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| With available natural conditions, wind and solar energy are the most potential priority options to ensure long-term energy security. (Source: Investment Newspaper) |
This is the second event held in 2023, focusing on analyzing Vietnam's electricity and energy sector in the context of the global energy transition and examining strategies to attract the necessary capital for the ongoing energy transition in Vietnam.
Speaking at the opening of the Forum, Mr. Nitin Kapoor, Co-Chairman of the Vietnam Business Forum Alliance, said that 2023 is the year that the electricity and energy sector attracts much public attention. Vietnam has been implementing many policies on energy transition, including prioritizing renewable energy sources in electricity production, while researching new technologies in the electricity and energy sector.
In this context and ahead of the COP28 Conference in Dubai, the Made in Vietnam Energy Forum has promoted dialogue between the private sector both domestically and internationally and state management agencies on important issues of the energy sector; including the upcoming establishment of a National Steering Committee for key energy projects...
The discussions at this event are expected to be useful and supportive to the Government in achieving its international commitments on net zero emissions.
Mr. Luong Quang Huy, Head of the Department of Greenhouse Gas Emission Reduction and Ozone Layer Protection, Department of Climate Change, shared about Vietnam's energy transition strategies and policies, along with the implementation process of these strategies and policies such as Power Plan VIII, National Energy Master Plan... At the same time, information about Vietnam's international commitments and other related commitments and the impact of these commitments on Vietnam's energy policy.
Mr. Kojima Masao, Executive Director, General Manager of Vietnam region, MUFG Bank (Tokyo – Mitsubishi UFJ) assessed the main issues of power purchase agreements between producers and customers (PPA) and risk mitigation measures.
Accordingly, Mr. Masao explained that the current situation is that Vietnam Electricity Corporation (EVN) is not contractually obligated to purchase all electricity output from wind/solar power projects. EVN only pays for the amount of electricity received (received and paid), there is no mandatory minimum purchase level. The reduction in electricity output is due to, among other reasons, limitations in grid stability, overload of the transmission and distribution system, local demand and overall generation costs.
Mr. John Rockhold, Chairman, Power & Energy Working Group (PEWG), Vietnam Business Forum introduced the Made in Vietnam Energy Plan Report - Third Edition (MVEP 3.0). According to Mr. John Rockhold, although the annual load growth rate is gradually decreasing, the Vietnamese electricity industry still faces the risk of power shortage in the near future. With available natural conditions, wind and solar energy are the most potential priority options to ensure long-term energy security.
Mr. John Rockhold also pointed out that the biggest barriers to renewable energy development in Vietnam are divided into 4 groups: Policy & Legal Framework; Technology & Standards; Finance; Human Resources.
The MVEP 3.0 report presents some suggestions from the private sector to the regulatory agency to promote private economic participation in energy development in the spirit of Resolution 55 of the Politburo, thereby turning the energy industry into a spearhead economic sector, ensuring national energy security and becoming a driving force for the development of the entire economy.
Presenting at this Forum were relevant departments and agencies on Vietnam's energy transition strategy and policy, Vietnam's international commitments, including the Political Declaration establishing the Just Energy Transition Partnership (JETP) and other related commitments, and the impact of these commitments on Vietnam's energy policy.
Experts from the power and energy sector, including financial institutions, funding agencies, and power companies, also discussed how the public and private sectors can work together to promote the development of renewable energy and leverage decarbonization efforts to advance development goals, thereby achieving net zero emissions and boosting GDP growth.
At the same time, he emphasized the view that to fully exploit Vietnam's renewable energy potential, it is urgent to strengthen the role of the private sector in the energy sector, and this needs to be done now, by facilitating private sector participation in the process of amending the Electricity Law, building an effective policy framework for renewable energy development, and participating more deeply in the activities of JETP Working Groups, bilateral projects and other official direct support.
The forum focused on analyzing Vietnam's electricity and energy sector in the context of the global energy transition and considered strategies to attract the necessary capital for the ongoing energy transition in Vietnam.
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