Tiếng Việt
中文 (中国)
On April 15, 2025, the Prime Minister issued Decision 768/QD-TTg, approving the adjusted Power Development Plan VIII (PDP VIII). This marks a significant turning point in the strategic direction of Vietnam’s power sector, featuring several key highlights. So, what’s new in this plan?
Setting Ambitious Goals
The adjusted PDP VIII aims to ensure sufficient power supply for double-digit economic growth and enhance energy security.
By 2030:
- Commercial electricity output is projected to reach 500.4 – 557.8 billion kWh, with generated and imported electricity at 560.4 – 624.6 billion kWh.
- Peak capacity is expected to be around 89,655–99,934 MW.
- Vietnam strives to be among the top 4 ASEAN countries in terms of reliability and top 3 in electricity access index.
- 50% of government buildings and households will use self-generated, self-consumed rooftop solar power.
Additionally, the plan aims for a just energy transition, controlling greenhouse gas emissions from electricity generation, targeting a peak emission level of no more than 170 million tons by 2030 and reducing it to approximately 27 million tons by 2050.
These targets demonstrate Vietnam’s strong commitment to sustainable power sector development, aligning with international climate change commitments (COP26).
Prioritizing Renewable Energy Development
The adjusted PDP VIII places significant emphasis on renewable energy development. By 2030, the share of renewable energy (excluding hydropower) is targeted to reach 28–36%, and by 2050, it is projected to hit 74–75%.
Specifically by 2030:
- Onshore and Nearshore Wind Power: Total capacity to reach 26,066–38,029 MW.
- Offshore Wind Power: Total capacity to reach 6,000–17,032 MW (operational in the 2030–2035 period).
- Solar Power: Total capacity to reach 46,459–73,416 MW.
These targets represent a significant increase, particularly for offshore wind power—a sector with breakthrough potential.
The plan also outlines effective renewable energy development strategies: prioritizing on-site consumption for wind and solar power; requiring concentrated solar power projects to include a minimum of 10% storage capacity for at least two hours; and boosting offshore wind power combined with the production of new energies like green hydrogen and ammonia for domestic consumption and export.
The planning mindset is shifting from merely increasing capacity to smart integration, enhancing economic efficiency and environmental protection.
Diversifying Power Sources for Energy Security
Beyond renewable energy, the adjusted PDP VIII also focuses on diversifying power sources to ensure energy security.
- Hydropower: Maximum exploitation of approximately 40,000 MW by 2050, ensuring environmental protection and water resources; by 2030, total capacity to reach 33,294 – 34,667 MW.
- Gas Power: Prioritizing domestic gas and imported LNG, with a long-term goal of transitioning to hydrogen. By 2030, total domestic gas power capacity is targeted at 10,861 – 14,930 MW, and LNG-fired power at 22,524 MW.
- Coal Thermal Power: Existing projects will continue, with a gradual transition to biomass/ammonia co-firing, and older plants will be phased out. By 2030, total coal thermal power capacity will be 31,055 MW, with no further development after 2050.
- Nuclear Power: Ninh Thuan 1&2 are expected to be operational in the 2030–2035 period, with a capacity of 4,000–6,400 MW.
- Flexible and Storage Power Sources: Developing LNG, oil, and hydrogen thermal power to balance load; investing in pumped-hydro storage and battery storage. By 2030: pumped-hydro storage to reach 2,400–6,000 MW, and battery storage to reach 10,000–16,300 MW.
This diversification of power sources helps reduce dependency, increase system stability, and provide flexibility in responding to energy fluctuations.
Enhancing Power System Efficiency and Reliability through Smart Grid Development
The adjusted PDP VIII not only focuses on power generation but also emphasizes building a smart grid to ensure safe, efficient operation and effective integration of large-scale renewable energy sources.
From now until 2030, investment in the 220kV and higher transmission grid will continue, synchronized with power sources, to meet N-1 criteria for critical load areas and N-2 for particularly important areas, such as nuclear power. The distribution grid will be modernized and automated to enhance operational capabilities. Concurrently, the application of smart technologies in electricity demand management will be promoted, encouraging efficient and economical electricity use.
The development of a smart grid is a key factor in ensuring the effective absorption and integration of renewable energy sources, minimizing power losses, enhancing electricity supply reliability, and facilitating the development of a competitive electricity market.
Developing a Renewable Energy Industrial Ecosystem
The adjusted PDP VIII views renewable energy not just as a power source but also as an opportunity to develop a comprehensive renewable energy industrial ecosystem.
The objective is to establish two inter-regional renewable energy industrial and service centers, encompassing electricity production, transmission, and consumption; manufacturing of renewable energy equipment; construction, installation, and related services.
Furthermore, the plan aims to develop renewable energy and produce new energies (hydrogen, green ammonia) for export, with a projected capacity of approximately 5,000 – 10,000 MW by 2035. This will not only generate foreign currency revenue but also drive economic growth, create jobs, and enhance national competitiveness.
Conclusion
The adjusted PDP VIII is a strategic plan with a clear vision, reflecting a significant shift in the thinking and development direction of Vietnam’s power sector. By prioritizing renewable energy development, diversifying power sources, fostering smart grid development, and focusing on economic efficiency, this plan opens up tremendous opportunities for Vietnam to build a sustainable energy future.
You can find more details about Decision 768/QD-TTg approving the adjusted Power Development Plan VIII here.
