The Prime Minister has recently issued the long-awaited Decision 500, approving the national power development plan (“PDP8”). Decision 500 took effect on May 15, 2023. It covers a term of 27 years (2023 to 2050). It provides general policies, objectives, plans for development of power generation and transmission lines, land use, list of important projects, and a general road map to implement PDP8. This Article is a highlight and analysis of general policies set out in PDP8.
Background and general observations. In 2021, the Ministry of Industry and Trade (“MOIT”) submitted its proposal1 and a draft of the national power development plan (“2021 Version”) for the period from 2020 to 2030 (with a vision up to 2050) to the Prime Minister for his approval.
The 2021 Version contained 1,000 pages and 19 Chapters that provided assessments, plans for several important industry matters (eg, performance review, forecast, power generation, development and diversion of various power sources, renewable energy, LNG, transmission lines, requirements on investment capital, etc.). The 2021 Version was not approved during the then Prime Minister’s term. The new Prime Minister continued to consider new drafts of PDP8. The final draft was dated May 14, 2023 (“2023 Version”)2. The 2023 Version and the 2021 Version are vastly different. For example, several energy projects listed in the 2021 Version were removed from the 2023 Version.
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For further information, please contact:
Nguyen Huu Hoai, Partner, Russin & Vecchi
NHHoai@russinvecchi.com.vn
