4C Offshore Empowering Intelligence

Vietnam's PDP 8 finally approved

4C Offshore | Kaitlin Walsh
By: Kaitlin Walsh 16/05/2023 Ministry of Industry and Trade Vietnam

The Prime Minister of Vietnam has approved the national electricity planning period 2021 - 2030, with a vision to 2050 (Power Development Plan VIII or PDP 8).  The plan involves new energy sources, smart grid development, and a 6 GW offshore wind target. A previous draft of the plan included 7 GW of offshore wind.

The plan sets the goal of firmly ensuring national energy security, meeting the requirements of socio-economic development and industrialisation, and modernising the country. In addition, it aims to contribute to scientific and technological development, helping to form a strong, innovative renewable energy industry.

PDP 8 plans to develop power sources and transmission grids at voltages of 220 kV or higher, as well as supporting the renewables industry and services in Vietnam, including works connecting the power grid with neighbouring countries.

To help ensure national energy security, the plan outlines the need to provide sufficient reliable energy, and plans to meet the goal of socio-economic development with an average GDP growth of 7% a year in the 2021 - 2030 period, and 6.5% - 7.5% in the 2031 - 2050 period.

By 2030, the goal is for Vietnam's to be among the top four most reliable power supplies in ASEAN (the Association of Southeast Asian Nations), and for its electricity access index to be in the top three. PDP 8 targets peak greenhouse gas emissions of no more than 170 million tons by 2030, and anticipates the construction of a smart grid.

In terms of renewables, it is expected that, by 2030, two inter-regional renewable energy industrial and service centres will be formed, including: electricity production, transmission and consumption; and renewable energy equipment manufacturing, construction and installation related services. There are plans to build these energy industry services in areas with great potential, such as the North and South Central, where conditions for renewable energy projects are more favourable.

PDP 8 also includes 5-10 GW of energy exports by 2030. The government estimates the total investment in development of power sources and transmission grids at around USD 134.7 billion in the 2021 - 2030 period, and USD 399.2 - 523.1 billion in the 2031 - 2050 period.

The previous plan, PDP 7, was last updated in 2016, with PDP 8 being long awaited and heavily delayed. As such, international investors have shown increasingly little certainty in the market since the feed-in-tariff mechanism expired in 2021. This news may increase confidence.

Vietnam's technical potential is vast - with up to 600 GW of offshore wind technically possible.


ForeSEE Premium, our most popular subscription, gives you full access to use the ForeSEE WebApp which includes exclusive offshore wind, transmission and vessel reports, news and downloads.

Request a 30 minute Demo

Trending News!