The Standing Government has instructed the Ministry of Industry and Trade to diversify the country’s power generation mix while ensuring that baseload power accounts for more than 50% of the overall energy mix. In particular, it emphasized that the implementation schedules for LNG-fired power plants and offshore wind power projects must not be postponed, contrary to what had been proposed in the draft plan.
Taking into account the potential for electricity exports
The Government Office has issued a notice conveying the Standing Government’s conclusions on the revised National Power Development Plan for the 2021–2030 period, with a vision to 2050 (Revised Power Development Plan VIII).
Accordingly, the Standing Government instructed the Ministry of Industry and Trade to proactively work with project developers and foreign investors to identify solutions for resolving obstacles facing power projects, ensuring that implementation schedules are maintained and resources are not wasted due to delays. The Ministry was also directed to address outstanding policy issues related to gas-fired power development, particularly those concerning the conversion of fuel prices into electricity prices and the minimum long-term contracted electricity output (Qc).
Regarding power generation development, the Standing Government instructed the Ministry of Industry and Trade to develop a diversified power generation portfolio, including gas-fired power, hydropower, coal-fired power, biomass, waste-to-energy, wind power, renewable energy, and hydrogen-based power. At the same time, the Ministry must ensure a reliable baseload power supply, with baseload generation accounting for more than 50% of the total power generation mix. In particular, the Government emphasized the need to increase the share of LNG-fired power while correspondingly reducing the share of coal-fired power.
The Revised Power Development Plan VIII should be implemented in a manner that encourages the development of renewable energy, particularly self-generated and self-consumed power, rooftop solar power, and the direct power purchase agreement (DPPA) mechanism between participants in the economy. At the same time, the revised plan should take into account the potential for electricity exports to other ASEAN countries.
No Delay to the Implementation Schedule for Offshore Wind Power Projects
Regarding power grid development, the Standing Government instructed the Ministry of Industry and Trade to ensure that grid expansion is aligned with the development of new power generation sources. The Ministry is required to incorporate coastal transmission network upgrades into the Revised Power Development Plan VIII and ensure that the transmission system is adequately designed to evacuate electricity generated by offshore wind power projects.
The Revised Power Development Plan VIII should be adjusted to include electricity transmission projects serving power exports to Singapore and Malaysia. It should also study the addition of transmission lines to support electricity exports to Cambodia.