The rate of electricity import from Laos is still very small.

Regarding Vietnam's electricity import, Minister of Industry and Trade Nguyen Hong Dien said that Vietnam's policy of buying and selling electricity from foreign countries is stipulated in the Electricity Law and related decrees.

"Importing electricity is a long-term strategy based on Vietnam's political, defense and security relations with neighboring countries, aiming to ensure national energy security in all situations and is determined in the national power development plan in each period," Minister Nguyen Hong Dien emphasized.

Accordingly, since 2015, Vietnam has imported net energy, imported coal, imported oil for electricity generation and will soon import liquefied natural gas (LNG). Electricity imports have been implemented for many years, with China since 2010, with Laos since 2016.

Minister of Industry and Trade Nguyen Hong Dien: Electricity imports have been carried out for many years, with China since 2010, with Laos since 2016.

In particular, the import of electricity from Laos is also reflected through the Agreement on the development of cooperation in energy and mining projects, the Memorandum of Understanding between the two governments to strengthen comprehensive relations with our friend. Importing electricity from Laos is not only an economic relationship but also a political and diplomatic relationship and to ensure the country's defense and security goals.

However, according to Minister Nguyen Hong Dien, the rate of electricity import from Laos is still very small, only 572MW, equal to 0.73% of the total system capacity in 2022 and is only for border areas.

"Importing electricity in the past was only to supply border areas, so it was cheaper than the price of renewable energy in the country because we had to add transmission costs and a lot of loss in the line from the Central and Southern regions to the North," Minister Nguyen Hong Dien explained.

In the long run, renewable energy will be the cheapest source

Regarding renewable energy, Minister of Industry and Trade Nguyen Hong Dien affirmed that Vietnam is considered a country with great potential for developing wind and solar power, but paradoxically, the places with potential for sunshine and wind are also places with low load. Therefore, to use this power system, a large investment must be made in electricity transmission and storage.

On the other hand, according to the Minister of Industry and Trade, to maintain a regular and safe power system and promote the efficiency of renewable energy, there must be a number of stable power sources, meaning they must be able to generate continuously 24/7 to compensate for times when there is no sun or wind.

"In Vietnam, coal, oil, gas, biomass and hydropower are considered the base power sources; while other countries also have nuclear power. Therefore, even though they are more expensive and emit more carbon, when there are no other alternative sources or solutions, electricity running on coal, oil and gas will still be maintained and mobilized to ensure the safety of the power system," said the Minister of Industry and Trade.

According to Minister Nguyen Hong Dien, coal and oil are primary materials, the prices of which are determined by the world market. In recent years, due to supply disruptions, high prices have led to higher electricity prices, if transmission costs are not taken into account.

Wind and solar power do not cost money to buy, the cost only depends on the price of technology and equipment, while world technology develops rapidly, the cost of technology decreases every year (on average from 6 to 8%). Therefore, the cost of electricity from renewable energy does not include the cost of transmission and storage of electricity, which decreases over time.

“In the long term, renewable energy will be the cheapest source if transmission and storage costs are not included,” Minister Nguyen Hong Dien affirmed.  

NGUYEN THAO