On April 1, Deputy Prime Minister Tran Hong Ha signed a Decision approving the Implementation Plan of the National Electricity Development Plan (“PDP8”) for the period 2021 - 2030, with a vision to 2050 ("Implementation Plan"). This Implementation Plan was born after a long wait. One of the goals set by the Implementation Plan is to identify solutions to attract investment in electricity development according to PDP8 during the planning period and mobilize maximum participation of economic sectors to electricity development.

Firstly, regarding LNG thermal power

According to the List of important power source projects and investment priorities of the industry until 2030, the total capacity of LNG thermal power projects is 22,400 MW. In this list, there are projects with large capacity such as LNG Bac Lieu with a capacity of 3,200 MW, Son My I and II Thermal Power Plants with a capacity of 2,250 MW, each plant is expected to be put into operation from 2027. In addition, the list also lists projects that are being selected for investors such as LNG Thai Binh, LNG Nghi Son or LNG Ca Na, all with a capacity of 1,500 MW and expected to be put into operation from 2029. For LNG thermal power projects included in the Implementation Plan but without an investor, the local People's Committee will have to complete the selection of investor and submit the project's feasibility study report in the second quarter of 2025.

Second, regarding solar power

For solar power projects, PDP8 requires that the Implementation Plan will stipulate the specific progress of solar power projects that have had their planning approved, investment policies approved, and assigned to investors. However, the Implementation Plan does not provide specific progress, but only assigns the People's Committees of the provinces to send planning in the area to the Ministry of Industry and Trade, as a premise for the Ministry of Industry and Trade to submit to the Prime Minister for approval.

At the same time, although concentrated solar power accounts for 10,236 MW in the power structure by 2030 in PDP8, the Implementation Plan does not add any concentrated solar power projects to implementation.

Currently, the Implementation Plan only deploys rooftop solar power (self-consumed) with a capacity of 2,600 MW as approved in PDP8, concentrated in large industrial parks of Binh Duong and Dong Nai. In addition, the Implementation Plan also lists solar power projects considered for implementation after 2030 in the form of self-consumption such as Dau Tieng Project (Tay Ninh) with a capacity of 1,050 MW, KN Floating Solar Power Project Tri An (Dong Nai) with a capacity of 928 MW.

Third, regarding wind power

Overview to 2030, onshore wind power and offshore wind power will be focused on development.

The total offshore wind power capacity is 6,000 MW, most of which is allocated to the North with 2,500 MW and the South Central region with 2,000 MW. For implementation purposes, the Ministry of Planning and Investment is assigned the task of proposing competent authorities to promulgate regulations on the authority to decide investment policies for offshore wind power projects and hydrogen/ammonia production project using offshore wind power, offshore wind power export project.

According to the Implementation Plan, the total onshore wind power capacity of newly approved projects is approximately 10,102 MW, accounting for 46.3% of the planned capacity (21,880 MW). Therefore, we anticipate that the opportunity for investors to develop onshore wind power projects is immense.

Fourth, regarding renewable energy exports

In addition to producing renewable energy to serve energy needs, the Government also focuses on exporting renewable energy abroad with potential locations in the Central and Southern regions and using renewable energy (mainly offshore wind power) to produce new energy (green hydrogen, green ammonia) for export. The Ministry of Industry and Trade is assigned the task of reporting and recommending to the Prime Minister to consider each specific project once it has assessed the feasibility of technology and cost.

Fifth, regarding implementation capital

According to the Implementation Plan, all investment capital for power source investment projects uses capital sources other than public investment capital. The estimated capital investment demand for power sources is about 1,715 trillion VND (equivalent to 71.7 billion USD) for the period 2026 - 2030.

Sixth, regarding developing laws on renewable energy

Developing legislation on renewable energy in the period 2023-2025 is also an important goal in implementing the Implementation Plan. Accordingly, the Implementation Plan requires relevant ministries and agencies to amend the Law on Economical and Efficient Use of Energy, the Law on Planning, the Law on Electricity and promulgate related sanctions. In addition, the Implementation Plan also requires (i) completion of legal documents on hydrogen-derived energy; (ii) promulgate a price framework for renewable energy power sources; (iii) develop a carbon market development mechanism, and (iv) develop a direct electricity trading mechanism.

Seventh, regarding research into building industrial centers

The Implementation Plan also requires research to build 02 inter-regional renewable energy industrial and service centers in the period up to 2030. The first is the Renewable Energy Industrial and Service Center in the North, located in Hai Phong, Quang Ninh, Thai Binh areas (in the future, expansion to neighboring areas may be considered). This center has an offshore wind power capacity of about 2,000 MW, onshore and offshore wind power capacity of about 500 MW. The second is the South Central - Southern region inter-regional renewable energy industrial and service center located in Ninh Thuan, Binh Thuan, Ba Ria - Vung Tau, and Ho Chi Minh City (in the future, expansion to neighboring areas may be considered). This center has an offshore wind power capacity of about 2,000-2,500 MW, onshore and coastal wind power. These two centers will be a combination of equipment manufacturing factories serving renewable energy development, seaport and logistics services, green industrial parks, research and training facilities.

Other takeaways

In a related development, on April 2, Deputy Prime Minister Tran Hong Ha also signed Decision 270/QD-TTg approving the List of nationally important and key programs, works and projects in energy industry. According to this List, power source projects include LNG Quang Trach II Thermal Power Plant; Hiep Phuoc LNG Thermal Power Plant phase 1; Long An 1 LNG Thermal Power Plant; Long An 2 LNG Thermal Power Plant. LNG warehouse and power plant projects using LNG as fuel include Quang Ninh, Thai Binh, Nghi Son, Hai Lang phase 1, Ca Na, Bac Lieu. The List also includes a pilot project to develop offshore wind power, however, this project has not yet been specifically implemented.

Thus, the introduction of the above decisions has created a premise for renewable energy projects to continue to develop. With large investment capital needs for wind power projects, solar power projects and industrial centers, renewable energy services open up cooperation opportunities for domestic and foreign investors in the coming years.