NOTICE NO. 244/TB-VPCP REGARDING CONCLUSION OF THE PRIME MINISTER ON THE STATUS OF ENSURING SUFFICIENT ELECTRICITY SUPPLY DURING THE PEAK PERIOD OF 2024 AND THE SUBSEQUENT YEARS, AND THE EFFECTIVE IMPLEMENTATION OF THE POWER DEVELOPMENT PLAN VIII

On May 25, 2024, the Government Office issued Notice No. 244/TB-VPCP regarding conclusion of the Prime Minister on the status of ensuring sufficient electricity supply during the peak period of 2024 and the subsequent years, and the effective implementation of the Power Development Plan VIII (PDP8). 

In the meeting dated May 23, 2024 with relevant parties, the Prime Minister concluded as follows:

(i) Assessing the implementation status ensuring sufficient electricity supply for production and consumption in peak season: 

Despite record-high electricity consumption and peak power demand in early 2024, the national power system operated safely without outages. To ensure no electricity shortages for production, business activities, and people's lives under any circumstances, the Prime Minister requires the relevant Ministries, sectors, localities, and enterprises to strive harder, be more determined, absolutely not be subjective or negligent, accurately forecast the situation, and be ready to prepare for the worst possible scenarios to have plans to ensure electricity supply for production, business activities, and consumption in the coming time, particularly by the end of June 2024 when the 500 kV circuit 3 line is expected to be completed.

(ii)  Regarding solutions for ensuring adequate electricity supply:

- To ensure power supply:

+ The Ministry of Industry and Trade (MOIT) and EVN shall take the lead in diversifying power sources, including domestic maximization and possible imports. Effective coordination of coal, hydro, solar, wind, and biomass power is required. Power plants should schedule maintenance to prevent non-force majeure failures.

+ Vietnam National Coal and Mineral Industries Group (TKV) and Dong Bac Corporation are required to meet sufficient fuel demands and provide reserves for coal-fired power plants, minimizing coal imports. Coal-fired power plants should prioritize domestic coal purchases to support local production and prevent illegal coal mining and smuggling.

+ The Ministry of Industry and Trade (MOIT) and relevant authorities shall direct EVN and the National Power Dispatch Center (A0) to monitor weather and hydrology closely, manage water resources for optimal power generation during peak times, and prevent waste.

+ PVN shall direct and ensure adequate supply and prioritize natural gas for power generation during peak months, coordinating maintenance schedules accordingly.

- To ensure stable electricity transmission and distribution:

+ The Ministry of Industry and Trade (MOIT) shall ensure the completion of key transmission line projects, including the 500kV line from Quang Trach to Pho Noi and projects for importing electricity from Laos by mid-2024. Research mechanisms and policies to mobilize social resources and encourage investment in the transmission system,

+ The Ministry of Industry and Trade (MOIT), in close coordination with the State Capital Management Committee at Enterprises, shall direct transmission and distribution units to review systems, promptly repair, and ensure safe and reliable operation.

- Efficient Electricity Use:

Strictly implement Directive No. 20/CT-TTg on enhancing electricity savings, with EVN's effective communication on efficient use.

- Electricity Pricing:

The Ministry of Industry and Trade (MOIT) and relevant authorities need to adjust electricity prices gradually, avoiding abrupt changes. Focus on cost savings, digital transformation, and competitiveness. Prices should be affordable for people and businesses, with state regulation to ensure macroeconomic stability.

(iii) Regarding ​​policy development:

- Regarding the draft Decree stipulating the mechanism for direct power purchase agreements (DPPA) between large electricity consumers and power generators: The Ministry of Industry and Trade (MOIT) is required to finalize and submit the draft decree to the Government by May 30, 2024.

- Regarding the draft Decree stipulating mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power (RTS), and the draft Decree on mechanisms for the development of power projects using natural gas and LNG: The Ministry of Industry and Trade (MOIT) shall promptly complete the procedures, documents, and draft Decrees for submission to the Government before June 15, 2024. 

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