Vietnam Revises PDP8: Key Targets of the National Power Development Plan

Vietnam’s government has approved the adjustment of the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (PDP8). The revision sets out a bolder emphasis on renewable energy through significant changes to the power source structure and exploitation orientation, aiming to support the targeted GDP growth of 8 percent in 2025 and future double-digit growth from 2026 to 2030.

Deputy Prime Minister Bui Thanh Son has signed Decision No. 768/QD-TTg (“Decision 768”) dated April 15, 2025, of the Prime Minister approving the adjustment to the PDP8. The decision clearly outlines the scope it encompasses, which includes:

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• Planning for the development of power sources and transmission grids at voltage levels of 220 kV or higher; and
• Industry and services on renewable energy and new energy in Vietnam for the 2021-2030 period, with a vision to 2050, including grid connection projects with neighboring countries.

The article examines Vietnam’s revised PDP8, highlighting key targets and strategies for increasing renewable energy capacity and ensuring sufficient electricity supply to support the nation’s economic growth through 2030 and beyond.

Commercial electricity capacity targets

According to Decision 768, Vietnam’s power planning primarily aims to provide sufficient electricity for domestic demand, aligning with the socio-economic development target of an average GDP growth rate of about 10 percent per year during the period from 2026 to 2030, and around 7.5 percent per year from 2031 to 2050.

Revised PDP8’s power restructuring goals

Just energy transition

Renewable energy sources (excluding hydropower) will be significantly developed for electricity production, aiming for a share of approximately 28 percent to 36 percent by 2030. By that year, Vietnam also intends for half of its office buildings and residences to utilize self-generated rooftop solar power for immediate use.

By 2050, this share is expected to rise to 74-75 percent. A smart grid system will be built and designed to integrate and operate large-scale renewable energy sources safely and effectively.

Growth of industrial ecosystems and renewable energy services

The revised PDP8 projects that by 2030, two inter-regional centers for industrial and renewable energy services will be established. These centers will encompass electricity production, transmission, and consumption, alongside the renewable energy equipment manufacturing sector, construction, installation, and related services.

Through the establishment of these hubs, Vietnam can create renewable energy industrial ecosystems in regions with huge potential, provided conditions are favorable. Additionally, the country will focus on developing renewable energy sources and producing new energy for export to Singapore, Malaysia, and other regional partners.

By 2035, electricity export capacity is expected to scale to approximately 5,000 to 10,000 MW, potentially exceeding this amount depending on the importer’s needs while ensuring high economic efficiency, domestic energy security, and national defense security.

Also read: Vietnam Decree on Direct Power Purchase Agreements: Key Details Here

Renewable energy development

Power source planning

Concerning the development plan for power sources, Decision 768 established a clear objective to enhance the growth of renewable energy sources and to steadily increase the share of renewable energy in the overall structure of power sources and electricity generation, specifically as follows:

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• Wind power: Vietnam will prioritize the allocation of newly planned wind power sources in localities with good wind potential and challenging economic conditions. The offshore wind power capacity for new energy production is estimated to be around 15,000 MW by 2035 and approximately 240,000 MW by 2050.
• Solar power: The solar energy potential of Vietnam is approximately 963,000 MW, comprising ground-based (837,400 MW), water surface (77,400 MW), and rooftop solar energy (48,200 MW).
• Biomass and other power sources: Vietnam aims to foster biomass energy development and generate electricity from waste. This initiative will utilize agricultural and forestry byproducts, support reforestation, and tackle environmental challenges in the country.

Plan execution under revised PDP8

The goal will be achieved through the development of onshore, nearshore, and offshore wind power, and solar power, especially water surface solar power, in accordance with the following aspects, including:

• Absorption capacity of the system;
• Capacity to release power of the grid; and
• Electricity costs and reasonable transmission costs relate to operational safety and efficiency of the power system, maximizing the use of existing power grid infrastructure.

The focus will be on advancing wind and solar energy, including rooftop solar installations on homes, shopping centers, construction sites, factory rooftops, and industrial parks, for on-site use without connecting or selling electricity to the national grid.

The advancement of concentrated solar power will be accompanied by the installation of storage batteries, providing at least 10 percent of capacity for a duration of 2 hours.

Also read: Vietnam Rooftop Solar Power: Draft Decree Opens Up Investor Prospects

PDP8 sets to maximize the potential of hydropower sources

Decision 768 explicitly sets a goal to maximize the economic and technical potential of hydropower sources, with Vietnam’s total maximum capacity estimated at around 40,000 MW. This will be pursued while ensuring environmental protection, forest preservation, and water security. The strategy includes selectively expanding existing hydropower facilities to increase reserve capacity and leveraging hydropower from irrigation lakes and reservoirs to fully utilize these resources.

By 2030, the total capacity from hydropower sources, including small hydropower, is projected to reach between 33,294 and 34,667 MW, with a long-term target of 40,624 MW by 2050. Additionally, the development of pumped-storage hydropower plants is planned, aiming for a capacity of approximately 2,400 to 6,000 MW by 2030.

Power storage

In terms of power storage, the goal is to develop pumped-storage hydropower plants with capacities ranging from 2,400 to 6,000 MW by 2030. By 2050, this capacity is projected to grow to between 20,691 and 21,327 MW, enabling effective load regulation, reserve capacity management, and integration of large-scale renewable energy sources. Additionally, storage batteries will be developed to meet system needs, working in tandem with renewable energy sources, and will be positioned near wind and solar power installations or at load centers within the power system.

By 2030, the anticipated battery storage capacity is expected to be between 10,000 and 16,300 MW. Further projections estimate that by 2050, this capacity could rise to 95,983 to 96,120 MW, ensuring alignment with an increasing share of renewable energy.

Furthermore, there will be a strong emphasis on encouraging the development of cogeneration power plants, power plants utilizing residual heat, blast furnace gas, and by-products from industrial processes.

Operating Ninh Thuan Nuclear Power Plants 1 and 2

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The development of nuclear power sources will proceed in line with the guidelines established by the National Assembly in Resolution No. 174/2024/QH15, dated November 30, 2024, and Resolution No. 189/2025/QH15, dated February 19, 2025. These resolutions focus on special mechanisms and policies to support investment in the construction of the Ninh Thuan Nuclear Power Project, as outlined in Directive No. 01/CT-TTg from the Prime Minister, dated January 3, 2025.

Between 2030 and 2035, Ninh Thuan Nuclear Power Plants 1 and 2 are set to commence operations, with a total capacity ranging from 4,000 to 6,400 MW. By 2050, the energy system will require an additional 8,000 MW of nuclear power to meet base load demands, with the potential for further increases based on future needs.

Trajectory for thermal power

Reducing dependence on coal-fired thermal power

Vietnam will continue to implement projects already in the planning stages and currently under construction until 2030. There is an orientation to convert fuel to biomass or ammonia for plants that have been in operation for 20 years, provided that the cost is suitable. Plants with a lifespan exceeding 40 years will cease operations if the fuel cannot be converted.

Gas-fired thermal power

Vietnam will prioritize maximizing the utilization of domestic gas for electricity generation. If domestic gas production declines, it will be supplemented with natural gas or LNG. Projects will be developed using LNG, along with synchronous LNG import infrastructure that is appropriately scaled and employs modern technology. A roadmap will be implemented to transition to hydrogen fuel once the technology is commercially viable and cost-effective.

Flexible power sources

The country aims to create adaptable power sources that manage load and ensure the power system can integrate large renewable energy sources. By 2030, the development goal is between 2,000 and 3,000 MW. For 2050, the target extends to 21,333 to 38,641 MW.

Promoting power trade

Imports

As per the revised PDP8, Vietnam will facilitate effective connections and electricity exchanges with neighboring countries, safeguard the interests of all parties involved, and enhance the safety of the power system.

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Furthermore, it will encourage electricity imports from Southeast Asian nations (ASEAN) and the Mekong Sub-region (GMS), which have hydropower resources. The country will invest in and utilize foreign electricity sources to meet domestic demand. By 2030, Vietnam plans to import approximately 9,360 to 12,100 MW from Laos in accordance with the agreement between both governments and optimally utilize import capacity based on the connection conditions with China at a reasonable scale. The target for 2050 is to import around 14,688 MW. If conditions are conducive and prices are advantageous, there may be opportunities to increase the maximum scale or expedite the timing for importing electricity from Laos to the northern region.

Exports

The focus will be on expanding renewable energy sources for export. By 2030, there is an aim to raise electricity exports to Cambodia to about 400 MW. It is anticipated that by 2035, electricity export capacity to Singapore, Malaysia, and other regional partners will reach approximately 5,000 to 10,000 MW, maintaining a level of 10,000 MW until 2050, with potential increases depending on the importing party’s needs.

Conclusion

Vietnam’s revised PDP8 highlights a strong commitment to renewable energy and sustainable growth. With ambitious targets for electricity production and capacity expansion, alongside infrastructure enhancements, the plan aims to ensure energy security and support economic development through 2030 and beyond. This strategic focus positions Vietnam to lead in the regional energy landscape while promoting a greener future.

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