Renewable energy development still faces many challenges

Speaking at the opening ceremony of the Vietnam Energy Forum 2025 with the theme "Solutions to promote rapid development of new energy sources to create a new economic era", on the afternoon of March 31, Dr. Chu Van Lam - Permanent Vice President of the Vietnam Economic Science Association, Chairman of the Editorial Board of Vietnam Economic Magazine said that Vietnam has clearly oriented its development path. Vietnam has determined that it must solve many problems at the same time to be able to achieve the goals of growth and sustainable development of the country's socio-economy.

One of the fundamental and vital resources for the economy is electricity and green, clean energy sources. To meet the urgent requirements for development goals, the demand for electricity has been calculated by management agencies and experts to increase by 12-16% per year.

Delegates attending the Vietnam Energy Forum 2025.

Mr. Nguyen Anh Tuan - Vice President and General Secretary of the Vietnam Energy Association said that the process of promoting renewable energy development in Vietnam still faces many challenges related to investment approval, human resources, technology and market. Currently, the growth of renewable energy sources is slowing down.

The reason comes from the slow allocation of solar and wind power capacity by province nearly 1 year after the Decision approving the Power Plan VIII; renewable energy investors are still hesitant. Currently, there are not enough regulations to deploy offshore wind power, no project in the scale of 6,000 MW has been deployed.

“The challenge for renewable energy development is the capital investment demand for sources and transmission grids of more than 136 billion USD in 5.5 years, higher than the capital demand in 10 years of Power Plan VIII. Assuming the average scale of each onshore solar and wind power project is 50 MW, the number of solar and wind power projects expected to be built in the adjustment of Power Plan VIII is very large, from 400 - 640 wind power projects; 600 - 1,100 solar power projects.

This requires a lot of human resources for selecting investors, reviewing, and managing project acceptance in localities," said Mr. Tuan.

Regarding nuclear energy, according to Mr. Tuan, the scale of developing flexible, stored energy sources is large, while there are no market regulations and electricity purchase/sale prices for these types. Although the Ninh Thuan 1 and 2 nuclear power projects have special mechanisms to speed up progress, more time is needed to complete the legal corridors.

Vietnam has not yet mastered the technology, so the goal of completing nuclear power construction in more than 5 years is a big challenge.

Mr. Tuan proposed that it is necessary to quickly, decisively and reasonably resolve renewable energy projects that have problems with investment procedures during the period of enjoying FIT (supported electricity tariff) and FIT delays, creating confidence for investors.

To reduce the burden of negotiating electricity prices for Vietnam Electricity Group with each renewable energy project while the number of projects is large, it is possible to consider applying a flexible FIT mechanism applicable to different regions, with a shorter FIT period. For small-scale rooftop solar power, there should be additional incentive policies for selling surplus electricity.

“It is necessary to enhance the capacity of localities in reviewing, selecting contractors and managing renewable energy projects. There are more specific regulations on assigning survey areas and assigning offshore wind power project development. At the same time, it is necessary to implement a mechanism for flexible adjustment of electricity prices for input factors according to Decision No. 05/2024/QD-TTg; promote the establishment of wholesale and retail electricity markets,” Mr. Tuan recommended.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/phat-trien-nang-luong-tai-tao-con-gap-nhieu-thach-thuc/20250331043807193