There Needs To Be A Roadmap For RE Development – Experts

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A file photo of meeting held for discussion


In order to promote the development of renewable energy (RE), experts say, there needs to be a clearer roadmap for cutting fossil energy sources and quickly removing barriers to promote investment in the development of renewable energy sources effectively, commensurate with the potential and advantages of our country.

Sharing at an event, economist Dr. Nguyen Anh Tuan, said compared to the draft Master Plan in March, In 2021, the operating plan in the draft Power Master Plan VIII submitted to the Government by the Ministry of Industry and Trade in November 2021 has shown the trend of developing clean energy sources, renewable energy, more in line with Vietnam’s commitment to cutting greenhouse gas emissions at the recent COP26 Conference.

However, many commented that there should be a clearer roadmap for reducing fossil energy sources and quickly removing barriers to promote investment in renewable energy development effectively. commensurate with the potential and advantages of our country.

Assessing the current status of renewable energy development, Mr. Nguyen Van Vy, Vice President of Vietnam Energy Association, said that in the world renewable energy is developing very quickly, the growth rate is over 15-30%/year. Currently, Vietnam’s renewable energy sector is also developing rapidly, with a lot of potential for promotion.

Notably, the potential of solar energy in Vietnam is huge. According to calculations, solar power will have a total technical potential of about 434 GW, of which, about 16.6 GW has been put into operation (9 GW of centralized solar power, 7.6 GW of rooftop solar PV).

Emphasizing the role of renewable energy in socio-economic development, Mr. Vy said that in the period 2020 – 2050, Vietnam’s energy system will undergo a profound transition from being largely fuel-based. fossil-to-energy efficiency enhancement, renewable energy-based implementation, and widespread electrification while increasing system flexibility.

However, Mr. Vy pointed out, Vietnam is facing many difficulties and inadequacies in the development of renewable energy sources. Specifically, there is still no long-term policy to create a stable and predictable investment environment, ensuring predictable revenue streams of projects. In addition, there is a lack of regulations and standards for the application of renewable energy technologies; FIT prices for renewable energy projects applied uniformly throughout the country may lead to limited resources for development. In order to remove the “bottlenecks” in renewable energy development, the Vice Chairman of the Vietnam Energy Association said that Vietnam needs to soon complete the policy framework for renewable energy development. 

In addition, it is necessary to promulgate mechanisms and policies for the synchronous development of electricity transmission and distribution systems as well as tools to ensure the stable operation of the power system when wind and solar power are high. Combine preferential and supportive policies with market mechanisms.

“On that basis, continue to strengthen the development of human resources in the field of renewable energy. In particular, I propose to soon issue a bidding mechanism for the development of renewable energy projects according to the following steps: Determine the amount of investment needed to build power projects in each year, in each region, in order to avoid overloading the lines; Solar power projects should not be concentrated too large in one or several locations in order to avoid overloading the grid. ; Projects are selected on the basis of the proposed price from low to high until the required capacity is reached”, emphasized Mr. Vy.

Sharing more about solutions from businesses, Mr. Nguyen Ba San, representative of T&T Group’s Energy Management Board, mentioned 3 bottlenecks that need a plan to remove 3 main bottlenecks in RE development in Vietnam.

Firstly, in the current context and development trend, the proportion of electricity from renewable energy is increasingly large and continues to increase in the total power capacity in Vietnam, but it is mainly concentrated in a few low-load areas.

Second, our FIT price mechanism is not continuous, is broken, and interrupted. This is also considered a bottleneck that needs to be cleared up and a clear, clear, and continuous legal corridor is needed. The mechanisms and policies applied in recent times have not given a long-term orientation.

Third, offshore wind power is a field with great potential in Vietnam. However, at present, we are lacking a complete master plan to support the investment and development of this power source as well as necessary and clear instructions and instructions for steps in the implementation process.

In particular, due to the lack of regulations and guidelines, some localities have now approved the survey area at the request of the investor, which is too large compared to the expected capacity. This both wastes marine space and marine resources, as well as restricts other potential investors from looking for investment intentions and needs.

Sharing with the difficulties that wind power enterprises have not yet received the FIT price to be able to operate commercially before November 1, 2021, however, Mr. Nguyen Tuan Anh – Deputy Director of the Electricity and Renewable Energy Department (Ministry of Industry and Trade). Thuong) thinks that, we need to recognize, the application of the FIT pricing mechanism when the market is still very new, and up to now the capacity scale has also been quite large. Therefore, at this time it is necessary to switch to a more modern and newer mechanism, how to get closer to the market, ensure rapid changes with market fluctuations in terms of costs and prices. of different types of renewable energy. Protecting the interests of the state, investors, and society.

Following the advice of ministries and sectors, the Ministry of Industry and Trade is studying to build a mechanism based on the provisions of current laws (Price Law, Investment Law, Bidding Law) to ensure compliance with legal regulations. market regime. Projects can be selected investors through bidding, localities will be responsible for selecting investors.

More information on the issue of electricity prices, Mr. Nguyen Tuan Anh said, in the near future, electricity prices will be negotiated with electricity buyers and sellers. With such a mechanism, the Ministry of Industry and Trade is also studying. to promulgate the electricity price bracket for all types of power sources, including renewable energy sources. On the basis of that electricity price frame will be the basis for investors to negotiate with electricity buyers.

“The promulgating mechanism will be implemented after the Power Master Plan VIII is approved. Because when the plan is approved, we will know the development goals and the mechanism will be determined in accordance with the development goals for each development period” – Mr. Nguyen Tuan Anh said.

In addition, the representative of the Electricity and Renewable Energy Department also clarified whether to continue extending the FIT price or not to apply the FIT price but to apply a new price mechanism in the upcoming RE development mechanism. In this regard, the transition mechanism for projects currently underway will be mentioned.

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