Removing obstacles for renewable energy investors
Resolution No. 70 of the Politburo on ensuring national energy security is considered one of the seven pillar resolutions of the Government in the current period.
At the third quarter press conference, Mr. Bui Quoc Hung - Deputy Director of the Electricity Department (Ministry of Industry and Trade) - said that immediately after Resolution 70 was issued by the Politburo, the Government assigned the Ministry of Industry and Trade to preside over the development of two important resolutions. One is the National Assembly's resolution to provide mechanisms and policies for incentives, incentives, and promotion of the development of power projects, especially renewable energy. Two is the Government's resolution to implement the action program to implement Resolution 70.
Accordingly, the Ministry of Industry and Trade has assigned the Department of Oil, Gas and Coal to preside over the drafting of the Government's resolution. Up to now, the draft has been completed and submitted to the Government for consideration and promulgation. At the same time, the Electricity Department was assigned to preside over the development of the National Assembly's resolution, currently in the appraisal phase at the Ministry of Justice before submitting it to the Government and the National Assembly.
Mr. Bui Quoc Hung said that according to the National Power Development Plan (power Plan VIII), by 2030, Vietnam needs to put into operation a large volume of new power source and grid projects to ensure stable power supply for production, economy and people's lives. However, the progress of many projects is still slow, some projects are even unlikely to be completed during the planning period, especially LNG thermal power, offshore wind power and power grid projects.
"The early issuance of the two resolutions mentioned above is necessary to remove obstacles and create a favorable legal corridor for investors. Thereby, promoting the progress of key power projects, ensuring national energy security in the coming period" - Mr. Hung commented.
Proposal for mechanism to ensure stable output for LNG power projects
Regarding the LNG gas project, Mr. Bui Quoc Hung said that the Ministry of Industry and Trade is considering proposing a mechanism to commit to about 70 - 75% of power generation output for a 10-year period for LNG gas power plants. Having a mechanism to ensure stable output will help investors feel secure in implementing, contributing to speeding up construction progress and putting projects into operation according to plan.
Regarding the Quynh Lap - Nghe An LNG Thermal Power Plant project, the leader of the Ministry of Industry and Trade said that the project has been added to the National Power Development Plan of the general diagram VIII. However, the project is still in the process of selecting an investor, and there is no official unit to take on the responsibility, so more detailed information cannot be provided.
Regarding the Hai Phong LNG Thermal Power Project, Mr. Hung said that this is one of the key projects that is being implemented smoothly. Last week, the Minister of Industry and Trade attended the groundbreaking ceremony for this project. The investor is a joint venture between Vingroup Corporation and Vinenergo Energy Joint Stock Company.
The project is large-scale, divided into two phases: phase 1 with a capacity of 1,600 MW and phase 2 with a capacity of 3,200 MW, with a total investment of more than 178,000 billion VND. It is expected that phase 1 will be put into operation in 2030 and phase 2 in 2035. The project uses imported LNG fuel, invested in Nam Dong Son port with a capacity of 1.2 million tons/year.
According to information from the Hai Phong Economic Zone Management Board, the project has been granted an investment registration certificate, completed the feasibility study report and had its design appraised for fire prevention, fire fighting, and environment. The investor is selecting an EPC contractor and promoting procedures related to infrastructure investment, capacity transmission lines, supplementing the adjustment of Power Plan VIII, connecting the national grid, as well as completing documents on LNG import and fuel warehouses.
