Urgently implement projects following Power Plan VIII

Minister Nguyen Hong Dien giving speech at conference.

At the conference, Minister Nguyen Hong Dien emphasized that in order to meet the demand for GDP growth of 8-10% per year or more, our electricity growth must reach 12-16% per year or more. Thus, from now until 2030, Vietnam must increase its power source by about 10,000-12,000MW. Correspondingly, the power source and transmission system to release inter-regional and intra-regional capacity must be given due attention.

To proactively take early and remote solutions to absolutely ensure no power shortages under any circumstances in accordance with the Prime Minister's direction in Directive No. 01, Minister Nguyen Hong Dien directed and concluded as follows:

Firstly, for power source projects, Nhon Trach 3 and 4 projects have been determined to be put into operation in the first quarter of 2025. Investors are requested to resolutely complete the necessary procedures and strive to connect to the grid and generate commercial electricity in the first quarter, or at the latest in the second quarter of 2025. Technical and quality requirements are to be ensured.

Secondly, for power projects that already have investors including Hiep Phuoc Phase 1, Quang Ninh, Thai Binh, Quang Trach 2, Hai Lang Phase 1, BOT Son My I, BOT Son My II, Bac Lieu, Long An, O Mon 1,2,3,4, investors are requested to urgently complete investment preparation procedures, develop a specific roadmap for implementation, and strive to complete and put into operation before 2030.

Thirdly, for projects without investors including Thanh Hoa, Nghe An, and Ninh Thuan, the localities are required to select investors no later than the first quarter of 2025. At the same time, the Minister requested that localities should not combine plant projects with gas infrastructure projects (warehouses, yards, ports).

Conference overview

Accelerate the progress of resource projects

For EVN, it is necessary to speed up progress to soon bring the power source projects under implementation 6 months or more ahead of schedule.

It is suggested by the Minister that “Every project must be completed ahead of schedule, especially the Quang Trach 1 project in 2027, the Hoa Binh expansion in 2025, the Tri An expansion, and the Bac Ai pumped storage hydropower plant to be launched in the first quarter of 2025.

Other source projects being implemented by EVN, include joint venture projects with Thai investors, if Thai and Malaysian investors cannot implement them, EVN will also review its capacity and propose in January 2025.

Regarding transmission projects, the Minister requested EVN to study and invest in the construction of transmission projects following Power Plan VIII, strengthen the connection among regions, increase the ability to operate safely and stably for the national power system, and soon complete transmission projects to serve the capacity release of plants such as Nhon Trach 3,4. It is requested to urgently deploy the construction of the  Lao Cai - Vinh Yen 500kV line to put into operation in 2025.

EVN shall focus on completing the construction of the  Moonsoon - Thanh My 500kV line in the first quarter of 2025 and the 220kV Nam Sum - Nong Cong line and complete it no later than the second quarter of 2025. At the same time, research and propose investment policies for transmission line projects for hydropower and thermal power plants from Laos starting in 2025.

EVN urgently proposes investment policies for transmission projects according to Power Plan VIII, especially transmission projects to relieve the capacity of gas-fired power plants as well as offshore wind power projects that will be located in the near future.

Submit to the Government the first wind power investment demand in January 2025

For offshore wind power projects, the Minister requested the Electricity and Renewable Energy Authority (EREA) to collect the demands proposed by local businesses, ending the first phase before January 20, 2025, so that the Ministry can make a preliminary appraisal and submit it to the Government for permission so as to deploy 6,000 MW of phase 1. At the same time, resolutely implement steps to review and supplement the adjusted Power Plan VIII, in the direction of maximizing wind power, including onshore wind power and offshore wind power, to serve domestic needs (to implement the direct electricity purchase and sale mechanism, implement the hydrogen preparation mechanism, as input material for coal-fired power projects as well as hydrogen gas power generation in the future) and export demands.

The Minister assigned EVN and the Electricity Regulatory Authority (ERA) to urgently complete procedures for the Ministry to consider issuing a price framework for offshore wind power as well as a price framework for necessary process stages to help investors have the necessary conditions to approve investment projects as well as implement projects to ensure peace of mind during the implementation process.

EREA shall coordinate with relevant units to urgently review and supplement specific positions in the Plan for implementing Power Plan VIII and this shall be done as soon as possible. According to the Minister, by February 28, 2025, the adjusted Power Plan VIII will be available and immediately after that, the Ministry of Industry and Trade shall develop and announce the plan for implementing the adjusted Power Plan VIII, which will provide a huge space for investors. However, any investor who has been selected shall implement it, and if not, they will be fined.

EREA presides over and coordinates with relevant units and functional units of the Ministry of Natural Resources and Environment to help investors complete procedures for conducting offshore surveys, including wind and seabed surveys, complying with regulations.

According to the Minister, the minimum survey time is 12 months, otherwise 18-24 months. If the Government agrees, it can be handed over to investors for implementation in February 2025 to keep up with the survey, and so on.

"In the future, when submitting to the Government the mechanism for investors to enjoy the price mechanism under the promulgated Decree, it must be researched and expanded to 2032 or 2034 because offshore wind power takes a long time to survey", Minister Nguyen Hong Dien emphasized.

EREA and ERA shall coordinate with relevant units to urgently complete the Decrees and Circulars guiding the implementation of the Electricity Law to submit it to the Government and the Ministry for promulgation and application from February 1, 2025.

EREA in coordination with the Energy Institute urgently completes reviewing and submitting adjustments for Power Plan VIII to the Prime Minister for approval before February 28, 2025.

Translator: Mạnh Hùng