Energizing the electricity industry to accelerate by 2025

Completing more than 500 km of the 500 kV line 3 after more than 6 months of construction, passing the Electricity Law (amended) in just one session of the National Assembly , or restarting the nuclear power project... are notable highlights in 2024, adding energy for the electricity industry to accelerate.

To exploit the great potential of renewable energy sources, such as wind power and solar power, a synchronous and feasible mechanism is needed. Photo: Duc Thanh

Build the frame, create the foundation

On the afternoon of November 30, 2024, the amended Electricity Law was voted through with 439 delegates in favor, accounting for 91.65% of the total number of National Assembly delegates.

Thus, in just one session of the National Assembly, an important law related to power supply for the economy as well as national energy security was discussed and passed.

When analyzing the reality of investment in the electricity sector, Minister of Industry and Trade Nguyen Hong Dien also mentioned "the urgent need for electricity growth according to the Power Plan VIII". That is, currently, the total capacity of the system is about 80,000 MW, but by 2030 (about 5 years from now) it must reach at least 150,524 MW, which is nearly twice the current total capacity. Further, by 2050, that is, 25 years from now, it must reach 5 times the current level, equivalent to 530,000 MW nationwide".

According to the Minister of Industry and Trade, the demand for developing such a large power source without clear and guaranteed mechanisms is clearly not feasible.

Referring to many types of power sources with great potential in the country such as renewable energy (solar power and wind power) in many localities, if there is no synchronous and feasible mechanism, then a little development will continue to be stuck, Mr. Dien also said that synchronous redesign and priority of electricity projects must be implemented according to the Electricity Law.

Amending the Electricity Law is also expected to be a fundamental solution, aiming to create a breakthrough in energy infrastructure, serving socio-economic development, ensuring national energy security, especially when some investors have calculated that with the current development speed, Vietnam is at risk of electricity shortage, so they have considered whether to invest in Vietnam or not.

The amendment of the Electricity Law, in addition to the goal of meeting development requirements in the coming time, also focuses on prioritizing the development of clean electricity, striving to achieve the goal of zero net emissions by 2050 and harmonizing power transmission between regions across the country.

Not only amending the Electricity Law, the National Assembly session at the end of 2024 also passed a resolution agreeing to continue implementing the investment policy of the Ninh Thuan Nuclear Power Project as proposed by the Government.

This is also an electricity source that is expected to fulfill the dual task of providing electricity and protecting the environment. Besides diversifying electricity supply sources and ensuring energy security, nuclear power is also expected to contribute to the development of high-quality human resources, enhancing the national science and technology potential, and participating in the nuclear power industry supply chain.

The passing of the revised Electricity Law, which will take effect from February 1, 2025, or new moves on nuclear power, also shows the determination of leaders at all levels in removing and not letting bottlenecks become barriers in attracting and promoting domestic and foreign resources, making the institution truly become a new driving force for the country's growth and development.

Innovation in the way of doing things

With a total length of 519 km, passing through 211 communes/wards of 43 districts in 9 provinces, with a total investment of more than 22,300 billion VND, the 500 kV Line 3 is identified as an important project to improve the stability of the power system operation, increase power supply to the North by 2024 and contribute to ensuring national energy security.

Under the strong direction of the Prime Minister, the Government, the attention and support of ministries, branches, localities and people, Vietnam Electricity Group (EVN) and the National Power Transmission Corporation (EVNNPT) have determined and made efforts to complete the energization of the 500 kV line project, circuit 3, after more than 6 months of construction.

Unlike the 500 kV Line 1, which was invested and built with the spirit of daring to do and taking responsibility, or the 500 kV Line 2, which was built with the spirit of promoting internal strength and national self-reliance, the 500 kV Line 3 Project was built with the spirit of promoting the combined strength of the entire political system.

It is clear that the Government, ministries, branches, local authorities at all levels, and people have joined hands and unanimously overcome all difficulties and innovated ways of working to bring the Project to the finish line on schedule.

Many miracles have occurred during the preparation and implementation of the project, such as the time for preparing and submitting the investment policy/adjusting the investment policy was only nearly 5 months, 1.5 to 2 years shorter than projects of similar scale.

Although there were 226 bidding packages of all kinds, EVNNPT/project management boards focused all specialized and experienced personnel to organize bidding day and night, without days off. As a result, the selection of contractors was completed in about 60 days.

Most notably, the site clearance work was at a record pace, even though the Project spanned 9 provinces, with a total recovered land area of ​​about 183 hectares, affecting 5,248 households and 96 organizations, and 167 households had to relocate. This was achieved thanks to the strong direction of the Prime Minister, ministries, branches, the participation of local authorities in 9 provinces, and the consensus and support of the people.

By 2030, the total capacity of the system must reach at least 150,524 MW, which is nearly twice the current total capacity (about 80,000 MW). By 2050, it must reach 5 times the current level, equivalent to 530,000 MW.

EVN/EVNNPT and construction units have overcome countless difficulties and challenges that seemed insurmountable, promoting all endogenous strength with a spirit of unity and determination to overcome obstacles.

The slogans "3 shifts, 4 shifts", "overcoming the sun, overcoming the rain", "not losing to storms", "going through holidays/Tet/holidays" to bring the project to the finish line according to the Prime Minister's schedule were unanimously implemented by all relevant forces at the entire construction site.

Mr. Dang Hoang An, Chairman of EVN Board of Directors, said that from the achieved results and valuable lessons learned during the investment and construction process of the 500 kV Line 3, EVN has determined its own direction and methods to carry out the investment and construction of other key projects and works in the coming time better - faster - more effectively and safely, especially the projects assigned in the Power Plan VIII.

That is, the ideology must be clear, the determination must be high, the effort must be great, the action must be decisive, focused, and key points must be met; the assignment must be clear to people, work, responsibilities, time, products, and results, easy to check, urge, and evaluate" to complete the mission of "electricity being one step ahead", ensuring safe and stable electricity supply for socio-economic development and people's lives.

Still need to highlight specific mechanisms

However, in order for investors, especially domestic and foreign private sectors, to participate strongly in developing power projects, more specific policy mechanisms are needed.

In the last days of 2024, the Ministry of Industry and Trade was asked to review collective and individual responsibilities in the delay in submitting additional updates to the Implementation Plan for Power Plan VIII - an issue that the Prime Minister requested to be completed by April 2024.

However, even if the 2nd Implementation Plan of the 8th Power Plan is issued with a specific list of many project names, the implementation must still have clearer and more specific mechanisms.

This is the conclusion from the challenging implementation reality of most LNG power projects with investors or offshore wind power projects listed in Power Plan VIII.

It is clear that the target of 6,000 MW of offshore wind power by 2030, as set out in the Power Plan VIII, is not feasible. Even the 23 gas-fired power projects, with a total capacity of 30,424 MW planned to be operational by 2030, see a less than 20% chance of reaching the finish line.

There are many reasons, but the key is that the electricity price has not been calculated correctly, taking into account all input costs of production and adjusting according to fluctuations in market prices, while ensuring reasonable profits for each stage in the entire production chain.

Therefore, the negotiation of electricity prices with EVN has not progressed quickly, causing investors to be uninterested in implementing the project because they do not see the expected profits, even though the current mechanism allows the project to be started even before the negotiation of electricity prices is completed.

In renewable energy projects, the story of hundreds of solar and wind power projects in operation, but the Government Inspectorate concluded that there were violations in the investment process, although the path that needs to be taken to resolve the problems is now clearly seen, it is still very difficult to speed up.

Some investors interested in renewable energy have said that in the coming time, before investing, they will have to do more research because the bidding process to select investors is complicated, while the project implementation time is too short, the electricity price is low and is regulated in Vietnamese Dong, or they are afraid that related policies still have gaps.

Even wanting to invest in the mechanism of direct electricity purchase and sale with large customers according to Decree 80/ND-CP or self-produced and self-consumed rooftop solar power according to Decree 135/ND-CP is not possible because there are no specific instructions.

Even the revised Electricity Law, which takes effect from February 1, 2025, needs many specific decrees and guiding documents.

These current situations require that policy mechanisms for power project development must be quickly completed and made clearer to attract domestic and foreign private investors to invest in the broader power sector, and contribute to the realization of the goal of "Electricity one step ahead".

Source: https://baodautu.vn/tiep-them-nang-luong-de-nganh-dien-tang-toc-nam-2025-d237617.html