Clear, stable policies needed to lure investors in power sector

VCN – Regarding the draft Power Plan VIII project, energy expert Ngo Duc Lam, former director of the Institute of Energy under the Ministry of Industry and Trade, said that the key factor to deal with capital for electricity development is clear and stable policies to lure investors.
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Which contents in the draft Power Plan VIII project are you interested in?

The Power Plan VIII has more than 800 pages but offers few solutions. Meanwhile, the planning is different from the orientation; it needs very specific policies such as in technology, energy efficiency and price. If solutions are not provided, the planning will be adjusted again in two to three years. Thus, these problems must be solved immediately.

Planning must be in line with theglobal trend. The global trend is changing very quickly. The upcoming trend is that many people are not satisfied with the renewable energy rate, so there should be consideration to reduce coal-fired thermal power reasonably.

However, renewable energy also has a downside. Therefore, when it comes to reducing coal-fired thermal power, there must be a roadmap, clarity and social security must be ensured.

The progress of power supply projects behind schedule isquite common, havingserious impacts on the power supply capacity. Do you have any suggestions for the development of Power Plan VIII to avoid this problem?

Prior to Power Plan VIII, Power Plan VII required sufficient power supply to meet the country's development. However, the implementation progress raised many problems. Specifically, the country’s electricity consumption was very high while many coal-fired thermal power projects were behind schedule, causinga risk of power shortage.

In addition, since 2015, the global trend has shifted from coal-fired thermal power to renewable energy, while Vietnam is a country with great potential in solar and wind power. The development of power sources has been a concern formany investors and proposed by many localities, but still faced problems in law, planning and balancing capabilities of the whole system.

One of notable foundations for the development of Power Plan VIII is the Politburo's Resolution No. 55-NQ / TU on the orientation of Vietnam's National Energy Development Strategy to 2030, with a vision to 2045, which focuses on sufficient power supply and the implementation of international commitments to ensure criteria such as climate change, CO2 emissions, and environmental pollution.

Resolution 55-NQ / TU brings renewable energy to 40-45%, even 48%. In the development history of Vietnam’s energy industry, this is a big goal equal to that of coal-fired thermal power in 40 years of development.

According to the draft Power Plan VIII, from now to 2045, the investment needed for the power sector is about US$12-13 billion per year. The total amount needed to invest in power development from 2021 to 2045 is US$320.6 billion. In your opinion, what are effective solutions to help the power sector gain such a vast amount of capital?

Currently, of 100% investment capital, domestic capital is required at least 20-25%, which is the maximum that Vietnam can get. To mobilize the rest, it requires many solutions, first of all is foreign investment through the form of Build-Operate-Transfer (BOT).

Besides, socialization is required for the State and people to work together. In recent years, solar power has been developed by private companies. However, in order for private companies to feel comfortable to invest in renewable energy, the State needs to have clear and stable policies for this sector.

Regulation on solar panels is an example.Solar panels have been rampant recently and solar batteries can be imported from any company. When the State provides standards, what should investors who spend money to buy panels that are not in the new standards, do? That is a matter of policy, so the policy must be extremely clear and stable to lure investors.

Find foreign capital to Find foreign capital to "fill" US$150 billion of electricity investment

VCN - In order to ensure power supply, in the next 10 years, each year, the electricity ...

Another important factor is that investment in renewable energy will increase the electricity price, which has not been mentioned in Power Plan VIII. Those who must be supported as policy beneficiaries, were managed by the power industry, which is inappropriate, they must be managed by the State.

Thank you Sir!

By Duc Quang/ Huyen Trang

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