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Lesson 3: Finding solutions to the renewable energy “problem”

Báo Ninh ThuậnBáo Ninh Thuận19/06/2023

Developing renewable energy (RE) is a trend, bringing clear benefits and efficiency. From practice, it shows that the prospects and goals of developing RE in Ninh Thuan are very large, but it is necessary to have fundamental solutions, removing "bottlenecks" to achieve the expected goals.

Implementing the Government's policy and Resolution No. 115 on building Ninh Thuan into a renewable energy center of the country, Ninh Thuan Provincial Party Committee issued Resolution No. 20/NQ-TU dated January 25, 2022 to build Ninh Thuan into a renewable energy center of the country by 2025, with a vision to 2030. Thereby demonstrating political determination, resolutely striving to achieve the set goals, effectively exploiting and promoting the province's potentials and strengths in renewable energy development, contributing to ensuring energy security, promoting rapid and sustainable socio-economic development; focusing on synchronous development of electricity production, power transmission infrastructure, serving the power grid and supporting industries to ensure conditions on resources, policies and mechanisms, and human resources to build Ninh Thuan into a renewable energy center of the country.

The Resolution sets specific targets by 2025: Total electricity capacity increases by about 3,000 MW to reach a cumulative capacity of 6,500 MW (including: Solar power 3,440 MW, onshore and nearshore wind power 1,200 MW, hydropower 360 MW, LNG gas power 1,500 MW); electricity production reaches nearly 11.2 billion kWh. Basically becoming the energy and renewable energy center of the country. The energy and renewable energy industry contributes 22% of GRDP and 29% of the total budget revenue of the province. The energy infrastructure develops synchronously, modernly, has high connectivity with the regional and national grid system, in line with the orientation of Power Plan VIII and effectively meets the socio -economic development goals of the province. Striving to form a center for research, application and development of renewable energy technology; Attracting 1 investment project in the field of research and manufacturing of key equipment in energy sub-sectors.

Engineers operating My Son Solar Power Plant. Photo: A. Tuan

To achieve the above objectives, the resolution sets out key tasks and solutions to focus on directing implementation. In particular, strengthening the leadership and direction of Party committees and authorities at all levels; raising responsibility and awareness of implementing the task of building Ninh Thuan into an energy and renewable energy center of the country. Focusing on building, perfecting and effectively managing and implementing plans, mechanisms and policies. Building a model to develop Ninh Thuan into an energy and renewable energy center of the country; specifically focusing on developing the structure and model of the energy and renewable energy center consisting of 2 parts. Of which, the hardware consists of 3 modules: Module I is the Ca Na LNG power center; Module II is the Ninh Thuan renewable energy center; Module III is the center for research, application and development of energy technology. Strengthening the attraction, mobilization and effective use of investment resources to develop facilities and technical infrastructure. Prioritize human resource development for the energy sector. Strengthen state management, accelerate digital transformation, and apply science and technology.

Comrade Phan Tan Canh, member of the Provincial Party Committee, Vice Chairman of the Provincial People's Committee said: To effectively implement the conditions for stable, sustainable and long-term development of renewable energy, it is necessary to perfect the legal policies on energy development. Supplement and adjust the policy mechanism to attract resources to participate in investment in renewable energy development with preferential investment policies such as capital, tax and land, policy mechanisms to synchronously develop the transmission and distribution system and tools to ensure stable operation of the power system. Regarding energy development in local planning, the province will review the power generation projects being invested in, effectively implement the policy mechanisms to support the development of renewable energy according to regulations. In which, effectively attract investment projects in areas with favorable conditions, suitable for the ability to ensure the safety of the power system. Create favorable conditions to support site clearance for the electricity sector to invest in upgrading infrastructure, ensuring safe and efficient operation of the power grid; gradually build a smart power grid system capable of connecting the region, ensuring power supply for the load area. The province will direct relevant sectors, localities and units to promptly grasp the difficulties and obstacles of investors in the process of implementing investment in renewable energy projects in the area to promptly support and facilitate investors. Urge renewable energy projects that have been approved by investment policy decisions at all levels to be added to the planning to promptly complete investment procedures to implement the projects to ensure the progress of putting into operation power generation after the VIII Power Plan is approved by competent authorities.

In order to ensure the safety of the power grid and the ability to release all capacity and electricity output in the locality, the province recommends that central ministries and branches allocate funds to invest in the construction of the power transmission grid system in the province according to the progress of national power development plans, especially the 500 kV, 220 kV, 110 kV power lines that have been approved for additional planning by all levels. Typical key projects connecting key economic regions in the South include: 500 kV Thuan Nam - Chon Thanh double-circuit power line, 220 kV Ninh Phuoc to 500 kV Thuan Nam power line, 220 kV Nha Trang - Thap Cham power line and speed up the investment progress of Bac Ai pumped storage hydropower plant. For wind and solar power projects that have been approved by competent authorities for additional planning, the investor has completed the investment, and the commercial operation date has been recognized by the Vietnam Electricity Group, but the electricity selling price has not yet been negotiated because the electricity purchase price mechanism has expired. Therefore, the province requests the Ministry of Industry and Trade to consider providing timely guidance for businesses and study guidelines for handing over the 500 KV Thuan Nam - Vinh Tan transformer station at a price of 0 VND to the Vietnam Electricity Group for operation and management. Because currently, the investor of the Trung Nam - Thuan Nam Solar Power Plant project is having to bear the transmission management and operation costs for this system.

Faced with the difficulties of enterprises, the Prime Minister and Government leaders have issued documents directing units to find ways to resolve difficulties for investors. However, up to now, after a long wait, the next development policy for wind and solar power is still not available. The urgent thing now is to soon have a new price mechanism for wind and solar power to resolve difficulties for enterprises and strengthen investor confidence.

Ninh Thuan is a locality with many strengths and the ability to attract investment to successfully build the country's renewable energy center. If there is a reasonable support policy, this will be a great contribution to the country's demand for electricity output and ensure energy security. And most importantly, this development will reduce dependence on imported fossil fuels, reduce greenhouse gas emissions, ensure sustainable development factors, and achieve the goal of net zero emissions by 2050.



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