Adjusted PDP8: Urgent Solutions for Vietnam’s Power Challenges
Adjusted Power Development Plan VIII: Urgent Solutions Needed to “Resolve” Power Source Challenges
Despite having a clear legal framework and objectives, the on-the-ground implementation of power source projects still faces numerous arising obstacles that require immediate resolution.
Initial Results: A Foundation for Growth
After more than two years of implementing Power Development Plan VIII (PDP8) and one year of the Adjusted PDP8, the Vietnam power system has made significant strides to ensure electricity supply for socio-economic development.
According to the Ministry of Industry and Trade (MOIT) report, in the first 8 months of 2025:
- Consumption Capacity: Reached 54,370 MW.
- Total Installed Capacity: Approximately 87,848 MW.
- Commercial Electricity Output: Increased by 11.1% compared to the same period last year.
Generally, power supply has been guaranteed, even during peak heat waves and holidays.
Notably, renewable energy projects have played a crucial role in supplementing supply, reducing pressure on hydropower and coal thermal power.
- Rooftop Solar: After a period of stagnation, support mechanisms are being reviewed and adjusted for more effective exploitation.
- Onshore Wind: Has contributed to the system, although capacity has not yet reached the expected levels outlined in the plan.
- New Projects: Several power sources have commenced construction or been completed, adding to the national grid.
- Imports: Following the direction of the Government and MOIT, Vietnam Electricity (EVN) and localities have coordinated to import electricity from Laos and China. Several 220 kV and 500 kV connection lines have been completed, diversifying supply—a positive signal given the continuously rising demand in the North, especially during the hot season.
To date, PDP8 and the Adjusted PDP8 have created a long-term development framework, mobilizing social resources and ensuring stable system operation during a period of strong economic growth.
Regulatory and Pricing Milestones
Immediately after Decision 768 was issued, MOIT presided over the drafting and submission of a series of documents to the Government for implementation, including:
- Plan for Implementing Adjusted PDP8.
- Decree No. 56/2025/ND-CP: Guidance on power planning, grid development plans, investment in power projects, and bidding/investor selection (supplemented/amended by Decree No. 100/2025/ND-CP).
- Decree No. 57/2025/ND-CP: Mechanism for Direct Power Purchase Agreements (DPPA) between renewable energy generators and large customers.
- Decree No. 58/2025/ND-CP: Regulations on developing renewable energy and new energy.
Furthermore, MOIT timely approved electricity price frames for various power source types in 2025:
- Decision No. 1313/QD-BCT: Maximum price frame for LNG power is 3,327.42 VND/kWh.
- Decision No. 1198/QD-BCT: Maximum price frame for pumped storage hydropower is 3,457.02 VND/kWh.
- Decision No. 1824/QD-BCT (June 26, 2025): Price frame for offshore wind power.
- Decision No. 988/QD-BCT: Maximum price for solar power (types with and without storage batteries).
- Decision No. 1508/QD-BCT: Maximum price for onshore and nearshore wind power.
The 2030 Vision and Investment Needs
Despite initial results, implementation has encountered both subjective and objective obstacles. Decision No. 768/QD-TTg (April 15, 2025) on the Adjusted PDP8 aims to meet domestic demand for an average GDP growth of approximately 10%/year (2026-2030) and 7.5%/year (2031-2050).
Power Source Structure for 2030:
| No. | Power Source | Capacity 2030 (MW) | Proportion (%) |
| 1 | Coal Power | 31,055 | 13.1 – 16.9 |
| 2 | Domestic Gas Power | 10,861 – 14,930 | 5.9 – 6.3 |
| 3 | LNG Thermal Power | 22,524 | 19.5 – 12.3* |
| 4 | Hydropower | 33,294 – 34,667 | 14.7 – 18.2 |
| 5 | Onshore/Nearshore Wind | 26,066 – 38,029 | 14.2 – 16.1 |
| 6 | Offshore Wind | 6,000 | – |
| 7 | Solar Power (all types) | 46,459 – 73,416 | 25.3 – 31.1 |
| 8 | Biomass Power | 1,523 – 2,699 | – |
| 9 | Waste-to-Energy | 1,440 – 2,137 | – |
| 10 | Geothermal & New Energy | 45 | – |
| 11 | Storage Sources | 10,000 – 16,300 | 5.5 – 6.9 |
| 12 | Flexible Power Sources | 2,000 – 3,000 | 1.1 – 1.3 |
| 13 | Pumped Storage Hydro | 2,400 – 6,000 | – |
| 14 | Electricity Imports | 9,360 – 12,100 | 4.0 – 5.1 |
| 15 | Nuclear Power (2030-2035) | 4,000 – 6,400 | – |
(Note on Item 3: The proportion range reflects the variable nature of the mix scenarios).
Capital Requirements:
Total investment capital for power source development in the 2025-2030 period is approximately USD 118.2 billion, equivalent to USD 21.5 billion per year.
Challenges and Solutions
According to enterprises and experts, while capital is difficult, the primary bottlenecks stem from policy mechanisms.
- Planning Law: Lacks flexibility and timely adjustment mechanisms.
- Investment & Bidding Laws: Do not yet create a favorable corridor for rapid investor selection.
- Land Law: Slow revision causes congestion in allocating land funds for energy projects.
- New Technologies: Vietnam lacks experience and a clear legal basis for Offshore Wind and Nuclear Power, causing hesitation among international credit institutions and investors.
Three Critical Areas Facing Difficulties:
- LNG Thermal Power:
- Struggling with pricing mechanisms and contracts. There are no regulations on the price of mixed gas (domestic + imported LNG).
- Lack of a mechanism for long-term minimum committed output (Qc) in Power Purchase Agreements (PPA). This makes it difficult for investors and EVN to negotiate, raise capital, and calculate operational plans.
- Offshore Wind Power:
- Bottlenecks regarding survey rights for enterprises.
- Regulations related to Marine Spatial Planning and survey scale are unclear.
- Solar Power (Concentrated & Rooftop):
- Concentrated: Localities must survey and update zoning/general/provincial plans before implementation. Approvals for investment policies are slow; bidding times are prolonged.
- Rooftop Solar in Industrial Zones: Issues regarding agreements between investors and grid owners within the zones (technical and benefit-sharing conflicts).
MOIT’s Assessment & Recommendations
At the National Conference reviewing Decision 768/QD-TTg, the Minister of Industry and Trade admitted that the implementation of the Adjusted PDP8, especially key projects, remains very limited.
- Objective Causes: Focus on administrative unit arrangement and amending many related laws/decrees slowed down implementation.
- Subjective Causes: Lack of proactivity and decisiveness from various levels and agencies.
Decentralization: Offshore wind and nuclear power are under Government authority; the rest are local responsibilities. However, many projects have not started or have very low implementation rates. Localities mainly handle planning decisions and investor selection (except for offshore wind/nuclear), while Ministries handle mechanisms/policies.
Proposed Solutions:
To resolve these difficulties, MOIT and EVN have made several key recommendations:
- Legislative: Urgently amend the Laws on Planning, Investment, Land, and Bidding towards uniformity and reduced red tape. Alternatively, the Government could issue a thematic resolution to handle urgent obstacles, creating a temporary legal corridor for key projects.
- For LNG: Build a clear risk-sharing mechanism, increase long-term minimum contractual output (Qc) to meet practical requirements, and ensure loan arrangability. Consider mechanisms for investors to arrange foreign currency for long-term LNG import contracts.
- For Offshore Wind: Besides perfecting the legal framework, increase the capacity scale for the 2031-2035 period and expand the range of eligible investors. Decentralize investor selection to localities, and perfect grid connection and competitive pricing mechanisms.
Conclusion
The Adjusted PDP8, together with Resolution No. 70-NQ/TW (August 20, 2025) on national energy security to 2030 (vision to 2045), has opened a new era for Vietnam’s energy sector. However, achieving these goals requires the joint effort of ministries, sectors, and localities to remove legal bottlenecks, ensuring sufficient electricity for socio-economic development towards a sustainable, green, and modern future.
