[GEF 2023] PDP8 Implementation Panel: Overview and Recommendations

The Green Economic Forum (GEF2023) concluded on November 02 at the JW Marriot Hotel with insightful recommendations from representatives of multinational companies, local businesses and thinktanks. The panel discussion on Power Development Plan VIII (PDP8) Implementation was honored to have the participation of 6 high-profile speakers, including:??

• Moderator: Stuart Livesey, EuroCham GGSC Vice Chairman, CEO (Copenhagen Offshore Partners, Vietnam)??
• Mr. Pham Nguyen Hung, Deputy Director General (Electricity & Renewable Energy Authority, Ministry of Industry and Trade - MOIT)?
• Chiara Odetta Rogate, Senior Energy Specialist (World Bank)?
• Dinh Nguyen, Country Director Vietnam (EDP Renewables)?
• Mr. Phan Tu Giang, Deputy Director (PetroVietnam – PVN) and;?
• Ms. Anita Holgersen, Head of Business Development Vietnam (Equinor).?

The PDP8 – Decision No. 500/QD-TTg, dated 15 May 2023 sets out ambitious targets for wind energy and LNG deployment, promotes rooftop solar energy for self-consumption, while reducing reliance on coal and hydropower.????

With a highly applauded Power Plan (PDP8), the more eagerly awaited issuance now is the PDP8 Implementation Plan from the government, which is expected to offer more transparency for the investors regarding the selection and timing of renewable energy projects. The GEF panel discussions have provided some key recommendations for the government to ensure a smooth transition towards a sustainable and robust energy market.?

1. Establish clear and transparent regulations that support renewable energy, especially Decree 11 (for offshore renewables) and PDP8 Implementation Plan (across all renewable energy technologies).?

Currently, there isn’t any clear investor selection mechanism or associated evaluation criteria, in relation to future energy projects. For offshore wind projects, existing regulations have not clarified the scope of marine management (the National Marine Spatial Plan is pending for approval), which competent authorities can also utilize to decide on investment policies (the Law on Investment lacks the regulatory framework to support this also), and the requirements to undertake offshore surveys (Decree 11/2021/N?-CP is pending for approval).? For other projects, the investor selection process under MOIT and the Provincial People ‘s Committees does not specify how projects will be selected and to whom.???

1. Need to align ministerial dialogue and ensure decision-making milestones are made. This alignment is particularly essential because many complex decisions necessitate the coordinated efforts of multiple government bodies, including the Ministry of Industry and Trade (MOIT), the Ministry of Planning and Investment (MPI), and the Ministry of Natural Resources and Environment (MONRE). All have vital roles to play in addition to others (MND, MOT etc), and hence aligned communication and decision-making is key.?
2. Recognize the need for pilot projects to establish new technologies in newly emerging industries such as offshore wind, power to X (batteries, ammonia, green hydrogen), etc., since the completion of a comprehensive regulatory framework all at once can be time-consuming. Pilot projects can allow an industry to stabilize and be delivered with less risk, therefore future projects and stakeholders gain large learnings and are able to reduce costs/increase efficiency.?
3. Plan effectively for supply chain bottlenecks. Although Vietnam currently offers a great deal of supply chain opportunities for renewable energy at a Tier 1 level (offshore substation steel fabrication, wind turbine jacket foundations, wind turbine towers etc), it is vulnerable to shortages of critical components like solar panels, wind turbines, installation vessels, or electrical equipment that can disrupt project timelines and lead to delays in installations.??