Implementation plan for the National Energy Planning in Vietnam

Implementation plan for the National Energy Planning in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

Implementation plan for the National Energy Planning in Vietnam

Specifically, the national energy planning includes the following sectors: petroleum, coal, electricity, and new and renewable energy, with tasks ranging from basic investigation, exploration, extraction, production, storage, distribution, utilization, and other related activities. The energy-related plannings mentioned in Resolution 110/NQ-CP in 2019, which are integrated into the national energy planning, including petroleum-related planning, gas-related planning, coal-related planning, and renewable energy planning, will no longer implement the regulation specified in point c, clause 1, Article 59 of the Law on Planning.

(1) Public investment projects and projects using sources of capital other than public investment

All energy sector investment projects use sources of capital other than public investment. The plans for improving policies and enhancing the capacity of the electricity sector using public investment capital (according to the national electricity development plan for the period 2021–2030, with a vision to 2050 approved by the Prime Minister).

- Petroleum sector

The Petroleum sector includes the following areas: (i) search, extraction, and exploitation of petroleum; (ii) gas industry; (iii) oil refining; and (iv) transportation, storage, and distribution of petroleum products.

The list of projects and specific progress for important and priority investment projects is implemented according to Appendix IA, important potential investment projects according to Appendix IB, and other projects (excluding important and priority investment projects) according to Appendix II attached to this plan.

- Coal sector

The coal sector includes plans/projects on: (i) coal exploration; (ii) coal mining; (iii) coal screening and processing; (iv) infrastructure for coal industry development (including ports for coal import/export and other infrastructure projects); and (v) mine closure.

The list of projects and specific progress for important and priority investment projects is implemented according to Appendix IA, important potential investment projects according to Appendix IB, and other projects (excluding important and priority investment projects) according to Appendix II; coordinates of the boundaries of some coal mining investment projects (updated compared to the Prime Minister's Decision 893/QD-TTg in 2023) are implemented according to Appendix III attached to this plan.

In addition, the list of projects for maintaining production, coordinates of the boundaries of resource exploration projects, and other coal mining investment projects are implemented according to Appendices II and III issued together with the Prime Minister's Decision 893/QD-TTg in 2023.

- New and renewable energy sector

The new and renewable energy sector includes the following areas: (i) wind energy; (ii) solar energy; (iii) biomass energy, biofuels, and biogas; (iv) solid waste energy; (v) small hydropower; (vi) other renewable energy (tidal energy, wave energy, and geothermal energy); (vii) new energy (hydro, ammonia, fuels derived from hydro, synthetic fuels, etc.).

The development orientation focuses on offshore wind power combined with other types of renewable energy (solar power, onshore wind power, etc.) to produce new energy (hydro, green ammonia, etc.) to meet domestic and export demand. Renewable energy sources for producing new energy to meet domestic and export demand are prioritized/allowed to develop without limitation based on ensuring national security, energy security, and achieving high economic efficiency, becoming a new economic sector of the country.

The list of projects and specific progress for important and priority investment projects is implemented according to Appendix IA, important potential investment projects according to Appendix IB, and other projects (excluding important and priority investment projects) according to Appendix II attached to this plan.

- Electricity sector

The electricity sector is implemented according to the national electricity development plan for the period 2021–2030, with a vision to 2050 approved by the Prime Minister.

(2) Estimated land use demand (plan)

The land demand for energy infrastructure and facility development is estimated at about 93.54–97.24 thousand hectares in the period 2021–2030 and approximately 171.41–196.76 thousand hectares in the period 2031–2050. The coastal area for offshore projects is estimated to be about 334,800 hectares by 2030 and approximately 1,302,000–1,701,900 hectares by 2050.

(3) Determination of resources and resource utilization for plan implementation

All investment capital for energy sector projects uses sources of capital other than public investment. The total investment capital requirement for the entire energy sector in the period 2021–2030 is approximately 4,133–4,808 trillion VND. The phased investment is as follows:

- Period 2021–2025: about 1,640–1,887 trillion VND.

- Period 2026–2030: about 2,493–2,920 trillion VND.

The projects on improving policies and enhancing the capacity of the electricity sector will use public investment capital.

More details can be found in Decision 338/QD-TTg taking effect on April 24, 2024

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