The reasonable price of electricity will motivate investment in renewable energy

	Price pressure in 2017
	Regulating framework of electricity prices from thermal and hydrological power plants in 2017
	The electricity price in 2017 will not big and acceptable

Electricity prices should be reasonable to support renewable energy development and encourage savings. Photo: Nguyen Ha.

It is predicted that by 2030, not only in Vietnam but in many countries, there will risks of severe energy shortage, so it must be oriented towards energy savings and effectiveness, friendly to the environment, contributing to ensuring energy security and sustainable development.

A report of the Ministry of Industry and Trade in the workshop "Sustainable Energy - Towards a Low Emission Economy" on 24th August 2017 showed that Vietnam's energy needs had increased rapidly in the last 15 years. Commercial energy growth is about 9.5% per year, while demand for electricity also grows on average by 13% per year between 2006-2010 and about 11% per year for 2011-2016.

It is estimated that by 2015, Vietnam's total national energy consumption was about 55 million TOE and this demand is projected to increase to 100-110 million TOE by 2020.

With such demand, Mr. Hoang Quoc Vuong, Deputy Minister of Industry and Trade, said that Vietnam was currently transforming from an energy exporter into an importer of energy.

Specifically, Vietnam must import 10 million tons of coal in 2017 in order to meet the domestic demand, and it is estimated that coal imports will reach 100 million tons by 2030. In addition to coal, Vietnam will also have to import liquid gas and electricity from neighboring countries.

At the same time, using energy efficiently and taking advantage of the abundant renewable energy sources, Vietnam can reduce its reliance on fossil fuels, or imported coal, as well as ensure electricity prices to be stable in the coming decades.

Mr. Wolfgang Manig, the German Ambassador to Vietnam, said that the new approach to clean energy and renewable energy is increasingly contributing to reducing emissions and combating climate change.

Despite the high value of access to electricity by Vietnamese people with more than 80% of the population increasing to 100% by 2025, Mr. Wolfgang Manig also noted the policy for electricity prices.

Accordingly, the reasonable adjustment of electricity prices will be an important motive to attract investment as well as develop new power sources to serve the increasing demand for energy in the future.

"Behavior change is necessary but electricity prices need to be sufficient to support renewable energy development and encourage savings, we should not be confused with reasonable prices and cheap prices", Mr. Wolfgang Manig said.

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