Connecting the Grid to Unlock Lam Dong’s Energy Growth Potential
With total investment capital exceeding VND 13.268 trillion, power generation and transmission projects are being accelerated in Lam Dong to increase electricity supply and strengthen transmission capacity.
From New Power Sources to an Interregional Transmission Network
The list of projects currently under consideration by the province includes four power generation projects with a combined capacity of 181 MW: the 18 MW Thac Ba Hydropower Plant; the 45 MW Dray H’Linh 4 Hydropower Plant; the 22 MW Duc Hanh Hydropower Plant; and a 96 MW floating solar power plant on the Dai Ninh hydropower reservoir.
Notably, these projects are distributed across different geographical areas, including La Da, Ham Thanh, Dak Wil, Hoai Duc, Tra Tan and Ninh Gia communes. This distribution reflects the expansion of the province's energy development space, making use of its hydropower potential, water surfaces and solar radiation.
Among these projects, the floating solar power plant on the Dai Ninh hydropower reservoir features a particularly noteworthy approach. The project is expected to cover approximately 179.96 hectares, most of which consists of water surface and areas within the existing hydropower reservoir. With a designed capacity of 96 MW, it is expected to generate an average of approximately 192 million kWh annually, with total investment capital exceeding VND 1.606 trillion.
Solar panels will be installed on floating platforms and connected to a transformer station and a 220 kV transmission line to feed electricity into the national grid.
Combining solar power with an existing hydropower reservoir will make use of available infrastructure while reducing pressure on land resources. If implemented as proposed, the project is expected to begin commercial operation in late Q2 2028, supplying a significant amount of clean electricity to the grid.
The two new hydropower projects also involve substantial investment. The Dray H’Linh 4 Hydropower Plant in Dak Wil Commune has a total investment of VND 1,097.5 billion and is expected to be completed in Q4 2029. The Duc Hanh Hydropower Plant, located in Hoai Duc and Tra Tan communes, has a total investment of VND 809 billion and is scheduled to begin operation no later than Q2 2030.
Initial appraisal results indicate that both projects are consistent with approved plans, located outside the forestry planning area and do not overlap with land designated for national defense and security, cultural heritage sites or mineral resource areas.
However, their implementation must still meet all legal requirements and comply with regulations concerning land, the environment and natural resources.
Alongside power generation projects, the 500 kV Ninh Son - Chon Thanh transmission line is the largest investment project on the list, with estimated capital exceeding VND 9.105 trillion. According to the proposed project documents, the double-circuit line will extend approximately 268 kilometers through Khanh Hoa, Lam Dong and Dong Nai provinces, with energization scheduled for late 2027.
The project is expected to strengthen grid connections between the South Central Coast and southern Vietnam, increase transmission capacity and facilitate the transmission of electricity generated from renewable energy sources. It will also serve as an important link in improving power supply capacity for areas with high electricity demand.
Bui Van Kien, Deputy General Director of the National Power Transmission Corporation, said the 500 kV Ninh Son - Chon Thanh line is a key transmission project of particular importance in evacuating power from generation sources and strengthening grid connectivity between central and southern Vietnam. Coordination with local authorities in finalizing investment policy, the transmission route and site clearance will be decisive in ensuring the project's on-schedule completion.
In Lam Dong, the section running through the province entails a considerable workload involving surveys, compensation, site clearance and procedures related to forestry land. If these tasks are not addressed promptly, construction progress could come under pressure, affecting plans to complete the transmission network.
Removing Procedural Bottlenecks and Strengthening Accountability for Progress
With estimated total investment of more than VND 13.268 trillion, these power generation and grid projects are opening up new development opportunities for Lam Dong's energy sector. When implemented in a coordinated manner, they will increase both electricity supply and transmission capacity, helping meet production and business demands while supporting the attraction of energy-intensive industrial and service projects.
Nguyen Hong Hai, Standing Vice Chairman of the Lam Dong Provincial People’s Committee, emphasized: “Energy is an input for all production and business activities.” Accordingly, power generation development must go hand in hand with transmission capacity to prevent investments in power sources from failing to deliver their full potential because of inadequate grid infrastructure.
However, large investment capital and consistency with approved plans alone do not guarantee that a project will be implemented on schedule. The Thac Ba Hydropower Plant demonstrates how prolonged procedural obstacles can delay a project by many years beyond its original timeline.
The project was granted an investment certificate in 2013. Under the revised schedule approved in 2019, construction was required to be completed in Q1 2021. However, to date, the project has yet to receive land allocation and construction has not begun.
The investor is now proposing to increase total investment capital from VND 537 billion to VND 650 billion, add a transformer station and a 110 kV transmission line, and adjust the commercial operation date to Q4 2029. The proposed land-use area would also be reduced from approximately 111.7 hectares to 62.8 hectares.
There are grounds for continuing the project in terms of planning compatibility, but its prolonged delay highlights the need for clear accountability. The investor must demonstrate financial capacity, develop a detailed implementation schedule and sign a commitment to carry out the project. If further delays occur or obligations are not fulfilled, competent authorities must consider taking action in accordance with regulations, preventing resources from being tied up without generating value.
Regarding the 500 kV Ninh Son - Chon Thanh transmission line, preliminary reviews indicate that approximately 41.39 hectares of forest and forestry land at tower foundation locations in Lam Dong will be affected.
Approximately 275.72 hectares of land classified as different types of forest within the transmission corridor will continue to be used for their designated purposes. However, strict compliance with requirements on power infrastructure safety, forest fire prevention and firefighting, and compensation for damage is mandatory under regulations.
Therefore, the greatest challenge is not whether the projects are consistent with approved plans, but the ability of management agencies, local authorities and investors to coordinate effectively. Every tower foundation location, every area of forest land and every compensation plan must be accurately identified, made transparent and addressed at an early stage.
The investment capital of more than VND 13.268 trillion will become a genuine development resource only when projects are implemented in compliance with the law, put into operation as scheduled and deliver their intended benefits. By connecting power generation sources to a synchronized transmission infrastructure, Lam Dong will be better positioned to ensure electricity supply, attract investment and promote green and sustainable economic growth.