Legal Update March 2020 MOIT’s Latest Proposals on Vietnam Wind Power Master Plans On 19 March 2020, the Ministry of Industry and Trade ( MOIT) submitted Report No. 1931/BCT-DL (Report 1931) to the Prime Minister of Vietnam (Prime Minister) for consideration of supplementing wind power projects (WPPs) to Vietnam’s power development plan (PDP). In Report 1931, MOIT highlights numerous issues as set out below. 1 Criteria for supplementation of WPPs to the PDP Based upon the support mechanisms for WPPs, the MOIT has identified the following main criteria to appraise and approve the supplementation of WPPs to the PDP: • advantages of the connection plan for the national electricity system; • wind potential at the proposed area; • suitability with the PDP and local land use plan; • effective land use; and • financial capacity and experience of investors. 2 Updates on supplementation of WPPs to the PDP (1) So far, the total capacity of WPPs that have already been supplemented to the PDP has reached 4,800MW, with the expected operation date by 2021. The majority of those projects are in Southwest and South Central of Vietnam. However, only 9 WPPs have come into operation with a capacity of 350MW. Solicitors & Barristers
22
Embed
MOIT’s Latest Proposals on Vietnam Wind Power Master Plans
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Legal Update
March 2020
MOIT’s Latest Proposals on
Vietnam Wind Power Master Plans
On 19 March 2020, the Ministry of Industry and Trade (MOIT) submitted Report No. 1931/BCT-DL
(Report 1931) to the Prime Minister of Vietnam (Prime Minister) for consideration of supplementing
wind power projects (WPPs) to Vietnam’s power development plan (PDP).
In Report 1931, MOIT highlights numerous issues as set out below.
1 Criteria for supplementation of WPPs to the PDP
Based upon the support mechanisms for WPPs, the MOIT has identified the following main
criteria to appraise and approve the supplementation of WPPs to the PDP:
• advantages of the connection plan for the national electricity system;
• wind potential at the proposed area;
• suitability with the PDP and local land use plan;
• effective land use; and
• financial capacity and experience of investors.
2 Updates on supplementation of WPPs to the PDP
(1) So far, the total capacity of WPPs that have already been supplemented to the PDP has
reached 4,800MW, with the expected operation date by 2021. The majority of those
projects are in Southwest and South Central of Vietnam. However, only 9 WPPs have
come into operation with a capacity of 350MW.
Solicitors & Barristers
Lexcomm Vietnam LLC Legal Update | March 2020
2
(2) Until 2025, according to the revised Master Plan VII, the capacity of wind power needed
to supplement to the PDP is expected to be:
• base case: 6,030MW; and
• high case:1 11,630MW.
As 4,800MW has been added to the PDP, a further of approximately 1,230MW and
6,830MW will need to have been added to the PDP for a base case and a high case,
respectively, by 2025.
(3) In light of the priority given to wind and solar power under the Politburo’s Resolution
No. 55-NQ/TW on Vietnam’s strategic orientations for energy development through
2030 with a vision to 2045, MOIT urges to stimulate the growth of wind power.
Furthermore, there exists the risk of temporary electricity shortage (from 2021 to 2024),
together with the fact that significant power sources continue to be behind schedule or
have their schedules undetermined, loads may increase, and climatic conditions may be
unfavourable. Hence, MOIT proposes to adopt the high-case plan for wind power
development.
(4) By 15 March 2020, MOIT had received proposals by provincial people’s committees to
add 250 WPPs with a total capacity of 45,000MW in five geographical areas. For further
details, please see Appendix 1.
3 Regional grid responsiveness
According to calculations made by the Institute of Energy in February 2020, the responsiveness
of power grid in different Vietnamese regions until 2025 is as follows:
(1) North Central
(a) In general, the electricity system in this area has basically met the need to relieve
the capacity of local power sources in normal operation mode.
(b) The total capacity of wind power that can be supplemented to the PDP in this region
is 941 MW.
(c) A list of the projects capable of relieving capacity is set out in Appendix 2 below.
1 High-case plan is the management plan to develop sufficient backup power sources in case of high load, adverse climatic
conditions or other sources of electricity delay.
Lexcomm Vietnam LLC Legal Update | March 2020
3
(2) South Central
(a) Binh Dinh and Phu Yen are unlikely to be able to supplement the capacity of
WPPs due to the regions’ relatively weak 220kV grid.
(b) For Ninh Thuan, the regional grid can only absorb about 340 MW of wind power
source and Trung Nam solar power plant (Thuan Nam) (in normal operating
mode).
(c) A list of the projects capable of relieving capacity is set out in Appendix 3 below.
(3) Central Highlands
(a) A total scale of 11,733.8 MW of wind power is being submitted for supplemented
to PDP.
(b) In case of harsh conditions, it is calculated that the 500 kV Pleiku 2 (2x450MVA)
and 500 kV Dak Nong (2x450MVA) substations will be fully loaded, potentially
risky for operation.
(c) To consider adding wind power capacity to the region, by 2021, the MOIT
proposes the following options:
• Option 1: To increase the capacity of the 500 kV Pleiku 2 and Dak Nong
substations to (2x900MVA) in 2021, adding 1,150 MW of wind power to the
PDP.
• Option 2: To increase the capacity of the 500 kV Pleiku 2 and Dak Nong
substations to (2x900MVA) and to build a new 220 kV Chu Se – Pleiku 2 of
41 km in length, adding 1,400 MW of wind power to the PDP using the 229kV
grid.
(d) A list of the projects capable of relieving capacity is set out in Appendix 4 below.
(4) Southwest
(a) The total scale of wind power in the area that can be relieved is about 2,300 MW.
(b) In case of investing more 110 kV lines, this area can relieve another 755 MW
(concentrated in Ben Tre).
(c) In case of supplementing a new 220 kV grid work to the PDP, this area can relieve
an additional 200 MW from grid connection on the 220 kV Gia Rai - Bac Lieu
line.
(d) A list of the projects capable of relieving capacity is set out in Appendix 5.
Lexcomm Vietnam LLC Legal Update | March 2020
4
(5) Southeast
(a) In this area, only Ba Ria Vung Tau has proposed adding 2 WPPs, which are (i)
HBRE Ba Ria Vung Tau of 500 MW (offshore); (ii) Cong Ly Ba Ria - Vung Tau
with a capacity of 102.6 MW (nearshore).
(b) A list of the projects capable of relieving capacity is set out in Appendix 6 below.
(6) Summary: The capacity of the power grid until 2021 can absorb about 7,000 MW (in
normal operating mode). This capacity is consistent with the increased wind power
capacity of the high-level plan.
4 Proposal to supplement/accelerate transmission grid works to enable WPPs
(1) Increasing the capacity of 500kV Dak Nong substation from 2x450MVA to 2x900MVA.
(2) Increasing the capacity of 500kV Pleiku 2 substation from 2x450MVA to 2x900MVA.
(3) Building a new 220kV Bac Lieu - Turn Ca Mau Thermal Power Plant - Soc Trang with a
length of 5km.
(4) Accelerating the progress of 220kV Binh Dai substation and double circuit 220kV
transmission line from 220kV Binh Dai - Ben Tre substation (250 MVA; 2x50 km) from
2031-2035 to 2021-2025.
5 MOIT’s proposals to the Prime Minister
(1) To adjust the wind power development target to 2025 with a capacity of 11,630 MW.
(2) To consider the decision to supplement WPPs to the PDP with the connection plan and the
conditions for capacity relief under the list set out in Appendixes 2-6 below.
(3) To consider the decision to supplement/accelerate the progress of synchronous
transmission grid works to relieve WPPs' capacity in the proposed list.
(4) To maintain considering, studying, and appraising the supplementation of WPPs to the
PDP.
Lexcomm Vietnam LLC Legal Update | March 2020
5
Key contacts
If you have any questions or would like to know how this might affect your business, please contact
these key contacts.
Pham Ba Linh Managing Partner
Head of Energy, Project Finance and Infrastructure