When is the deadline for implementing 5 slow-moving coal-fired electricity projects facing difficulties according to the VIII Electricity Planning in Vietnam?

Main Content

• What are the directions and solutions for the development of the national electricity source in the period of VIII Electricity Planning in Vietnam?
• When is the deadline for implementing 5 slow-moving coal-fired electricity projects facing difficulties according to the VIII Electricity Planning in Vietnam?
• What is the list of coal-fired electricity plants under construction?

What are the directions and solutions for the development of the national electricity source in the period of VIII Electricity Planning in Vietnam?

Pursuant to Decision No. 500/QD-TTg in 2023 approving the national electricity development planning of 2021 - 2030 and vision for 2050 (VIII Electricity Planning).

In subsection 1, Section III of Decision No. 500/QD-TTg in 2023, the development direction of the national electricity source in the period of VIII Electricity Planning is determined as follows:

- Synchronously develop and diversify electricity source models with reasonable composition in order to assure energy security, increase independence of electricity sector and reduce dependence on imported fuel.

- Continue to promote development of renewable energy (hydroelectricity, land and offshore wind power, solar power, biomass, etc.), new energy, clean energy (hydro, green ammonia, etc..) in a manner that suits system safety assurance with reasonable electricity price, especially self-consumption electricity sources and rooftop photovoltaic installation.

- Effectively utilize and use domestic and import fossil fuel: Gradually reduce the percentage of coal-fired electricity, prioritize domestic development of gas-fired electricity, and develop electricity sources from imported LNG at appropriate scale. Implement energy transition in a manner that closely adheres to worldwide technological and pricing trends.

- Develop balance electricity sources for each region of Vietnam and aim for supply - demand balance within each region. Reasonably situate electricity sources in each region of Vietnam in order to effectively utilize electricity sources, ensure reliably on-site electricity supply, reduce technical losses, and minimize long-distance electricity transmission.

- Develop new electricity sources with modern technologies and renovating existing technology in active plants. Proceed to cease operation of plants that do not meet environmental standards.

- Diversify models of investment in electricity source development in order to increase competitiveness and improve economic effectiveness.

Regarding the development solutions mentioned in subsection 1, Section III of Decision No. 500/QD-TTg in 2023 as follows:

- Promote development of electricity sources from renewable energy (wind power, solar power, biomass power, etc.), continue to increase the percentage of renewable energy in the composition of electricity sources and produced electricity:

- Extensively utilize sources of hydroelectricity (with Vietnam’s potential at around 40.000 MW) on the basis of preserving the environment, forest, water source security.

Study and selectively expand existing hydroelectricity plants for reserve capacity; practice hydroelectricity in reservoirs in order to utilize available running water.

By 2030, total capacity of hydroelectricity, including small-scale hydroelectricity, is expected to reach 29.346 MW, produce around 101,7 billion kWh and potentially higher if permitted by economic - technical conditions (see potential projects under Appendix III).

By 2050, reach 36.016 MW of total capacity and produce 114,8 billion kWh.

- Reserve electricity sources: Develop pumped-storage hydroelectricity plants, storage batteries, etc.

- Prioritize and encourage the development of cogeneration plants, power plants that use waste heat, blast furnace gas, and by-products of technology lines in industrial facilities.

By 2030, capacity of these sources is expected to reach 2.700 MW; by 2050, capacity of these sources is expected to reach around 4.500 MW. Development scale of this model can be increased to match use demand and potentials of industrial facilities in Vietnam in order to increase energy use effectiveness.

- Coal-fired electricity: Only continue projects mentioned under the amended VII Electricity Planning and under construction investment until 2030. Aim to make the transition to biomass and ammonia energy for power plants that have been operating for 20 years when market price is appropriate. Suspend operation of power plants which have lifetime exceeding 40 years if these plants cannot make the energy transition.

- Gas-fired electricity: Prioritize domestically available gas for generation. If domestic gas quantity is low, import additional natural gas or LNG. Develop projects utilizing LNG with matching LNG import infrastructures in appropriate scales and utilizing modern technology. Implement the roadmap for transition to hydrogen fuel when the technology is commercialized with reasonable market price.

- Flexible power sources (fast start-up time): Invest in development of flexible power sources to regulate load, maintain stability of the system to receive large-scale renewable energy.

By 2030, expect to develop 300 MW. By 2050, reach 30.900 MW - 46.200 MW.

- Electricity import and export: Connect and implement effective electricity exchange with other countries in the region, ensure benefits of the parties, increase safety of electrical system; increase electricity import from ASEAN countries and the Greater Mekong Subregion (GMS) with hydroelectricity potentials. Focus on investing and utilizing electricity sources in foreign countries in order to transmit electricity to Vietnam.

By 2030, import around 5.000 MW from Laos under Agreement between Governments of the two countries and produce 18,8 billion kWh; potentially increase to 8.000 MW. By 2050, import a round 11.000 MW, produce 37 billion kWh while balancing with import to achieve overall optimization.

When is the deadline for implementing 5 slow-moving coal-fired electricity projects facing difficulties according to the VIII Electricity Planning in Vietnam? (Image from the internet)

When is the deadline for implementing 5 slow-moving coal-fired electricity projects facing difficulties according to the VIII Electricity Planning in Vietnam?

According to the Prime Minister's Decision No. 500/QD-TTg in 2023 approving the national electricity development planning of 2021 – 2030 and vision for 2050 (VIII Electricity Planning), the implementation deadline for 5 coal-fired electricity projects is behind schedule, facing difficulties in changing shareholders and arranging capital.

Specifically, in Table 3, the list of coal-fired electricity projects that are behind schedule, have difficulties in changing shareholders, and arranging capital according to Appendix II issued together with Decision No. 500/QD-TTg in 2023, 05 coal-fired electricity projects behind schedule and facing difficulties include:

(1) Cong Thanh thermal power plant, capacity 600 MW;

(2) Nam Dinh thermal power plant, capacity 1200 MW;

(3) Quang Tri Thermal Power Plant, capacity 1320 MW;

(4) Vinh Tan III thermal power plant, capacity of 1980 MW;

(5) Song Hau II thermal power plant, capacity 2120 MW.

It is known that the above 05 thermal power projects are in the period of 2021 - 2030.

The VIII Electricity Planning also states that the Ministry of Industry and Trade works with investors of the above projects, allowing it to be extended until June 2024, if it cannot be implemented, it must be considered and terminated in accordance with the law.

On the other hand, according to the power source structure, by 2030, coal-fired electricity will be 30,127 MW (20.0%), except for 5 coal-fired electricity projects that are behind schedule, facing difficulties in changing shareholders to arrange capital mentioned above; By 2050, coal-fired electricity will be 0 MW (0%), no longer using coal for power generation.

What is the list of coal-fired electricity plants under construction?

According to Decision No. 500/QD-TTg in 2023, coal-fired electricity plants under construction are listed in the List of coal-fired electricity plants under construction according to Table 2, Appendix II issued together with Decision No. 500/QD-TTg in 2023 as follows: