Series of power projects behind schedule
The problem of power shortage has been alarming for many years. The story of many provinces and cities in the North having power cuts in the summer of 2023 is still present and is a profound lesson for the electricity industry.
Recently, in a report to the Prime Minister, the Ministry of Industry and Trade repeatedly mentioned the serious power shortage in the period of 2026-2030 if a series of large power source projects do not meet the schedule set out in the Power Plan VIII.
Of which, the Quang Trach 1 thermal power project is determined to be 3 years behind schedule; the O Mon 3 and 4 thermal power projects are delayed and have to be handed over to PVN; the Dung Quat 1 and 3 projects are also behind schedule compared to the expected schedule of 2023 and 2026.
The Ialy hydropower expansion project is determined to be 45 months behind schedule compared to the adjusted Plan VII; the Hoa Binh hydropower expansion plant must request a schedule adjustment by 2025; the Bac Ai pumped storage hydropower plant is about 6 years behind schedule.
Mr. Nguyen Anh Tuan - Vice President of the Vietnam Energy Association stated that the reason for the delay in implementing investment in building many power sources is due to difficulties in mobilizing capital. Power source projects from 800 - 1,000 MW all require investment capital of billions of USD, mostly relying on foreign loans. Investing in renewable energy projects requires large capital, high risk because capacity and output depend on weather, and the ability to recover capital is slow.
"Without clear, transparent mechanisms and the ability to recover investment capital, project owners will never dare to actually implement it," said Mr. Tuan.
Other problems in current legal regulations. According to Mr. Tuan, the mechanisms to encourage the development of renewable energy do not have a long-term orientation, and many policies are still inadequate.
As for offshore wind power, as it is a new type of source, Vietnam does not have regulations on surveying sea areas for implementation. In particular, the electricity market is slow to deploy; electricity prices have not kept up with fluctuations in input prices, causing investors in new power sources to feel insecure...
What to do to ensure energy security
The Ministry of Industry and Trade has just issued a telegram on continuing to resolutely implement, promote the sense of responsibility, mobilize all resources to remove difficulties, speed up the implementation of power projects according to the Power Plan VIII and the Plan to implement the Power Plan VIII, ensuring security of power supply for socio-economic development.
The Ministry of Industry and Trade stated that there are still many difficulties and obstacles in implementing power source projects, especially the lack of synchronization between the power sector planning and the power development plan in provincial planning approved by the Prime Minister, which poses a risk of project delays and failure to achieve the goals set in Power Plan VIII.
This poses a huge risk of power shortage in the 2026-2030 period, threatening national energy security.
To ensure security of power supply in all situations and meet the objectives of the Power Plan VIII, the Minister of Industry and Trade requested localities to speed up the selection of investors according to their authority for power projects, especially large power projects with long implementation periods.
For projects that have been licensed for implementation, investors are required to fulfill their commitments.
In case of failure to comply with the commitment, it is necessary to resolutely revoke the license or request the competent authority to resolutely revoke the license in accordance with the provisions of law, to avoid the situation where the investor lacks capacity but is sluggish and slow in implementation, affecting the development opportunities of capable investors and the long-term electricity supply situation.
