7 solutions to ensure electricity supply

At the consultation workshop on the revised Power Development Plan VIII, experts presented solutions to ensure electricity supply security.

On the morning of February 17th, the Ministry of Industry and Trade organized a workshop on "Adjusting the National Power Development Plan for the period 2021-2030, with a vision to 2050 (Adjusting Power Plan VIII) and the Strategic Environmental Assessment Report" to finalize the proposal for submission to the Government.

Overview of the seminar. - Photo: Can Dung

Aiming to ensure the security of electricity supply.

At the workshop, Dr. Nguyen Manh Cuong - Deputy Head of the Power System Development Department (Institute of Energy) presented seven solutions for ensuring electricity supply security.

Firstly, develop a list of urgent projects in accordance with the 2024 Electricity Law; prioritize projects with the potential for commercial operation (COD) in the 2025-2027 period, and consider including them in the list of urgent projects to ensure electricity supply security.

Secondly, ministries, departments, and localities should promptly approve investment policies and select investors for power generation and transmission projects, ensuring that the scale of power sources put into operation meets load requirements.

Thirdly, effectively implement the plan to import electricity from neighboring countries Laos and China in accordance with the signed agreements and treaties.

Fourth, ensure the progress of investment projects for the construction, expansion, and upgrading of inter-regional transmission systems, main trunk lines, and distribution grid systems in accordance with the smart grid orientation.

Fifth, ensure the supply of primary energy, invest in technical infrastructure to facilitate the import of LNG and coal to promptly meet the fuel needs of existing thermal power plants and in line with the energy transition roadmap.

Dr. Nguyen Manh Cuong - Deputy Head of the Power System Development Department (Institute of Energy) - Photo: Can Dung

Sixth, developing nuclear power sources aims to ensure energy security while fulfilling the Net Zero commitment.

Seventh, solutions to improve the operational capacity of the power system, enhance the availability of power sources, and equip operational support tools to ensure system safety when integrating renewable energy sources at a high rate.

Regarding solutions for attracting and mobilizing investment capital in the power sector, Dr. Nguyen Manh Cuong emphasized the need to improve existing bilateral and multilateral financial mechanisms with governments and international financial organizations/institutions in accordance with commitments to support JETP, AZEC, etc.; mechanisms for mobilizing green credit, climate credit, and green bonds domestically and internationally for state-owned and private enterprises; and to develop, refine, and promptly adjust regulations on minimum long-term contracted electricity output applicable to new energy projects and offshore wind power projects.

“Notably, it is necessary to focus on attracting domestic and foreign private enterprises to invest in power development through preferential investment policies on taxes and land, and to promote decentralization of power to local authorities to handle administrative procedures. A financial mechanism and transmission pricing for socialized transmission grid projects should be established soon to encourage economic entities to participate in investing in power grid infrastructure,” said Dr. Nguyen Manh Cuong.

Mechanism for implementing the plan

Regarding the implementation mechanism of the plan, specifically the mechanism to encourage increased energy saving and efficient energy use, Dr. Nguyen Manh Cuong emphasized that the Ministry of Industry and Trade has issued a two-component electricity pricing mechanism for electricity consumers, implementing a pilot program in 2025 and widespread deployment from 2026. At the same time, it has issued a mechanism for commercial load adjustment to encourage organizations and individuals to participate in this activity, gradually building a Demand Response (DR) market.

Mechanisms to encourage investment in power development: Focus on investment mechanisms for renewable energy sources and electricity storage systems: Consider mechanisms for developing renewable energy sources through auctions and payment mechanisms via CFD contracts to ensure revenue for investors.

Simultaneously, attention should be paid to mechanisms to encourage investment in rooftop solar power and energy storage batteries. Specifically, a flexible control mechanism for rooftop solar power sources should be developed, including: regulations on the maximum permitted installation capacity for each household; and a low purchase price for electricity generated from rooftop solar panels and fed into the grid to encourage investment. At this low price, households will also be inclined to install solar panels for self-consumption.

Consider mechanisms to encourage the development of rooftop solar power by region (the northern region needs higher support). Consider support mechanisms for large-scale BESS projects and household energy storage systems to increase the ability to regulate distributed power.

Dr. Nguyen Manh Cuong also mentioned the policy mechanisms for investing in LNG power sources and the need to quickly complete the construction of a fully competitive electricity market. While the competitive electricity market is not yet complete, he suggested considering adjusting electricity tariffs for coal-fired and gas-fired power plants to ensure suitability and encourage flexible operation of these plants within a highly integrated renewable energy system. He also suggested considering a two-component payment mechanism (capacity component and energy component).

In a more specific proposal, Dr. Nguyen Manh Cuong stated that it is necessary to issue incentive mechanisms to encourage the development of solar power, especially in the North. This includes allowing third parties to invest in and operate rooftop solar power systems. The North needs incentive mechanisms that take into account the reduced transmission costs compared to other regions, as it is closer to load centers but has fewer hours of sunshine.

“Adjust the incentive mechanism for wind power development and the pricing framework by region, focusing on incentives for wind power development in the North (especially with more preferential pricing compared to other regions), taking into account factors such as proximity to load centers, long transmission costs, and ensuring a balance of economic and financial efficiency for investors,” said Dr. Nguyen Manh Cuong, adding: “It is urgent to develop a research project to optimize the development of long transmission lines to supply electricity from the Central and Southern regions to load centers in the North, clearly defining the feasibility of the transmission line corridor, transmission technology, technical issues, and the overall economic efficiency of the system.”

According to the Institute of Energy, it is necessary to promptly develop a plan for implementing the revised Power Development Plan VIII and submit it to the Prime Minister for approval; further enhance the effectiveness of the role of local authorities and the National Steering Committee on Energy Development; Ministries, sectors, and localities should effectively enforce sanctions and revoke projects that are behind schedule or not implemented according to the assigned timelines; develop mechanisms and policies to enhance transparency and proactiveness in managing power development planning, preventing corruption and vested interests in investment in power generation and transmission; and define the responsibilities of ministries, sectors, localities, corporations, and investors in power projects, as well as the implementation process to ensure synchronization among ministries and sectors in the implementation of the plan.

Source: https://congthuong.vn/dieu-chinh-quy-hoach-dien-viii-7-giai-phap-dam-bao-cung-cap-dien-374195.html