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Vietnam: Power Plan VIII is approved

After nearly 4 years from the beginning of construction, the Power Master Plan VIII with the goal of energy conversion, renewable energy ecosystem development and electricity import and export has just been approved.

What is Power Plan VIII?

Power Plan VIII sets out the goal of firmly ensuring national energy security, meeting the requirements of socio-economic development, industrialisation and modernisation of the country. Along with that, the Plan implements a fair energy transition in association with production modernisation, in line with the trend of green transition and emission reduction, at the same time, forming an overall energy industry ecosystem based on renewable energy.

Power Plan VIII clearly states the goal of ensuring national energy security, supplying sufficient domestic electricity demand, and meeting socio-economic development goals with an average GDP growth rate of about 7%/year in the period 2021 - 2030, about 6.5 - 7.5%/year in the period 2031 - 2050, and ensuring safe and reliable power supply.

By 2030, the reliability of electricity supply will be in the group of 4 leading countries in ASEAN, the electricity access index will be in the group of 3 leading countries in ASEAN. Striving to 2030, 50% of office buildings and 50% of residential houses will use self-produced and self-dissipating rooftop solar power. One new point in this plan compared to the previous one is the priority of developing renewable energy, accounting for about 31-39% by 2030, equivalent to 5,000-10,000 MW. This percentage can be increased to 47% with the conditions of commitment under the political declaration on establishing a equitable energy transition partnership with Vietnam (JETP). For equitable energy transition, Power Plan VIII aims to strongly develop renewable energy sources for electricity production, and by 2050, the rate of renewable energy will be up to 67.5 - 71.5%.

Regarding the development of the industrial ecosystem and renewable energy services, it is expected that by 2030, two inter-regional renewable energy industrial and service centres will be formed, including electricity production, transmission and consumption, renewable energy equipment manufacturing industry, construction, installation, related services, building renewable energy industry ecosystem in areas with great potential such as the North, Central South, South when there are favourable conditions.

In addition, the plan focuses on developing renewable energy sources and producing new energy for export. By 2030, the scale of electricity export capacity will reach about 5,000 - 10,000 MW. Vietnam will produce and import more than 378 billion kWh by 2025, increase to 567 billion kWh by 2030 and 1,224-1,378 billion kWh by 2050. The master plan also sets out a plan for the power system capacity to reach 59,318 MW by 2025, an increase of more than 10,000 MW compared to today. This capacity will increase to 90,512 MW by 2030 and more than double by 2050.

Power Plan VIII has also identified the period 2021 - 2030 required an estimated total investment in source and transmission grid development equivalent to 134.7 billion USD. In the period 2031 - 2050, it is estimated that the investment capital demand for development of power source and transmission grid is equivalent to $399.2 - 523.1 billion, of which the investment for power source is about 364.4 - 511.2 billion USD, and for transmission grid it is about 34.8-38.6 billion USD.

The GHG emissions from power generation will decrease by 7-8 times within 20 years (2030 - 2050), to 27-31 million tons by 2050. If international partners fully implement JETP commitments, Vietnam could reach a maximum emission level of 170 million tons by 2030.

The meaning of Power Plan VIII

Power Plan VIII was approved consistently with the view that electricity is an important infrastructure sector, and electricity development must be one step ahead, creating a foundation for promoting rapid and sustainable development of the country, building an independent economy, improve the people's life and ensure national defence and security. The electricity development planning must have a long-term, effective, sustainable vision and put the interests of the nation and nation first and foremost.

The plan aims to develop electricity according to the principle of overall optimisation of the factors of power source, power transmission, electricity distribution, economical and efficient use of electricity, with an appropriate roadmap along with the protection of natural resources and the environment, and transforming economic models, ensuring national energy security at the lowest cost. The State concentrates on investing in and encouraging all economic sectors to rapidly develop the electricity industry on the principle of healthy competition and implements the market mechanism on electricity selling prices, ensuring harmonisation of the interests of participants and investors, at the same time, using electricity and meet the development requirements of regions and regions.

The power development must closely follow the development trend of science and technology in the world, especially in renewable energy and new energy, associated with the process of transforming the country's economy towards a circular, low carbon economy. Energy transition must be in line with international trends and ensure sustainability, fairness and justice.

Source: the Internet



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