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Vietnam Energy Forum

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

 - On August 30, 2022, in Ho Chi Minh City, the Department of Electricity and Renewable Energy (Ministry of Industry and Trade) in collaboration with the Scientific Council of Vietnam Energy Review, the Energy Information Centre held the International conference with the object "Policies for developing the wind, solar and gas power projects in Vietnam". The conference was divided into three sessions (two morning sessions and one afternoon session).

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?
Conference overview.

Session 1: Overview of “Policies for the development of wind power, solar and gas power projects”:

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?
Mr. Pham Nguyen Hung - Deputy Director of Electricity and Renewable Energy Department with an overview of the situation of Vietnam's power system.

Mr. Pham Nguyen Hung said that, by the end of 2021, the total installed power capacity of the whole power system increased for 7,500 MW in comperition with 2020 and reached 76,620 MW, become the top in the ASEAN region in terms of power capacity. Currently, the proportion of clean power plants (including hydropower and other renewable energy plants) in the power structure is 65.6% of the total installed capacity of the system.

The country needs huge investment in electricity to ensure economic growth. Determining mechanisms (including financial mechanisms) and organizing the implementation of the plan to make feasible the power plants and grids, ensuring energy security should be issues needed to be paid much attention in the near future.

This conference is a scientific forum for the domestic and international investors and enterprises of wind, solar and gas power projects to share and highlight the favorable factors of the State's policy orientation, reflecting difficulties, obstacles and barriers in the process of project implementation and proposing specific policy recommendations to develop gas, wind and solar power projects in Vietnam, towards realizing the commitment to “Net- zero” emissions by 2050.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Hoang Dang Khoa - Planning Department of EREA.

The speech of the Electricity and Renewable Energy Department summarized the situation of developing power plants according to the Draft Power Development Planning VIII (PDP VIII), orientations for developing the renewable energy and gas power projects. The coal thermal power plants will not develop after 2030, so gas thermal power projects should play a very important role. In recent years, while the solar and wind power projects were developing hotly, was not added any new gas power project. The Government's policy will prioritize domestic gas sources. However, imported LNG should be expected to account for a large proportion by 2030 and after 2035, using hydrogen will replace the gas.

The LNG power projects require advanced technology and large investment capital, so investment in them needs experienced investors and strong financial capacity. But in Vietnam in current time, there is no LNG electricity price mechanism and regulations on investment procedures are inconsistent between laws.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Nguyen Thai Son - Standing member of the Scientific Council of VER.

The Scientific Council of Vietnam Energy Magazine contributed an overview of challenges for developing the low-emission power projects for ensuring energy security in our country in the new situation. That is to develop energy in the direction of enhancing low-emission power projects such as wind and solar power projects according to the orientation of Resolution 55 of the Politburo and corespoding the declaration of Vietnam, with international support,towards “Net zero” greenhouse gas emissions by 2050 as the Prime Minister stated in COP26, November 2021.

According to the Scientific Council of Vietnam Energy Magazine, it is necessary to have a policy of direct electricity trading or bidding for solar and wind power projects in a continuous and long-term manner. If we do not remove the difficulties, we will not have offshore wind power projects by 2030 according to the Draft PDP VIII. The gas power projects using gas from Block B, O Mon 3 with too slow approval procedures and too inadequate policy. At present, in the spot market, LNG price is too high. So it requires a combination of investors to be able to buy the large volume with long-term contracts, and stable prices; at the same time, the state needs to have a plan for LNG import warehouses and ports to avoid the situation of building warehouses and ports for each LNG power project, reducing investment efficiency.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Ngo Quoc Phuong – Deputy Head of Investment Department of EVN.

The presentation of the Electricity of Vietnam (EVN) said that, EVN is participating in developing many domestic gas power projects from Blue Whale and Block B. The total electricity in 2030 should expect 595 GWh, among which domestic gas and import LNG will occupy 172.28 GWh (28.9%). Thus, the gas power projects in the coming time will play the main role to supply electricity for the national power system.

The high input gas prices leading to high electricity production costs, while EVN's electricity selling price is decided by the State, it is necessary to harmoniously share benefits between the State, businesses and people. The Government needs to consider planning large LNG thermal power centers, linking the LNG value chain (gas, electricity, seaports) to get gas prices after regasification and electricity prices at a reasonable level. Gas supply contracts must have a large volume (for the whole thermal power center cluster) to increase volume, reduce costs and stabilize in operation and consumption.

When the hydrogen fuel technology for exploitation, transportation and power generation will be sufficiently developed and reasonably priced, it is necessary to consider gradually switching gas turbine power plants to using hydrogen gas, handled and exploited on the basis of integrating with offshore wind power plants to have the power generation chain with a sustainable, clean and cost-effective system.

Session 2: Topic on “Policies for the development of gas power projects in Vietnam”:

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Dang Hai Anh – Head of Petroleum Department of the Department of Oil and Gas and Coal- MOIT.

The presentation of MOIT Petroleum and Coal Department gave an overview of Vietnam's gas industry, in 2022 Vietnam expects to produce 9.1 billion m3 of gas with 85% is for electricity production. Vietnam has gas fields in Cuu Long, Nam Con Son, Malay - Tho Chu and Song Hong basins and currently 15 gas-fired power plants with a total capacity of about 8,000 MW. However, gas ouput from these fields is declining while the demand for gas is increasing.

Resolution 55/NQ-TW states "Priority to investment in technical infrastructure to serve importing and consumpting the liquefied natural gas". Therefore, Vietnam will develop LNG warehouses in Thi Vai, Hai Linh, Hai Phong, Southeast and Southwest regions.

The gas industry is facing many challenges. A number of mechanisms and policies is not perfected, the technologies are complicated and need copyrigh, requiring large investment capital, and must be developed according to project chains, so the capital is even larger. The international gas market fluctuates greatly at the same time as the global energy transition trend.

We need solutions to adapt to new circumstances. These are supplementing and adjusting specific mechanisms and policies for a number of important energy projects, creating an investment attraction environment, speeding up the competitive electricity market, direct power purchase agreement and creating favorable conditions for investment, land fund and site clearance. The gas price mechanism needs to be promulgated to harmonize the interests of the State, enterprises and consumers.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Hoang Xuan Quoc - Energy Director of VinaCapital.

A representative of VinaCapital Investment Fund said: the fund is working with GS Energy of Korea to pursue the Long An LNG Power Project in IPP form. LNG is an indispensable step in the transition to Net Zero. The Fund has completed the procedures for converting the Long An Coal Thermal Power Project into LNG Thermal Power Project with a total capacity of 3,000 MW. The location and gas supply plan for the project selected from the LNG Thi Vai terminal.

The representative of VinaCapital Investment Fund proposed to act for guarantee the exchange rate and the Government guarantee for the responsibility of the electricity buyers and sellers, and underwriting a part of the electricity output.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Ms. Nguyen Thi Thanh Binh – Deputy General Director of T&T Group.

T&T Group participated in the conference with a presentation about the Hai Lang LNG power project in Quang Tri province.

T&T currently is operating many wind and solar power projects and pursuing LNG projects in Hai Lang, Quang Tri, Quang Ninh 2 and Vung Ang 3 gas power projects. However, due to the Government suspending loan guarantees for power projects, the financial arrangements are facing difficulties. The market price of LNG is increasing rapidly. To sell electricity at 8 - 9 cents/kWh, the LNG price must be at 12 USD/MMBTU and the Qc consumed electricity output must be 80-90%.

Regarding site clearance, Ms. Nguyen Thi Thanh Binh - Deputy General Director of T&T Group said, converting the forest land use purposes must be approved by the Government, so it takes time. The project needs a government guarantee for binding obligations between the parties, exchange rates and output underwriting.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Watanabe Yasuaki - Deputy General Director - Marubeni Asian Power Vietnam.

Marubeni ASIAN Power Vietnam has made great contributions to Vietnam's energy industry. Marubeni has experience in the coal, gas power and renewable energy projects, power transmission and storage.

According to Mr. Watanabe Yasuaki - Deputy General Director of Marubeni ASIAN Power Vietnam, currently, Marubeni is participating in the O Mon 2 gas power project in Can Tho and the LNG power project in Quang Ninh. In the current period, Vietnam needs IPP power plants using foreign investment capital and investment from international banks. Therefore, a strong legal and regulatory framework is needed and the PPA that can convince the banks.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Vu Van Loi - Head of Investment - Construction Department of PV Power.

In the presentation of PetroVietnam Power Corporation, the corporation briefly introduced it and immediately went into difficulties and recommendations.

PetroVietnam Power Corporation has a total installed capacity of 4,205 MW, producing 21billion kWh/year, accounting for 8% of the total national electricity generation, including 4 gas-fired power plants. The Corporation is building Nhon Trach 3 and 4 gas power plants.

According to Mr. Vu Van Loi - Head of Investment - Construction Department (PetroVietnam Power Corporation- PV Power), the advantage of gas power is the reduction of CO2 emissions and pollutants, the gas power plants can quickly change loads to meet regulatory response when high rate of renewable energy projects in system. However, the Corporation is currently facing difficulties such as no experience in building and operating LNG power plants, no experience in bying LNG in the international market.

In the long-term vision, Mr. Vu Van Loi considered the long-term LNG price is quite stable. Arranging investment capital for a gas power project can be made although with a difficulty for the Government not to guarantee it. The law on electricity construction is not reasonable. Therefore, PV Power proposes to approve PDP VIII as soon as possible for the investors to have a basis for implementing the projects. On the other hand, there should be specific regulations and guidelines in selecting investors for LNG power projects. The mechanism on framework of LNG power price and allowing LNG power plants to shift the cost of gas prices to electricity prices, and mechanism to ensure annual electricity output (Qc). At the same time, to consider reducing import tax on LNG and equipment, income tax for gas power plants.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Nguyen Thanh Binh – Deputy General Director of PV GAS.

The presentation of the Vietnam Gas Corporation (PV GAS) raised the difficulties in deploying gas/LNG supply for gas power projects. Gas for electricity is being supplied directly from the gas field by the gas pipelines, but the power plant operatesaccording to the daily electricity market with fluctuating demand. Gas for industry is not prioritized, only the surplus of power generation is sold to industry, it is difficult to take initiative in business.

PV GAS is arranging to supply LNG for Nhon Trach 3 and 4 power plants. The investor is proposing the Government to harizotal shift from gas underwwriting to electricity underwriting with Qc = 80 - 90% of electricity output (about 1.3 billion m3 of regasificated LNG/year) for a period of 15 years as a basis for the gas seller to arrange a long-term LNG purchase contract. Although the news informs that the international gas prices are high, but long-term LNG accounts for 80% of the gas purchse volume with stable prices and only less than 20% for spot delivery in the international market with the erratically high prices.

There is a discrepancy between the LNG delivery plan and the power system operation plan.

According to Mr. Nguyen Thanh Binh - Deputy General Director of PV GAS: Gas power projects will work in the foundation of daily demand diagram instead of coal power plants for ensuring energy security. Currently, domestic gas sources are declining, which will have to be supplemented by imported LNG. The long-term future, LNG will be very competitive in comparison with the new domestic gas sources. Therefore, it is necessary to have a LNG electricity price mechanism to transfer gas prices, and technical standards for supplying LNG to existing gas power plants.

According to Mr. Binh: The role of the State is very important, without a mechanism, no one would dare to invest.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

One of the delegates at the discussion session.

The discussion of Session 2 attracted many questions and comments:

A opinion considerd reforming the electricity market still bilateral, not the free market for buyers to meet directly with electricity sellers. It is necessary to make a more transparent market for everyone. When would be there a direct power purchase agreement?

The question interested many people is that if there no Government guarantee (because the Government will not change the public debt policy), how to convince credit institutions to invest?

The answer is to gradually convince by the capacity of the company. Initially the financial institutions would disagree. The credit ranking must gradually increase. That is a whole process.

The statements of some foreign companies also show that they are very interested in investment in storage hydropumpstorage projects. But they can or not invest?

In Vietnam, today there are two hydropumpstorage projects planned as Bac Ai under construction with EVN investment and Phuoc Hoa project without the investor. Vietnam needs more hydropumpstorage projects to balance renewable energy. In the future will be the regulations for the foreign investors to invest in hydropumpstorage projects.

Another foreign representative said, It is necessary to have an underwriting contract to develop LNG power projects. When will Vietnam have this contract?

The answer is issuing a price framework with putting gas prices into electricity and including Qc. MOIT will accept these comments.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Hoang Trong Hieu – Deputy Chief of Office of the Steering Committee for Electricity Development.

The presentation of the Office of the National Steering Committee for Power Development commented: Despite the strong development steps, wind, solar and gas power projects face the great difficulties and challenges. The planning has not been effectively managed and synchronized. Prolonging period for investment licence. Today, in Vietnam there is no marine spatial planning for offshore wind power projects. In terms of technology, Vietnam is highly dependent on foreign countries. The strong development of wind and solar power leads to unbalance of source - load. Financial risks depend on the pricing mechanism and operational management capacity. Site clearance is always difficult for projects.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Ms. Anita H. Holgersen - Chief Representative of Equinor ASA Group in Vietnam.

Equinor ASA Group in Vietnam shared: Equinor was once an offshore oil and gas company, now Equinor has successfully converted energy to this power source. The company has experience in developing wind power on the North Sea, Baltic, East coast of the US, Korea. The company emphasized that the cost of offshore wind power continues to decrease due to increasing turbine capacity, up to 15 MW per turbine.

Offshore wind farm development process can take from 5 to 11 years (including project development,construction preparation, construction, commissioning) Therefore, Vietnam needs an appropriate legal framework including strategic vision, maritime space handover, grid connection, tax conssetionary and encouraging supply chain development. Grid connection needs because if producing hydrogen and then generating electricity onshore, it is lost at least 30% of the energy,that not be mentioned in the cost.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Phung Dang Huy - Methodist Engineer of A0 - Methodology Department.

The National Load Dispatch Center (A0) had a presentation on technical issues in power system operation in the context of increasing penetration of renewable energy projects.

In three years (2019 - 2021) the installed capacity increased sharply (18%/year), mainly wind and solar power. In 2021, wind and solar power were account for 26% of installed capacity and 12.3% of electricity output. The high rate of RE has created challenges for the stability of the power grid. These are transmission line congestion, redundant capacity of RE, low system inertia, large divergent forecast error, fault risk passing (FRT) and low short circuit current (SCR) causing instability. The graphs and numbers clearly illustrate those breakdowns. Meanwhile, there is no incentive for ancillary services for the parties to invest.

A0 already has some countermeasures to these situations, but needs longer-term solutions. Government needs to update technical regulation of voltage control, response to FRT of RE power. It is necessary to adjust the primary and secondary frequency control mode, impose a special protection scheme to increase the stability of the system. Forecasting needs to diversify forecasting sources. Renewable power companies need to participate in ancillary services and have a mechanism for the storage system. The dispatching center will apply new technologies in system control.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Nguyen Xuan Huy – Senior Advisor, Head of offshore wind power R&D team of IPC E&C.

IPC Construction Joint Stock Company shared with the conference on risks, risk management and mitigation solutions in the development of offshore wind power in Vietnam.

According to Mr. Nguyen Xuan Huy - Senior Advisor, Head of offshore wind power R&D group (IPC Construction Joint Stock Company): By 2030, it must reach 7,000 MW of offshore wind power. But the risks happened by the geopolitical issues, overlapping of oil and gas blocks and offshore wind blocks, legal issues in the licensing of marine space, unclear distinction between nearshore and offshore wind power projects, overlapping regulations. Besides, the technical risks include geological, geomorphological structures, environmental impact, risks of waves, wind and storm speed. Economic risks include power purchase agreement (PPA), electricity, iron and steel, and turbine prices, bank interest rates (Vietnam 10 - 12%, China 3.8%), inflation, transmission line construction is not in time or congested.

Mr. Nguyen Xuan Huy considerd that must manage risks and assign the responsibility to each project participant.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Tran Cong Dien – Deputy Head of Technical Department of EVNSPC.

The Southern Power Corporation - EVNSPC participated in the conference with a discussion on the issues releted to rooftop solar power projects, he said, the total capacity of rooftop solar projects in the area under EVNSPC management is 5,432 MWp, mainly connected to the medium voltage grid and a part (64 MWp) to the low voltage grid. At present, there is no national technical standard for the rooftop solar power projects

There is no regulation on supervision and control of solar PV systems, so the dispatching level cannot command and operate.On the other hand, forecasting capacity and output is difficult. Some households install additional panels themselves after connecting. There is no unifity on guidelines for fire prevention and fighting, land use, construction safety, environmental impact, and business registration. The effects of solar PV on power quality (voltage flashing, harmonics) should be studied and remedial measures taken.

EVNSPC proposed to soon issue a set of standards, regulations and technical regulations on solar power equipment for each province in terms of solar power, self-use rate. To promulgate a legal basis for monitoring and controlling the solar PV systems. The ministries need to issue regulations on fire prevention, construction, and land use...

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Ngo Ngoc Thuong - General Director of PVE.

Short presentation by Petroleum Engineering and Design Corporation (PVE) introduced design capabilities for offshore drilling rigs. That experience helps PVE to survey, design foundations and piers for offshore wind power. PVE has designed gas processing plants, oil and gas pipelines. The company can participate in the chain of power and gas projects, designing fire protection systems for energy projects.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Nguyen Tuan Dung - Deputy Head of the Planning Department of EVNHCM.

Similar to EVNSPC, Ho Chi Minh City Electricity Corporation (EVNHCMC) also shared the need to develop rooftop solar power and problems from the point of view of the power buyer and connection performer.

Ho Chi Minh City has a large solar radiation with an average about 1,581 kWh/m2/year, the highest in February and the lowest in July. Currently, the city ínstalled 14,210 rooftop solar power projects with a total capacity of 358 MWp. EVNHCMC has organized a preliminary survey for the each potential customer group, it shows that the production group has the greatest potential.

Currently, the price mechanism has expired, but there is no new price mechanism. Therefore, EVNHCMC proposes to quickly make a new price mechanism, instructions on the process of acceptance, inspection, maintenance, and periodical testing for the solar PV and rooftop solar systems. It is necessary to research and promulgate the process for recovering and handling used solar panels and inverters, conduct in-depth research on the influence of solar PV on the operation of medium and low voltage grid systems to ensure the safety of the power grid. In the PDP VIII, it is necessary to approve the policy for HCM City to develop the rooftop solar power systems for directly supplying the potential objects in the city.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Le Tuan Anh – Deputy General Director of Sao Mai Group.

Sao Mai Group analyzed inconsistencies in current regulations on project development, regulations on commercial operation date (COD) for the project and proposed recommendations to remove them. On that basis, the enterprise recommended:

1/ It is necessary to develop policies and mechanisms for renewable energy development with long-term and uninterrupted nature.

2/ Pefecting the legal system related to COD work for RE power plants, it should be a specialized State agency instead of EVN.

3/ Overcoming the unreasonableness in the regulations on the acceptance work.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Delegate at the discussion session.

The discussion on wind and solar power has many specific opinions and questions raised:

Recently, the drafts of PDP VIII and comments from the Government Office have stated the priority of self-use renewable energy, not broadcast to the grid. Currently there is no written power limit for self-use. Enterprises have studied to invest in solar and wind power for their own use, but the provinces have not yet approved it because PDP VIII has not been available. So how will investors proceed? According to the planning of the province? Do you have to wait for the VIII National Assembly?

Answer: This is a very difficult question and unable to answer. These regulations are new not only for Vietnam but also for the whole world. Vietnam is moving too fast, so it is very cautious. All are drafts. Wait until there is an official document will do the instructions.

Regulations on handling and recovering solar panels have a Decree taken on January 1, 2025, manufacturers will have to recover. The Ministry of Science and Technology made a draft on Standards of solar panels, which will be published this year. The GIZ project is conducting research on the effects of rooftop solar power systems on low and medium voltage grids.

It takes ten years for an electricity project to make investors run away. Therefore, faster decisions from the top agencies are needed. The financial and economic risks would be understanted as for example, inflation risk. The amount is large so inflation can engulf the project. The risk is too great, how should it be managed?

Economists are concerned about risks. VND interest rate is currently 10 - 11% for onshore electricity. WB, IFC lend to banks and then banks lend back.

Looking at countries in the region, Thailand and China have very favorable interest rates for offshore wind power and a three-year reduction without paying income tax. Document to convince credit institutions - must be in accordance with international practices. Therefore, Vietnam needs green credit to get preferential interest rates. Otherwise, the projects will be sold to foreign countries in 1-2 years. Vietnamese businesses cannot grow.

Another very interesting question: When will Vietnam have a new electricity prices for wind and solar power projects. What will electricity prices be?

Answer: Probably no FIT price. The direction is marketization.

Offshore wind power in PDP VIII has a very large number and needs to be deployed urgently. To survey wind power offshore, there are regulations on measuring how many measuring points and what type of columns? For example, ashore must measure 1 year. Will offshore be able to measure 3 months?

Answer: At least 1 year. The column density is still being calculated. Handing over the sea surface is the Ministry of Natural Resources and Environment.

Vietnam has committed to net zero and quit coal by 2040. If a carbon market will be in Vietnam, how much per ton?

Answer: By 2025 there will be a pilot carbon market and by 2028 a full-fledged carbon market will be operational. Vietnam has a very low carbon footprint.The discussion on wind and solar power projects had many specific opinions and questions:

Recently, the drafts of PDP VIII and comments from the Government Office have stated the priority of self-use renewable energy, not broadcast to the grid. Currently there is no written power limit for self-use. Enterprises have studied to invest in solar and wind power for their own use, but the provinces have not yet approved it because PDP VIII has not been available. So how will investors proceed? According to the planning of the province? Do you have to wait for the PDP VIII National?

Answer: This is a very difficult question, that unable to answer. These regulations are new not only for Vietnam but also for the whole world. Vietnam is moving too fast, so it is very cautious. All are drafts. Wait until there is an official document will do the instructions.

Regulations on handling panels have a Decree taken on January 1, 2025, The manufacturers will have to recover. The Standards on solar panels The Ministry of Science and Technology has made a draft, which will be published this year. Regarding the capacity of a rooftop solar panel, there is only system over 10 MW. The GIZ project is conducting research on the effects of rooftop solar power on low and medium voltage grids.

It takes ten years for an electricity project to make investors run away. Therefore, faster decisions from the top are needed. The financial and economic risks, for example, an inflation risk can engulf the project. The risk is too great, how should it be managed?

Economists are concerned about risks. VND interest rate is currently 10 - 11% for onshore electricity. WB, IFC lend to banks and then banks lend back.

Looking at countries in the region, Thailand and China have very favorable interest rates for offshore wind powerprojects with a 3-year reduction without paying income tax. Documents to convince credit institutions - must be in accordance with international practices. Therefore, Vietnam needs green credit to get preferential interest rates. Otherwise, the projects will be sold to foreign countries in 1-2 years. Vietnamese businesses cannot grow.

Another very interesting question: When will Vietnam have a new electricity price for wind and solar power projects and what will be electricity prices?

Answer: Probably no FIT price. The direction is marketization. Through bidding method.

Offshore wind power in PDP VIII has a very large number and needs to be deployed urgently. To survey wind power offshore, there are regulations on measuring how many measuring points and what type of columns? For example, ashore must measure 1 year. Will offshore be able to measure 3 months?

Answer: At least 1 year. The column density is still being calculated. Handing over the sea surface is the Ministry of Natural Resources and Environment.

Vietnam has committed to net zero and quit coal by 2040. If there carbon market will be in Vietnam, how much per ton?

Answer: By 2025 there will be a pilot carbon market and by 2028 a full-fledged carbon market will be operational. Vietnam has a very low carbon footprint. Carbon tax if applicable (after 5 years) with a price of approximately 5US$ per ton, but must be calculated separately from FDI and domestic enterprises.

What mechanism for Vietnam to develop sustainably gas, wind and solar power sources?

Mr. Nguyen Anh Tuan- Standing member of the Scientific Council of VER.

Concluding the conference, Mr. Nguyen Anh Tuan - Permanent member of the Scientific Council of Vietnam Energy Magazine said: With nearly 20 presentations by representatives from state management agencies, corporations, energy companies government, domestic and foreign enterprises. With a sense of responsibility and enthusiasm, there were many opinions discussed and contributed on specific issues such as:

1. Overview of power source development and policy orientation for the development of renewable energy and gas power sources. Opportuny for developing low-emission energy projects in the future.

2. The current difficulties and obstacles in the implementation of gas power projects in general, and LNG power projects in particular, including some specific projects. The issues on PPA and import of LNG, ability to participate in the electricity market, negotiation of PPA contracts.

3. Opportunities and difficulties, challenges, obstacles in terms of mechanisms, regulations and actual implementation of past and upcoming wind and solar power projects.

4. Capital demand, banking feasibility with investment parties; solution to unlock capital flow.

5. Issues to be implemented to develop offshore wind power projects - a great resource of Vietnam.

6. Difficulties in operating the power system with a high percentage of variable renewable energy, while the grid infrastructure cannot yet be ensured, the solutions.

7. Unfinished RE projects, expired FIT mechanism, but still waiting for new policies/regulations and risks for investors and credit providers.

8. Problems to be solved for rooftop solar PV, etc.

Through many discussions, shares and contributions of the organizations, experts and scientists, it can be seen that the opportunity to develop solar, wind and gas power projects in Vietnam is very large. Major policies have created opportunities, but difficulties and obstacles remain. Specific policies and regulations have not yet followed reality. The management in implementation is still inexperienced, sometimes loose, but sometimes rigid… Some investors have not yet complied with current regulations.

The Department of Electricity and Renewable Energy, Scientific Council of Vietnam Energy Magazine respectfully acknowledges concise presentations, frank discussions and exchanges, responsibilities of state management agencies, corporations, businesses and experts in the Conference.

The Organizing Committee of the Conference will summarize the relevant contributions and opinions and send a document to the competent authorities to propose the Government and the Ministry of Industry and Trade to consider and promulgate appropriate policies, mechanisms and regulations. In line with reality, in order to encourage and remove current obstacles, promote and create motivation for the development of low-emission power sources in the future./.

Vietnamenergy.vn

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