Urging rapid implementation of power projects

The Ministry of Industry and Trade has held many meetings with localities, ministries, branches and investors whose power projects have been identified, but progress is slow.

Project withdrawal, if implementation is slow

At the meeting to implement Directive 01/CT-TTg on proactive solutions to ensure sufficient electricity supply for production, business and people's lives during peak periods in 2025 and the period 2026-2030 (Directive 01), Minister of Industry and Trade Nguyen Hong Dien mentioned that "the Government will resolutely revoke any power project investor who fails to comply with the committed schedule".

Clarifying incentives to accelerate the progress of offshore wind power projects, Deputy Minister of Industry and Trade Nguyen Hoang Long said that the Ministry of Industry and Trade will issue breakthrough mechanisms, including minimum contracted electricity output, shortened investor selection process, including the process with large corporations, including 100% state-owned enterprises.

The goal is to achieve a capacity of 6,000 MW of offshore wind power as planned by 2030. However, it should be noted that only approved projects and only investors completed before January 1, 2031 will enjoy special incentive mechanisms.

“The spirit is that both gas and offshore wind power projects considered for licensing during this period must be put into operation and connected to the national grid before December 31, 2030. Otherwise, they will lose the right to enjoy preferential mechanisms and face sanctions and responsibilities,” the Minister of Industry and Trade reminded investors.

The Minister of Industry and Trade also requested the investor of Nhon Trach 3&4 Power Project to resolutely complete the necessary procedures, strive to connect to the grid, and generate commercial electricity in the first quarter, and no later than the second quarter of 2025.

Other LNG power projects that have investors such as Hiep Phuoc Phase I, Quang Ninh, Thai Binh, Quang Trach 2, Hai Lang Phase I, BOT Son My I, BOT Son My II, Bac Lieu, Long An, O Mon 1, 2, 3, 4 are also requested by the Minister of Industry and Trade to urgently complete investment preparation procedures, build a specific roadmap for implementation, and strive to complete and put into operation before 2030.

For three LNG power projects that do not have investors, including Thanh Hoa, Nghe An and Ninh Thuan, localities are required to select investors no later than the first quarter of 2025.

For projects of the National Energy Industry Group (Petrovietnam), it is necessary to promptly sign gas purchase and sale contracts with project investors in the Block B gas chain based on legal regulations and strive to complete the O Mon 3&4 gas power projects as investors.

Vietnam Electricity (EVN) is also required to accelerate the progress to put the power source projects under implementation into operation 6 months or more ahead of schedule. For other power source projects that EVN is implementing in cooperation with foreign countries, if foreign investors cannot implement them, EVN will review its capacity and propose in January 2025 for the Ministry of Industry and Trade to report to the Government for consideration of assigning EVN to invest according to the provisions on special cases in the Electricity Law, effective from February 1, 2025.

Waiting for new power project

According to the 2024 summary report and 2025 plan implementation of the Electricity System and Market Operation Company (NSMO), in 2024, the total new power source nationwide connected to the grid will be 1,588 MW.

In this general picture, EVN – although the main unit providing electricity for the economy – only contributed 360 MW of new power into operation from the Yaly Hydropower Plant expansion.

EVN's list of projects to be energized in 2025 is not only short in number, but also small in capacity. The most obvious is the Hoa Binh Hydropower Expansion Project, which is expected to be energized in the fourth quarter of 2025, with a capacity of 480 MW. Unit 1 of the Quang Trach 1 Power Plant with a scale of 1,400 MW, although it is targeted to be connected to the grid in September 2025, commercial operation of both units is proposed for 2026.

Therefore, EVN proposes that the Prime Minister continue to assign new power source projects for investment, including continuing to invest in the Ninh Thuan Nuclear Power Plant Project.

In the transmission project block, although in 2024, EVN and other units started construction of 172 110-500 kV grid projects and energized 216 110-500 kV grid projects, the investment process still faces many challenges.

The National Power Transmission Corporation (EVNNPT) - the main unit in investing in 220 kV and 500 kV transmission lines, said that the number of projects that EVNNPT started in 2024 was low, only 27/40 projects, equal to 67.5% of the plan assigned by EVN. The number of projects energized in 2024 also only reached 49/76 projects, equal to 64.5% of the assigned plan.

There are also many reasons for the delay. In terms of mechanism, although the 220 kV and 500 kV power grid projects are included in the national planning (Power Plan VIII), the exact construction location and land use area are not determined, so when included in the planning, the provinces only list or determine the location which may not be suitable for the requirements of the scale and transmission lines of the project.

Therefore, the People's Committees of the provinces have not agreed to approve the investment policies of many projects, with the reason that the projects are not suitable for the provincial planning, not suitable for the general planning, zoning planning, urban planning and district-level land use planning...

In addition, for 220 kV and 500 kV transmission line projects passing through two or more provinces, the authority to approve the investment policy is the Prime Minister, so it is necessary to submit to many ministries, branches and localities for opinions, leading to a prolongation of the time to approve the investment policy.

With that reality, it will take a lot of effort from ministries, branches, localities, and businesses to put more new power projects into operation.