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Need for breakthrough mechanisms and policies for energy development

Mr. Tran Hoai Trang, Deputy Director of the Electricity Department (Ministry of Industry and Trade), said that the Draft Resolution on mechanisms and policies to remove difficulties in national energy development in the 2026-2030 period submitted by the Government to the National Assembly this time focuses on creating truly breakthrough mechanisms and policies to promote energy development, ensuring enough electricity for economic development needs and GDP growth targets in the coming period.

Báo Đầu tưBáo Đầu tư29/12/2024

Mr. Tran Hoai Trang, Deputy Director of Electricity Department ( Ministry of Industry and Trade )

The growth rate of electricity generation must be twice that of GDP growth to ensure sufficient electricity. In 2020, the Politburo issued Resolution 55-NQ/TW on the orientation of Vietnam's national energy development strategy to 2030, with a vision to 2045. So far, what are the implementation results, sir?

Implementing Resolution 55-NQ/TW, the energy sector in general and electricity in particular has maintained stable growth, basically ensuring national energy security, meeting the increasingly high requirements for rapid and sustainable development, ensuring national defense, security and improving people's lives. However, the energy sector still has many limitations and weaknesses. Some limitations and weaknesses pointed out in Resolution 55-NQ/TW have not been completely overcome, many targets set can be said to be difficult to achieve without breakthrough and outstanding mechanisms and policies.

It can be said that the institutions, policies, and management of energy sector development are still inadequate; the progress of many power projects is slow; energy potential has not been effectively exploited. Energy supply still depends on imports, the risk of power shortage during the double-digit growth period is real; infrastructure is still lacking and not synchronized...

Although the Prime Minister has approved the Project on Developing a Competitive Energy Market (Decision 2233/QD-TTg in 2020) with the goal of consolidating, developing and expanding the competitive wholesale electricity market, creating a solid foundation for the transition to a fully competitive retail electricity market according to the roadmap, the development of the competitive energy market is not synchronous, lacking connectivity between sub-sectors, especially the electricity market, which still has many limitations. In addition, the energy price policy is still inadequate, not really suitable for the market mechanism, and there is still a situation of cross-subsidization of electricity prices for some customer groups.

That is also the reason why the Politburo issued Resolution 70-NQ/TW to replace it, sir?

The Party, Government and National Assembly have agreed to set the economic growth target for the coming period at double digits (the highest ever). Certainly, the economy cannot grow strongly when energy cannot meet demand, especially electricity. To meet the requirements of rapid and sustainable national development in the coming time, especially to implement the strategic goals until 2030 and 2045, ensuring energy security plays a particularly important role, energy must go one step ahead, fully meeting the needs of socio-economic development, national defense, security and improving people's lives.

Many of the goals and requirements set out in Resolution 55-NQ/TW are no longer guaranteed in the context, situation and goals of bringing our country into a new era - the era of national development. Therefore, the Politburo issued Resolution 70-NQ/TW on ensuring national energy security until 2030, with a vision to 2045.

Resolution 70-NQ/TW requires firmly ensuring national energy security, which is an important foundation and premise for national development and an important part of national security. Energy development is given the highest priority to meet the requirement of continuous growth of over 10% in the coming period. Energy development must be consistent with the socialist-oriented market economy; build a synchronous, competitive, transparent energy market, diversify ownership forms and business methods; apply market prices to all types of energy, without cross-subsidization between customer groups. In particular, encourage and create favorable conditions for economic sectors, especially the private sector, to participate in energy development; ensure that the private economy competes equally with other economic sectors in developing energy projects.

“Electricity must go one step ahead”, if we want GDP to grow by double digits, electricity must double the economic growth rate. Sir, how can we solve the above problems?

Regarding the legal system, the Ministry of Industry and Trade has identified a number of legal bottlenecks and bottlenecks related to the development of the electricity industry in many laws, especially the Electricity Law, Land Law, Natural Resources Law, Construction Law, etc.

These laws have some inconsistent points related to investors developing power sources and power grids, creating bottlenecks, directly affecting the progress of implementing the 8th Power Plan. For example, the Planning Law does not allow partial adjustments to the plan, but only allows adjustments every 5 years. Power projects are related to many issues, for example, investors who are behind schedule need to make timely adjustments, but have to wait for the planning adjustment period according to the Planning Law, leading to slow adjustments.

The National Assembly has just passed a Resolution on the Socio-Economic Development Plan for 2026, which emphasizes the need to synchronously improve institutions and promptly remove bottlenecks. Do you think the problems in related laws will soon be resolved?

Current laws, whether amended, supplemented, replaced or newly issued, are general laws, so it is impossible to prescribe separate chapters and provisions for the electricity industry, while planning, investing and developing electricity for the period of double-digit economic growth requires specialized legal documents.

At this session of the National Assembly, the Government submitted to the National Assembly for comments and approved the Draft Resolution on mechanisms and policies to remove difficulties in national energy development in the 2026-2030 period to remove difficulties and obstacles for the electricity sector that are not regulated by relevant laws. Such as allowing state-owned and private enterprises with real capacity and financial conditions to invest in electricity projects and enjoy superior mechanisms and policies; decentralizing the approval of investment in electricity projects to provincial People's Committees; investors with sufficient financial capacity and experience to implement important and urgent electricity projects without having to complete all documents, processes and procedures like other projects.

In short, if approved by the National Assembly, power projects can be invested, operated and exploited immediately, instead of spending another 2-3 years waiting for the completion of all processes, procedures and documents, especially the procedures for approving investment policies. Of course, in addition to facilitating, supporting and applying superior mechanisms and policies, the Resolution also has provisions for strict handling of investors who delay and do not implement power projects.

With millions of square kilometers of sea surface, Vietnam has many advantages in developing wind power. Sir, do new policies encourage the development of offshore wind power?

Basically, hydropower has been fully exploited; coal power is limited in use due to environmental concerns; gas thermal power is expensive, so it is necessary to focus on developing other power sources. In addition to nuclear power, it is necessary to prioritize the development of green energy and renewable energy. In particular, with the advantage of millions of square kilometers of sea surface, and the Central region with year-round sunshine and wind, Vietnam needs to develop this endless source of energy.

We propose that offshore wind power projects exporting electricity should be exempted from or have their sea surface rent and land rent reduced. Offshore wind power projects producing electricity to serve domestic electricity demand, in addition to enjoying the same mechanisms and policies as offshore wind power projects exporting electricity, also enjoy many special preferential mechanisms. In particular, projects supplying electricity to the national power system with a capacity of 6,000 MW approved in the Power Development Plan for the period up to 2030 are subject to the maximum price of the electricity generation price framework applicable to offshore wind power.

Source: https://baodautu.vn/can-co-che-chinh-sach-dot-pha-phat-trien-nang-luong-d435571.html


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