Energy Transition: Can't Depend on the Private Sector

DNVN - Research and innovation have been and are important drivers for the energy transition process. However, this sector cannot rely entirely on the private sector; instead, the Government must have mechanisms to encourage and support innovation in this sector.

Promote technology development

Our country's energy demand is increasing, especially in the context of strong economic development and the goal of becoming a high-income country by 2045.

According to the forecast of the Ministry of Industry and Trade, the demand for electricity will grow by about 8-10% per year in the coming years. In addition to the problem of fossil energy sources such as coal, oil and gas gradually being depleted and causing harm to the environment, this poses a great challenge in ensuring a stable and sustainable energy supply, while increasing the pressure to find alternative energy solutions.

At the forum "Vietnam Energy Transition 2024" on June 27 in Hanoi, Mr. Nguyen Mai Duong - Director of the Department of Technology Development and Innovation (Ministry of Science and Technology) emphasized that energy transition in Vietnam is an important and necessary process in the context of countries facing many challenges in energy and environment. Vietnam is taking many steps to switch from traditional energy sources to more renewable and sustainable energy sources.

Meanwhile, the energy transition in Vietnam faces many challenges. Although the cost of renewable energy technologies has decreased significantly, large-scale deployment still requires high initial investment, especially for wind power. The grid infrastructure is not yet adequate to integrate renewable energy. Some renewable energy sources do not guarantee continuity...

Vietnam is taking many steps towards energy transition.

Mr. Nguyen Si Dang - Deputy Director of the Department of Technology Assessment, Appraisal and Inspection (Ministry of Science and Technology) said that the State needs to prioritize supporting projects on research and development of renewable energy technology. Promote technology transfer, localize the production of equipment for the renewable energy industry, especially wind power, solar power, hydropower, and liquefied gas in Vietnam.

In particular, to promote technology development for energy transition, science and technology development policies for energy transition in Vietnam need to focus on specific goals to promote the transition from traditional energy to more renewable and sustainable energy.

Accordingly, it is necessary to develop national key technology development programs in the field of renewable energy, to promote research, development and application of new technologies. Establish a favorable mechanism for the transfer of advanced technologies from developed countries, helping Vietnam quickly access and apply new technologies in production and life.

Need support policy

Mr. Phillip Munzinger - Director of the Energy Support Program - GIZ Vietnam acknowledged that research and innovation have been and are important drivers for the energy transition process. However, we cannot rely entirely on the private sector for research and innovation. In 2022, Germany's total investment budget for research and innovation will reach 1.5 billion Euros.

"The government must have a mechanism to encourage and support innovation in the private sector, thereby contributing to ensuring energy security as well as national economic development," experts recommended.

From a more general perspective, Ms. Vu Chi Mai - Director of CASE project, GIZ said that to be successful in the energy transition, four factors must be met. Firstly, there needs to be a long-term, transparent policy to encourage investors. Along with that policy is the work of governance, monitoring the implementation of the policy to see if it meets the market or not.

Experts recommend that the Government must have a mechanism to encourage and support innovation for the private sector, thereby contributing to ensuring national energy security.

Second is capital, because in the transition to a green economy, financial resources are very important, a key factor. Third, human resources receive new technology and master part of the new technology in the value chain. Fourth, how can Vietnam's market be competitive enough? In which, where is the commitment of the Government in the region to make Vietnam a more attractive market?

Analyzing the human resource factor in depth, Ms. Vu Chi Mai said that the shortage of supply and high-tech engineers has increased the cost of project investment. Therefore, in the coming time, Vietnam needs to proactively source human resources for operation, development and production.

"Within the framework of the CASE project, we will work with management agencies to review Vietnam's strengths in the wind and solar power value chain; and look at where Vietnam can do better to achieve a higher localization rate. From there, we will propose a technology roadmap in a link of the value chain so that Vietnam can achieve the best localization rate in that value chain.

Coming from a private enterprise, Mr. Vo Le Duy Duc - Director of Investment and Development of the energy sector of Vinfast shared that electric vehicles are new technology products, users still have certain concerns, especially about charging station infrastructure. Therefore, the enterprise hopes that the Government and agencies and sectors have certain incentive policies for units developing charging station infrastructure, even preferential policies on electricity prices for end users, especially those using electric vehicles at charging stations.

In addition, Vinfast hopes that the public sector will have programs and projects to raise general awareness about the use of electric vehicles and zero-emission vehicles.

Moonlight

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/chuyen-dich-nang-luong-khong-the-trong-cho-het-vao-khu-vuc-tu-nhan/20240627065014571