 |
| Energy transition in Vietnam is an important and necessary process in the context of countries facing many challenges in energy and environment. (Photo: PV) |
(PLVN) - Vietnam has taken the first steps to implement the energy transition to meet the Net Zero commitment by 2050. In particular, the implementation of the direct electricity trading mechanism is considered a specific policy, directly affecting the energy transition process in Vietnam.
Vietnam has made the first steps of transformation.
According to the forecast of the Ministry of Industry and Trade, Vietnam's electricity consumption in 2024 will increase by about 15%; electricity demand will grow by about 8-10%/year in the coming years, while fossil energy sources are increasingly limited. Therefore, energy transition is not only an important task but also an essential factor to ensure energy security, protect the environment and promote sustainable socio-economic development.
A recent report by the Department of Technology Assessment, Appraisal and Inspection (Ministry of Science and Technology) shows that there are at least three major challenges in the energy transition process in Vietnam. These include costs, grid infrastructure and legal framework. Specifically, a representative of this Department said that although the cost of renewable energy (RE) technology has decreased significantly, large-scale deployment still requires high initial investment, especially wind power. Not to mention, the cost of developing efficient energy storage technologies such as batteries and thermal storage systems is also quite high.
In addition, the grid infrastructure is not yet adequate to integrate renewable energy, so the current grid system needs to be upgraded to integrate intermittent renewable energy sources such as solar and wind. In addition, it is necessary to improve the legal framework and regulations related to renewable energy, promptly issue policies to support and encourage the development of renewable energy and other forms of clean energy as well as issue regulations to restrict fossil fuels in production.
Ms. Vu Chi Mai - energy expert of the German International Cooperation Agency (GIZ) said 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 sustainable and renewable energy sources.
Mr. Stuart Livesey - Chairman of the Green Development Subcommittee of the European Chamber of Commerce in Vietnam (EuroCham) commented that Vietnam has made remarkable progress in its energy transition efforts although it is still in the early stages of the process. Currently, renewable energy has accounted for a significant market share in Vietnam's power generation capacity. A number of important regulations to promote the development of renewable energy have also begun to be passed.
DPPA will have a strong impact on the energy transition
Among the decisions and documents directly related to the energy transition process, the Decree on the Direct Power Purchase Agreement (DPPA) which has just come into effect since early July 2024. Mr. Stuart Livesey assessed that the DPPA helps promote investment in the energy transition and increase foreign direct investment in Vietnam in the clean energy sector, reducing the burden on the national grid and allowing the transmission system to continue to develop. At the same time, it brings much hope to help European businesses in Vietnam increase their business and sustainable production.
Mr. Pham Quang Huy - Deputy Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) also affirmed that the Decree on DPPA contributes to promoting the use of clean energy and attracting investment in renewable energy development, thereby contributing to achieving the goals of energy transition and sustainable development of Vietnam.
Mr. Jung Byung Jin - representative of Samsung Group commented that DPPA is a Decree that many businesses, business associations and organizations are looking forward to. As a business, Samsung will accompany Vietnam in energy transition, aiming to achieve the goal of 100% conversion to renewable energy.
Many experts and international organizations in Vietnam also believe that by implementing the DPPA mechanism, electricity customers will meet the goals and trends of using clean energy, thereby having many positive impacts on the energy transition. In addition, expanding the group of subjects participating in DPPA will also be a step to accelerate the energy transition process in Vietnam (previously, the draft decree stipulated that the subjects participating in DPPA were customers consuming electricity monthly over 500,000 kWh/month, but the Decree on DPPA has stipulated that customers consuming from 200,000 kWh/month or more can participate in direct electricity trading with enterprises using renewable energy sources).
By participating in the DPPA mechanism, enterprises not only enjoy green certification, demonstrating their prestige in global commitments on the use of renewable energy and sustainable development; but also ensure long-term energy supply and minimize risks of price fluctuations. In particular, both buyers and sellers benefit when implementing this decree. This will certainly open up strong development opportunities for the renewable energy market, directly affecting the energy transition process in Vietnam.
Source: https://baophapluat.vn/cu-hich-cho-chuyen-dich-nang-luong-o-viet-nam-post518669.html
Comment (0)