Great potential but not exploited properly
Speaking at the Workshop "Enterprise solutions for energy conversion towards Net Zero" organized by Lao Dong Newspaper in coordination with the Ministry of Industry and Trade on May 29, 2025, Associate Professor, Dr. Dang Tran Tho - Director of the Institute of Energy Technology (Hanoi University of Science and Technology) commented that Vietnam is considered a country with leading potential for renewable energy development in Southeast Asia.
In particular, our country has an outstanding advantage in terms of solar power and offshore wind power. High reflection, stable wind speed, along with abundant biometric, waste and small hydropower plants create a favorable foundation for energy conversion. The 20182020 period has recorded a strong breakthrough, showing the ability to absorb technology quickly if there are appropriate policies and infrastructure.
However, according to Mr. Tho, converting potential into reality is still a challenge due to the lack of long-term incentive mechanisms, lack of planning to integrate land - electricity - grid and infrastructure that has not kept up with the development speed. The conversion process is currently facing many difficulties.
First of all, due to the lack of a clear legal corridor, unstable electricity price mechanism, outdated transmission infrastructure and difficulties in accessing capital, a series of projects are stalled. Dozens of GW of solar and wind power have been completed but cannot generate electricity or have been cut off frequently.
Meanwhile, many investors are hesitant because of the lack of electricity purchase contracts with legal constraints and clear guarantee mechanisms. The power grid system has not been upgraded synchronously, leading to overload in many key areas. Large-scale energy storage solutions are still unused, limiting the ability to absorb capacity from renewable sources. In addition, capital difficulties and institutional barriers continue to slow down the implementation of emission reduction targets.
Need to complete a synchronous and stable legal framework
To solve the problem of energy conversion, Mr. Tho said that it is necessary to first perfect a synchronous and stable legal framework. The early promulgation of the Law on Renewable Energy will create a foundation for unified electricity price policies, bidding, electricity purchase and sale contracts, and risk sharing mechanisms. At the same time, it is necessary to establish a clear and flexible transition electricity price mechanism by region and technology type, taking into account system costs and load value. Renewable power sources need to participate in the auxiliary market such as transformer, transformer, storage - to improve the efficiency of the entire system.
Regarding infrastructure, it is necessary to develop synchronously between "grid" and storage sources. The integration of energy storage systems with large-capacity wind power and solar power projects should be considered a mandatory requirement. Expanding investment in the transmission grid under the PPP form and allowing businesses to proactively build connecting infrastructure will contribute to reducing pressure on the national power system.
For finance, it is necessary to complete the green classification system, green credit standards and the green bond issuance mechanism. At the same time, design risk sharing tools between the state and the private sector such as PPA contract guarantee, policy risk guarantee and international capital access support. Domestic banks need to improve their capacity to appraise renewable energy projects according to ESG standards to expand medium and long-term lending.
Finally, improving implementation capacity at the local level is a key factor to shorten the gap from planning to practical implementation. It is necessary to train technical, planning and financial staff in the provinces, and at the same time build a set of local renewable energy assessment indexes to monitor implementation progress.
Associate Professor, Dr. Dang Tran Tho commented that energy conversion is not only an inevitable trend but also a strategic opportunity for Vietnam to develop a low-carbon, modern and competitive economy in the global supply chain. However, to realize this roadmap, it is necessary to have the strong and synchronous participation of the entire political system, businesses and the financial community. "We do not lack potential, what is needed right now is a determination to institutionalize and organize implementation in a practical and effective manner," he emphasized.
