Vietnam's latest draft National Power Development Plan for the 2021-2030 period, with a vision to 2045 (PDP VIII) has made drastic reductions of CO2 emissions with no new coal-fired power plants to be built in the planning period, and with the switch from coal and natural gas to biomass, ammonia, and hydrogen, according to Deputy Minister of Industry and Trade Dang Hoang An.

In his report at a virtual conference with localities on April 16 on the PDP VIII, the deputy minister said that compared with previous drafts, this one also makes remarkable changes to the structure of energy sources and the designation of power development space, which helps reduce social investment capital and save $13 billion for development of power transmission lines.

The total capacity of power generation sources is expected to reach 146,000MW by 2030, down about 35,000MW compared to the version submitted on March 26, 2021. The peak capacity in 2030 is estimated at about 93,000MW.

Being the first national sector planning to be implemented in accordance with provisions of the Law on Planning in 2017, the PDP VIII has continued to be revised, supplemented, and updated many times since the first draft was submitted to the prime minister in March 2021.

In particular, the premier has instructed the Ministry of Industry and Trade to revise the draft based on Vietnam’s commitment to emission reductions at the COP26 and requirements for the development of green and circular economy.

Deputy Prime Minister Le Van Thanh has held nearly 30 meetings and working sessions with the industry ministry, relevant ministries, sectors, agencies; experts and scientists on the plan.

Addressing the conference, Thanh said the latest draft PDP VIII had addressed shortcomings of the PDP VII.

He underlined that the draft had outlined a roadmap to cut coal-fired electricity to just 9.6 per cent of total capacity by 2045, while the share of wind and solar power is raised to 50.7 per cent, ensuring Vietnam’s commitments to energy transformation.

Thanh requested the industry ministry to urgently study opinions to finalise the draft PDP VIII for approval by the State Appraisal Council before submitting it to the prime minister for adoption in April 2022.