Vietnam reduces number of hydropower plants in its Power Development Plan 7

Vietnam reduces number of hydropower plants in its Power Development Plan 7

Vietnam's Ministry of Industry and Trade (MOIT) today said it will remove
471 small and cascade hydropower plants from its Power Development Plan 7
(PDP 7) that would have had a combined installed capacity of 2,059 MW. MOIT
also rejected another 213 potential projects because of environmental and
efficiency concerns, according to locally published reports.

According to MOIT, eight of the projects removed from PDP 7 include: Pa Ma,
Huoi Tao, Song Giang, Duc Xuyen, Dong Nai 6, Dong Nai 6A, Ta Lai and Ngoc
Dinh, which combined have a capacity of 655 MW.

The other 463 small hydropower projects, defined by the MOIT as those
generating 30 MW or less, have a total capacity of 1,404 MW.
The capacity of the other 213 potential projects is not immediately
available.

Unveiled in late March, Vietnam's revised PDP 7 set out a blueprint for
expanding power generation by using a mix of energy sources. The plan
foresees US$148 billion worth of investments in generation and distribution
capacity through to 2030, with installed capacity to rise to more than 135
GW, according to published reports.

According to the plan, around $40 billion will be invested between 2016 and
2020, of which 75% will be allocated for increasing power generation and 25%
will go towards network development. The remaining $108 billion, to be
invested between 2021 and 2030, will be similarly apportioned.

The decision to remove the plants was arrived upon after a three-year review
conducted in collaboration with province legislative officials in which the
hydropower projects were planned, according to MOIT.

Vietnam has 306 hydropower plants in operation that have a total installed
capacity of about 15.5 GW. Additionally, another 193 projects (5.66 GW) are
under construction and 245 (3 GW) are going through investment phases and 59
small capacity projects (421.88 MW) are under initial study.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com