Vietnam’s Power Development Master Plan for 2021-2030 with a vision to 2045 (PDP8), was expected to be signed off at the end of March during the last days of Prime Minister Nguyen Xuan Phuc’s administration, but it hit an unexpected delay. Rather than being a setback, however, this delay can be an opportunity for Vietnam’s policymakers to reset and improve market structures, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
“The past 12 months have been a period of intense activity for Vietnam’s power sector. The planning process surrounding PDP8 has dominated headlines as project sponsors scoured the country to confirm business partners, project sites, and potential allies in advance of a sign off that was expected at the end of March,” says the report’s author IEEFA Director of Energy Finance Studies for Asia, Melissa Brown.
“The intensity of the lobbying process is a fair reflection of the scale of the business opportunities and the expectation that PDP8 will set Vietnam’s power development program for the next 20 years.
“Vietnam remains South East Asia’s most attractive energy growth market, with 68GW of new capacity expected to be added to the system between now and 2030 under a base case scenario.”