Mastering technology, attracting investment to promote renewable energy development

(Chinhphu.vn) – To promote renewable energy development and successful energy transition, Vietnam needs to reform institutions, master technology, attract private and international investment, and improve monitoring and management capacity.

Managers and experts discuss solutions to promote renewable energy development - Photo: VGP/Thu Cuc

This is the opinion discussed at the Workshop "Energy Conversion Solutions towards Net Zero" organized by Lao Dong Newspaper in coordination with the Ministry of Industry and Trade on May 29, to propose solutions to remove bottlenecks in energy conversion.

Experts say that to promote the development of renewable energy and successfully transform energy, Vietnam needs to reform institutions, master technology, attract private and international investment, and improve monitoring and management capacity.

According to Associate Professor, Dr. Dang Tran Tho - Director of the Institute of Energy Technology (Hanoi University of Science and Technology): Energy always plays a key role in socio -economic development, is the "engine" of all production, service and people's lives.

Vietnam is considered a country with the leading potential for renewable energy development in Southeast Asia. The fact that Vietnam is behind but has developed rapidly in the period 2018-2020 (reaching more than 16.5 GW of solar power in just 3 years) shows that there is a huge potential and capacity to absorb new technology if supported by appropriate policies, finance and infrastructure.

However, Mr. Dang Tran Tho also pointed out the difficulties Vietnam is facing in the transition to green energy.

"One of the biggest barriers to the energy transition in Vietnam is the incompleteness and instability of the policy framework. To date, despite the promulgation of the revised Power Plan VIII and international commitments on net zero emissions, there is still no legal basis for renewable energy or energy transition laws. This leads to fragmented policies, lack of high legal binding, and difficulty in consistent implementation between the central and local levels," said Mr. Dang Tran Tho.

In addition, the strong development of solar and wind power in the 2018-2020 period has exposed shortcomings in the power infrastructure, especially the baseload and storage systems. Renewable energy sources are characterized by unstable power generation, depending on the weather and time of day. Meanwhile, Vietnam's power system still relies mainly on the traditional model, lacking flexibility, lacking the ability to quickly regulate and lacking a large-scale energy storage buffer.

According to Mr. Dang Tran Tho, one of the important but often underestimated challenges in the energy transition process is the limitation of technology and techniques. Vietnam's current energy system still mainly operates according to the traditional model, not designed to integrate a high proportion of fluctuating power sources such as solar power and wind power. This leads to difficulties in regulating, maintaining frequency and stabilizing voltage when renewable energy sources generate electricity asynchronously with the load.

Faced with the above situations and difficulties, Mr. Doan Ngoc Duong - Deputy Director of the Electricity Department (Ministry of Industry and Trade) said: "Converting energy towards gradually reducing the proportion of fossil fuels in electricity production to renewable energy and new energy is an inevitable trend in the world today. Vietnam has been making efforts to implement green energy conversion to realize the goal of carbon neutrality (or Net Zero) by 2050.

Creating a transparent investment environment, removing barriers to investment procedures

To achieve growth in renewable energy sources according to the adjusted Power Plan VIII and towards Net Zero by 2050, in the coming time, it is necessary to consider and implement a number of specific groups of solutions:

Firstly, creating an open and transparent investment environment, removing barriers to investment procedures for power development. The Electricity Law No. 61/2024/QH15, effective from February 1, 2025, and sub-law documents have basically resolved bottlenecks related to investment procedures for power projects, public planning, investment project portfolios, and providing incentive mechanisms for renewable energy and clean energy projects, especially rooftop solar power models, offshore wind power, energy storage, and green hydrogen. In the coming time, we need to continue to perfect the legal framework in a synchronous, flexible, and effective manner; perfect policies to encourage the production and use of renewable energy and new energy to strongly attract domestic and foreign investors to participate in investing in the development of power projects.

Second, there can be no energy transition without a smart and flexible grid system. According to Decision No. 768/QD-TTg, the investment capital demand for the transmission grid in the period of 2026 - 2030 is about 18.1 billion USD, which has been calculated to release capacity, connect regions and areas with modern technology... In the coming time, we need to accelerate investment in strategic transmission lines, modernize the grid with digital and smart technology to exploit and optimally use renewable energy and new energy sources nationwide.

Third, it is necessary to carry out energy transformation in the major electricity consuming sectors. Industry needs to promote green production such as green steel, green cement, and use clean energy in industrial zones. Transportation needs to be strongly electrified, develop electric vehicles and charging station infrastructure. At the same time, it is necessary to promote the implementation of regulations and solutions on economical and efficient use of energy.

Fourth, we need to consider the role of nuclear power in the long term. This is a stable source of electricity, does not emit CO2, and can serve as a base source for the power system with a large proportion of renewable energy sources. According to Decision No. 768/QD-TTg, to enhance energy security, by 2030 - 2035, nuclear power will reach about 4,000 - 6,400 MW and reach about 10,500 - 14,000 MW by 2050. Currently, Vietnam has continued to implement the policy of investing in Ninh Thuan 1,2 nuclear power plants based on research and cooperation with partners who possess modern, safe and reliable technology in the world.

Fifth, we need a modern system of policy mechanisms and electricity markets. We need to urgently complete the competitive electricity market, build a carbon credit mechanism, set emission prices, promote green finance and public-private partnerships. This is the foundation for mobilizing private and international resources for energy transition. At the same time, the role of science, technology and innovation is indispensable. We need to invest in technologies such as energy storage, AI in power system operation, new materials and especially green hydrogen production technology. At the same time, we need to promote the training of high-quality human resources to serve the transition process.

Finally, and most importantly, ensuring equity in the transition. Every policy must put people at the centre: from coal workers, traditional energy-intensive sectors, vulnerable communities to small businesses, all must be supported, trained and retrained, and livelihoods transformed, so that no one is left behind on the journey to Net Zero.

Green energy transition is a challenging journey, but with the vision, determination and cooperation of the State, businesses, people and the international community, I believe that we can completely successfully carry out this process, ensuring energy security for economic development to reach the target of 8% in 2025 and double digits in the period 2026-2030, while achieving the Net Zero target in a sustainable and proactive manner."

Thu Cuc

Source: https://baochinhphu.vn/lam-chu-cong-nghe-thu-hut-dau-tu-thuc-day-phat-trien-nang-luong-tai-tao-102250529222034455.htm