Strengthening cooperation in the energy sector, realizing commitments at COP 26

In order to fulfill the commitments made at COP 26, effectively contributing to the zero net emissions target by 2050, as well as ensuring national energy security, Vietnam desperately needs international support for preferential capital, engineering and governance.

 
Minister of Industry and Trade Nguyen Hong Dien works with Mr. Alok Kumar Sharma - Minister and President of COP 26

On February 14, 2022, at the headquarters of the Ministry of Industry and Trade, Minister of Industry and Trade Nguyen Hong Dien met and discussion with Mr. Alok Kumar Sharma - Minister and Chairman of the 26th United Nations Climate Change Summit (COP 26) on the occasion of his visit and work in Vietnam.

Ministry of Industry and Trade prioritizes supporting investment projects to develop clean energy in accordance with the general planning

At the meeting, Minister Nguyen Hong Dien said that this is the second time in less than a year that the Ministry of Industry and Trade has welcomed Mr. Alok Kumar Sharma at the headquarters (the first time in May 2021). This emphasizes his special attention to Vietnam's efforts in general and the contribution of the industry and trade sector in particular in implementing the commitments made at COP 26.

Minister Nguyen Hong Dien has informed about the positive efforts of the energy sector recently. Specifically, the total investment capital of the source and power grid of the December 2021 plan is 135.9 billion USD in the period 2021-2030 (121.79 billion USD for the source; 14.12 billion USD for the grid). Thus, the operating plan in December 2021 has saved about 28.9 billion USD of investment capital in the period of 2021-2030 compared to the operating plan in March 2021.

In the coming time, the industry also set a target of, by 2030, the coal power scale is 38.8 GW, up from the current 18GW and almost no increase until 2045. In the period 2031-2045, the total investment capital of the power grid and power grid of the December 2021 plan is 241.51 billion USD (230.07 billion USD for the source; 11.44 billion USD for the grid). Thus, the operating plan in December 2021 has saved about 4.2 billion USD of investment capital in the period of 2031-2045 compared to the operating plan in March 2021.

Minister of Industry and Trade Nguyen Hong Dien spoke at the meeting 

On the issue of clean energy development, Minister Nguyen Hong Dien said that immediately after cop 26, implementing the direction of the Prime Minister, the Ministry of Industry and Trade has developed a plan to update the draft Power Planning Plan VIII, focusing on the development of power sources in the direction of:  Re-evaluate the feasibility of coal-fired power sources to further reduce coal power; strongly develop gas power, especially LNG to ensure energy security and increase the ability to absorb large-scale renewable energy sources; strongly develop renewable energy sources, especially wind and solar power; power supply arrangement ensures regional balance, avoids distant transmission and ensures reasonable redundancy in each region.

The Minister affirmed that the Ministry of Industry and Trade continues to study, propose and finalize the draft Power Plan VIII to comply with Vietnam's commitments at COP 26 such as the zero net emission target by 2050 and the Declaration on conversion of coal power to clean energy.

"However, Vietnam needs international support in terms of huge preferential capital to ensure the effective implementation of solutions that both ensure national energy security and effectively contribute to the zero net emission target by 2050. For investment projects in the development of clean energy and renewable energy, the Ministry of Industry and Trade always prioritizes support on the basis of ensuring economic and social efficiency, in accordance with the general planning, complying with the current legal regulations" - Minister Nguyen Hong Dien emphasized

Alok Kumar Sharma, Minister and President of COP 26 

Recognizing Vietnam's efforts in power planning VIII and the success of Vietnam, the region's leading country in renewable energy development, especially through the impressive development of solar and wind power, Mr. Alok Kumar Sharma wants the Ministry of Industry and Trade to support renewable energy projects,   this includes Enterprize Energy's Thang Long offshore wind project.

We want to provide technical and financial support.

Regarding the large financial need to implement power plan VIII in line with the orientation of the zero net emissions target to 2050, Mr. Alok Kumar Sharma said that it is possible to mobilize public and private finances to fulfill the commitment made at COP26 to invest in green infrastructure projects. Encourage Vietnam to actively take advantage of this resource. Currently, UK and international financing aims to support the development of the green grid and infrastructure, including through the World Bank-managed Climate Investment Fund, the Asian Development Bank (ABD) and the UK Clean Growth Fund.

Regarding the issue of power grid and green infrastructure, Minister Nguyen Hong Dien said that Vietnam's political statement at cop 26 has been concretized by amending the Electricity Law and passed at the National Assembly session in January 2022, thereby allowing all economic sectors to participate in the construction of transmission power grids on the basis of protection ensure national defense and security and according to the national power development plan in each period. This key amendment opens up many innovations in attracting investment, decominguting the capacity of renewable energy power plants, ensuring the security of the power system.

UK Ambassador to Vietnam Gareth Ward 

However, developing the infrastructure of the electricity sector, Minister Nguyen Hong Dien proposed that cop 26 president connect and support Vietnamese electricity sector enterprises to access UK and international financial resources. "We are ready to work with UK and international donors and financial institutions to promote opportunities for cooperation and investment in this area.   Financial support from international partners in general and especially from the UK will help Vietnam to have more conditions to implement its goals."

In addition to capital support, Vietnam also expects to receive technical support from advanced countries, such as technical and financial assistance to study scenarios limiting the construction of coal-fired power plants; implementing activities to control greenhouse gas emissions in the industry and trade; improve the capacity for Vietnam to implement carbon pricing mechanisms in accordance with the Paris Agreement on climate change; Improving the capacity to deploy the competitive electricity retail market, regulate electricity prices, direct power purchase mechanisms ...

The Ministry of Industry and Trade continues to strengthen close coordination with representatives of cop 26 presidium as well as the UK, represented by the British Embassy in Vietnam to effectively implement cooperation activities between the two sides in the field of Industry and Trade. 
 

 

 

"The Ministry of Industry and Trade continues to strengthen close coordination with representatives of cop 26 presidium as well as the UK, represented by the British Embassy in Vietnam to effectively implement cooperation activities between the two sides in the field of industry and trade, contributing to promoting and promoting,   realize Vietnam's specific commitments at cop 26," Minister Nguyen Hong Dien emphasized

Thu Phương - Cấn Dũng

Congthuong.vn

Translated by TLW