Decision 500/QD-TTg was issued on 15 May 2023 by the Government and officially approved the Power Development Plan VIII (PDP 8).
PDP 8 represents Vietnam’s clearest commitment towards decarbonization since it announced its net zero ambitions at the COP26 Summit in October 2021. This development promises to present new opportunities for investments in the country’s energy sector, particularly for green projects. The immediate takeaways of PDP 8 are presented below:
- Significant expansion of power output capacity (6.16x to 7.51x) planned for 2050.
- Major shift in energy sources toward renewables and completely eliminating coal thermal power. No limit on capacity for self-consumption for (including rooftop solar) and renewable energy used to generate new energy.
- Big capital spending budgeted to develop power sources and power grids to minimize curtailment issues.
Laurent Nguyen - Partner, Financial advisory