Resolution 70: Flexible and Sustainable Solutions for National Energy Security

The Political Bureau has just issued Resolution No. 70-NQ/TW on ensuring national energy security until 2030, with a vision toward 2045. This Resolution marks a true policy turning point for the energy sector, not only reaffirming renewable energy and clean energy development as top priorities but also “paving the way” for a competitive electricity market and attracting investment from all social resources.

The Resolution emphasizes that the energy sector has maintained stable growth, fundamentally ensuring national energy security, meeting the increasing demands of rapid and sustainable development, safeguarding national defense and security, and improving people’s living standards.

However, the energy sector still faces many limitations and weaknesses. Notably, institutions, policies, and management of energy sector development remain inadequate. The implementation progress of many power projects has been slow; energy potential has not been effectively exploited. Energy supply still depends on imports, and the risk of electricity shortages during periods of double-digit growth is present.

The competitive energy market has not developed in a synchronized manner, lacking connectivity between sub-sectors, with the electricity market in particular still facing significant constraints. Energy pricing policies remain inadequate, not fully aligned with market mechanisms, and cross-subsidization of electricity tariffs among certain customer groups persists.

Guiding Principles, Objectives, and Targets to 2030

The Resolution sets out five major guiding principles: the Party provides comprehensive leadership; the State establishes breakthrough institutions and policies and exercises control over strategic infrastructure; people and enterprises are placed at the center, with the state-owned economy playing the leading role and the private sector being one of the most important driving forces; energy development follows a socialist-oriented market mechanism, ensuring progress, equity, social welfare, and environmental protection; a synchronized, competitive, and transparent energy market is to be built, applying market-based pricing without cross-subsidization; various types of energy are to be developed in a coordinated and rational manner, with priority given to renewable, new, and clean energy; domestic fossil fuels are to be reasonably exploited; nuclear and gas power to be developed; coal-fired power gradually reduced; energy saving and efficiency encouraged; science–technology, innovation, and digital transformation applied to gradually master modern technologies, including nuclear energy and equipment manufacturing.

The overall objective to 2030 is to firmly ensure energy security; provide sufficient, stable, and high-quality energy while reducing emissions; ensure the energy sector develops harmoniously with integrated and smart infrastructure, reaching advanced ASEAN standards; establish a competitive, transparent, and efficient market; rapidly exploit and efficiently utilize domestic resources in combination with reasonable imports and exports; produce many key equipment and materials domestically; and build modern, intelligent transmission and distribution grids.

The specific targets to 2030 include: total primary energy supply of about 150–170 million tons of oil equivalent; total installed power generation capacity of about 183–236 GW (potentially higher depending on system demand and development conditions in each period); total electricity output of about 560–624 billion kWh; share of renewable energy in total primary supply of about 25–30%; and total final energy consumption of about 120–130 million tons of oil equivalent. The power system will be smart, efficient, and safely interconnected with regional grids; meet N-1 criteria for important load areas and N-2 criteria for particularly critical load areas; ensure power supply reliability and electricity access indicators among the top three in ASEAN. Oil refineries will meet at least 70% of domestic petroleum demand; petroleum reserves will reach about 90 net import days; concentrated LNG energy hubs will be established by region. Energy savings will account for about 8–10% of total final consumption compared to the business-as-usual scenario; greenhouse gas emissions from energy activities will be reduced by about 15–35% compared to the business-as-usual scenario.

The vision to 2045 is to firmly ensure energy security; establish a competitive, transparent, and efficient energy market; build a synchronized and sustainable energy sector that efficiently utilizes resources, reduces emissions, and adapts to climate change; develop modern, intelligent infrastructure with effective regional and international connectivity; and achieve human resource quality, scientific and technological capacity, and governance capability on par with advanced industrialized countries.

Seven Groups of Tasks and Solutions

First, strengthen the Party’s leadership, the State’s management, and the participation of the political system and the people in ensuring energy security; enhance management effectiveness, clearly define responsibilities, and establish coordination mechanisms between central and local levels; strengthen inspection and supervision to ensure the progress and quality of projects; promote communication to change energy use behavior; replicate self-production–self-consumption models and community energy models; and promote direct power purchase agreements between generators and consumers.

Second, improve institutions and policies to become competitive advantages and drivers of development: decisively finalize and effectively implement laws on electricity, petroleum, geology and minerals, nuclear energy, and energy efficiency; remove bottlenecks in planning, licensing, and capital mobilization; establish special mechanisms to attract important and urgent projects; improve financial, credit, and tax policies to encourage clean, renewable, storage, and reserve energy; publicize lists of energy projects and apply competitive bidding combined with the assignment of large-scale or security-sensitive projects; strengthen control over power purchase agreements (PPAs); prevent corruption and vested interests; improve the quality of strategies and planning (particularly the adjusted Power Development Plan VIII), allowing critical projects to proceed outside of planning frameworks without prior adjustments and subsequently update the plan; develop an integrated energy market connecting electricity–coal–oil and gas–renewables; set energy prices based on the market with State management and without cross-subsidies; reform administrative procedures to cut 30–50% of time and costs; by 2025, remove all institutional bottlenecks hindering sectoral development.

Third, develop supply and infrastructure to firmly ensure energy security: diversify domestic and imported sources; prioritize domestic development and raise per capita primary energy to the top four in ASEAN; establish integrated industrial energy hubs combining gas, LNG, electricity, petrochemicals, and renewables; accelerate source–grid projects, strictly handle investors who delay or fail to implement; oil and gas: increase reserves and output, explore deepwater and offshore resources linked to sovereignty protection; develop the gas industry, LNG infrastructure, and a gas market of 30–35 billion m³/year; coal: ensure safe, efficient domestic mining, flexible imports, and sufficient reserves; research the Red River coal basin; renewables and new energy: issue standards, quotas, and REC markets; prioritize wind and solar; research geothermal, wave, tidal, and ocean current power; pilot hydrogen and ammonia; electricity: establish a balanced structure by regional advantages, ensure adequate supply; modernize system operation; research ultra-high voltage, direct current, and submarine transmission; hydropower: optimize, expand, and accelerate pumped storage, cooperate in electricity imports; wind and solar: remove bottlenecks, establish breakthrough mechanisms for offshore wind; resolve project issues under the principle of “harmonized benefits, shared risks”; thermal power: prioritize domestic gas, resolve LNG pricing mechanisms; upgrade coal plant technologies and encourage fuel switching; maximize combined heat and power, waste heat, biomass, and waste-to-energy without planning scale limits; nuclear power: promptly implement Ninh Thuan 1 and 2 with suitable partners, target operation during 2030–2035; build a development program with flexible scales, small modular reactors, gradually master technology, ensuring absolute safety and security; strategic reserves: develop a national energy reserve strategy, invest in oil, gas, and coal storage facilities onshore and offshore; develop large-scale battery and advanced storage technologies; equipment industry: build energy industrial groups capable of EPC general contracting, rapidly increase localization; infrastructure: establish national energy data, socialize infrastructure investment, designate common and strategic infrastructure under State control; develop 500 kV and 220 kV grids and substations; strengthen interconnection with Cambodia, Laos, etc., mobilize private investment in transmission under PPP.

Fourth, promote energy efficiency, environmental protection, and climate change response; establish governance and risk management: implement the National Program on Energy Efficiency and the Electricity Demand-Side Management Program; set mandatory saving targets by sector, field, and locality; establish efficiency standards and regulations for equipment, vehicles, and buildings; eliminate obsolete equipment; study the establishment of a sustainable energy development fund; implement emission reduction measures consistent with international commitments; set a roadmap for reducing fossil fuels and transitioning to gas, biomass, hydrogen, and ammonia; study carbon tax and emission cap standards; build an MRV system for greenhouse gases; develop carbon credits and carbon markets; adopt carbon capture, utilization, and storage technologies; promote a circular economy in energy; invest in wastewater and gas treatment facilities meeting international standards; implement automated environmental monitoring; establish scenarios for responding to disasters, droughts, and water shortages; ensure the safety of hydropower facilities and downstream regions.

Fifth, mobilize all social resources and strongly encourage private sector participation: introduce preferential credit/guarantee mechanisms for key projects (including BOT power projects); issue domestic and international bonds; grant greater autonomy to enterprises; reinforce the leading role of state-owned enterprises; attract ODA, JETP financing, and develop green bonds and green credit; improve legislation on contract enforcement and dispute resolution; resolve outstanding projects and contracts; develop a competitive electricity market with transparent, stable, and long-term PPAs; encourage private investment in storage, LNG terminals, and petroleum depots; reform transmission pricing mechanisms to attract grid investment.

Sixth, create breakthroughs in science–technology, innovation, digital transformation, and human resource development: implement Resolution 57 on science and technology in the energy sector; review and amend relevant laws to promote R&D; allocate at least 2% of the energy sector’s GDP for research and development; establish research centers and key laboratories; attract 60–80 advanced technology transfer projects; develop smart grids and smart energy management in industry, transportation, and construction; train 25,000–35,000 engineers and specialists, prioritizing nuclear power; adopt policies to attract domestic and foreign experts.

Seventh, strengthen international cooperation: expand cooperation in all sub-sectors; participate in initiatives and commitments on energy transition and emissions reduction; effectively implement JETP; remove policy barriers for cooperative projects related to resources, energy transition, and climate adaptation; proactively plan electricity imports from neighboring countries; encourage enterprises to invest in overseas energy projects for import back to Vietnam; promote ASEAN and southern China grid interconnection; develop renewable energy export projects; cooperate on nuclear power with countries possessing advanced technology; actively engage in international organizations, particularly the IAEA.

In the context of Vietnam’s deeper international integration and participation in global forums such as the World Energy Council, the issuance of a new, comprehensive, and breakthrough Resolution will help Vietnam both ensure energy security and achieve balanced and equitable energy access nationwide, while also creating a foundation to affirm its national position in the global energy value chain. Therefore, it can be said that Resolution No. 70-NQ/TW plays a crucial and timely role, reaffirming Vietnam’s determination to pursue a strong strategy of ensuring energy security in parallel with sustainable development and global integration. If Vietnam leverages this Resolution as a “compass,” combining Vietnamese wisdom with international resources, the energy sector can become one of the greatest driving forces for the country’s prosperity in the decades to come.