pacific connection.

Transmission grids that have not been brought into operation under the amended VII Electricity Planning are regulated under this Planning.

b) Construction load of transmission grids

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- For 2031 - 2050: Build new 40.000 - 60.000 MW of capacity of HVDC stations and 5.200 - 8.300 km of HVDC transmission lines; build new 90.900 - 105.400 MVA and renovate 117.900 -120.150 MVA of 500 kV substations; build new 9.400 - 11.152 km and renovate 801 km of 500 kV transmission lines; build new 124.875 - 134.125 MVA and renovate 105.375 - 106.750 MVA of 220 kV substations; build new 11.395 - 11.703 km and renovate 504 - 654 km of 220 kV transmission lines. Electrical grid load for the period of 2031 - 2050 will be specified in subsequent electricity planning.

3. Connecting electrical grid with other countries in the region

- Study cooperation and connection between electrical grid and countries in the GMS and ASEAN at 500 kV and 220 kV in order to increase system connectivity, electricity exchange, and utilize resource strengths of each country.

- Connect electrical grid with Laos via 550 kV and 220 kV transmission lines in order to import electricity from power plants in Laos as per cooperation memorandum of understanding signed by Governments of the two countries.

- Maintain existing electrical grid connection with neighboring countries at 220 kV, 110 kV, and medium voltage; study implementation of asynchronous solutions between electrical systems using DC to AC transformers at 220-500 kV of voltage.

- Build structures connecting electricity export projects that yield high economic effectiveness on the basis of assuring energy security and national defense.

4. Direction for rural electricity development

Develop new Electricity supply program for rural areas, mountainous regions, and islands aiming at households that have not been supplied with electricity and renovating existing rural electrical grids. Transmit electricity from national electrical grids combined with electricity from renewable energy to rural areas, mountainous regions, and islands; 100% of rural households are powered by 2025.

5. Direction for development of renewable energy industry and service ecosystem

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- Interregional renewable energy industry and service centers are expected to include renewable energy power plants operating at a capacity of 2.000 - 4.000 MW (primarily offshore wind power); factories producing renewable energy equipment, equipment for production of new energy; equipment and instruments for transportation, construction, and installation of renewable energy equipment; auxiliary services, green industrial parks with low carbon emission; renewable energy research centers and training facilities.

6. Investment demand

- For the period of 2021 - 2030: Total investment for electricity sources and transmission grids is expected to be equivalent to 134,7 billion USD, where investment for electricity sources is around 119,8 billion USD (averaging at 12,0 billion USD/year) and for transmission grids is around 14,9 billion USD (averaging at 1,5 billion USD/year).

- Direction for 2031 - 2050: Investment demand for development of electricity sources and transmission grids is expected to be equivalent to 399,2 - 523,1 billion USD, where investment for electricity sources is around 364,4 - 511,2 billion USD (averaging at 18,2 - 24,2 billion USD/year) and for transmission grids is around 34,8 - 38,6 billion USD (averaging at 1,7 - 1,9 billion USD/year) which will be specified in subsequent planning.

IV. DIRECTION FOR LAND ALLOCATION FOR DEVELOPMENT OF ELECTRICITY CONSTRUCTIONS AND ENVIRONMENTAL PROTECTION, CLIMATE CHANGE ADAPTATION, AND PRESERVATION OF ECOSYSTEM, SCENERY, AND HERITAGE

1. Land allocation for electricity development

Land demand for electricity facility and infrastructure development is around 89,9 - 93,36 thousand ha during 2021 - 2030 and around 169,8 - 195,15 thousand ha during 2031 - 2050 and conforms to land allocation criteria under Resolution No. 39/2021/QH15 in order to guarantee implementation of electricity development objectives.

2. Environmental protection, climate change adaptation, and preservation of ecosystem, scenery, and heritage

Implement extensive transition from fossil fuel to renewable energy and new energy to reduce emission and greenhouse gas to meet net zero emission by 2050.

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Avoid and minimize the development of energy constructions and energy infrastructures in areas that potentially affect forests, natural and biodiversity reserves, natural reservations, heritage reservations, and cultural heritage reservations that have been ranked.

It is necessary to develop solutions for preparing for climate change and adapting to extreme climate events such as drought, flood, inundation, landslide, heat waves, rain level, rising sea level, etc. during execution of electricity projects to allow constructions to operate safely, stably and minimize risks, damage.

V. LISTS OF IMPORTANT PROJECTS, PRIORITY PROJECTS FOR INVESTMENT OF ELECTRICITY SECTOR AND ORDER OF PRIORITY THEREOF

1. Criteria and reasoning for development of lists of important projects, priority projects for investment of electricity sector

The lists of important projects, priority projects for investment in electricity sector shall be developed on the basis of the following criteria and reasoning:

- Projects that play an important role in balancing electricity supply - demand of Vietnam, Vietnam’s regions, and important load centers in order to ensure electricity supply security and fulfill socio-economic development requirements.

- Projects that serve national defense and security; projects that incorporate both economic and national defense benefits.

- Projects that must be executed to maintain consistency between electricity development planning and other energy planning.

- Projects that improve electricity sources of areas facing risk of electricity shortage.

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- Projects that adapt to climate change, reduce greenhouse gas emission, protect the environment (biomass, electricity produce from waste, solid waste, cogeneration, waste heat, etc.) and implement climate-related commitments.

- Projects that involve self-consumption.

- Projects that contribute towards overall ecosystem of renewable energy industry and services.

- Projects that export electricity, export new energy produced from renewable energy.

- Projects that effectively use land.

- Projects of 500 kV and 220 kV electrical grids.

- Feasibility in implementation.

- Application of advanced and environmentally friendly technologies.

- Projects with high socio-economic effectiveness.

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The lists of important projects, priority projects for investment are specified under Appendix I and Appendix II.

VI. SOLUTIONS AND RESOURCES FOR IMPLEMENTATION OF PLANNING

1. Solutions for maintaining electricity supply security

- Diversify fuel sources used in electricity generation; harmoniously incorporate domestically available preliminary energy sources and imported energy sources.

- Promote search and surveying to increase domestic reserve quantity and exploited quantity of coal and petroleum for electricity production in order to reduce dependence on imported fuel.

- Invest in technical infrastructures serving import of natural gas, LNG, and coal in a manner that conforms to thermal electricity percentage and energy transition trend.

- Extensively develop renewable energy sources in order to replace fossil fuel as much as possible. Promptly approach worldwide science - technology progress regarding new energy sources (hydrogen, ammonia, etc.) for use in electricity generation.

- Study the application of technology for transition of fuel of coal-fired and gas-fired power plants to biomass, ammonia, hydrogen, etc.

- Organize study and assessment of potentials of non-traditional energy sources.

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- Study, finalize financial regulations, and mobilize capital for investment in electricity sector development.

- Diversify funding sources and methods of capital mobilization, effectively attract domestic and foreign funding sources for electricity development, and ensure national defense and security in electricity market. Request and effectively utilize international assistance (JETP, AZEC, etc.), green credit, climate credit, green bond, etc.

- Diversify investment models (government, private, public-private partnership, etc.) of electricity projects. Exercise the role of state-owned enterprises, extensively encourage private sector in and out of Vietnam to invest in electricity development. Continue to negotiate and effectively use sponsorships, fundings of international partners during Vietnam’s energy transition and goals of net zero emission.

- Encourage the general public and enterprises to invest in rooftop photovoltaic installation and self-consumption electricity sources.

- Create a convenient, transparent, attractive environment to encourage private sector to invest, develop electricity projects.

- Gradually increase financial mobilization capacity of enterprises in electricity sector at request of domestic and international financial organizations.

- Implement credit policies flexibly and effectively, enable enterprises to access funding sources and develop electricity projects.

3. Solutions pertaining to regulations and policies

- Finalize legal and policy framework pertaining to electricity development, renewable energy development (including rooftop photovoltaic installation, self-consumption solar power), efficient and effective use of electricity, and other relevant law provisions;

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+ Study and develop regulations on bidding for selection of project developers and electricity price during amendment process of the Law on Electricity and finalization of competitive electricity market model.

+ Study and develop specific policies on increasing private sector involvement in investing in transmission grids.

+ Promulgate pilot regulations on direct power purchase agreements (DPPA) between renewable energy manufacturers and consumers and develop official regulations on DPPAs between renewable energy manufacturers and consumers synchronously with the amendments to the Law on Electricity and roadmap for competitive electricity market. Study and develop regulations on fees for DPPAs.

+ Continue to develop regulations on market-based electricity price with Government’s regulatory actions, ensure harmonious combination between political - economic - social objectives of the Government and manufacturing, financial autonomy objectives of enterprises in electricity sector. Electricity price must be sufficient to recover all costs, generate reasonable profits, attract investment in electricity development, and encourage competition in production, transmission, distribution, retail, use of electricity, and prevention of electricity waste. Continue to renovate and improve applicable electricity price tariff. Study the application of two-part electricity tariff when appropriate. Continue to maintain electricity price transparency.

+ Study, develop, and promulgate Law on Renewable Energy.

+ Amend the Law on Efficient and Effective Use of Energy to extensively reduce energy use intensity of the economy, promulgate sanctions and mandatory standards, regulations on effective use of energy.

- Develop regulations and policies incentivizing domestic enterprises to engage in development of renewable energy, development of renewable energy and new energy industry for domestic demand and export, and development of electricity sector equipment manufacturing.

- Develop policies on increasing import substitution in electricity sector to improve autonomy, independence, and reduce costs.

- Develop policies to promote electricity import, especially import from Laos under Agreements and Memorandum of Understanding between the two Governments, etc.

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- Perform energy transition, primarily transition from fossil fuel to renewable energy and new energy; increase capacity of carbon capture equipment and promote the application of carbon capture application.

- Study, apply, and develop waste treatment technology, especially waste produced from renewable energy-based industry on the basis of minimizing, recovering, reusing, and recycling to minimize amount of waste, utilize waste materials as materials for other economic sectors.

- Implement solutions for natural disaster preparedness and response, adaptation to climate change and extreme weather from the project selection phase, construction design and commencement, to production and operation.

- Maximize development of electricity constructions and infrastructures in areas where they can affect natural forests, wildlife and biodiversity sanctuaries, natural reservations, heritage and cultural heritage reservations that have been ranked depending on national environmental protection zoning.

5. Solutions pertaining to science and technology

- Invest in electricity research and development (R&D). Establish fundamental research centers and development centers specializing in renewable energy, new energy, carbon storage technology in Vietnam to improve qualification, receive and transfer technology, promote and expand the scale of application of renewable energy and clean electricity system in Vietnam and the region.

- apply modern technology in new electricity constructions; gradually upgrade, renovate, and convert existing constructions.

- Renovate and upgrade electricity transmission and distribution system, improve electricity reliability, and minimize electricity loss. Hasten the roadmap for construction of smart electrical grids.

- Modernize data information system, automated and control systems serving regulation, operation of electricity system and electricity market. Access new technology and science achievements, artificial intelligence, internet of things, including digital transformation in electricity sector.

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6. Solutions pertaining to effective and efficient use of electricity

- Increasing awareness of effective and efficient use of energy and environmental protection is an important national policy and social responsibility as stated under Resolution No. 55-NQ/TW dated February 11, 2020 of the Politburo.

- Encourage investment and use of energy-saving technology and equipment; increase energy accounting; promote implementation of energy service company models.

- Apply mandatory regulations and standards together with sanctions pertaining to effective use of electricity in fields and sectors with high electricity consumption.

- Promote implementation of demand side management programs (DSM), effective and efficient use of energy programs.

7. Solutions pertaining to human resource development

- Develop high quality personnel, especially in the fields of electricity generation, transmission, distribution, regulation, electricity market, smart electrical grids, etc.

- Develop teams of experts and scientists with high skill level in the field of electricity; develop entities specializing in electricity science - technology.

- Organize training and refresher training for technical and managerial officials in the field of electricity to match other countries in the region and around the world.

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8. Solutions pertaining to international cooperation

- Actively and effectively implement the JETP, maximize supports of international partners in technology transfer, administration, personnel training and financing, and deem JETP as an important solution for energy transition process in Vietnam.

- Implement energy diplomacy and climate flexibly, effectively and equally on the basis of reciprocity principle. Expand and deepen energy cooperation with strategic partners and important partners.

- Promote cooperation in research, connection of electrical grids with neighboring countries, countries in the Southeast Asia region, and countries in the GMS.

- Expand international cooperation relating to scientific research and electricity technology development; hasten technology transfer and utilize funding sources of foreign partners.

9. Solutions pertaining to improvement to national capacity and import substitution of equipment in electricity sector, and development of electrical engineering.

- Establish renewable energy industrial centers, create complete renewable energy industry ecosystem associated with manufacturing, production, auxiliary services, and centralized industrial parks.

- Focus on development of manufacturing industry for renewable energy equipment, electricity storage equipment, carbon recovery, absorption, storage, and use technology, etc. in Vietnam in order to actively utilize existing potentials, increase independence, and reduce the costs for generating electricity from renewable energy.

- Encourage domestic enterprises to implement complex, highly technical constructions in electricity project. Improve design, procurement, and project administration capacity of domestic enterprises in order to act as general contractors of large-scale electricity projects.

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10. Solutions pertaining to management and improvement of effectiveness of electricity operations

- Extensively renovate electricity management to increase openness, transparency, competitiveness, effectiveness, work productivity, decrease costs of all phases, and conform to socialist-oriented market economy.

- Restructure the electricity sector to conform to the approved roadmap for competitive electricity market.

- Renovate and improve effectiveness of state-owned enterprises in the field of electricity, apply advanced administration models and practices, increase national credit rating, maintain public and transparent during operation.

11. Solutions pertaining to organizing implementation and supervision of planning implementation

- Develop Plan for implementation of the Planning as soon as the VIII Electricity Planning is approved. Select priority projects based on criteria and reasoning under Clause 1, Section V, Article 1 of this Decision.

- Develop electricity database which includes data on planning and organization of implementation of planning to use as the basis for supervising planning implementation. Regularly review national and local load development, implementation progress of electricity sources and electrical grids to propose solutions for adjusting electricity source composition and progress if necessary and satisfy electricity demand of the economy.

- Effectively manage the development of self-consumption electricity sources, cogeneration sources, electricity sources utilizing waste heat, blast furnace gas, by-products of technology lines in industrial facilities, rooftop photovoltaic installation, and electricity sources agreed upon by electric utilities and electricity buyers under DPPAs.

- Further exercise the role of National Steering Committee for Electricity Development in inspecting and expediting key projects in the field of electricity and promptly resolving difficulties.

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Article 2. Organizing implementation

1. Ministry of Industry and Trade shall

a) be responsible for accuracy of data, documents, graphs, maps, and database in planning documents and compliance with this Decision.

b) organize publishing of the planning as per the law and implementation of this Decision together with implementation of socio-economic development tasks as per the law; develop Plan for implementation of the planning based on criteria and reasoning under this Decision in order to implement objectives and tasks under the planning; organize evaluation of planning implementation in accordance with the Law on Planning. Present the Plan for implementation of Planning to the Prime Minister in June 2023.

c) take charge and cooperate with ministries, central departments, and local governments in developing and presenting the amended Law on Electricity and Law on Renewable Energy to the National Assembly in 2024. Present policies on direct power purchase to the Government.

d) take charge and cooperate with ministries, central departments, People’s Committees of provinces and central-affiliated cities in working with project developers, reviewing regulations of the law, commitments, and agreements between parties to thoroughly deal with projects under Schedule 3 of Appendix II which are facing difficulties in implementation and report issues beyond their competence to the Prime Minister.

2. Ministries, central departments, and Committee for Management of State Capital at Enterprises shall

Perform their functions, tasks, and powers to keep up with progress of projects in the VIII Electricity Planning; propose regulations, policies, and solutions for issues in order to effectively achieve objectives of the planning, ensure consistency and synchronous with the implementation of the 10-year Socio-economic Development Strategy and socio-economic development plans of each sector and local government.

3. People’s Committees of provinces and central-affiliated cities shall

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4. Vietnam Electricity (EVN) shall

- Play the main role in providing electricity stably and safely for socio-economic development. Invest in electricity source and transmission grid projects according to designated tasks.

- Review and assess electricity supply - demand balance, electricity system operation conditions of the country and each region therein, and report to competent authorities.

- Exhaustively implement solutions for renovating enterprise administration, increasing business effectiveness, increasing productivity, reducing electricity loss, saving expenditure, and reducing costs.

5. Vietnam National Oil and Gas Group shall

- Extensively search, survey, and extract domestic gas sources to power electricity generation depending on load demand. Rapidly and effectively implement gas mines such as Lo B, Ca Voi Xanh, Ken Bau, etc. in accordance with approved progress.

- Implement solutions for constructing storage, port infrastructures, connecting gas system of Vietnam and the region for the purpose of importing natural gas and LNG to maintain gas supply for power plants.

- Adhere to progress of designated electricity source projects.

6. The Vinacomin and Dong Bac Corporation shall

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- Invest in electricity source projects according to designated projects.

Article 3. This Decision comes into force from the date of signing.

Article 4. Ministers, heads of ministerial agencies, heads of Governmental agencies; Chairpersons of People’s Committees provinces and central-affiliated cities; Directors of Boards of Members; General Directors of EVN, Petrovietnam, Vinacomin; President and General Director of Dong Bac Corporation and relevant agencies are responsible for the implementation of this Decision./.

PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Tran Hong Ha