Perfecting institutions for energy transition
On the afternoon of November 26, within the framework of the Autumn Economic Forum 2025, a High-Level Policy Dialogue took place between the Prime Minister of Vietnam and leaders of the World Economic Forum (WEF) at Thisky Hall Convention Center, Sala Urban Area, Ho Chi Minh City. This is the key activity of the Autumn Economic Forum 2025.
Prime Minister Pham Minh Chinh , Deputy Prime Minister Bui Thanh Son and delegates attending the program. Photo: Thanh Minh.
The forum was attended by Prime Minister Pham Minh Chinh , Deputy Prime Minister Bui Thanh Son, Deputy Minister of Industry and Trade Phan Thi Thang; leaders of ministries, branches, localities, about 30 diplomatic missions of countries in Vietnam, representatives of national leaders; along with experts, scientists and more than 500 domestic enterprises in the fields of science, high technology and innovation.
Deputy Minister of Industry and Trade Phan Thi Thang attended the event. Photo: Thanh Minh
The Dialogue session opened with a dialogue with leaders of central ministries and branches, with the theme: Dual transformation from strategy to action. The content focused on perfecting institutions to promote digital economy, green economy, and at the same time strengthening the policy framework to support innovative enterprises, the pillars expected to create growth breakthroughs in the coming period.
At the dialogue session, Dr. Tran Du Lich, Chairman of the Advisory Council for the implementation of Resolution 98/2023 of the National Assembly - raised the issue: The energy sector is under great pressure when it has to ensure both energy security and emission reduction. Dr. Tran Du Lich asked the Ministry of Industry and Trade about specific solutions to accelerate the development of renewable energy while maintaining stable electricity prices and ensuring technical feasibility? Along with that, what are the necessary key steps and mechanisms to effectively implement the Adjustment of Power Planning VIII and Resolution No. 70-NQ/TW, aiming for renewable energy to reach 25-30% of supply by 2030?
Deputy Minister of Industry and Trade Phan Thi Thang. Photo: Thanh Minh.
Responding to this group of issues, Deputy Minister of Industry and Trade Phan Thi Thang emphasized: Vietnam is entering the initial stage of the energy transition process to keep up with rapid changes in the energy sector. The energy transition issue in Vietnam is posing enormous challenges but also has very clear opportunities in establishing stable and long-term foundations for long-term sustainable economic development.
The Deputy Minister said that with the goal of ensuring national energy security and ensuring the commitment to reduce greenhouse gas emissions, developing renewable energy, especially wind power and solar power, is an inevitable direction, in line with Vietnam's potential strengths and the world's development trends.
Therefore, the Power Plan VIII has been adjusted and proposed a number of new points, including strongly promoting the use of green and clean energy sources, minimizing the impact on the environment, gradually reducing the adverse impact on climate change, developing renewable energy in line with the ability to ensure system safety with reasonable electricity prices. Accordingly, the total capacity of renewable energy sources, mainly wind power and solar power, is about 78 to nearly 120 thousand MW, accounting for a relatively high proportion compared to the previously approved Power Plan VIII.
Dialogue session of central ministries and branches with the theme: "Dual transformation from strategy to action". Photo: Thanh Minh.
However, Deputy Minister Phan Thi Thang also frankly acknowledged the concerns raised by Dr. Tran Du Lich, that balancing the rapid development of renewable energy, especially unstable renewable energy sources such as wind power and solar power with the safety of the power system and maintaining stable electricity prices is a huge challenge.
According to the Deputy Minister, to address these challenges, the Government and the Prime Minister have directed the Ministry of Industry and Trade to develop orientations, strategies, policies and a legal framework for sustainable renewable energy development.
In terms of institutions, the Government has developed and submitted to the National Assembly for approval the revised Electricity Law with the aim of resolving difficulties and obstacles in the electricity sector, ensuring electricity security, aiming for the Net Zero goal and contributing to promoting the sustainable and effective development of the electricity sector. The revised Electricity Law has new, breakthrough regulations on renewable energy and new energy electricity.
Immediately after the law was promulgated and took effect, the Ministry of Industry and Trade promptly developed and issued legal documents under the law for synchronous implementation. In particular, it issued 5 power generation price frames for most types of renewable energy (solar, wind, biomass, solid waste) as a basis for investors to set up investment projects and negotiate electricity prices and power purchase contracts with Vietnam Electricity Group (EVN).
In addition, the cost of purchasing electricity from renewable energy is one of the components fully calculated in the average retail electricity price and the adjustment of the average retail electricity price is considered and evaluated in general, the input parameters of all stages (power generation, power transmission, power distribution - retail, power system operation and operation and management of electricity market transactions, power system ancillary services and industry operation - management...) as well as considering the suitability with economic conditions of each period.
Long-term strategy and key mechanisms
Regarding strategic orientation, Deputy Minister Phan Thi Thang said that in addition to developing the Strategy and Planning, the Ministry of Industry and Trade has conducted a 5-year review of the implementation of Resolution No. 55-NQ/TW dated February 11, 2020 of the Politburo on the strategic orientation of Vietnam's national energy development, as a basis for the Politburo to issue a new Resolution (Resolution No. 70-NQ/TW issued last August) on ensuring national energy security until 2030, with a vision to 2045, to meet the requirements of rapid and sustainable development of the country in the new period.
Regarding tasks and solutions, with the synchronous implementation of Resolution 70-NQ/TW of the Politburo, the Ministry of Industry and Trade focuses on perfecting the price mechanism for renewable energy development, removing bottlenecks in land clearance... At the same time, accelerate investment in the power grid; develop electricity storage infrastructure; develop supporting industries. Special attention is paid to specific mechanisms for the grid and offshore wind power, these are the two most important unlocking factors.
Specifically, on perfecting the legal framework and electricity market mechanism: Fully promulgate price frameworks for each type of power source (onshore/offshore wind power, concentrated solar power, rooftop solar power, biomass power, waste, pumped storage hydropower); deploy the construction and soon put into operation a competitive wholesale electricity market and prepare for the retail electricity market; develop and promulgate an outstanding mechanism for developing offshore wind power; complete DPPA mechanism.
Focus on solving key “bottlenecks”
Regarding removing bottlenecks in site clearance and land: Review and quickly approve marine spatial planning for offshore wind power; issue a mechanism for combined land use (e.g., agriculture, solar power), increase the effective land use rate; standardize investment approval procedures to reduce implementation time.
Regarding accelerating investment in transmission and distribution grids: Prioritize grid projects to release capacity for areas with great potential; prioritize simplified procedures for transmission grid projects; implement mechanisms for private investment in grids under the BOT or BT model combined with handover.
Regarding the development of energy storage infrastructure: Simultaneously develop renewable energy, storage, and smart grids; build a roadmap for mandatory storage/renewable energy ratios; encourage the development of battery storage (BESS), pumped storage hydropower, and thermal storage for industry.
Regarding the development of renewable energy support industries, the Ministry encourages domestic enterprises to participate in the supply chain: Wind turbine poles, jacket foundations, electric poles, inverters, batteries; Industrial parks specializing in renewable energy in potential areas.
At the end of the discussion, Deputy Minister Phan Thi Thang affirmed that the Ministry of Industry and Trade will continue to accompany businesses, localities and international organizations to promote energy transition in Vietnam towards green, sustainable and efficient. Thereby, contributing to the implementation of national development goals in the era of green economy.
Thanh Minh
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