To research, develop, and promulgate the Law on Renewable Energy in Vietnam

To research, develop, and promulgate the Law on Renewable Energy in Vietnam (Internet image) 

The Prime Minister of Vietnam issued Decision 500/QD-TTg dated May 15, 2023 approving the national electricity development planning for the period 2021-2030, with a vision to 2050.

1. To research, develop, and promulgate the Law on Renewable Energy in Vietnam

According to Decision 500/QD-TTg, regarding solutions to formulating laws and policies, the Deputy Prime Minister requested to perform the following tasks:

- Completing the policy and legal framework on electricity development and renewable energy development (including rooftop solar power, self-produced and self-consumptive solar power), economical and efficient use of electricity, and other relevant regulations:

+ Drafting revised Electricity Law to perfect policies on investment, planning, and administration of electricity prices, develop a competitive electricity market, deal with obstacles, and institutionalize the development mechanism; create breakthroughs; encourage and strongly promote the development of renewable energy-using power sources; separate the role of state management from production and business of enterprises.

+ Researching and developing an auction mechanism, bidding to select investors with electricity prices in the process of amending the Electricity Law and perfecting the competitive electricity market model.

+ Researching and concretizing policies on the socialization of investment in transmission grids.

+ Promulgating a pilot, proceeding to officially build a mechanism of direct electricity purchase and sale contracts between renewable energy power producers and consumers in sync with amendments to the Electricity Law and a roadmap for the implementation of a competitive electricity market. Researching and developing regulations on fee collection for direct power purchase and sale contracts (DPPA).

+ Continuing to improve the electricity price management mechanism according to the market mechanism with the State's regulation ensures a harmonious combination between the political - economic - social objectives of the State and the objectives of production, business, and financial autonomy of electricity enterprises.

Electricity prices ensure full cost recovery, reasonable profits, attract investment in electricity development, and encourage competition in the stages of production, transmission, distribution, retail, electricity use, and anti-waste of electricity.

Continue to improve and complete the current electricity tariff. Research and implement two-component electricity prices at an appropriate time. Continue to implement electricity price transparency.

+ Researching, developing, and promulgating the Law on Renewable Energy.

+ Amendments to the Law on Economical and Efficient Use of Energy to make a drastic change in reducing the energy intensity of the economy, promulgating sanctions and mandatory standards and regulations on energy efficiency.

- Developing mechanisms and policies to encourage domestic enterprises to participate in the development of renewable energy, to develop the renewable energy industry, to develop new energy for domestic and export service, and to develop the electrical equipment manufacturing industry.

- Developing policies to increase the localization rate in the electricity industry to improve independence and reduce costs.

- Developing mechanisms and policies to promote electricity imports, especially from Laos through Agreements and Memorandums of Understanding between the two Governments...

2. Criteria and justifications for building a list of important and prioritized projects in the power sector in Vietnam

Criteria and arguments for building a list of important and prioritized projects in the power sector according to Decision 500/QD-TTg dated May 15, 2023 are as follows:

- Projects that play an important role in the balance of electricity supply - demand in the country and important regions, regions, and load centers to ensure the security of electricity supply and meet the needs of socio-economic development.

- Projects to ensure national security; projects that ensure economic synergies combined with defense and security.

- Projects that need to be implemented to ensure synchronization between the electricity development planning and other energy plans.

- Projects to increase power sources for areas at risk of power shortages

- Projects to ensure the safety and security of the national power system between the background power source, renewable energy source, and load (storage hydroelectricity, energy storage batteries, etc.)

- Projects contributing to climate change adaptation, reducing greenhouse gas emissions, protecting the environment (biomass, electricity produced from garbage, solid waste, cogeneration, using residual gas, etc.), and implementing climate commitments.

- Self-production and self-consumption projects.

- Projects that contribute to creating an overall ecosystem of renewable energy industries and services.

- Projects to export electricity and export new energy produced from renewable energy.

- Effective land use projects.

- Power grid projects of 500 kV and 220 kV

- Feasibility in implementation.

- Applying advanced technology, environmentally friendly.

- High socio-economic efficiency.

More details can be found in Decision 500/QD-TTg dated May 15, 2023.

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