Official Letter No. 6633/BCT-ĐL from the Ministry of Industry and Trade seeks feedback on the draft report to the Prime Minister concerning the implementation and potential adjustments to Power Plan VIII

The Ministry of Industry and Trade has just issued Official Letter No. 6633/BCT-ĐL to solicit feedback on the draft report to be submitted to the Prime Minister regarding the implementation status and proposed adjustments to the Power Plan VIII. The report focuses on analyzing key issues in Vietnam's energy sector, including electricity demand, power source structure, and future development directions.

The following article will review the main contents of the report, such as the current situation of electricity load development, challenges to power sources (LNG, coal, hydropower, wind power, solar power), as well as important proposals for the development of renewable energy, electricity imports, and long-term nuclear energy research.

05/02/2025

Official Letter No. 6633/BCT-ĐL from the Ministry of Industry and Trade seeks feedback on the draft report to the Prime Minister concerning the implementation and potential adjustments to Power Plan VIII

The draft outlines key issues in Vietnam's energy sector, focusing on electricity demand, power sources, and strategies for the future as follows:

(i) Electricity load development situation:
The report highlights that the projected national commercial electricity growth rate of 9.08% for 2021-2025 is considered unrealistic. It suggests a review of actual demand to recalibrate the development of power sources and the grid in subsequent years.

(ii) Power sources:
- Gas and LNG power: The Ministry notes that only the Nhon Trach 3 and 4 projects are expected to be operational by May 2025. The completion of other gas-powered projects before 2030 is uncertain unless major bottlenecks, such as regulations on minimum mobilization output and the transition from gas to electricity prices, are resolved. Failure to address these could result in power shortages between 2026-2030.

- Coal power: In line with Vietnam’s commitment to net-zero emissions by 2050, coal power is facing resistance from local authorities and financial institutions. New coal power plants must rely on imported coal, and future projects may lack feasibility.

- Hydropower: To continue leveraging hydropower, the report advises expanding existing plants, prioritizing small hydropower projects, and exercising caution with medium and large-scale hydropower developments.

- Wind power: While onshore and nearshore wind power currently has an installed capacity of 3,061 MW, reaching the targets of 21,880 MW by 2030 and up to 77,050 MW by 2050 is deemed highly unlikely. Offshore wind projects have yet to receive investment approvals, and Vietnam’s wind data infrastructure remains incomplete, hindering further development.

- Solar power: With delays in other major power sources, the short-term expansion of solar power—particularly rooftop, floating, and centralized solar projects—is seen as crucial for ensuring electricity supply.

- Biomass, waste-to-energy, and imports: Various localities have proposed including biomass and waste-to-energy projects in the planning process to aid in environmental management. These initiatives should be prioritized. Additionally, importing electricity from Laos is recommended to bolster supply and mitigate potential shortages.

- New energy development: Although nuclear power is not part of the current Power Plan VIII, the report suggests that Vietnam could explore the development of small modular reactor nuclear energy in the future, given its advantages and potential suitability for the country's needs.