JOURNALIST: - Sir, what are the main difficulties and obstacles businesses encounter in investing in and exploiting renewable energy projects today?
MR. NGUYỄN QUANG HUÂN: - The primary challenge lies within the framework of Power Plan VIII. This plan currently neither encourages nor permits the development of solar power projects until 2030. Similarly, the plan sets stringent limits on wind power, allowing only a few thousand MW. However, even these quotas face substantial hurdles due to the recent issuance of Power Plan VIII, with crucial guiding documents, such as decrees, circulars, and local licenses regarding pricing mechanisms, still pending.
For instance, the process for wind power project auctions remains ambiguous, including the method and timeline for these auctions. Without these specifics, ongoing projects are at a standstill as investors lack the legal basis required to proceed. This regulatory gap results in numerous projects, whether in the planning stages or already operational, being indefinitely paused while awaiting further instructions and approvals.
The situation for solar power is even more discouraging. Recently, the Ministry of Industry and Trade permitted the utilization of rooftop electricity—a component of renewable energy sold directly. Furthermore, the Government issued Decree 80/2024/ND-CP, outlining the direct power purchase and sale mechanism (DPPA) between renewable energy generators and large electricity users. However, implementing this decree also necessitates further preparations, including a guiding circular to elucidate the sales process and negotiation protocols.
- How do you think we can solve these problems, sir?
- To address these challenges effectively, two immediate actions are critical. First, following the issuance of Decree 80, it is imperative to quickly release a guiding circular to streamline and accelerate its implementation. Delays in this process only exacerbate financial losses for businesses. Currently, the business community is eagerly awaiting the Ministry of Industry and Trade's release of these crucial guiding documents.
Second, it is essential to expedite the issuance of implementation documents related to the content plan of Electricity Master Plan VIII. Currently, without a clear power purchase contract framework with EVN, projects cannot proceed, leaving investors in a prolonged state of uncertainty.
- In Power Plan VIII, solar power is not mentioned much, but it is clear that this is an area where Vietnam has natural strengths that cannot be ignored. What is your opinion on this issue?
- In my opinion, every power source has its inherent advantages and disadvantages. For example, wind power is highly seasonal, varying significantly with weather conditions. Solar power, on the other hand, is only available during daylight hours. Hydropower relies heavily on water levels and seasonal rainfall patterns. Coal power, while reliable, poses environmental pollution risks and increases our dependency on foreign coal imports. Nuclear power, although economically advantageous and stable, presents significant management challenges and safety concerns.
As scientific advancements continue to progress, it is vital to integrate information technology into our power grid operations. For instance, a fully automated system could dynamically adjust other power sources when solar and wind power feed into the grid, enhancing overall efficiency and stability. Currently, our power grid regulation system operates with a significant degree of manual oversight. The lack of transparency within the Power System Dispatch Center creates substantial investor apprehensions.
Moreover, Japanese partners have shown interest in researching an integrated model combining solar and wind power. We have initiated dialogues with several localities to explore experimental research opportunities for this model. However, local authorities remain cautious due to past instances of solar power overloads in regions like Ninh Thuận and Bình Thuận.
- What basic solutions are needed to comprehensively remove the bottlenecks in current renewable energy development?
- In the short term, we must address the immediate regulatory and procedural bottlenecks. First, expediting the issuance of the guiding circular for Decree 80 is crucial. This will ensure that businesses can start implementing the direct power purchase and sale mechanisms without unnecessary delays. Second, accelerating the release of guiding documents for the Electricity Master Plan VIII will provide the necessary legal framework for investors to proceed with their projects.
In the long term, the development of renewable energy necessitates the establishment of a dedicated renewable energy law. Currently, EVN's power transmission network has limited capacity to handle the influx of renewable energy, primarily due to the irregular and intermittent nature of renewable power generation. For example, solar power is generated only during the day, leading to potential overloads during peak production periods.
A comprehensive approach involves enhancing grid infrastructure to accommodate higher volumes of renewable energy, creating transparent regulatory frameworks, and providing robust incentives for renewable energy investments. Additionally, integrating advanced technologies for grid management and automation will optimize the balance between renewable energy input and traditional power sources, ensuring a stable and reliable power supply.
- Thank you very much, sir.
