The Vietnamese government approved the Power Development Plan 8 (PDP8) on May 15, which envisages the development of a 220 kV or higher transmission grid and the domestic renewable energy industry and services by 2030. The plan also highlights the substantial investment required to develop the energy industry, providing potential opportunities for foreign energy companies. Below are the main projects of PDP8.
Target
- Change to renewable energy, develop green energy, industrial ecology and renewable energy services, furthermore, it’s expected to establish two cross-regional centers for renewable energy and industrial service by 2030.
- The utilization rate of renewable energy is as high as 67.5%-71.5% by 2050.
- By 2030, greenhouse gas emissions from power generation are limited to approximately 204-254 million tons, and to about 27-31 million tons in 2050.
- Guarantee national energy security, meet domestic electricity demand, and achieve an average annual GDP growth rate of about 7% from 2021 to 2030, and around 6.5%-7.5% by 2050.
- Vietnam's power generation will more than double, jumping from 69 GW at the end of 2020 to more than 150 GW by 2030.
- Become a green power exporter, aiming to produce 5-10 GW by 2030.
Energy Utilization
1. Carbon
- Continue to improve the projects in PDP7.
- The system will only add 3,800 MW by 2030, with a total production expected to be over 30,000 MW.
- There are three projects under construction: Van Phong (Khanh Hoa Province, 1,432 MW), Vung Ang 2 (Ha Tinh Province, 1,200 MW), Quang Trach 1 (Binh Dinh Province, 1,200 MW).
2. Natural gas
Projects with a total output of up to 6,900 MW have transitioned from the PDP7, including the Blue Whale Natural Gas Power Generation Project in Central area (Cụm khí - điện Cá Voi Xanh - miền Trung) and the O Mon Natural Gas Power Generation Project (Cụm khí - điện Lô B - Ô Môn), the output is 3,750 MW and 3150 MW in turn.
3. Liquefied natural gas
- Up to 2030, 6,000 MW of new capacity will be added to projects in the northern region.
- After 2030, gradually increase the utilization rate towards hydrogen fuel combustion, and fully switch to hydrogen combustion by 2050.
4. Solar energy
- According to PDP8, Vietnam's solar power potential is about 963,000 MW (around 837,400 MW on the ground, 77,400 MW on the water, and 48,200 MW on the roof).
- By 2030, the total solar power generation is expected to increase by 4,100 MW; before 2050, the total production capacity will be 168,594-189,294 MW, and the power generation will be 252.1-291.5 billion kWh.
- Prioritize the development of solar energy on residential rooftops and construction sites, a total of 27 projects with a total output of 4,136 MW
- Aim to have half of Hanoi's commercial and residential buildings use rooftop solar by 2030.
5. Wind power
- Ho Chi Minh City Department of Industry and Trade urges the government to include the Can Gio Offshore Wind Power Project in PDP8. The project is located in the South China Sea, with an area of about 320,000 hectares and a total output of about 6,000 MW.
- Binh Dinh Province has applied to the Ministry of Industry and Trade for 15 projects, including 7 offshore wind projects (total output 8,600 MW) and 8 onshore wind projects (total output 862 MW)
Investment Requirements
- From 2021 to 2030, the country needs USD 134.7 billion, of which power investment is about USD 119.8 billion, and the transmission network is about USD 14.9 billion.
- From 2031 to 2050, it is estimated that the investment funds required for the development of power supply and transmission network will be about USD 399.2-523.1 billion, of which the power investment will be about USD 364.4-511.2 billion, the transmission network is about USD 34.8-38.6 billion.
