Power Development Plan 8 submitted to the Office of the Government

After continuous review and update loops of the Power Development Plan 8 to 2030 with a vision to 2045, the Ministry of Industry and Trade (MoIT, responsible for the energy sector) has recently submitted a draft and recommendation to the Office of the Government (OoG). Compared to the seventh revised Power Development Plan, the share of renewable energies, in particular wind power, was significantly increased. Offshore wind power is now considered as a central pillar to help Viet Nam achieve its net-zero commitment by 2050.  

In the current draft version that was submitted to the OoG, coal power capacity would reach 38 GW by 2030 and stay at this level to 2045, underlining Vietnam`s intention not to add new coal-fired power generation capacity from 2040 and phase out coal in the mid-term. Gas-fired power capacity and LNG-fired power capacity would account for 15 GW respectively 45 GW by 2045, while renewable capacity would add up to 157 GW (onshore and offshore wind, solar and biomass power).  

In order to achieve the net-zero commitment by 2050, many challenges remain, such as increasing flexibility in electricity demand, strengthening grid development, and building flexible electricity pricing mechanism and many more policies.  

Vietnam’s Power Development Plan 8 (PDP8) for 2021 with a vision to 2045 was supposed to be released in 2020. The finalization saw repeated delays, and after the Prime Minister’s net-zero pledge at COP26, the draft version by then had to be further revised to reflect Vietnam’s new commitment. An approval of the draft is expected for the first half of 2022.