On the afternoon of November 26, 2021, in Hanoi, under the direction of the Vietnam Chamber of Commerce and Industry (VCCI) and the Advisory Council for Science, Education and Environment under the Central Committee of the Vietnam Fatherland Front, Enternews Magazine organized the forum “Mechanisms to Attract Investment for Sustainable Renewable Energy Development in Vietnam,” with the participation and sharing of views by experts, scientists, businesspeople, and representatives of foreign embassies.

Overview of the forum “Mechanisms to Attract Investment for Sustainable Renewable Energy Development in Vietnam”

In his opening remarks at the forum, VCCI Standing Vice President Hoang Quang Phong affirmed that renewable energy plays an important role in ensuring national energy security. Over the past few years, thanks to incentive mechanisms introduced by the Prime Minister, renewable energy in Vietnam has made remarkable progress.

According to data from Vietnam Electricity (EVN), as of October 31, 2021, the total installed capacity of renewable energy sources reached 20,644 MW; of which hydropower accounted for 29.6%; solar power 22.57%; wind power 5.16%; gas 10%; oil approximately 2%; and biomass 0.28% of the total power generation capacity. This demonstrates that Vietnam has enormous potential and ample room for renewable energy development. However, the implementation of renewable energy projects is currently facing new challenges.

Delegates attending the forum “Mechanisms to Attract Investment for Sustainable Renewable Energy Development in Vietnam” on the afternoon of November 26.

In addition, there is currently a policy gap in financial mechanisms for renewable energy, as the FiT rates for solar and wind power expired at the end of October 2021. According to experts, over the past two years, the Government has held numerous discussions regarding FiT rates for wind and solar power. However, it remains unclear how the bidding mechanism will be implemented. It is clear that renewable energy requires a consistent and continuous development policy roadmap to sustain market growth and establish a more equitable mechanism for other sources, such as technology-based energy auctions or auctions for grid maintenance services.

Assessing the policy obstacles facing the renewable energy sector, Mr. Nguyen Quang Huan, National Assembly Delegate and Vice Chairman of the Vietnam Association of Private Enterprises, said that one of the major policy “bottlenecks” is the Power Development Master Plan VIII. At present, the failure to approve Power Development Master Plan VIII would be the first bottleneck hindering subsequent policies.

Therefore, guidance is needed on pricing policies, as well as bidding procedures, so that investors can clearly understand the process when FiT prices are no longer applicable, as well as other issues such as the technology development roadmap for the power sector. Meanwhile, waste-to-energy is still relatively new in Vietnam, and localities are generally struggling to select appropriate technologies; even ministries and sectors have yet to provide specific guidance on this issue.

Mr. Nguyen Quang Huan, 15th-term National Assembly Delegate, Member of the Presidium of the Central Committee of the Vietnam Fatherland Front, and Chairman of the Board of Directors of Halcom Vietnam Joint Stock Company, speaking at the forum. 

Vietnam’s Renewable Energy Development Strategy to 2030 with a Vision to 2050, issued by the Prime Minister under Decision No. 2068/QD-TTg, identifies the encouragement and mobilization of all resources to promote the development and use of renewable energy sources, with the aim of reducing dependence on fossil fuels, contributing to energy security, mitigating climate change, protecting the environment, and promoting sustainable socio-economic development. Resolution No. 55-NQ/TW of the 12th Politburo also emphasizes: Developing energy types in a synchronized, rational, and diversified manner, prioritizing the exploitation, use, and efficient utilization of renewable, new, and clean energy sources.

Also within the framework of the forum, the Organizing Committee announced the results of the 2021 Outstanding Renewable Energy Projects selection. This was the second year that outstanding renewable energy projects were selected through a program organized by VCCI in coordination with the Advisory Council for Science, Education and Environment of the Vietnam Fatherland Front Committee.

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