On January 3, 2025, the Prime Minister of Vietnam issued Directive No. 01/CT-TTg regarding proactive solutions for electricity supply.
Cuong Tran Duc
Business Partner @ CM Group | LinkedIn - ?? Top Renewable Energy Voice | Vietnam - ?? Top 10 LinkedIn Voices | ?? Advisor in Energy Development Strategy??
Under the urgent directive of the Prime Minister of Vietnam, Pham Minh Chinh, who signed Directive No. 01/CT-TTg on January 3, 2025, proactive solutions to ensure a sufficient electricity supply for business production and the daily lives of the people during peak times in 2025 and the period from 2026 to 2030 are of utmost importance. The directive emphasizes that ensuring national energy security and a sufficient electricity supply is a fundamental factor in accelerating economic breakthroughs and is crucial for the industrialization and modernization of the country shortly. The government, the Standing Government, and the Prime Minister have issued documents directing decisive measures to ensure an adequate electricity supply for production, business, and citizens' daily activities. The Prime Minister has directly inspected, urged, and resolved difficulties to promote the implementation of electricity source projects and transmission networks. As a result, even during the record heat of 2024, the hottest year in over 50 years, electricity demand reached over 1 billion kWh/day. Yet, the national electricity system still operated stably without any shortages.
However, the National Power Development Plan for 2021-2030, with a vision to 2050 (PDP8), still has some shortcomings; implementing electricity source projects faces many obstacles regarding mechanisms and policies. Therefore, it is projected that from 2021 to 2025, electricity source development will only reach 56.7% of the plan, posing risks of electricity shortages. In the coming time, the socio-economic development goals are much higher than in previous periods, with national economic growth in 2025 striving to exceed 8% and growth during 2026-2030 aiming for double digits. This requires electricity growth of 1.5 times, averaging from 12% to over 16% annually (equivalent to an additional 8,000 to 10,000 MW each year). This poses a significant challenge; if timely solutions are not implemented to rapidly develop electricity sources - predominantly baseload sources, green energy, clean energy, and sustainable energy - there will be a serious risk of severe power supply shortages from 2026 to 2028.
To proactively implement solutions early on and ensure that there is no shortage of electricity under any circumstances, the Prime Minister directs the ministers of relevant ministries, heads of agencies, and chairpersons of People's Committees in centrally-run provinces and cities, as well as chairpersons and general directors of corporations such as Vietnam Electricity (EVN), the National Energy Industry Group (PetroVietnam), the Vietnam Coal-Mineral Industry Group (TKV), and Northeast Corporation: to focus on ensuring a sufficient electricity supply for socio-economic development during the period from 2025 to 2030 while ensuring national energy security in a new era characterized by digital transformation and high-tech development - a mission deemed very important.
Based on this directive, all stakeholders are urged to mobilize resources to promote and expedite the completion of power source projects and transmission networks within their management scope. No projects or constructions must become stalled due to delays in handling administrative procedures by ministries, sectors, agencies, or localities. The success of this mission depends on close-knit and practical cooperation among all assigned tasks and solutions, implemented thoughtfully, decisively, uniformly, and effectively according to government resolutions, as well as directives from the Prime Minister concerning the assurance of electricity supply for production and consumption in 2025 and during the period from 2026 to 2030.
As the key figure responsible for ensuring an adequate electricity supply in 2025 and subsequent years, the Minister of Industry and Trade plays a crucial role before the government and the Prime Minister. He must direct more decisively while enhancing the supervision of electricity demand trends and any emerging factors to provide appropriate leadership promptly. Quarterly reviews must be conducted, and reports on implementation results must be submitted to the Prime Minister.
The focus should be on reviewing and adjusting PDP8 promptly to update new strategic requirements related to socio-economic development. New projects for green, clean, sustainable power sources should be added, while delayed projects that do not meet national development requirements must be removed or replaced by February 28, 2025.
Legal documents detailing Electricity Law No. 61/2024/QH15 must be completed and issued before February 1, 2025. This is crucial for implementing new policies from this law, especially mechanisms related to long-term minimum contract electricity volumes, electricity pricing, and service pricing related to electricity consumption. Mechanisms ensuring domestic gas consumption and principles for transferring fuel prices into electricity prices must also be carefully studied so that regulations attract investment while balancing investor interests with those of the state and the public without waste or group interests.
The Minister of Industry and Trade (MOIT) must also expedite key, urgent projects in the power sector.
Power source projects:
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Chief Executive Officer at Energy Capital Vietnam
2 个月It’s 2025. Proactive was 5 years ago. We’re now in reactive. And it will only continue getting worse. Every obstacle to LNG power will be removed in time. Reactionary government behavior will increase in the months and years ahead.
Phu Quoc Petroleum Operating Company (PQPOC); Vietnam Energy Consulting Ltd. (VEC Ltd.) - Energy Value Chain Solutions and Support for Energy Business Development Challenges
2 个月If I’m not mistaken, these are yearly (or biannual) exercises where the Executive exhorts all involved to achieve deliverables that the underlying regulatory and legal framework doesn’t support. There’s absolutely no self evaluation of the root causes and the why, rather just “stick to the plan”. I would argue that plan was obsolete before it was even approved and more so today with existing geopolitical reality. A former boss used to tell me that the reason we have a plan (which is a theoretical model based on assumptions) is so we know what we are deviating from (which is the messy reality of the real world, economic activity and markets). Eisenhower was famous for saying that no plan survives first contact with the enemy. Let’s take the LNG (gas) to power space as an example. Rather than obsessing about investors, there should be an obsession to fix the functioning of the markets. Just as NT 3&4 struggle to get to COD, and will struggle to dispatch given the fixed/floating nature of thier fuel supply value chain, so will any gas to power value chain not supplied by some managed price domestic gas that is supported by GOV. Forget the plan, Fix the root cause.