On the afternoon of July 11, continuing the 8th Session, under the direction of Vice Chairman of the National Assembly Nguyen Duc Hai, the National Assembly discussed in the hall the draft Law on Electricity (amended).
More than 5 years to double power capacity
Explaining and clarifying some issues of concern to the delegates, Minister of Industry and Trade Nguyen Hong Dien thanked the National Assembly deputies for their frank, responsible and enthusiastic comments on the Electricity Law (amended) project. After the discussion session in groups on October 26, the drafting agency received 104 comments. With the consensus and support of the agency in charge of the review, the Ministry of Industry and Trade has submitted a report on the acceptance and explanation to the National Assembly deputies, along with a new draft law consisting of 10 chapters and 93 articles, 37 articles less than the original draft.
At the hall today, 25 delegates expressed their opinions and 118 different types of opinions participated in the draft law. First of all, regarding the need to amend and the name of the law, Minister Nguyen Hong Dien emphasized that the Electricity Law was issued 20 years ago and has been amended 4 times. However, all 4 times, a number of articles were amended and supplemented, so only a number of practical issues were resolved. Currently, it is required to consider and amend comprehensively because Vietnam has integrated with the world, so it must be responsible for legalizing its laws to be consistent and compatible with international treaties, compatible with laws in the energy sector in general, especially electricity between Vietnam and the world.
Minister Nguyen Hong Dien emphasized that, according to the current general trend and Vietnam's commitment to achieve carbon neutrality by 2050, renewable energy and new energy sources must be developed very strongly. Meanwhile, renewable energy has no specific regulations in current laws, which is "very difficult". Or the issue of new energy, including hydrogen, green ammonia, and even nuclear power. "The evidence is that we have announced the VIII power plan for nearly 1.5 years now, but up to now, the delegates here are all leaders, directly supervising the activities of state agencies in localities, and we see that no new investors have proposed projects, simply because there are no specific, clear regulations on mechanisms and policies", Minister Nguyen Hong Dien emphasized.
According to Minister Nguyen Hong Dien, in just 5.5 years we must double the total capacity of power sources, up to 150,524 MW. According to experts' calculations, each year from now until 2030 we need about 14 to 16 billion USD, equivalent to about 320,000 to 350,000 billion VND to achieve the above target. If we do not promptly amend, supplement, and issue appropriate and feasible mechanisms and policies, we will not be able to attract investors and meet the country's energy needs.
Regarding the consistency, unity and feasibility of the provisions in the draft law, Minister Nguyen Hong Dien said that, taking into account the opinions of the National Assembly deputies, in the latest draft, the drafting agency has researched and designed the draft 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. There will be periodic supervision, review and decision by the National Assembly. After taking into account the opinions, now there are only 10/93 articles, compared to the old draft law, an increase of 23 articles, mainly new contents, compared to the initial draft of the Electricity Law (amended), a decrease of 37 articles.
According to Minister Nguyen Hong Dien, in the draft Law submitted to the National Assembly, the Ministry of Industry and Trade has 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, ensuring the consistency and uniformity of the legal system, without overlapping or duplication of content. At the same time, the draft law has been 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 contents that the delegates have stated today.
Regarding the 6 specific policy groups in the draft law, Minister Nguyen Hong Dien affirmed that he has more clearly defined the decision-making authority and specific mechanisms and policies to promote the development of renewable energy, new energy and some base power sources such as gas power, nuclear power, including green hydrogen power. Delegates said that the potential for renewable energy is very large, but without mechanisms and policies, we cannot open up to the maximum possible capacity for localities. The needs of localities are very large, the eighth power plan cannot be opened because our law is still restrictive. Now, if we allow the flexible upgrading of base power sources and allow the strong development of storage systems, we will be able to exploit the potential of renewable energy in localities, especially solar power and onshore wind power.
Developing a competitive electricity market
Regarding the new contents stipulated in the Electricity Law that many delegates are interested in, such as offshore wind power, Minister Nguyen Hong Dien 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. Of course, in the early stages of developing offshore wind power, we must limit state-owned corporations, state-owned enterprises, or if there are foreign enterprises, there must be very specific regulations that do not allow transfers, even during the operation process, because it is related to national security.
According to Minister Nguyen Hong Dien, the draft Law also adds provisions 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 on the issue of electricity production and trading. The Minister said that up to now, competitive electricity generation has been established, now there are 52% of non-state investors, so it is clearly competitive. For wholesale, we have just issued a policy on direct electricity purchase and sale and we have also stipulated that not only 5 units are allowed to buy wholesale electricity; for retail, we are amending regulations on prices, 2-component prices, hourly price frames, etc.
Regarding electricity prices, Minister Nguyen Hong Dien said that there is currently a price framework regulated under the Law on Prices and the Law on Electricity. Within that framework, the Government will specify how to set a price framework, based on the price framework that the parties negotiate with each other, not one party taking advantage of the other. Why is it required that all negotiations must be completed within 12 months, because if they are not completed, they will find an excuse to prolong it, if they prolong it, we will have a power shortage. Therefore, the price framework is clearly regulated, it cannot be said that there is no market, no competition, there must be negotiations, if there is no negotiation, the project will be revoked and stopped. If these 6 groups of specific policies are passed, they will basically solve the current practical problems.
Regarding the proposal for the Government to submit the draft law to the National Assembly for consideration and approval at a session, Minister Nguyen Hong Dien emphasized that the Power Plan VIII determines that by 2030 we must double the capacity. By 2050, that is, 26 years from now, we must increase the current capacity by 5 times. If from now on there are no laws and no specific mechanisms and policies, it will be impossible to attract investment. "Without investment, there will be no electricity, without electricity, there will be nothing. Electricity must be one step ahead," Minister Nguyen Hong Dien emphasized.
Minister Nguyen Hong Dien said that after today's discussion session, the drafting agency will work with the reviewing agency to carefully study and fully absorb the opinions of the delegates to complete the draft law to submit to the National Assembly for approval at the end of this session.
Concluding the discussion, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized that through the discussion, the National Assembly deputies agreed on the necessity of amending the Electricity Law to overcome the shortcomings of the current law, institutionalize the Party's policies, remove urgent difficulties and obstacles to develop sustainable electricity, ensure energy security, provide enough electricity for production, consumption, and the country's electricity needs, and meet the requirements of socio-economic development. Build a transparent, effective, competitive energy market in line with the socialist-oriented market economy. Diversify ownership forms and business methods, remove all barriers to ensure transparent energy prices determined by the market. Use energy economically and efficiently and promote the development of renewable energy sources.
Vice Chairman of the National Assembly Nguyen Duc Hai said that the National Assembly Standing Committee will direct the verification agency to closely coordinate with the drafting agency and relevant agencies to study the opinions expressed in the hall, the opinions discussed in the Group and the opinions sent in writing immediately after the Session to absorb and complete the draft Law, ensuring the highest quality for submission to the National Assembly for consideration and approval at this or the next session.
Source: https://baotainguyenmoitruong.vn/bo-truong-nguyen-hong-dien-sua-luat-dien-luc-de-day-manh-thu-hut-du-tu-dap-ung-nhu-cau-nang-luong-cua-dat-nuoc-382856.html
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