Prime Minister’s directive on ensuring electricity supply, coal and gas supply for power production
Ensuring electricity supply, maintaining national energy security is the foundation and important premise for the socio-economic development and the success of the industrialization – modernization process of the country. In recent years, the Party and the State have always been concerned, focusing on directing the assurance of energy security, in which, the security of electricity supply plays a pivotal role. However, the power supply in the past period has had some shortcomings and difficulties due to many reasons, including both objective and subjective reasons; in which, there was a situation of local power shortage in the northern region at the end of the dry season in 2023.
To ensure energy security, electricity supply for production – business and people’s consumption in the coming time, the Prime Minister has instructed:
1. State Steering Committee for important national programs, works and projects, key energy sectors
a) Focusing on directing, inspecting, coordinating and urging the implementation of tasks on investment, construction of important national programs, works, projects, key energy sectors in accordance with the resolutions of the National Assembly, the Government and the directives, guidance documents of the Prime Minister.
b) Directing, inspecting, urging investors of projects, works, consulting organizations, contractors in implementing the tasks determined in the approved Plans, Investment Policies of projects or approved decisions of each component project to ensure the progress of construction and the quality of the works.
c) Directing, urging the Ministries, branches and People’s Committees of provinces, centrally-run cities to resolve, within their authority, difficulties, obstacles related to land clearance work of national important programs, works, key energy sectors, and immediately report such contents beyond their authority to the Prime Minister, at the same time propose solutions to be submitted to the Prime Minister for consideration and decision-making when problems arise with key and urgent projects.
2. Minister of the Ministry of Industry and Trade
a) Concentrating on leading, directing the implementation of specific tasks, especially the plan to implement the National Power Development Master Plan for the period 2021-2030, vision to 2050 (Power Master Plan VIII). In which, focusing on implementing tasks to ensure supply source for the Northern power system in the forthcoming years as follows: i) Coordinating with the State Capital Management Committee in enterprises, the Ministries, branches and People’s Committees of provinces, centrally-run cities involved in directing, guiding and supporting the Vietnam Electricity Group to implement, accelerate the progress to complete as soon as possible the 500kV Quang Trach – Pho Noi line for the North (striving to complete and energize in June 2024); ii) Urgently completing and submitting the Profile proposing the promulgation of the Prime Minister’s Decree on mechanisms, policies to promote the development of rooftop solar power installed at households, public offices, industrial zones; iii) Taking charge of coordinating with the Vietnam Oil and Gas Group, the Vietnam Electricity Group in promulgating the Decree related to the mechanism of gas, wind power purchase in the form of off-take and to be completed at the latest in the second quarter of 2024; iv) Urgently reviewing the sources of electricity in the Northern region, reporting to the Prime Minister the solutions to promote the progress of investment construction projects, implementing new power sources, specifically for each project in the Northern region.
b) Directing the Vietnam Electricity Group and the National Power System Operating Center to operate the power system to ensure power supply, develop power supply plans, and operate the national power system with the aim of ensuring power supply, ensuring backup power supply and the ability to respond, control extreme operating scenarios that may occur.
c) Forecasting and formulating plans to instruct the Vietnam Oil and Gas Group, the Vietnam Coal and Mineral Industries Group, and the Northeast Corporation to fully, continuously ensure the provision in a timely manner, appropriate time, sufficient quantity, correct type of coal to serve power generation according to the signed Contracts/Commitments for each area, each project to ensure the construction progress and quality.
d) Directing, inspecting, supervising the Vietnam Oil and Gas Group to implement all solutions to ensure the progress of Block B gas – power project according to Power Master Plan VIII, focusing on removing obstacles within their authority, timely reporting to the Prime Minister to resolve issues beyond their authority.
e) Monitoring, supervising the progress of key energy projects, such as Blue Whale Project, Thi Vai – Nhon Trach; being in charge, coordinating with relevant ministries, sectors to promptly settle issues within their authority, report to the Prime Minister the contents beyond their authority, ensuring the deployment of projects according to the planned schedule.
3. The Minister of Finance
a) Chairing, together with the relevant agencies, continuing to review, guide and annually have specific plans to check the implementation of legal regulations on prices for production, business activities of coal, gas, oil, and the supply of coal, gas, oil for power production; coordinating closely with the Ministry of Trade and Industry in implementing the retail electricity pricing mechanism as prescribed.
b) Chairing and coordinating with the Ministry of Trade and Industry, the Vietnam Coal and Mineral Industries Group, the Vietnam Electricity Group, the Vietnam Oil and Gas Group, the Northeast Corporation and the related agencies in studying, developing reference prices for imported coal to be able to apply immediately when the Price Law No. 16/2023/QH15 takes effect.
4. The Minister of Planning and Investment
a) Advising, reporting to the Prime Minister on issues related to professional, functional tasks to implement investment activities in electricity projects in the Power Plan VIII (investment forms, investment deployment sequences, specific responsibilities of each related agency to implement investment in electricity projects, investment determination, investor selection, bidding work…); at the same time, sending to the Ministry of Trade and Industry to study, synthesize and report to the Prime Minister the implementation of the plan to build a plan to implement the Power Plan VIII.
b) Reviewing, accelerating the appraisal of investment direction of power projects under their authority, absolutely not letting delays occur affecting the progress of power projects.
5. The Minister of Natural Resources and Environment
a) Urgently directing and guiding thermal power plants in the Northeast region (especially thermal power plants in Quang Ninh province) to have solutions related to cooling water temperature to ensure the available capacity of power plants in the dry season every year.
b) Based on the flexible operation plans of reservoirs in inter-reservoir operation procedures coordinated by the Vietnam Electricity Group with relevant agencies and units, proposing and reviewing inter-reservoir operation procedures to ensure safety for projects, floodplain areas, effective use of water for purposes of use to optimize socio-economic development, environmental protection due to water resources.
c) Guiding the People’s Committees of provinces, centrally-run cities subordinate to the central government on planning and land use plans for energy projects, power under the Power Master Plan VIII.
6. The Minister of Agriculture and Rural Development urgently reviews and handles within their authority and reports to the Prime Minister the issues beyond their authority concerning forest conversion related to energy projects, electricity to ensure that the deadlines for solving work do not affect the implementation of energy projects, electricity.
7. The Chairman of the Provincial People’s Committee, the Chairman of the City People’s Committee subordinate to the central government
a) The Chairman of the Provincial People’s Committee, the Chairman of the City People’s Committee shall, based on their functions, tasks, closely monitor the situation, proactively propose measures to solve the existing problems, difficulties within the scope of their management related to power activities.
b) The Chairperson of the Provincial People’s Committee, the Chairman of the City People’s Committee shall direct: i) Reviewing the progress of investment in construction of electricity sources, power grids in the planning, development plan for power in the area under their management; ii) Directing relevant functional units to solve difficulties, existing problems in solving investment and construction procedures, land clearance work to speed up the progress of power projects, power grids; iii) Coordinating with the Minister of Industry and Trade, the Minister of Planning and Investment, and the relevant agencies to urgently carry out tasks within their authority to determine, select investors, urgently deploy power projects, power grids according to the approved plan; iv) For provinces that have been approved by the Prime Minister the provincial plan for the period of 2021 – 2030, vision to 2050; propose focusing on completing the 5-year land use plan (2021 – 2025) at the provincial level to the Ministry of Natural Resources and Environment for appraisal, submission to the Prime Minister for approval. Provincial People’s Committees report annually, extraordinary reports timely on the situation of land use for energy projects according to the plan to implement Power Master Plan VIII under their management.
8. The heads of Ministries, Minister-level agencies, agencies attached to the Government, the Provincial People’s Committee, the City People’s Committee subordinate to the Central Government
a) The heads of Ministries, Minister-level agencies, agencies attached to the Government shall, based on their functions, tasks, closely monitor the situation, be proactive in providing measures to solve the problems, difficulties in the scope of their management related to power activities.
b) The Chairman of the Provincial People’s Committee, the Chairman of the City People’s Committee shall direct: (i) Reviewing the progress of investment in construction, power grid projects in the planning, development plan for power under the area under their management; (ii) Directing related functional units to solve difficulties, existing problems in solving investment and construction procedures, to promptly report to the Prime Minister to resolve issues beyond their authority; (iii) Coordinating with the Minister of Industry and Trade, the Minister of Planning and Investment and relevant agencies to urgently implement the tasks within their authority to determine, select investors, urgently deploy power projects, power grids according to the approved plan; (iv) For provinces that have been approved by the Prime Minister the provincial plan for the period of 2021 – 2030, vision to 2050; proposes focusing on improving the provincial land use plan for 5 years (2021 – 2025) to the Ministry of Natural Resources and Environment for organization of the appraisal, submission to the Prime Minister for approval. Provincial People’s Committees report annually, extraordinary reports promptly on the situation of land use for power and energy projects according to the plan to implement Power Master Plan VIII under their management.
9. The Chairman of the Vietnam Electricity Group
a) Directing, coordinating with the National Power System Operation Center to develop plans, methods of operation of the national power system with the aim of ensuring power supply, especially paying attention to backup supply capacity, hydropower availability, preparing enough fuel for thermal power plants to supply peak power during dry seasons every year.
b) Concentrating on directing, urging the acceleration of investment, construction and operation of power source projects assigned as the investor, especially key power source projects serving power supply for the North such as 500kV line 3 (planned to be completed and energized in June 2024), expanded Hoa Binh Hydropower Plant, and Quang Trach I Thermal Power Plant.
c) Actively coordinating closely with the Vietnam Oil and Gas Group in deploying the Gas – Power Block B project chain, ensuring the common progress of the project chain.
d) Updating, reviewing the balance of power supply and demand, especially for the Northern region by 2025 and 2030, including solutions to ensure power supply, handling within their authority; reporting at the authorized levels the issues that exceed their authority.
e) Directing the implementation of electricity-saving measures throughout the industry, coordinating with the Provincial People’s Committees, centrally-run cities and electricity users to implement measures to save electricity; promoting extensive, effective, and substantive propaganda about energy-saving and efficient use, green and clean energy conversion; coordinating research to promote domestic production, application of technology, innovation, increasing labor productivity in the energy sector.
10. The Chairman of the Vietnam Oil and Gas Group
a) Directing, focusing on the rapid deployment of the Block B Gas – Power project, immediately reporting any issues beyond their authority (if any), taking overall responsibility if there are delays in matters within their authority, obtaining the Final Investment Decision (FID) as soon as possible, ensuring the common progress of the project; pledging gas supply to power generation according to the market mechanism.
b) Concentrating on directing the deployment, removing obstacles for power projects assigned as the investor, reporting the issues beyond their authority to the State Capital Management Committee and the relevant agencies.
c) Actively coordinating closely with the Gas Field Owner, the Investor of gas-fired power plants, and the Chairman of the Vietnam Electricity Group to deploy the solutions during the implementation of the plan to supply and prioritize the mobilization of gas for power production to meet the electricity consumption demand, ensuring the optimal effectiveness of the gas – power chain and national interests.
d) Urgently studying, proposing restructuring solutions for the gas market, the gas industry infrastructure suitable for the Competitive Energy Market Plan.
11. The Chairman of the Vietnam Coal and Mineral Industries Group and the Northeast Corporation
a) Directing the implementation of work tasks in strict compliance with the Prime Minister’s Directive No. 29/CT-TTg dated December 2, 2019, on continuing to strengthen state management of coal production and business activities and coal supply for power production according to the market mechanism.
b) Implementing synchronously, resolutely, and effectively measures to direct, manage, organize production activities to improve capacity, productivity, and coal extraction output in the country; closely monitoring and following weather conditions to arrange and plan mining operations appropriately; importing coal for blending and supplying for power production in a reasonable and effective manner; focusing on domestic coal production.
c) Actively reviewing, balancing supply and demand, production of primary fuels to supply power in accordance with mobilization requirements of the power system throughout its existence; especially, it is necessary to accurately calculate the amount of coal that must be self-arranged for power generation, preparing sufficient and timely fuel in accordance with the mobilization requirements of the power system and maintaining reasonable reserves for the operation of power plants.
d) Strengthening the management of coal quality input to ensure technical specifications to improve the efficiency of power plants, minimize incidents caused by the quality of coal; proactively and stably operating machines to ensure the power generation requirements mobilized by the power system.
12. The investor of thermal power plants
a) Wholeheartedly implementing seriously and effectively the tasks entrusted by the Prime Minister in Directive No. 29/CT-TTg dated December 2, 2019, on continuing to strengthen coal production and trading activities and coal supply for power production according to market mechanisms.
b) Taking responsibility for arranging sufficient primary fuels to ensure stable, continuous supply according to mobilization requirements of the power system throughout the lifetime of the power plant; especially, accurate calculation of the amount of coal that must be self-arranged for power generation according to the signed Contract.
c) Regularly reviewing, updating, accurately calculating the demand for using primary fuels for power generation to ensure close monitoring of the actual situation and load requirements, regionally, to timely prepare ready fuel to meet the requirements mobilized by the power system and maintaining reasonable redundancy for the operation of the power plant. Absolutely not let a situation occur when the generator set is ready to generate electricity, but lacks fuel leading to insufficient capacity or having to stop the machine.
d) Strengthening the management of the quality of coal input to ensure the technical specifications to improve the efficiency of power generating units, minimize the quality-related incidents; actively operating stable and reliable units to meet the mobilization requirements of the power system.
These are the requirements for Ministers, Heads of Ministerial-level agencies, Heads of Government-attached agencies, Chairmen of Provincial People’s Committees, Chairman of the Council of Members and Director of the Vietnam Electricity Group, Chairmen of the Council of Members and General Directors of the Vietnam Coal and Mineral Industries Group, Vietnam Oil and Gas Group, the Northeast Corporation, and related organizations and individuals to strictly implement this Directive.
