Policy Note – Decentralized Renewable Energy Broke Vietnam’s Power Planning Logic


The first draft of the Ministry of Industry and Trade on the National Power Development Plan for 2021 – 2030 (PDP8) sets out the development direction of Vietnam’s electricity industry in the next ten years with a vision to 2045.

Focused on developing gas-fired power, the draft reuses a renewable energy development strategy elaborated six years ago. That strategy was ambitious then but is now outdated by an ongoing solar and wind boom. Within the next decade, projections of CO2 and PM2.5 emissions from the power sector will double.

Policymakers need a coherent strategy about rooftop PV, floating PV, offshore wind, electricity storage, grid expansion financing, production capacity procurement with auctions, transport electrification, and long-term climate policy options. The current draft PDP8 study is short on these questions. Beyond the socio-economic plan, the PDP should coordinate with the marine and transportation plans.

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