Green energy transition is a challenging journey, requiring vision, determination and cooperation from the State, businesses, people and the international community...
Workshop “Energy conversion solutions towards Net Zero” (Photo: An Chi)
Energy transition towards gradually reducing the proportion of fossil fuels in electricity production to renewable energy and new energy is an inevitable trend in the world today. Vietnam has been making efforts to implement green energy transition to realize the goal of Net Zero by 2050 through the promulgation of policy frameworks, strategies and plans. However, green energy transition is a challenging journey that requires effective solutions.
Difficulties in green energy transition
At the workshop “Energy transition solutions towards Net Zero” organized by Lao Dong Newspaper in collaboration with the Ministry of Industry and Trade on May 29, Associate Professor, Dr. Dang Tran Tho, Director of the Institute of Energy Technology (Hanoi University of Science and Technology), said that one of the biggest barriers in the energy transition process in Vietnam is the incompleteness and instability of the policy framework.
To date, although the revised Power Plan VIII has been issued and international commitments on net zero emissions have been made, there is still no legal basis for renewable energy or energy transition laws. This has led to fragmented policies, a lack of high legal binding, and difficulty in consistent implementation between the central and local levels. In particular, the post-FIT electricity price mechanism has not been issued in a timely manner, causing investors to lose confidence and delay many projects.
In addition, Mr. Tho also pointed out that the strong development of solar and wind power in the period of 2018-2020 has exposed shortcomings in the power infrastructure, especially the baseload and storage systems. Renewable energy sources have the characteristics of unstable power generation, depending on the weather and time of day. Meanwhile, Vietnam's power system still relies mainly on the traditional model, lacks flexibility, lacks the ability to quickly regulate and does not have a large-scale energy storage buffer.
One of the important but often underestimated challenges in the energy transition is the technical and technological limitations. Vietnam's current energy system still mainly operates according to the traditional model, not designed to integrate a high proportion of fluctuating power sources such as solar and wind power. This leads to difficulties in dispatching, maintaining frequency and stabilizing voltage when renewable energy sources generate electricity out of sync with the load.
Raising capital for green energy projects in Vietnam is also facing many barriers. Vietnam does not have a standardized and widely implemented green credit mechanism. Domestic banks are still hesitant to lend to renewable energy projects. Meanwhile, domestic private enterprises, especially small and medium enterprises, still have difficulty accessing medium and long-term loans.
Review and implement six major solution groups
Experts say that to promote renewable energy sources and successfully transform energy, Vietnam needs to reform institutions, master technology, attract private and international investment, and improve monitoring and management capacity.
According to Mr. Doan Ngoc Duong, Deputy Director of the Electricity Department, Ministry of Industry and Trade, to achieve growth in renewable energy sources according to the adjusted Power Plan VIII and towards Net Zero by 2050, in the coming time, it is necessary to consider and implement 6 solutions.
Firstly, creating an open and transparent investment environment, removing barriers to investment procedures for power development. The Electricity Law No. 61/2024/QH15, effective from February 01, 02, and sub-law documents have basically resolved bottlenecks related to investment procedures for power projects, publicizing planning and investment project portfolios, and providing incentive mechanisms for renewable energy and clean energy projects, especially rooftop solar power models, offshore wind power, energy storage and green hydrogen.
In the coming time, Vietnam needs to continue to perfect the legal framework in a synchronous, flexible and effective manner; perfect policies to encourage the production and use of renewable energy and new energy to strongly attract domestic and foreign investors to participate in investing in the development of power projects.
Second, Mr. Duong believes that there can be no energy transition without a smart and flexible grid system. According to Decision No. 768/QD-TTg, the investment capital requirement for the transmission grid in the period of 2026-2030 is about 18,1 billion USD, which has been calculated to release capacity, connect regions and areas with modern technology.
Therefore, in the coming time, it is necessary to accelerate investment in strategic transmission lines, modernize the power grid with digital and smart technology to exploit and optimally use renewable energy and new energy sources nationwide.
Synchronously deploy solutions to achieve renewable energy growth according to Power Plan VIII, photo 2
Third, it is necessary to carry out energy transformation in the major electricity consuming sectors. Industry needs to promote green production such as green steel, green cement, and use of clean energy in industrial zones. Transportation needs to be strongly electrified, develop electric vehicles and charging station infrastructure. At the same time, it is necessary to promote the implementation of regulations and solutions on economical and efficient use of energy.
Fourth, we need to consider the role of nuclear power in the long term. It is a stable, CO2-free source of electricity that can serve as a base for a power system with a large proportion of renewable energy sources.
According to Decision No. 768/QD-TTg, to enhance energy security, by 2030 - 2035 nuclear power will reach about 4.000 - 6.400 MW and reach about 10.500 - 14.000 MW by 2050. Currently, Vietnam has continued to implement the policy of investing in Ninh Thuan 1 and 2 nuclear power plants on the basis of research and cooperation with partners possessing modern, safe and reliable technology in the world.
Fifth, a modern system of policy mechanisms and electricity markets is needed. 'We need to urgently complete the competitive electricity market, build a carbon credit mechanism, set emission prices, promote green finance and forms of public-private partnership. This is the foundation for mobilizing private and international resources for energy transition,' the Deputy Director of the Electricity Authority stated.
He also emphasized the role of science, technology and innovation, including investment in technologies such as energy storage, AI in power system operation, new materials and especially green hydrogen production technology. Along with that, it is necessary to promote the training of high-quality human resources to serve the transformation process.
Sixth, Mr. Duong believes that the most important thing is to ensure fairness in the transition. Accordingly, every policy needs to put people at the center: from coal workers, traditional energy-intensive sectors, vulnerable communities to small businesses, all must be supported, trained and retrained, and transformed livelihoods, so that no one is left behind on the journey to Net Zero.
"With the vision, determination and cooperation of the State, businesses, people and the international community, I believe that we can completely successfully carry out this process, ensuring energy security for economic development to reach the target of 8% in 2025 and double digits in the period 2-2026; at the same time, achieving the Net Zero target in a sustainable and proactive manner," Mr. Duong emphasized.
Source: https://tienphong.vn/trien-dei-dong-bo-cac-giai-phap-de-dat-tang-truong-dien-nang-luong-tai-tao-theo-quy-hoach-dien-viii-post1746678.tpo