Completing policy mechanisms to mobilize resources for renewable energy
Exchanging at the seminar “Solutions to switch energy -oriented to Net Zero” organized by the Lao Dong Newspaper in collaboration with the Ministry of Industry and Trade on the afternoon of May 29, Mr. Doan Ngoc Duong – Deputy Director of the Electricity Department of the Ministry of Industry and Trade – said that in order to achieve the growth of renewable power source (NLTT) according to the VIII Electricity Plan to adjust and towards Net Zero in 2050.
According to the Deputy Director of the Electricity Department, it is necessary to first create an open and transparent investment environment, eliminating barriers in investment procedures for electricity development. Second, it is impossible to have an energy transition without a smart and flexible power grid system. In the coming time, it is necessary to accelerate investment in strategic transmission lines, modernize the power grid with digital and smart technology to exploit and optimize the use of new sources of NLTT and energy nationwide. In particular, it is necessary to implement energy conversion within large power consumption industries.
We need to consider the long-term role of nuclear power. This is a stable power source, no CO2 emission, and can act as a foundation for the power system with a large employment rate. Currently, Vietnam has continued to implement the investment policy for Ninh Thuan 1.2 nuclear power plants on the basis of research and cooperation with partners with modern, safe and reliable technology in the world, Mr. Doan Ngoc Duong shared.
To develop labor relations, Mr. Doan Ngoc Duong emphasized that Vietnam needs a modern system of mechanisms and policies and a modern electricity market. We need to urgently perfect a competitive electricity market, build a carbon credit mechanism, emission pricing, promote green finance and forms of public-private partnership. This is a platform to mobilize private and international resources for energy transition.
Green energy conversion is a challenging journey, but with the vision, determination and cooperation of the State, businesses, people and the international community, I believe that we can completely successfully implement this process, ensuring energy security for economic development to reach the target of 8% in 2025 and 2 figures in the period of 2026-2030, while achieving the Net Zero target in a sustainable and proactive manner, affirmed Mr. Doan Ngoc Duong.
Forming a competitive electricity market and building a flexible electricity price policy
Proposing solutions to remove difficulties for renewable energy in Vietnam at the seminar, Assoc.Prof.Dr. Dang Tran Tho – Director of the Institute of Energy Technology (Hanoi University of Science and Technology) – said that one of the necessary conditions to promote successful energy transformation is the competitive electricity market in essentially and develop flexible electricity price policies, properly reflect the cost, market signals and the economy. Currently, Vietnam’s electricity market is still mainly based on the model of a single buyer (EVN), has not fully developed the wholesale electricity market, competitive retail market, as well as no real auxiliary markets.
“To unleash the potential of renewable energy, it is necessary to urgently issue a transitional electricity price mechanism, with a flexible ceiling – floor price framework by region, technology type and power generation time. This mechanism should take into account actual costs (LCOE), system value and avoid creating competitive distortation between early and late investment projects. For diverse IT sources, electricity prices can be adjusted over time (time-of-use pricing), to encourage investment in flexible storage, load and optimal regulation systems,” affirmed Associate Professor, Dr. Dang Tran Tho.
According to Associate Professor, Dr. Dang Tran Tho, the direct power purchase and sale mechanism (DPPA) between IT investors and large customers (FDI, IP, multinational corporations) also needs to be widely deployed nationwide. This will promote green electricity consumption, reduce the regulatory burden for EVN and support businesses to fulfill ESG commitments and be carbon neutral in the supply chain.
“In order to turn the planning roadmap into reality, Vietnam needs to break through in institutional reform, mastery of technology, effectively mobilize financial resources and develop electricity infrastructure according to integrated thinking – synchronously – flexibly. Early build transparent, consistent, consistent and international policies and policies will determine the success of the national energy transformation strategy, and need to improve the management of the national energy, and to improve the management of the National Energy, and to improve the management of the Central Energy, and to improve the operation of the Central Energy. The locality and the locality, ensuring the “green institutional corridor” can lead the transition process in reality. Only when the entire energy – financial – administrative ecosystem and synchronous motion can accomplish carbon neutralization goals, ensure energy security and sustainable economic development in the new era, the era of the nation ‘, Assoc.
Tuyet Lan
