Market Alert On PDP 8 of Vietnam 1684415169

MARKET ALERT
ON THE POWER DEVELOPMENT PLAN – VIII OF VIETNAM

On 15 May 2023, the Deputy Prime Minister Tran Hong Ha initialed on the Decision No. 500/QD-
TTg (“PDP-8”) within the authority vested in him by the Prime Minister of the Vietnamese
government.
PDP-8 lays down the path for Vietnam’s national electricity development for the period from 2021
– 2030 essentially, with a vision to 2050, in accordance with the international climate combat
commitments of Vietnam, such as COP26, progress reported and commitments reaffirmed at
COP27. It is approved in accordance with the Law on Planning 2017, the Electricity Law 2004
and their guiding regulations, and following the Resolution 61/2022/QH15 and Resolution
81/2023/QH15 of the National Assembly of Vietnam.
Vision
 Optimise power source, transmission (220kV/500kV, N1 and N2 mix, smart grids),

distribution, efficiency and pricing with sectoral planning, reasonable import of power and
fuel (energy security) to support socio-economic development.
 Self-reliant transition with international integration.
 Local industry push (realize aim of the Industrial Revolution), digitization, smart power
systems, greener transition with fuel conversion for polluting power sources with tech
upgrades.
 Promote renewable energy (“RE”) sources [including, wind (onshore, offshore with deep-
water, ensure sovereignty) solar, hydro], off grid ones, RE involved in production of
hydrogen, ammonia, uncapped export of power and new energy sources production (such
as hydrogen, green ammonia).
 Future orientation for solar power to be hybrid with storage batteries on reduction of costs.
 Utilise international commitments e.g. JETP, AZEC, green/climate funds, bonds and credit
sources. PPP and IPP model boost, integrate SOEs role.
 Solar projects with planning inclusions to be implemented in accordance with PDP-8.
Planned solar projects with no investors with the capacity of 4,136.25 MW to be halted
until 2030, unless such projects are deployed off-grid.
 PDP-7 approved and under construction coal-fired plants to proceed with a possible
greener fuel (biomass, ammonia) conversion, spanning over 20 years. Decommission
plants over 40 years age if no fuel conversion seems possible.
 Focus on import of electricity from ASEAN and GMS.
Note: This Alert is for your comprehensive information only, and it shall not be in any manner construed to be an
official legal advice.
Targets
Sr. Details 2021 – 2030 Orientation for 2031 -
No. 2050
1. Synchronisation Average GDP growth at 7%/year Average GDP growth
between supply and about 6.5% – 7.5%/year
demand
2. Commercial power By 2025, around 335.0 billion kWh By 2050, around 1,114.1
By 2030, around 505.2 billion kWh – 1,254.6 billion kWh
3. Electricity generation By 2025, around 378.3 billion kWh By 2050, around 1,224.3
and import By 2030, around 567.0 billion kWh – 1,378.7 billion kWh
4. Maximum power By 2025, around 59,318 MW By 2050, around 185,187
By 2030, around 90,512 MW – 208.555 MW
5. Ensure safe and By 2030, the reliability of
reliable power supply, electricity supply to be in the group
meeting criteria N-1 of 4 leading countries in ASEAN,
for important load the electricity access index to be in
areas and N-2 for the group of 3 leading countries in
particularly important ASEAN
load areas.
6. Off-grid rooftop solar 50% of office buildings and 50% of
power residential houses by 2030
7. RE boost By 2030, 30.9-39.2%, strive for By 2050, 67.5% - 71.5%
47% if committed, JETP support
8. GHG emissions By 2030, 204 - 254 million tons. By 2050, 27 – 31 million
Peak emissions cap at 170 million tons
tons, in line with JETP
9. Development of the By 2030, form 2 inter-regional RE
industrial ecosystem industrial and service centers
and RE including electricity production,
transmission and consumption; RE
equipment manufacturing industry,
construction, installation, related
services.
10. RE export By 2030, around 5,000-10,000 MW
Generation Capacities
Orientation by 2050, total generation capacity (excluding export, rooftop solar and new energy
from RE) to be 490,529 MW - 573,129 MW
Source MW and (%)

Onshore wind 60,050 MW - 77,050 MW (12.2% - 13.4%)
Offshore wind 70,000 MW - 91,500 MW (14.3% - 16%)
Solar 168,594 MW - 189,294 MW, (33.0-34.4%)
Biomass, waste to 6,015 MW (1% - 1.2%)
energy
Hydropower 36,016 MW (6.3% - 7.3%)
Storage 30,650 MW - 45,550 MW (6.2% -7.9%)
Co-generation 4,500 MW (0.8% - 0.9%)

Coal thermal 0 MW (0%)
Thermal using 25,632 MW - 32,432 MW (4.5% - 6.6%)
biomass and
ammonia
Domestic gas-fired 7,900 MW (1.4% - 1.6%)
thermal and LNG
conversion
Domestic gas-fired 7,030 MW (1.2% - 1.4%)
thermal with
hydrogen as the
fuel
Hydrogen-fired 4,500 MW - 9,000 MW (0.8% - 1.8%)
LNG thermal
LNG converted to 16,400 MW - 20,900 MW (3.3% - 3.6%)
use hydrogen as
fuel
Flexible 30,900 MW - 46,200 MW (6.3% - 8.1%)
Import of power 11,042 MW (1.9% - 2.3%)
Transmission Capacities
 Period 2021-2030 : New construction of 49,350 MVA and renovation of 38,168 MVA of 500
kV substation; building 12,300 km new and renovating 1,324 km of 500 kV transmission line;
new construction of 78,525 MVA and renovation of 34,997 MVA of 220 kV substation; newly
built 16,285 km and renovate 6,484 km of 220 kV transmission line.
 Orientation for the period 2031-2050: New construction of 40,000-60,000 MW with capacity
of HVDC stations and 5,200-8,300 km of HVDC transmission lines; building new 90,900-
105,400 MVA and renovating 117,900-120,150 MVA 500 kV substation; building 9,400-
11,152 km new and renovating 801 km of 500 kV transmission line; building 124,875-
134,125 MVA new and renovating 105,375-106,750 MVA 220 kV substation; newly built
11,395-11,703 km, renovated 504-654 km of 220 kV transmission line. The volume of the
power grid in the period 2031-2050 will be accurate in the power plans in the next period.
 Connecting the power grid with Laos with 500kV and 220kV transmission lines to import
electricity from power plants in Laos according to the memorandum of understanding signed
between the two Governments.
Inclined Investment Figures (source + transmission)
 By 2030, estimated total investment required is US$ 134.7 billion [breakup: US$ 119.8 billion
for generation (US$ 12 billion/year) + US$ 12 billion for transmission (US$ 1.5 billion/year)]
 Orientation by 2050, estimated total investment required is US$ 399.2 billion – US$523.1
billion [breakup: US$ 364.4 – US$ 511.2 billion for generation (US$ 18.2 – US$ 24.2
billion/year) + US$ 34.8 – US$ 38.6 billion for transmission (US$ 1.7 – US$ 1.9 billion/year)]
Land Requirements
By 2030, 89.9-93.36 thousand ha

By 2050, 169.8 - 195.15 thousand ha
Policy Refinement
Amend the Law on Electricity and relevant regulations to support investment and import, develop
competitive electricity market, auction mechanism, draft Law on RE, shape up the Direct Power
Purchase Agreement policy (“DPPA”) and amending the Law on Economical and Efficient Use
of Energy.
Institutional Machinery Role

 Ministry of Industry and Trade (MoIT)
- Central planning and national coordination;
- Drafting amended Law on Electricity and a standalone legislation on RE, to be
submitted for review by the National Assembly of Vietnam in 2024;
- Working on the DPPA policy model.
 Provincial People’s Committees (PPC)

- Organise the selection of investors;
- Land allocation.
 Vietnam Electricity (EVN)

- Invest in power generation and transmission grid projects as required;
- Manage power supply and demand ratio for the national and regional electricity
systems.
 Vietnam Oil and Gas Group (PetroVietnam)

- Exploration and exploitation of domestic gas reserves;
- Build warehouses and ports to support LNG power sources and executing the assigned
power projects.
 Vietnam Coal-Mineral Industry Group (Vinacomin)

- Ensure coal supply in line with the energy transition.
Key Attachments to PDP-8
 Appendix II - List and progress of important power resources and projects, investment
priority of the power, key ones are listed below:
- Table 1: List of LNG thermal power plants
Capacity
No. Project Stage Note
(MW)
1. LNG Quang Ninh 1500 2021-2030 Already included in the revised
PDP VII
2. LNG Thai Binh 1500 2021-2030
3. LNG Nghi Son 1500 2021-2030
Has been approved by the
4. LNG Quang Trach II 1500 2021-2030 Government leaders to convert to
LNG at Notice No. 54/TB-VPCP
dated February 25, 2022
Considered in the Implementation
5. LNG Quynh Lap/Nghi 1500 2021-2030 Plan of the Planning of potential
Son locations in Quynh Lap - Nghe
An,
Nghi Son - Thanh Hoa areas
LNG Hai Lang Phase
6. 1500 2021-2030 Already included in the revised
1
PDP VII
7. LNG Ca Na 1500 2021-2030 Already included in the revised
PDP VII
Son My II Thermal
Power Plant
PDP VII
Son My I BOT
Thermal Power Plant
PDP VII
Already included in the PDP VII to
10. LNG Long Son 1500 2031-2035 adjust and extend the schedule,
Notice No. 64/TB-VPCP dated
May
1, 2023 of the VPCP
Nhon Trach 3 and
11. Nhon Trach 4 power 1624 2021-2030 Already included in the revised
plants PDP VII
LNG Hiep Phuoc
Phase I
PDP VII
13. LNG Long An I 1500 2021-2030 Already included in the revised
PDP VII
Already included in PDP VII
14. LNG Long An II 1500 2031-2035 adjusted under Document No.
1080/TTg-CN dated August 13,
2020
15. LNG Bac Lieu 3200 2021-2030 Already included in the revised
PDP VII
Potential locations,
Thai Binh, Nam Dinh, Nghi Son,
backup for projects that
Quynh Lap, Vung Ang, Chan May,
are behind schedule or
Mui Ke Ga, Hiep Phuoc 2, Tan
cannot be
Phuoc, Ben Tre, Ca Mau...
implemented
Notes:
- The exact scale of the power plants will be determined specifically, in accordance with
the capacity of the unit in the project implementation phase.
- During the implementation of PDP-8, if the projects in this list encounter difficulties,
obstacles and cannot be implemented, the MoIT shall report to the Prime Minister to
speed up the progress of the projects in the next planning phaseand/or select alternative
projects at potential locations to ensure the security of power supply.
Table 5: List of domestic gas thermal power plants

Capacity
No. Project Stage Notes
(MW)
1. O Mon I thermal power
660 2021-2030
plant*
O Mon II Thermal
2. 1050 2021-2030
Power Plant Using Lo B gas
O Mon III Thermal
3. 1050 2021-2030
Power Plant
O Mon IV Thermal Power
4. 1050 2021-2030
Plant
Dung Quat Combined Gas
5. 750 2021-2030
Turbine Power Plant I
Dung Quat II Combined
6. 750 2021-2030
Gas Turbine Power Plant
Using Ca Voi Xanh
Dung Quat III Combined
7. 750 2021-2030 (Blue Whale) gas
8. Central Region I Combined 750 2021-2030
9. Central Region II Combined 750 2021-2030
Quang Tri Combined Gas Using gas from Bao
10. 340 2021-2030
Turbine Power Plant Vang (Yellow
Leopard) mines
Notes:
- (*) Existing power plants switch to using Lo B gas;
- The exact scale of the power plants will be determined specifically, in accordance
with the capacity of the unit in the project implementation phase.
- When the reserves and progress of the Ken Bau gas field are clearly determined, the
orientation will be to develop more power sources using Ken Bau gas in the areas of
Hai Lang
- Quang Tri, Chan May - Thua Thien Hue 2031-2035).
Table 6: List of medium and large hydropower sources – MW
Capacity
No. Project Stage Note
(MW)
2021- Already
Hoa Binh MR Hydropower Plant 480 2030 included in the
1. revised PDP
2021- VII
2. Long Tao Hydropower Plant 44
2030
2021-
3. Yen Son Hydropower Plant 90
2030
2021-
4. Song Lo 6 Hydropower Plant 60
2030
2021-
5. Song Lo 7 Hydropower Plant 36
2030
2021-
6. Pac Ma Hydropower Plant 160
2030
2021-
7. Nam Cum 1,4,5 Power Plant 95.8
2030
2021-
8. Nam Cum 2,3,6 Hydropower Plant 79.5
2030
2021-
9. Thanh Son Hydropower Plant 40
2030
2021-
10. Cam Thuy 2 Hydropower Plant 38
2030
2021-
11. Suoi Sap 2A Hydropower Plant 49.6
2030
2021-
12. Hoi Xuan Hydropower Plant 102
2030
2021-
13. Song Hieu Power Hydropower Plant (Mong 45
2030
village)
2021-
14. My Ly Hydropower Plant (*) 120
2030
2021-
15. Nam Mo 1 Hydropower Plant (Vietnam) (*) 51
2030
2021-
16. Dak Mi 2 Hydropower Plant 147
2030
2021-
17. Song Tranh 4 Hydropower Plant 48
2030
2021-
18. Ialy MR Hydropower Plant 360
2030
2021-
19. Dak Mi 1 Hydropower Plant 84
2030
2021-
20. Thuong Kon Tum Hydropower Plant 220
2030
2021-
21. Tri An MR Hydropower Plant 200
2030
2021-
22. Phu Tan 2 Hydropower Plant 93
2030
2021-
23. Duc Thanh Hydropower Plant 40
2030
2021-
24. La Ngau Hydropower Plant (**) forty six
2030
2021-
25. Phu Tho low water column Hydropower Plant 105
2030
Notes:
- (*) My Ly (180 MW) and Nam Mo 1 (90 MW) hydropower projects have been approved
for planning. The investor has Document No. 200/MLNM-TD dated August 24, 2022,
proposing to adjust the capacity of My Ly hydropower plants to 120 MW and Nam Mo 1
to 51 MW.
- (**) La Ngau hydropower project was approved in the revised Power Master Plan VII,
has been granted an Investment Certificate, a Land Use Right Certificate. The People's
Committee of Binh Thuan province has Document No. 21/UBND-KT dated January 3,
2020 proposing to remove the La Ngau hydropower project from the planning. The
Ministry of Industry and Trade has issued Document No. 1986/BCT-DL dated March 20,
2020 requesting the People's Committee of Binh Thuan province to completely handle
the contents mentioned in Notice No. Government Office, reporting to the Prime Minister.
Table 7: List of stored hydropower plants – MW
No. Project Capacity (MW) Stage Notes
Already included in the
1. Bac Ai Pumped- 1200 2021-2030
revised Power Plan VII
hydropower Storage Plant
Phuoc Hoa Pumped-
2. 1200 2021-2030
hydropower Storage Plant
Dong Phu Yen Pumped-
hydropower Storage Plant Already included in the
3. 900 2031-2035
revised Power Plan VII
Don Duong #1 Already included in the
4. 300 2031-2035
Pumped- revised Power Plan VII
hydropower Storage
Plant
Some localities proposed more Pumped- hydropower storage
hydroelectric projects: Dien Bien, Lai Chau, Quang Tri, Kon
Other projects Tum, Khanh Hoa, Dak Nong,... However, the number of
projects, capacity, location , the need to be further assessed
based on system needs to report to the Prime Minister.
APPENDIX III
Potential hydropower projects
(Attached to Decision No. 500/QD-TTg dated 15 May
2023 of the Prime Minister)
No. Name of project Capacity (MW)
1. Thai An MR Hydropower Plant 41
2. Tuyen Quang MR Hydropower Plant 120
3. Trung Son MR Hydropower Plant 130
4. Srepok 3 MR Hydropower Plant 110
5. Sesan 3 MR Hydropower Plant 130
6. Sesan 4 MR Hydropower Plant 120
7. Buon Kuop MR Hydropower Plant 140
8. Vinh Son Power Hydropower Plant MR 40
9. Song Hinh MR Hydropower Plant 70
10. Ba Ha River Hydropower Plant MR 60
11. Da Nhim Hydropower Plant MR 2 80
12. Dak R'lap 1 Hydropower Plant (*) 53
Notes:
- Projects will be considered in the Planning Implementation Plan and later.
- Low-head hydroelectric projects on the main streams of Red River, Ca River, Dong
Nai River and other rivers proposed by localities (Lao Cai, Yen Bai, Nghe An, Binh
Phuoc, Lam Dong, Dak Nong, etc.) will continue to be studied, thoroughly
evaluated comprehensively, reported to the Prime Minister for permission to deploy
if it meets the requirements on economic - technical, environment, population,
infrastructure along the river. , irrigation, water-land transportation,...
- Other expansion hydropower projects proposed by localities will continue to be
studied and thoroughly evaluated in terms of economic, technical, environmental,
system needs, time of appearance, etc. to report to the Prime Minister.
(*) The hydropower projects of Dak R'lap 1, Dak R'lap 2 and Dak R'lap 3 must be carefully
considered and assessed in terms of environmental, land, and forest impacts of the project.
APPENDIX IV
List of solar power projects to be consider after 2030 (Implemented in the planning
period if implemented in the form of self-production and self- consumption)
(Attached to Decision No. 500/QD-TTg dated 15 May 2023 of Prime Minister)
Non-operational capacity
No. Project Conscious
(MW)
1. An Cu solar power An Giang 40
2. Hong Liem 6.1 Solar Power Binh Thuan 40
3. Ayun Pa Solar Power Gia Lai 20
4. Ninh Sim Solar Power Khanh Hoa 32
5. Ia Rsao - Bitexco – ToNa Solar Power Gia Lai 11.84
6. An Khe Swamp Solar Power Quang Ngai 40
7. Dam Nuoc Man Solar Power Quang Ngai 40
8. Loc Thanh 1-1 Binh Phuoc 40
9. Hai Ly Binh Phuoc 1 Solar Power Binh Phuoc 40
10. Binh River Binh Thuan 200
11. Tan Xuan Solar Power Binh Thuan 23.61
12. Easeup 1 Solar Power Dak Lak 40
13. Ia Lop 1 Solar Power Dak Lak 40
14. KN Buon Tua Srah Dak Nong 312
15. Cu Knia Dak Nong 144
16. Ea Tling Dak Nong 76
17. Xuyen Ha Dak Nong 104
Floating solar power plant KN Tri An
18. Dong Nai 928
19. Tri An Dong Nai 101
20. Phuoc Trung Solar Power Ninh Thuan 40
21. Phuoc Huu 2 solar power Ninh Thuan 184
Xanh Song Cau Solar Power
22. Phu Yen 150
23. Khe Go Lake Solar Power Nghe An 200
Floating solar power of Vuc Mau lake
24. Nghe An 160
25. Tam Bo Solar Power Lam Dong 40
26. Phong Hoa Hue 40
27. The rest of the Dau Tieng project Tay Ninh 1050
Total capacity 4.136.25

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MARKET ALERT

ON THE POWER DEVELOPMENT PLAN – VIII OF VIETNAM

 Optimise power source, transmission (220kV/500kV, N1 and N2 mix, smart grids),

Source MW and (%)

Co-generation 4,500 MW (0.8% - 0.9%)

Inclined Investment Figures (source + transmission)

By 2030, 89.9-93.36 thousand ha

Institutional Machinery Role

 Provincial People’s Committees (PPC)

 Vietnam Electricity (EVN)

 Vietnam Oil and Gas Group (PetroVietnam)

 Vietnam Coal-Mineral Industry Group (Vinacomin)

Table 5: List of domestic gas thermal power plants

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