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New strategy opens great opportunities for private sectors to develop energy

09:36 | 25/02/2020

VCN- Talking with the press on February 22 about the content of Resolution 55/NQ/TW on the orientation of the Vietnam’s National Energy Development Strategy to 2030 with a vision toward 2045 issued by the Politburo, Minister of Industry and Trade Tran Tuan Anh said Resolution 55 opens great and potential opportunities for the private sector to participate in energy development.  

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Minister of Industry and Trade Tran Tuan Anh.

What do you think about the energy industry's performance over the years?

The energy industry plays two important roles in the economy. First, the energy industry is a constituent of many industries, which contributes greatly to the economy, especially through the role of large businesses. The development of these businesses creates development for Vietnam’s economy.

In 2007-2017, the energy industry had rapid growth. The production value of the energy industry increased six times, the electricity production increased by more than 3.3 times. Energy businesses contributed more than VND 204,000 billion, accounting for 17.8 percent to the State budget.

Second, energy is an essential industry, making an important contribution to economic sectors. It not only ensures essential production for the economy and social life of people, but also provides important input criteria to economic sectors and sub-sectors. If GDP increases 6.5-7 percent/year, electric energy development requirements must ensure 11-11.5 percent/year.

With Vietnam’s economy increasingly deeply integrated into the world economy, what is the meaning of the promulgation of Resolution 55?

The promulgation of Resolution 55 plays an important role when Vietnam has deeply integrated with the world and the globalisation is in a drastic phase.

Along with the development of economic sectors and industries, Vietnam begins to depend on imported energy because primary energy has strongly developed in recent years and exploited at a high level.

In this context, Vietnam needs a new energy strategy that is put together in socio-economic development strategy to take decisions and solutions to ensure sustainability not only for national energy security but also related to national security and politics.

Another issue that needs to be mentioned is that this strategy is deployed when Vietnam's development is being improved, but after Vietnam’s legal framework, policies have promoted efficiency, there have been shortcomings hampering energy development and energy security, as well as the sustainability of the country.

Energy and national energy security need a new viewpoint and orientation in line with global changes, thereby; we can plan the country's development, especially in terms of national energy security.

A highlight in Resolutions 55 is to encourage private sector to invest in energy development. Could you analyse this issue in detail?

We have obtained many positive achievement in mobilising social and private resources for energy development. For example, in the electric energy sector, 28 percent of the total capacity is from the private sector.

There are some new policies and mechanisms that are issued such as the price mechanism for solar power (in Decision 11/2017/QD-TTg on incentive mechanism for the development of solar power projects in Vietnam) or the price for wind power (in Decision 39/2018/QD-TTg dated September 10, 2018 amending and supplementing several articles of Decision 37/2011/QD-TTg of June 29, 2011 on the mechanism to support the development of wind power projects in Vietnam) shows the great potential of the private sector in the development of the electricity industry.

Resolution 55 also specifies that orientations for the sustainable development of national energy in the near future are to focus on developing appropriate and diverse energy sources.

For example, Resolution 55 states that it is required to develop a harmonious development of electricity sources but to focus on exploiting and appropriately using domestic primary and fossil energy sources; at the same time continue to focus on prioritising renewable energy and gas power.

The principles for development of energy sources effectively are also stated in the resolution, which are based on price as well as on technology and safety.

Resolution 55 brings new opportunities for the private sector to participate in energy development.

How is the Ministry of Industry and Trade preparing to effectively apply Resolution 55 in reality?

As a focal authority, the Ministry of Industry and Trade will soon develop an action plan to deploy and report to the Party committees and the Government for the development. But there are some works that the ministry has deployed soon, even not waiting for action plan from the Government, it has actively considered solutions.

For example, the Ministry of Industry and Trade has been assigned by the Government to build the General Electric Map 8. The ministry will continue the General Electric Map 7 more effectively.

Recently, we had a working session with central provinces and the Central Highlands to survey compliance with Resolution 55. To effectively implement Resolution 55, there is a need for research and studies from reality and new issues arising.

In the near future, we will work with the southwestern provinces such as Long An, Ben Tre, Soc Trang to capture more issues and based on that to apply and direct compliance with Resolution 55 to provide immediate solutions and long-term directions for energy development.

To ensure the goal of ensuring energy for economic development, Resolution 55 sets some key targets. Specifically, providing sufficient domestic energy demand and meeting targets of the 10 year- Socio-Economic Development Strategy 2021 -2030; primary energy will reach about 175 - 195 million TOE by 2030; 320 - 350 million TOE by 2045; The total capacity of the power sources will reach about 125-130 GW by 2030, the electricity production will reach about 550-600 billion kWh. The rate of renewable energy sources in the total primary energy supply is hoped to reach about 15-20 percent by 2030; 25-30 percent by 2045.

By Thanh Nguyen/Ngoc Loan