On January 3, 2025, the Prime Minister of Vietnam issued Directive No. 01/CT-TTg regarding proactive solutions for electricity supply.

On January 3, 2025, the Prime Minister of Vietnam issued Directive No. 01/CT-TTg regarding proactive solutions for electricity supply.

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:

  • Direct localities to immediately select investors for power source projects listed in PDP8 that currently lack investors, such as LNG Nghi Son, LNG Quynh Lap, LNG Ca Na, etc. Q2 expects completion in 2025; the investment progress should be accelerated by Q3 of 2028.
  • For projects expected to be completed by 2025 (such as Nam Cum Hydro Power Plant No. 4, expanded Hoa Binh Hydropower Plant, Nhon Trach Power Plants No. 3 & No. 4): The MOIT, along with provincial People's Committees, should urge investors to expedite the commissioning three to six months earlier; investors are required to commit to specific timelines for operation by January 20, 2025.
  • For projects expected to be completed between 2026 and 2030, including ongoing constructions (such as Na Duong II), the MOIT, along with provincial authorities, should urge investors to finalize procedures promptly for groundbreaking, accelerate project timelines, and aim to complete one or two years ahead of schedule compared to the original plans.
  • Research proposals should be submitted to the relevant authorities regarding the mechanisms or policies needed to ensure electricity supply, especially from 2026 to 2028.
  • The focus should also be directed toward completing investments in the Ninh Thuan Nuclear Power Plant within five years.


Power Transmission System:

  • According to PDP8, direct investment studies for transmission projects enhance regional connections and improve operational safety and stability for national power systems. This is especially true for transmission projects serving capacity releases from power plants such as Nhon Trach Nos. 3 and 4.
  • Expedite the completion of construction for the Lao Cai - Vinh Yen 500 kV line by 2025; research proposals for investment initiatives regarding transmission lines from hydropower plants in Laos's northern province; and enhance imports from Laos as per the signed agreements.


Encourage creativity in implementing energy-saving measures:

  • Simultaneously, the Ministry of Industry & Trade must implement synchronized solutions for energy savings per Directive No. 20/CT-TTg, dated June 8, 2023, regarding increased energy savings from 2023 to 2025 onwards; guide innovative practices to achieve maximum efficiency; and focus on communicating support initiatives that enable citizens and businesses to install self-produced rooftop solar panels per Decree No. 135/2024/ND-CP, dated October 22, 2024, promoting self-consumption solar energy and reducing pressure on the national grid.
  • Accelerate direct trading per Decree No. 80/2024/ND-CP, dated July 3, 2024, which regulates direct trading between renewable energy producers and large consumers.
  • The Minister of Natural Resources and Environment directs functional units to cooperate closely with the Ministry of Industry and Trade, presenting proposals to adjust operational procedures regarding reservoirs along the Red River basin. This ensures flexible operations that match weather patterns while accommodating constraints related to electric supply, especially in northern regions, until 2030, to be completed by February 2025.


Ensure that no fuel shortages occur at thermal power plants:

  • The Chairman and General Director at EVN focus on quickly implementing major power source projects like Quang Trach I and II, expanded Hoa Binh, and expanded Tri An; propose investments in constructing transmission lines according to Power Plan VIII, particularly those that facilitate capacity release from Nhon Trach plants; expedite construction aiming to complete the Lao Cai – Vinh Yen line within six months (by September 2025), facilitating northern hydropower capacity release and potential imports from China if needed; focus on finishing the Monsoon – Thach My line by January 2025; and propose investments in constructing lines to transmit power from Laos into northern provinces, enhancing imports based on agreements signed between both nations.
  • Direct all managed plants efficiently, preparing operations to maximize generation capacity during peak months throughout the year. Following approved reservoir operation protocols, ensure that thermal plants do not experience fuel shortages (coal, gas, or oil) and that hydropower reservoirs do not experience water shortages.
  • The Chairman and General Director of EVN proactively collaborates with provincial authorities, ensuring the effective implementation of energy-saving strategies while directing local utilities to adhere to the regulations outlined in Decree 135/2024/ND-CP, which provides guidance enabling citizens to install rooftop solar panels conveniently.


Maximize facilitation efforts enabling citizens and businesses to utilize rooftop solar:

  • The Chairman of the provincial People's Committees instructs local functional agencies to closely coordinate and effectively support EVN, PVN, TKV, and project developers. Under their authority, necessary content concerning investments in electrical infrastructure that comply with land use regulations is executed. Particularly significant urgent projects ensure a reliable supply in northern regions.
  • Direct practical energy-saving implementations across locales, especially in public lighting, advertising illumination, and outdoor decorations. Apply optimal management solutions and innovative solar energy technologies. Promote the public advertising of outdoor illuminated spaces that focus on communication and guidance. According to Decree 135/2024/N?-CP, dated October 22, 2024, facilitating the installation of rooftop solar panels by citizens and businesses. This will encourage solar self-consumption and alleviate pressures on the national grid.


Link source: https://baochinhphu.vn/thu-tuong-chi-thi-chu-dong-giai-phap-bao-dam-cung-ung-du-dien-phuc-vu-san-xuat-kinh-doanh-va-doi-song-nhan-dan-10225010316004916.htm

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David Lewis

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.

Daniel (Dan) Hamer

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.

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