The Prime Minister of Vietnam has approved the National Electricity Development Master Plan VIII, outlining a comprehensive strategy for the country’s energy sector from 2021 to 2030, with a vision extending to 2050. The plan, known as Electricity Planning VIII, places a strong emphasis on developing electricity sources, expanding transmission grids, and fostering industry and services in renewable energy and new energy within Vietnam’s territory, including collaboration with neighbouring countries.
The primary goal of Electricity Master Plan VIII is to ensure national energy security while meeting the requirements of socioeconomic development, industrialization, and modernization. To achieve this, the plan focuses on implementing equitable energy transition, modernizing production processes, constructing smart grids, and advancing power system management in line with global trends of green transition, emission reduction, and scientific and technological development. Additionally, the plan aims to foster an overall energy industry ecosystem based on renewable and new energy sources.
One of the key objectives of the plan is to ensure sufficient electricity supply to meet the country’s growing demand while supporting socio-economic development targets. With an average GDP growth target of approximately 7% per year from 2021 to 2030 and around 6.5-7.5% per year from 2031 to 2050, the plan aims to achieve a reliable and secure power supply. By 2030, Vietnam aims to be among the top four countries in ASEAN in terms of power supply reliability and among the top three countries in terms of electricity access. Furthermore, the plan sets a goal for 50% of office buildings and 50% of residential houses to use self-produced and self-consumed rooftop solar power by 2030, promoting decentralized renewable energy generation.
To achieve equitable energy transition, Electricity Master Plan VIII places a strong emphasis on developing renewable energy sources for electricity production. By 2050, the plan envisions renewable energy accounting for 67.5-71.5% of the total energy mix. Furthermore, the plan aims to control greenhouse gas emissions from power generation, targeting around 204-254 million tons by 2030 and 27-31 million tons by 2050. The plan also aims to peak emissions at no more than 170 million tons by 2030, aligning with international commitments such as the Joint Emission Trading Program (JETP). Building a smart grid capable of integrating and safely operating large-scale renewable energy sources is another important aspect of the plan.
The development of an industrial ecosystem and renewable energy services is a key focus of Electricity Master Plan VIII. The plan envisions the establishment of two inter-regional renewable energy industry and service centres by 2030. These centres will facilitate electricity production, transmission, and consumption, as well as the manufacturing of renewable energy equipment, construction, installation, and related services. The plan aims to build a robust renewable energy industry ecosystem in areas with significant potentials, such as the North, South Central, and South regions. Moreover, Vietnam seeks to develop renewable energy sources for export, with a target of reaching an electricity export capacity of approximately 5,000-10,000 MW by 2030.
To implement the ambitious objectives set forth in the plan, the Electricity Master Plan VIII identifies various options for developing power sources, plans for expanding power grids, interconnecting with neighbouring countries, and providing orientations for rural electricity development. The estimated total investment required for power source and transmission grid development from 2021 to 2030 is around.
By 2030, the ministry stated that half of all office buildings and residences in Vietnam will be powered by solar panels on rooftops. The country will also generate green energy to export, with a goal of 5-10 gigawatts by 2030.
According to the draft, coal would make up 19% of the mix in 2030, followed closely by hydropower at 18.5%, wind power at 17.6%, and solar energy at 13%. The document also stated that the country would cease using coal for power generation by 2050.