On May 15, 2023, the Prime Minister issued Decision 500/QĐ-TTg and approved the National Power Development Plan 2021 – 2030 period, with a vision to 2050.
1. Vision and development goals
Power master plan VIII clearly states that Electricity is an important infrastructure sector, electricity development must be prioritized in order to create a foundation for rapid and sustainable development of the country, striving for an independent and self-reliant economy, improving people’s lives as well as ensuring national defense and security. The power development plan must have a long-term, effective, sustainable vision and put the interests of the nation first.
Power development is based on the principle of optimizing the factors of power sources, power transmission, power distribution, using it economically and effectively, with an appropriate roadmap together with the protection of natural resources and the environment, while transforming economic models, ensuring national energy security at the lowest costs.
National power development goals are: firmly ensuring national energy security, meeting the requirements of socio-economic development and industrialization – modernization of the country, successfully implementing equitable energy transition associated with production modernization, smart grid construction, advanced power system management in line with the trend of green transition, emission reduction, development of world-class science and technology, establish an overall energy industry ecosystem based on renewable energy.
Regarding ensuring national energy security, it is clearly stated that there must be sufficient power supply in the country, achieving the goal of socio-economic development with an average GDP growth of 7%/year in 2021 – 2030 period and 6.5-7.5%/year in 2031 – 2050 period.
2. Strategies of power development plan VIII
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.
3. Development orientations
3.1. Rural electricity
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.
3.2. Renewable energy industry and service ecosystem
+ By 2030, it is expected to set up two inter-regional renewable energy industrial and service centers in areas with great potentials such as the Northern, the South Central and the Southern regions.
+ 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.
4. Encourage private enterprises to invest in power projects
Solutions to create capital sources and mobilize investment capital for development of the electricity sector in Power Master Plan VIII include:
– 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.