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Vietnam Energy Forum

The conclusions of the Government at April 23, 2023 on perfecting the PDP VIII

 - The Government Office has just issued a notice on the conclusions of Deputy Prime Minister Tran Hong Ha at the meeting on perfecting the National Power Development Planning for the period of 2021 - 2030, with a vision to 2050 (PDP VIII). The Vietnam Energy Magazine quotes the following conclusion for readers' reference.

Previously, on April 21, 2023, at the Government headquarters, Deputy Prime Minister Tran Hong Ha chaired a meeting to listen report of the Ministry of Industry and Trade (MOIT) on perfecting PDP VIII. After listening to the representative of the consulting agency presenting the contents of perfecting the PDP VIII according to the conclusions of the Standing Government, the Prime Minister and the Deputy Prime Minister in charge of industry, the comments of the experts, scientists, agencies attending the meeting and MOIT, the Deputy Prime Minister Tran Hong Ha had the following conclusions:

Firstly, the Standing Government, the Prime Minister, and the Deputy Prime Minister in charge of industry had the conclusions and directions to perfect PDP VIII based on scientific calculations, overall optimization, economic, social and environmental efficiency, closely following the Party's guidelines of the Party on the strategic orientation of Vietnam's national energy development in the coming time, in accordance with the provisions of the law on planning, contributing to the important part to realize Vietnam's international commitments on combating climate change and energy transition, etc.

Although the agencies for establishing and approving PDP VIII have made many efforts in the process of formulating, studying and absorbing opinions and conclusions from the Standing Government, the Prime Minister, and the Deputy Prime Minister in charge of industry for perfecting PDP VIII, but the implementation process was generally slow, especially in dealing with new and difficult issues in the current energy transition process, as well as dealing with some limitations and problems arising in practice in recent times.

Secondly: The MOIT, the planning consulting agency - Institute of Energy urgently study and fully accept the comments at the meeting to perfect PDP VIII on the basis of the following specific principles and contents:

1/ PDP VIII is a very important sector planning, which must meet the rhythm of socio-economic development according to the resolutions of the Party, National Assembly and Government; in accordance with the direction of the Politburo, closely follow the development orientations in the National Development Planning approved by the National Assembly in Resolution No. 81/2023/QH15 dated January 9, 2023 and International commitments and agreements.

2/ The PDP must ensure synchronization, inherit the positive and effective aspects of the previous planning; optimally develop power plants and transmission grids to supply electricity for loads, minimizing inter-regional transmission; optimizing the power plants running in the background with developing renewable energy plants; rationally and effectively exploiting the country's primary energy potential, contributing to promoting the development of economic zones. The scenarios and roadmaps for equitable energy transition need to be calculated in scientific and technological advances, potentials and needs and the socio-economic development conditions of the country, especially need economic optimization as a basis for the decision.

3/ In the context that the energy industry in the world is developing very quickly due to the advancement of science, technology and the energy transition process, the requirement for PDP VIII is to have a new approach with the dynamic and open elements. The planning must ensure the overall requirements, synchronization, energy security for the economy, balance between power plants, loads and grids at reasonable prices, suitable to the development conditions of the country (static element).

In addition, The dynamic and open factor is a roadmap, fair energy transition suitable to the conditions of science and technology, advanced governance, to proactively operate flexibly and effectively with the goal to bring the highest economic benefits to the economy and the best interests of the people.

4/ The planning consultancy agency and management agencies are responsible for reviewing data on assessing the current status of power plants and transmission grids, progress of ongoing projects, and accurately forecasting electricity demand for economic and social development and for daily life of the people. The requirement to ensure energy security for ensuring the feasibility of the planning.

5/ Supplementing research the dynamic and open planning for solar, wind, biomass, garbage power projects according to the potential and ability of self-production and self-dissipation along with solutions to balance and stabilize power systems such as hydropower storage plants, battery storages, green hydrogen and ammonia, etc. Specially must mechanism for developing rooftop solar projects for daily life in the areas where is likely to lack the electricity for daily life in coming years.

6/ It is necessary to clarify the data of solar power planning in the forms of rooftop solar, self-sufficient production, or implementation in the form of direct electricity purchase. It is forbidden to legalize projects that violate the law, development projects that lack synchronization between plants and loads, transmission infrastructure and are not economically efficient.

7/ Reviewing offshore wind power potential data, calculating wind power planning for the production of the green hydrogen and ammonia, etc. For biomass power projects, it is necessary to report more carefully on potential, efficiency, and at the same time to consider the possibility of increasing the scale of biomass power source in the planning accordingly.

8/ Supplementing and further evaluating the possibility of developing accumulating energy power plants and storage batteries for ensuring safe, reliable and efficient operation of the national power system with large-scale integration of wind and solar power projects.

9/ PDP VIII to advance a list of the important national projects, investment priority projects of the power sector in accordance with the provisions of the law on planning. In addition, specific projects will be identified in the 5-year and annual plans in accordance with the electricity demand of the economy, the development of science and technology, investment resources, in synchronizing with the electricity needs of the economy, land use plans, sector development plans.

10/ Researching and proposing mechanisms, policies and solutions (including attracting and mobilizing resources, specific responsibilities of each ministry, agency and locality in organizing the implementation of the PDP in the future).

Thirdly: The MOIT to urgently direct perfecting PDP VIII according to the above requirements, and report to the Government's Standing Committee before April 25, 2023./.


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