More complete and more open, the new Electricity Law is considered a breakthrough in removing institutional bottlenecks, clearing obstacles, attracting investment, and developing the electricity industry to meet the demand for double-digit growth in the era of national development.
More complete and more open, the new Electricity Law is considered a breakthrough in removing institutional bottlenecks, clearing obstacles, attracting investment, and developing the electricity industry to meet the demand for double-digit growth in the era of national development.
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| The 2024 Electricity Law (amended) has "completely new" contents on renewable energy development (Photo: Duc Thanh) |
From the special attention of the Prime Minister
According to information on 10 outstanding events of the industry and trade sector that have just been announced, 2024 is a breakthrough year in policy advisory work with a series of laws, decrees, and circulars being amended, supplemented, and newly issued. Among them, the completion of the amendment of the Electricity Law is considered a "breakthrough" in removing institutional bottlenecks, clearing obstacles, attracting investment, and developing the electricity industry...
Looking back at the entire process from when the first Draft Law on Electricity (amended) was submitted to the National Assembly at the beginning of the 8th Session of the 15th National Assembly (October - November 2024) until 91.65% of delegates voted in favor of passing it, this is also considered a rather special law project.
What is special is that the proposed amendments are quite extensive and complex, but follow the 1-session process (usually 2 sessions). Then, most of the laws passed at the 8th Session of the 15th National Assembly will take effect from mid-2025 (except for investment laws that will take effect from January), with the Electricity Law taking effect from February 1, 2025. That shows the urgency of issuing a new legal corridor for this extremely important sector of the economy.
Supplementing the two-component electricity price mechanism
“Regarding the competitive electricity market and electricity trading activities, the Electricity Law adds new provisions on the suspension and restoration of spot electricity market operations in competitive electricity markets at all levels.
The Law also regulates electricity futures contracts, electricity purchase or sale option contracts, and electricity futures contracts; adds requirements for connecting the power grid with foreign countries through the national power system. Adds a number of principles on establishing electricity prices for different types, guidance methods, and pricing forms for transmission grids invested in and built by non-state economic sectors, and adds a two-component electricity price mechanism (capacity price, electricity price)”.
- Deputy Minister of Industry and Trade Truong Thanh Hoai
Because of that, the amendment of the Electricity Law has received special attention from the head of the Government.
In a report before answering direct questions from National Assembly deputies at the 8th Session, stating that the amendment of the Electricity Law aims to create institutional breakthroughs, remove obstacles, and develop power sources and power grids, the Prime Minister "respectfully requests that the National Assembly pay attention, share, and coordinate with the Government to improve quality and consider passing it at this session to promptly remove obstacles and legal bottlenecks for the electricity industry".
At that time, the Draft Law was still in the process of being completed with many concerns about quality.
On November 28, 2024, two days before the National Assembly voted on the Draft Law on Electricity (amended), the Prime Minister sent a letter to the Chairman of the National Assembly and Vice Chairmen of the National Assembly requesting to keep and supplement a number of contents so that the Law on Electricity (amended) after being passed is feasible and suitable to the characteristics of electricity investment and development.
Then, on November 29, the Government sent an urgent document to the National Assembly and the National Assembly Standing Committee on the issue of transferring shares and capital contributions in offshore wind power projects as stipulated in the Draft Law. Because the Draft dated November 28 stipulates that "projects, shares, and capital contributions in offshore wind power projects cannot be transferred in any form".
According to the Government, in order to mobilize investment resources for offshore wind power development, and avoid obstacles and difficulties in the process of organizing law enforcement, it is necessary to have regulations on the transfer of projects, shares, and capital contributions in offshore wind power projects. At the same time, to ensure national defense and security, the Government proposes to stipulate that the transfer of projects, shares, and capital contributions in offshore wind power projects must comply with the provisions of this law (ensuring requirements on national defense, security, and information security) and other relevant legal provisions, and assign the Government to specify such content in detail.
This proposal of the Government has been accepted and reflected in the Draft Law approved by the National Assembly on November 30, 2024.
There are additions, but also some simplifications. For example, instead of stipulating the maximum term of the electricity operating license in each field, the final Draft Law assigns the Government to stipulate, with the principle that it must not exceed the operating term of the project, power generation, transmission and distribution works.
There are completely new contents
Introducing the basic content of the Electricity Law at the press conference announcing the President's order on the laws passed by the 15th National Assembly at the 8th Session, Deputy Minister of Industry and Trade Truong Thanh Hoai pointed out many new contents of the Law. Among them, there are contents that Deputy Minister Truong Thanh Hoai emphasized as "completely new" regarding the development of renewable energy, new energy, and offshore wind power.
Regarding this content, the Electricity Law encourages organizations and individuals to invest in wind power and solar power projects combined with investment in electricity storage systems or production of green hydrogen and green ammonia to serve electricity generation and use activities.
For solar and wind power sources connected to the national power grid, the total generating capacity of the solar and wind power plants, including the capacity of the power storage system, must not exceed the capacity of the solar and wind power plants determined in the power development plan or the power supply network development plan in the provincial planning; the installed capacity is decided by the investor during the implementation phase of the construction investment project on the basis of ensuring the capacity ratio of the power storage system according to regulations and the efficiency of resource use.
Regarding offshore wind power, according to the provisions of the Law, based on socio-economic development conditions, development goals and investment attraction in each period, and the level of the competitive electricity market, to ensure security of electricity supply, the Government shall specify in detail a number of specific contents. For example, the conditions for implementation and participation in the implementation of offshore wind power projects by organizations that are foreign investors and domestic investors, including the total percentage of equity ownership and capital contribution in offshore wind power projects. The Government is also assigned to specify in detail the time of termination of the application of mechanisms and policies with long-term minimum contracted electricity output for projects selling electricity to the national electricity system; exemption and reduction of fees for using sea areas and exemption and reduction of land use fees and land rent.
Consulting on detailed regulations on electricity operation licenses
Recently, the Ministry of Industry and Trade has launched a consultation on the Draft Decree detailing a number of articles of the Electricity Law on electricity operation licenses. The draft submission clearly states that electricity operations are conditional business activities as stipulated in the Electricity Law and the Investment Law.
The Electricity Law 2024 has demonstrated a strong change in the way of thinking about electricity management, promoting decentralization and delegation of power in state management, approaching a consistent and scientific method of electricity management, reducing and simplifying administrative procedures. Accordingly, the Electricity Law 2024 has removed the regulation on granting licenses for electricity consulting, and more clearly defined the conditions for each form of electricity licensing to make administrative procedures transparent and simpler.
Further clarifying the press's interest in offshore wind power, Deputy Minister Truong Thanh Hoai said that according to the current definition, wind power projects beyond 6 nautical miles will be considered offshore wind power. According to current laws on seas and islands, projects beyond 6 nautical miles will be managed differently, but in reality, some projects within 6 nautical miles have used offshore wind power technology.
“In the process of drafting the Law, the consistency and synchronization in the legal system was taken into account, so the Electricity Law 2024 basically provides framework regulations and the Government provides detailed regulations to ensure effectiveness and consistency in the implementation process later,” Deputy Minister Truong Thanh Hoai explained.
Regarding rooftop solar power, Deputy Minister Truong Thanh Hoai said that the legalized issues have been relatively "ripe" and clear, so the provisions in the Law are relatively detailed. However, in order to ensure the stability of the power system (such as the rate of renewable energy, including wind power and solar power), appropriate regulations will be issued for each period and will depend on the infrastructure of Vietnam's power grid. If there are many stable and well-developed base power sources, there will be room for renewable energy development, but if the base power sources are slow and limited, there will be other solutions such as storage batteries to balance and stabilize the power system.
“To ensure the Electricity Law is effectively implemented when it officially takes effect from February 1, 2025, the Ministry of Industry and Trade is speeding up the development of decrees and circulars guiding its implementation,” Deputy Minister Truong Thanh Hoai told the press.
Source: https://baodautu.vn/nganh-dien-sap-co-hanh-lang-phap-ly-thong-thoang-hon-d235256.html
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