Increase customer choice
Resolution 70 on ensuring national energy security to 2030, with a vision to 2045 was signed by General Secretary To Lam on behalf of the Politburo on August 20. This Resolution requires the development of the energy market in the direction of increasing competitiveness, transparency, efficiency, synchronization with ensuring energy security. Operators need to effectively implement the direct purchase and sale mechanism, and at the same time increase the right of customers to choose the right to access and choose the power supply unit in accordance with their needs.
Currently, EVN no longer has a monopoly on the production of electricity sources but is still the only buyer in the wholesale market, monopolizing the electricity transmission and retail system. Electricity is being distributed to people and businesses through EVN's power companies. When the competitive electricity market is completed, the electricity retail stage - the unit that supplies electricity directly to the end customer - will be separated, creating conditions for users to have the right to choose the right retailer, instead of only buying from EVN as it is now, according to the Electricity Law 2024.
Along with that, Resolution 70 also states that Vietnam needs to improve the transaction system, including a transparent, stable and long-term power purchase agreement (PPA) mechanism, ensuring the legitimate and legitimate rights and interests of investors.
Private enterprises are encouraged to participate in energy storage
infrastructure investment projects such as storage batteries, LNG storage, petroleum and oil storage both on land and at sea. In addition, the electricity transmission price mechanism must be innovated to attract the private sector.
Electricity workers maintain the national grid in Long Dien commune, Dong Hai district, Bac Lieu province. Photo: Nguyet Nhi
In fact, Vietnam currently has regulations on the direct power purchase mechanism (DPPA) between renewable energy generators (solar, wind, etc.) and large electricity users. According to data from power companies, only about 7,700 customers are eligible for direct trading, equivalent to 40% of the total electricity consumed in the country. However, experts believe that this mechanism is not attractive because there are still many constraints on the legal framework, infrastructure, and price mechanism, making both investors and customers wary.
Target 2030
After 5 years of implementing Resolution 55 of the Politburo, the energy sector has maintained stable growth, basically ensuring national energy security, meeting the requirements of rapid and sustainable development. However, according to the Politburo, this sector still has many limitations in terms of institutions, policies and management. Meanwhile, the progress of implementing many power projects is still slow, and the potential of energy has not been effectively exploited. This could lead to the risk of power shortages for a period of double-digit growth that exists.
In the newly issued Resolution 70, the Politburo set a goal that by 2030, Vietnam will have a total primary energy supply of about 150-170 million tons of oil equivalent, a total capacity of about 183-236 GW of power sources, and a total electricity output of about 560-624 billion kWh. The proportion of renewable energy in the total primary energy supply accounts for about 25-30%. Final energy consumption is about 120-130 million tons of oil equivalent.
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With a vision to 2045, the Politburo requires to firmly ensure national energy security and develop the energy market in the direction of healthy, transparent and effective competition.
Accordingly, the Politburo requested to promote the restructuring of the electricity industry, increase competitiveness, transparency and sustainability. All types of energy sources must be developed in a balanced and reasonable manner to ensure the highest requirement of sufficient electricity for socio-economic development, gradually implementing international commitments on emission reduction. Power projects with large capacity, high efficiency, and environmental friendliness are prioritized for development.
Increase the share of renewable energy
The operator also stated specific goals with the development of power sources. In particular, Ninh Thuan 1 and 2 nuclear power projects required to be implemented soon with suitable partners, put into operation in the period of 2030-2035. In parallel, Vietnam needs to build a nuclear power development program at flexible scales and nuclear power plants with small modular assemblies.
With hydropower, Vietnam aims to maximize the capacity of existing plants, continue to selectively develop a number of small and medium-sized projects, and accelerate the progress of hydropower storage. Hydropower development is associated with increasing cooperation and long-term electricity imports from abroad.
Wind and solar power are prioritized for development in accordance with the ability to ensure system safety and reasonable prices, especially self-consumption sources of self-consumption and rooftop solar energy. The Politburo requested to soon develop a policy to dismantle and have a breakthrough mechanism for offshore wind power development, and at the same time study and assign tasks to a number of state-owned and private enterprises to develop large-scale offshore wind power projects.
As of the end of last year, Vietnam's power system had nearly 17,000 MW of solar power (including rooftop and concentrated solar power) and over 5,000 MW of wind power. These sources account for about 26% of the total power system capacity.
According to the revised Power Plan VIII, Vietnam's renewable electricity rate is expected to increase to 28-36% by 2030 and 74-75% by 2050 (excluding hydropower). Solar power is expected to reach a total capacity of 46,459-73,416 MW by the end of this decade. The Government also sets a target that by 2030, 50% of office buildings and 50% of households will use rooftop solar power in the form of self-production and self-consumption.
Gas-fired thermal power is developed in the direction of prioritizing the use of domestic gas sources. The management agency reviews and dismantles to promote the implementation of gas and LNG power projects, especially the mechanism and price of electricity purchase, and has a mechanism to encourage fuel conversion with coal-fired power plants.
In addition, the Politburo requires the development and implementation of a national energy reserve strategy, investment in the construction of large-scale storage battery systems and other advanced storage types.
The Politburo also requested to develop a project to promote the development of high-quality human resources for the energy sector, including it in the list of key training disciplines. The goal will be to train at least 25,000-35,000 engineers and experts in the field of energy, especially for the nuclear energy industry.
At the same time, Vietnam needs to have a policy of prioritizing the training of high-quality human resources and attracting experts who are foreigners and overseas Vietnamese to work in the field of nuclear energy, renewable energy and new energy.
Phuong Dung
