The Ministry of Industry and Trade (MoIT) has proposed removing 14,120MW of thermal power from the draft of the National Power Development Plan VIII to match the government’s net-zero targets.
In the document submitted to the government on July 25, the MoIT proposed to decrease the contribution of thermal power from 25-31 per cent in 2030 to between 9.7 and 13.2 per cent in 2045.
The reduction matches Vietnam’s commitments that were made at COP26. According to the proposed list by the MoIT, 8,420MW of this will come from thermal power projects that the government has assigned to state-owned groups for development.
Notably, the MoIT asked to remove 3,600MW from the complex of Quang Trach II, Tan Phuoc I, and Tan Phuoc II that were invested in by Electricity of Vietnam. The other projects combine 1,980MW from Long Phu III financed by PetroVietnam, 2,840MW from the complex of Cam Pha III, Haiphong III, and Quynh Lap 1 funded by Vinacomin, and 4,500MW from the complex of Quynh Lap II, Vung Ang III, and Long Phu II, which follow the build-operate-transfer (BOT) model. Quang Ninh III thermal power plant project with a capacity of 1,200MW has yet to finalise its investor.
Explaining the reason for removing these above projects from the draft National Power Development Plan VIII, the MoIT noted in the document that the risk of legal action relating to these projects is nearly zero because they are assigned to state-owned groups. In addition, the cost of developing these projects is not significant.
In terms of the three BOT projects, the investors have already said that they want to withdraw from the Vung Ang III and Long Phu II projects.
Regarding the Quynh Lap II plant, the government assigned POSCO Energy to study the plans to develop the project with the usage of coal fuel. However, POSCO has proposed the use of LNG fuel for the project.
After receiving the MoIT’s proposal, the government has asked ministries and relevant authorities to voice their opinions.
The MoIT has now submitted the draft plan to the prime minister for approval for the third time. The appraisal council has approved the draft, but it is still awaiting the final decision from the PM.