Vietnam is making strides toward reviving its nuclear power ambitions, with significant government backing and lessons from international experiences shaping its approach. At the recent second meeting of the Steering Committee for the construction of the Ninh Thuan Nuclear Power Plant, Vietnamese Prime Minister Pham Minh Chinh outlined key directives to facilitate progress on this ambitious venture.
The government has designated two major state energy corporations, Electricity of Vietnam (EVN) and Petrovietnam, as lead investors for the Ninh Thuan 1 and 2 nuclear projects. This directive signals Vietnam's commitment to tapping nuclear energy as part of its broader energy strategy, which aims to keep pace with global energy trends.
On February 19, the National Assembly approved resolutions establishing special mechanisms and policies to expedite the Ninh Thuan Nuclear Power Plant investments. These resolutions include negotiations with partners for constructing the facilities and securing funding, aspects considered pivotal for the project's success.
Recognizing the financial hurdles associated with nuclear projects, energy expert Nguyen Thanh Son stressed the necessity for additional governmental mechanisms, including guarantees and subsidies, to alleviate risks associated with high expenditures. He noted, “The investment needed to build a nuclear power plant is substantial, approximately $12 billion, which poses significant challenges to investors due to the risks of cost overruns.”
According to various reputable studies, the global costs of nuclear power plant construction are alarmingly high, ranging from $900 to $5,400 per kilowatt. These price tags include uncertainties tied to future operations and regulatory changes, which can undermine investor confidence. For example, the levelized cost of energy (LCOE) for nuclear stands at $97 to $136 per megawatt-hour, making it one of the costliest forms of electricity generation.
Challenges also extend to the predictability of lifecycle costs, particularly concerning decommissioning spent fuel facilities and handling radioactive waste. These variables present considerable uncertainties for potential investors and complicate project financing.
Experts have also drawn lessons from major international nuclear projects, such as the impacts of poor project management and insufficient funding strategies. High-profile nuclear energy endeavors frequently experience delays and budget overruns. For example, reports indicate the average cost overruns for nuclear projects have reached 117%, raising concerns among investors.
To mitigate risks, government backing has shown to be indispensable. Referring to previous studies, Son highlighted the necessity of governmental support, citing instances from the UK where nuclear plant development necessitated government guarantees and financial backing for companies to proceed. “Without government intervention, companies are unlikely to invest heavily in nuclear,” he remarked.
To support those involved, collaboration and communication emerge as key elements for managing nuclear projects effectively. The World Nuclear Association (WNA) emphasizes the importance of early involvement from major stakeholders during the overarching planning phase to streamline processes. Proper integration of knowledge-sharing across disciplines can significantly reduce project uncertainties.
Experts recommend forming dedicated organizations where power companies retain significant stakes, effectively acting as project sponsors. These structures promote sound project governance and management, setting the stage for successful execution.
Ensuring adequate governance within projects has far-reaching ramifications, influencing adherence to legal requirements, timeline management, and timely resource allocations. Project governance demands decision-making rooted in transparency, timely responses to stakeholder input, and firm accountability standards.
For Vietnam, training and resourcing are equally important. The availability of skilled human resources and technical expertise will be fundamental to ensuring the success of nuclear initiatives. This includes forming partnerships with foreign firms to leverage their experiences, preventing Vietnam from replicatively falling behind established players globally.
Lastly, the establishment of clear communication and collective expectations within supply chains can help reduce technical interface issues often encountered during project execution. Experts argue these facets are especially important during initial projects, where uncertainties are inherently more pronounced.
Implementing efficient project management methodologies and utilizing digital tools can augment both communication and efficiency. Advanced digital platforms have revolutionized project management within the nuclear sector, providing real-time information across all operational sectors.
Knowledge capture is another principal factor for long-term success. Institutions must evolve their systems to effectively capitalize on both successes and failures, embracing lessons learned within the project management framework. Ensuring continuous training and knowledge transfer will be central to steepening Vietnam's learning curve as it embarks on this nuclear energy endeavor.
Vietnam is now positioned on the brink of nuclear development—capitalizing on international lessons to guide its approach. The investment strategy and collaborative frameworks cultivated will likely serve as the backbone for the nation’s efforts, ensuring the safe, economically viable deployment of nuclear energy for years to come.