Vietnam revises Electricity Law to boost renewable energy and nuclear power

The Vietnamese government has proposed revisions to its Electricity Law to enhance its energy landscape by boosting the renewable energy sector and paving the way for nuclear power development.

These legislative changes aim to attract foreign investment in the renewable energy sector by promoting policy and institutional advancements -- essential for integrating new energy sources into the grid -- advancing sustainable power solutions and strengthening Vietnam's energy security.

Vietnam's National Power Development Plan 8 (PDP8) projects a substantial increase in peak electricity capacity, reaching 90,000 MW by 2030, up by 40,000 MW from 2024. The northern region is expected to add 20,000 MW, the southern region 18,000 MW and the central region 2,000 MW.

Vietnam's Ministry of Industry and Trade acknowledges the substantial rise in electricity demand, and note that these projects will take 3-5 years to build.

By simplifying regulatory frameworks and offering incentives, Vietnam aims to attract global capital to support its ambitious energy transition goals. This includes a strong focus on renewable energy sources such as solar and wind power, which are crucial for reducing the country's carbon footprint and meeting international climate commitments.

Pivot to nuclear power

In addition to renewable energy, the revised law also supports the development of nuclear power, particularly small modular reactors, which are considered a large-scale, dependable low-carbon energy source that should be included in the updated Electricity Law.

Investments in the construction, operation and decommissioning of nuclear power plants, as well as safety measures, must adhere to the Law on Atomic Energy and other relevant regulations, according to a MoIT report to the National Assembly.

Nuclear power planning is integrated into the national power development strategy to ensure electricity supply security, the report said, with all related projects required to utilize modern, proven technology.

Minister of Industry and Trade Nguyen Hong Dien said nuclear power is capable of "running in the background'" to enhance energy security, adding that nuclear power "is also a source of electricity that does not emit carbon dioxide, meeting carbon neutrality goals".