Previously, at the discussion session at the Group held on the afternoon of October 26, the Ministry of Industry and Trade received 104 comments. Through synthesis, the majority of National Assembly deputies agreed with the necessity of developing the Electricity Law (amended) and highly appreciated the preparation of the draft Law dossier.
Speaking before the National Assembly, Minister Nguyen Hong Dien said: Thoroughly implementing the consistent direction of the Party and State leaders at present is to build laws in a constructive direction, both ensuring the requirements of state management but also encouraging creativity, liberating all productive forces and resolutely abandoning the mindset of "if you can't manage, then ban" and only regulating framework issues, issues of principle that do not need to be too long. With the consensus and support of the Agency in charge of the review, the Ministry of Industry and Trade has submitted a report on acceptance, explanation and sent it to the National Assembly deputies with a new draft law including 10 chapters, 93 articles, 37 articles less than the original draft. The Ministry will seriously study and absorb the valid opinions of the deputies at today's discussion to continue perfecting the draft law to submit to the National Assembly for consideration and approval.
The need to amend the Electricity Law
Regarding the need for amendments and the name of the law, the Minister said, The Electricity Law has been issued for 20 years, has been amended and supplemented 4 times (the most recent amendment was in September 2023) and has resolved a number of practical issues. However, this time, the Minister emphasized that "it requires consideration for comprehensive amendment", because Vietnam has integrated with the world, so we must be responsible for internalizing our laws to be consistent and compatible with international treaties and conventions, compatible with laws in the energy sector in general, especially electricity between Vietnam and the world and the region.
Minister Nguyen Hong Dien also analyzed that in recent times, the Party and State have had many new policies and guidelines on energy development, but in reality we have not yet promptly institutionalized the above policies and guidelines of the Party, but have only issued regulations in the form of Decrees, or even Circulars.
" It is time to legalize and institutionalize the Party's guidelines and policies and legalize the sub-law regulations on energy development that we have been operating for many years in the form of Decrees and Circulars " - the Commander of the Industry and Trade sector emphasized.
In addition, the domestic demand for electricity is increasing quite strongly; while Vietnam must achieve zero net emissions by 2050 according to its international commitments. This means that our country must promote the development of renewable energy and new energy sources; strongly convert fossil-based electricity sources (first of all, coal power). This poses a very high requirement for perfecting the institution in a synchronous and transparent manner to be able to mobilize domestic and foreign resources for investment in developing the electricity industry.
However, the reality is that the contents of renewable energy or new energy sources (such as hydrogen, green ammonia, nuclear power, etc.) have not been specifically regulated in the current law. Giving a specific example, Minister Nguyen Hong Dien said that Vietnam announced the Power Plan VIII about 1.5 years ago, but so far no new investors have proposed projects, because there are no specific and clear regulations on mechanisms and policies; meanwhile, in just 5 and a half years (by 2030), our country needs to double the installed capacity of power sources in the entire system compared to the present.
“ If we do not promptly amend, supplement, and issue appropriate and feasible mechanisms and policies, there will certainly be no investors and it will be impossible to meet the country's energy needs, ” the Minister said, adding that according to experts' calculations, from now until 2030, Vietnam will need about 14-16 billion USD/year, equivalent to about 320,000-350,000 billion VND. If we do not have mechanisms and policies, there will be no investors. This is a huge challenge.
The Minister also shared that since the beginning of the term, the Ministry of Industry and Trade has continuously worked with inspection, examination, investigation and audit teams. These authorities have pointed out many difficulties and violations related to the implementation of electricity projects and recommended issues that need to be amended, supplemented or regulated. The Ministry of Industry and Trade has included these contents in the draft Electricity Law (amended) to submit to the National Assembly together with the presiding agency. In addition, when supervising electricity activities and implementing the Electricity Law, the National Assembly Standing Committee issued Resolution 937/NQ-UBTVQH dated December 13, 2023, requiring the Government and the Ministry of Industry and Trade as well as relevant ministries and branches to fundamentally amend the Electricity Law to fundamentally overcome the issues mentioned above.
For the above reasons, the Ministry of Industry and Trade proposes to amend the Electricity Law. The amendments and supplements in the draft Law are all major, fundamental issues, issues that without which it would be impossible to resolve the current bottlenecks in the electricity sector, Minister Nguyen Hong Dien affirmed.
" By 2030, we need to double the current capacity and by 2050, which is 26 years away, we need to increase the current capacity by 5 times, while traditional power sources (such as hydropower, coal power) no longer have room to develop, solar energy is only generated during certain hours, if we have to include investment in electricity storage systems, it is not cheaper and even if we have electricity storage, we still cannot increase the current capacity by 2-5 times with renewable energy. Therefore, new energy sources in the future are definitely necessary, but to have the above energy sources, from now on, the contents on developing renewable energy and new energy sources must be mentioned in the Electricity Law. Only then, after 10 years, we will have projects on these energy sources "- the Minister stated.
After amendment, the draft Law retains and amends 50/70 articles compared to the current law, makes major adjustments to 20 articles, and adds 23 new articles. The new additions mainly regulate new energy, develop a competitive electricity market, clearly stipulate the authority of the agency deciding on investment policies for urgent electricity projects, and the policy and authority to revoke slow-progressing electricity projects.
“ Power projects are different from other industrial projects in that electricity must always be one step ahead, and the electricity produced must have a consumer address, ” the Minister said, adding that in reality, there are projects that have been assigned to investors for 10 years, even projects for nearly 20 years, but they have enough reasons not to implement them. “ Thus, we are lacking electricity because previous projects did not have any attraction mechanism, only applying general mechanisms like other investment projects, while power projects are specific. On the other hand, power projects that have been planned must be done, assigned must be done, if they cannot be done, they must be revoked. These are issues that we see as impossible to solve without specific regulations, ” said Minister Nguyen Hong Dien.
Ensuring consistency, uniformity and feasibility of provisions in the draft Law
Referring to the consistency, unity and feasibility of the provisions in this draft law, the Minister said that, taking into account the opinions of the National Assembly Deputies, the drafting agency has researched and designed the draft Electricity Law in the direction of "only including provisions under the authority of the National Assembly, the detailed contents will be assigned to the Government to stipulate to ensure feasibility and flexibility in implementing the draft law". After taking into account the opinions, the latest draft has only 10 chapters and 93 articles; an increase of 23 articles (mainly new contents as reported above) compared to the current Law and a decrease of 37 articles compared to the original draft of the Electricity Law (amended).
In the project dossier submitted to the National Assembly, the Ministry has submitted Report No. 242 on reviewing legal documents and Report No. 243 on assessing policy impacts. Accordingly, the provisions of the draft Law have been carefully compared with relevant specialized laws to ensure consistency and uniformity of the legal system, without overlapping or duplication of content; at the same time, it has reviewed and compared with international treaties to avoid shortcomings or ensure compatibility.
" The Ministry will continue to coordinate with the agency in charge of reviewing and researching to absorb and complete the detailed content that the Delegates raised, " said the Minister.
Through 6 policy groups in the draft Electricity Law (amended), practical problems will be basically solved.
Regarding the 6 specific policy groups in the draft Law, the Minister affirmed that it has more clearly defined the decision-making authority and specific mechanisms and policies to promote the development of renewable energy, new energy and some basic power sources such as gas power, nuclear power, including green hydrogen power to exploit the renewable energy potential in localities, especially solar power and onshore wind power.
Explaining further about the content that many delegates were interested in, such as offshore wind power, the Minister said that currently, the technology of manufacturing construction and installation equipment has been successfully deployed and commercialized in many countries around the world. Therefore, the complexity and risks of the technology have been tested and proven safe in practice. Resolution 55 and Resolution 36 of the Politburo also set out the task and solution of institutionalizing the contents to develop offshore wind power.
In addition, the draft Law has added regulations on key mechanisms and policies to build and develop a competitive electricity market at all three levels according to the market mechanism with State regulation, especially in the issue of electricity production and trading. The head of the Ministry of Industry and Trade informed that up to now, 52% of non-state investors have participated in the competitive electricity market. Regarding the wholesale electricity market, the Government has issued a Decree on policies for direct electricity purchase and sale and has stipulated that not only 5 units are allowed to buy wholesale electricity. Regarding retail, the Ministry of Industry and Trade is consulting with the Government to amend and issue new regulations on 2-component electricity prices, hourly price frames, etc. We are operating all of these to ensure the development of a competitive electricity market at all three levels according to the roadmap.
The draft Law also adds provisions on the mechanism to decide on investment policies for urgent power projects (allowing designated contractors) and strictly handling slow-progressing power projects and works ... to ensure national power security ; adds provisions on assigning authority to the Government, the Ministry of Industry and Trade and relevant ministries and branches to specify the operation and dispatch of the national power system; on the protection of power source projects' safety, on electrical safety and safety according to the characteristics of the hydropower sector that the current Law has not yet regulated . These provisions are added on the principle of both ensuring the consistency and unity of the legal system and effectively solving the specific problems of power projects. The development of the Electricity Law (amended) has been closely linked and synchronized with the process of amending the Laws in the fields of planning, investment and bidding that are being submitted to the National Assembly for consideration and approval.
Minister Nguyen Hong Dien affirmed: The Draft Law on Electricity (amended) was developed and submitted to the National Assembly with the spirit of not being perfectionist but having to promptly resolve the most fundamental problems/bottlenecks at present , which is the need for appropriate, synchronous and feasible mechanisms and policies to promote investment attraction in the development of power sources and transmission grids, especially renewable energy and new energy sources, clean energy , ensuring the implementation of the targets set out in the VIII Power Plan. Therefore, it is expected that when this Law is passed by the National Assembly, it will fundamentally resolve the current difficulties and problems of the electricity sector, ensure electricity security, aim for the Net Zero goal and contribute to promoting the sustainable and effective development of the electricity sector, ensuring sufficient electricity supply for socio-economic development and serving people's daily lives .
Proposal to consider and pass a draft Law at a session
Regarding the proposal for the Government to submit the draft law to the National Assembly for consideration and approval at a session, the Minister said that the Power Plan VIII determines that by 2030 (that is, just over 5 years from now) we need to double the current capacity and by 2050 (that is, 26 years from now), we need to increase the current capacity by 5 times.
“ If there is no law and no specific mechanisms and policies from now on, we cannot attract investment. The period from now to 2030 is 14 to 16 billion, but after 2030, we need 16 to 18 billion USD/year to ensure electricity security. Therefore, the Ministry really hopes that this law will be passed soon because if there is no policy, there will be no investment, without investment there will be no electricity, without electricity there will be nothing. Electricity must go one step ahead. However, the Ministry as the drafting agency or more broadly the Government will comply with the decision of the National Assembly, ” said the Minister.
According to the Minister, the urgent task is to have appropriate, synchronous and feasible mechanisms and policies to attract domestic and foreign investors to develop power sources and grids; especially electricity from renewable energy, new energy sources, clean energy or inter-regional transmission grids, ensuring the synchronous, stable and balanced development of all types of sources in the national power system, especially in the context that the basic power sources in the previous system (such as hydropower, coal-fired thermal power) have run out of room for development; some types of alternative sources (such as gas power, nuclear power, etc.) require a lot of time to deploy investment and construction (practice shows that to complete the investment of an average gas power project takes 7-8 years, nuclear power projects require even longer). Therefore, if the Electricity Law (amended) is slow to be passed, we have no way to ensure electricity security, not to mention the Net Zero target.
Minister Nguyen Hong Dien affirmed that in the spirit of seeking knowledge, in the process of completing the draft Law, the Drafting Agency has made efforts to study and absorb the comments of National Assembly Deputies, experts, scientists and relevant agencies and organizations. After today's discussion session, the Ministry of Industry and Trade pledged to continue working with the Agency in charge of the review to thoroughly study and absorb the maximum valid comments of the Deputies to complete the draft Law, submit it to the National Assembly for consideration and approval at the end of this session.
" This is what we strongly recommend, because we believe that if the law is delayed by 1 day, it will be delayed for a year, or even many years, in attracting investment, " the Minister emphasized./.
Source: https://moit.gov.vn/tin-tuc/hoat-dong/hoat-dong-cua-lanh-dao-bo/bo-truong-nguyen-hong-dien-giai-trinh-lam-ro-mot-so-van-de-dai-bieu-neu-ve-du-an-luat-dien-luc-sua-doi-.html
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