Vietnam Aims for $18 Billion Annual Income from Power Sector by 2035

Wanna know what's cooking in Vietnam's power sector? Get ready for some serious actions! This badass nation is gearing up to invest a whopping $16-$18 billion annualy until 2035, and that's just the beginning. Why? You ask? To make Vietnam one of the top players in ASEAN for electricity reliability and ease of access!

That's right! The Ministry of Industry and Trade has greenlit the revised National Power Development Plan (PDP VIII) under Decision No. 768/QĐ-TTg, dated April 15. The ambitious plan sets some seriously high targets to ensure national energy security and meet economic growth demands.

Vietnam's aiming to supply enough juice to support a mind-blowing average GDP growth of 10% per year from 2026 to 2030, and 7.5% per year from 2031 to 2050. By 2030, they're expecting commercial electricity consumption to be between 500.4 - 557.8 billion kWh, and by 2050, that number climbs to an impressive 1,237.7 - 1,375.1 billion kWh.

But that's not all! The plan also places a heavy emphasis on reliability and resilience. Vietnam's targeting N-1 reliability standards for critical load areas and N-2 for highly critical zones and nuclear power facilities by 2030. In English, that means the power grid can handle the failure of one or even two critical components without breaking a sweat!

Vietnam's not messing around! They're aiming for the top! They're shooting for major improvements in electricity reliability and access by leveraging infrastructure modernization, integrating renewable energy, and enacting regulatory reforms.

For instance, they're expanding their renewable capacity to account for 46.5% of the energy mix by 2030, which includes solar, wind, and biomass. They're also investing in battery energy storage systems (BESS) to keep the grid running smoothly near solar and wind farms, and load centers.

But wait, there's more! Vietnam's also focusing on grid expansion, smart grid development, and cross-border exports to Singapore/Malaysia and Cambodia to reduce domestic grid strain. On the regulatory front, they're implementing Direct Power Purchase Agreements (DPPA) and developer-led transmission initiatives to accelerate upgrades.

To top it all off, Vietnam's investing in R&D centers for renewable energy, climate resilience, and nuclear technology, and skill development programs to support emerging energy sectors like offshore wind and battery energy storage systems.

Đăk Nông Power Transmission staff inspect equipment at the 500kV Đăk Nông substation. - VNA/VNS Photo Huy Hùng

In short, this ain't your grandma's energy plan! It's packin' a punch with ambitious targets, innovative strategies, and awe-inspiring investments to secure Vietnam's place as a powerhouse in South East Asia!

The revised National Power Development Plan (PDP VIII) of Vietnam, announced under Decision No. 768/QĐ-TTg, aims to employ artificial intelligence (AI) in updates for enhancing the reliability and resilience of the power grid.

2.In the updated PDP VIII, Vietnam targets to trade electricity with Singapore/Malaysia and Cambodia, as part of its strategy to reduce domestic grid strain and boost energy trade.

PDP VIII includes a focus on upgrading existing substations, such as the 500kV Đăk Nòng substation, to ensure the efficient distribution of energy across the nation.
As a part of their strategy for energy security, Vietnam plans to invest in sports infrastructure and training programs for developing human resources in emerging energy sectors like offshore wind and battery energy storage systems (BESS).
With the National Power Development Plan (PDP VIII), Vietnam aims to bring energy subsidies and tariffs more in line with international standards, promoting competitive energy trade while ensuring fair pricing for citizens.