Progress in Motion: Energy Plan Gains Momentum with Action on Wheels
Vietnam’s Power Development Plan VIII (PDP8) has been approved, providing an opportunity for the country to achieve its green energy goals and overcome obstacles to deploying renewable energy. The approval of PDP8 has led to the licensing of some renewable energy projects to operate at temporary prices, which is a positive development for renewable electricity schemes to join the grid.
Electricity of Vietnam (EVN) has reported that nine out of 85 transitional renewable energy projects have submitted documents for recognition of commercial operation date (COD), with seven projects/phases completing COD procedures and officially allowed to generate commercial power on the grid. In addition, 63/85 transitional renewable energy projects have submitted documents to negotiate electricity prices and power purchase agreements. The remaining 114MW of Phu My Solar Power Plant was officially recognised for commercial operation on May 30, after waiting for more than two years for the price mechanism for transitional projects.
The plant generates about 520 million kWh/year of electricity, equivalent to the usage of 200,000 households, and helps reduce emissions by about 146,000 tonnes of CO2. The approval of PDP8 has strengthened foreign investor confidence and opportunities to mobilise international green credit for development. The plan also allows for the development of energy storage, with the government aiming to have around 30,600-45,500MW of total energy storage by 2050, including both hydropower and battery storage power facilities.
The PDP8 prioritises renewable energy, particularly offshore wind, in the long term, with the aim of completing the coal phase-out by 2050 and developing renewable energy sources for electricity production vigorously.