Vietnam has introduced Master Plan VIII, a strategic framework governing power development in the country, with a strong emphasis on renewable energy and the gradual phasing out of coal by 2050. The plan replaces the previous Master Plan VII Revised, which covered the period from 2011 to 2020 with a vision to 2030.
Under Master Plan VIII, renewable energy is set to play a prominent role in Vietnam’s power capacity. Notably, coal-fired power plants will no longer be constructed after 2030, signaling a significant shift away from traditional reliance on coal. By 2050, thermal energy production will transition to the use of biomass and ammonia as alternatives to coal.
Regarding gas, Vietnam aims to prioritize domestic gas resources for power generation. Block B and Blue Whale gas mines will be expedited to support eight domestic gas-to-power projects, totaling 6,900 MW. The development of LNG-to-power projects will be limited to mitigate the risks associated with relying on imported fuel. By 2050, Vietnam plans to gradually replace LNG-to-power plants with hydrogen-based facilities. Additionally, the construction of the Long Son LNG-to-power project will be adjusted, and the development of Thi Vai and Son My LNG terminals will proceed as planned.
The Master Plan VIII sets ambitious targets for renewable energy capacity. Compared to the previous plan, the new framework significantly increases the allocation for wind power, solar power, and biomass. By 2030, Vietnam aims to have 21,880 MW of onshore wind power, 6,000 MW of offshore wind power, 12,836 MW of solar power, and 2,270 MW of biomass capacity. Looking ahead to 2050, these figures are expected to grow substantially, with projections ranging from 60,050 MW to 77,050 MW for onshore wind, 70,000 MW to 91,500 MW for offshore wind, 168,594 MW to 189,294 MW for solar power, and 6,015 MW for biomass.
To support the implementation of Master Plan VIII, the Ministry of Industry and Trade will propose amendments to the Law on Electricity and Law on Renewable Energy, which are expected to be presented to the National Assembly in 2024. The plan also includes provisions for direct power purchase agreements (DPPAs) between renewable energy producers and customers, with the aim of establishing a legal basis for DPPAs in the future.
Vietnam’s Master Plan VIII marks a significant milestone in the country’s energy transition, highlighting the commitment to renewable energy expansion and the reduction of carbon emissions.