STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI

The report evaluates the social and environmental impacts of the hydropower projects planned under Viet Nam's PDP VI, comparing them against thermal power alternatives. It concludes that while hydropower is the least-cost option for meeting energy demand, current mitigation for displacement and environmental loss is inadequate. The study proposes a comprehensive mitigation package based on the Impoverishment, Risk and Reconstruction (IRR) model and recommends the institutionalization of SEA in the national power planning process to internalize external costs and enhance sustainability.

• The level of hydropower development planned in PDP VI is the most economically viable option for meeting Viet Nam's future power needs, even when social and environmental costs are internalized, as alternatives have higher overall costs.
• Current approaches to social and environmental mitigation in hydropower are insufficient; however, implementing more effective measures would not compromise the financial viability of the planned schemes.
• Hydropower development in Viet Nam is expected to displace approximately 61,571 people across 21 schemes, with over 90% of those affected belonging to ethnic minority groups.
• The report identifies Bac Me, Ban Chat, Trung Son, and Lai Chau as the most problematic schemes due to high risks across multiple social and environmental categories, particularly in northern Viet Nam where poverty is entrenched.
• The total value of forest resources within the Zones of Influence (ZoI) for the 21 schemes is estimated at nearly 135,000 billion VND (approximately $8.4 billion), representing a national asset of significant value.
• Replacing planned hydropower with thermal power (Alternative 4) would result in an additional total Present Value cost to society of approximately $8.7 billion compared to the Base Scenario.
• Multipurpose reservoir management could provide significant benefits, including an estimated $92 million per year in additional agricultural production through improved dry season water availability in the Base Scenario.
• To mitigate forest degradation in Zones of Influence, the report proposes a community forest management (CFM) approach, particularly for schemes with population densities exceeding 2 persons per hectare of forest.
• Significant biodiversity risks, including ecosystem fragmentation, were identified in 10 sites, including the Kon Plong and Macooih Key Biodiversity Areas (KBAs), some of which lack formal protected area status.
• The report argues for the internalization of external costs, such as air pollution and greenhouse gas emissions from thermal plants, into the national power planning optimization models to reach a socially optimal generation mix.
• The study suggests that pursuing grid interconnections with Lao PDR is beneficial because hydropower generation there typically results in lower social and environmental impacts per kWh due to lower population densities.

APA

Stockholm Environment Institute (2009). STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI. https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf

Chicago

Stockholm Environment Institute. STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI. 2009. https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI |date=January 2009 |url=https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2009strategic, author = {{Stockholm Environment Institute}}, title = {{STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI}}, institution = {Stockholm Environment Institute}, year = {2009}, month = jan, url = {https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }