VEA'S RECOMMENDATIONS ON PROMOTING DEVELOPMENT AND SAVING ENERGY IN VIETNAM

To specify the issues raised at the International Conference on "Promoting development and saving energy to 2030, with a vision to 2050" held by Vietnam Energy Association (VEA) in combination with Electricity and Renewable Energy Authority, and Corporations: Vietnam Electricity, Vietnam Oil and Gas Group, Vietnam Coal - Mineral Industry Group on November 20, 2020, in Hanoi. After meeting with experts and scientists to discuss, review, analyze and consider opinions, VEA completed the Report No.104/HHNL-BC, dated December 02, 2020, and sent it to: the General Secretary of Party, the President of State, the Chairman of National Assembly, Prime Minister, the Ministries: Industry and Trade, Home internal Affairs, Natural Resources and Environment, Planning and Investment, Finance, Science and Technology.

 

Below is the full text of VEA's proposal:

 

CURRENT SITUATION OF VIETNAM ENERGY INDUSTRY

1/ In the past years, the energy industry has faced many difficulties and challenges: High growth in electricity demand, low water supply to hydropower reservoirs, fuel supply situation, especially coal supply for power plants, thermal power plants in troubles. The situation in the China Sea has complicated activities, directly affecting oil and gas exploitation and exploration activities; oil and gas reserves and potentials in shallow water are not much; many key oil and gas fields are in the period of depletion, and the output has decreased sharply. Domestic demand for coal has increased, while coal production capacity of mines has reached its limit; mining conditions are getting more and more difficult due to the deeper coal resources.

 

However, with the attention and timely direction of the Party and State leaders; The efforts of Corporations: Vietnam Electricity, Vietnam Oil and Gas, Vietnam Coal - Mineral Industry and enterprises, Vietnam's energy industry has basically ensured sufficient energy demand for socio-economic development of the country and people's lives.

 

In the period 2010 - 2019: National primary energy supply increased from 52.49 million tons of oil equivalent (MTOE) to 92.40 MTOE, an average increase of 6.48%/year. Total final energy consumption increased from 42.21 MTOE in 2010 to 62.84 MTOE in 2019, an average growth of 4.52%/year. In the final energy consumption structure, oil and gas products accounted for the largest 35.9%, followed by electricity 28.8% and coal 24.4%. The national target program on economical and efficient use of energy for the period 2012-2015 (VNEEP2), saved 11.2 MTOE, equaling 5.65%.

 

2/ Domestic primary energy exploitation in the past 10 years has fluctuated from 54.0 MTOE to 59.9 MTOE (in 2015, reaching the highest level), conventional energy sources (coal, petroleum, hydropower) has been exploited to its limit.

 

- Coal industry: Coal production from 2010 to 2019 reached about 40-47 million tons; in which commercial clean coal reached about 85-90%, equivalent to about 38-45 million tons. Coal imports for thermal power plants increased rapidly, from 6.9 million tons in 2015 to nearly 44 million tons in 2019.

 

- Oil and gas industry: Domestic crude oil production is decreasing from 15-17 million tons/year in the period 2010 - 2017 to about 12 million tons in the last 2 years, because the current fields are running out. Exploited gas output reached about 9-10 billion m3 in the period 2010 - 2019.

 

- Power industry: By the end of 2019, the total capacity of Vietnam's power sources reached about 56.7 thousand MW, an increase of 2.6 times compared to 2010, the highlight is that in 2019 more than 5,000 MW of wind and solar power was put into operation. In 2019, the whole system's electricity output reached about 232 billion kWh, an increase of 2.35 times compared to 2010. Commercial electricity in 2019 reached 208.5 billion kWh, 2.5 times higher than in 2010, the average growth rate reached 10.54%/year.

 

DEVELOPMENT ORIENTATION OF VIETNAM ENERGY INDUSTRY TO 2030, VISION TO 2050

1/ With an expected average GDP growth rate in the 2021-2030 period of about 7%/year (according to the draft 10-year socio-economic development strategy issued by the Institute of Development Strategies, the Ministry of Planning and Investment), in the period 2031-2040 about 6%/year and 2041-2050 about 5%/year, forecast of final energy demand of Vietnam, according to the base scenario, up from about 65.2 MTOE/year 2020 up to 123.8 MTOE in 2030 and 239.2 MTOE in 2050, the average growth rate in the period 2021-2030 is 6.6%/year and the period 2031-2050 is about 3.3%/year. In the structure of energy demand in 2030, electricity accounts for the largest proportion of 34.6%, followed by petroleum products 33.8% and coal 13.6%; the corresponding figures for 2045 are electricity 35.2%, petroleum products 40.8% and coal 9.7%.

The energy saving target in the National Target Program on Energy Efficiency, Phase III (VNEEP3), is forecast to save energy from 10% to 12% by 2030, up to 19 % to 2050.

 

It is forecasted that the demand for commercial electricity by 2030 will reach about 478 billion kWh, about 1,040 billion kWh by 2050; the average growth rate of commercial electricity is 8.3% in the period of 2021-2030; then reduced to 4%/year in the period 2031-2050. The demand for productional electricity in 2030 is 536.6 billion kWh, increasing to 1,110 billion kWh in 2050.

 

2/ Assessment of resource potential and capacity of exploitation

 

- Hydropower: The economic and technical potential of hydropower in our country is about 26 - 27 thousand MW; in which small hydropower plants are about 6,000 - 7,000 MW. To date, 22,400 MW have been put into operation, including 4,200 MW of small hydropower capacity.

- Gas: The potential of gas up to level 2P is about 432 billion m3.

- Coal: Total resources of coal reserves of Vietnam are identified to be about 48 billion tons, of which the reserve is 2.2 billion tons, mainly in the Northeast basin, which can be exploited in about next 40 years, with the current mining exploitation level (about 40 million tons/year).

- Renewable energy: The total technical potential of wind power is about 377 GW (thousand MW), of which onshore wind power is about 217 GW, offshore wind power is 160 GW. Solar power has a total technical potential of 434 GW; in which large-scale ground-mounting: 309 GW; floating: 77 GW and rooftop: 48 GW. There are also tens of thousands of MW of biomass, geothermal power sources, etc.

 

3/ Orientation for the overall development of Vietnam's energy industry

a/ Coal industry:

- Striving to meet coal production targets according to Decision No.403/QD-TTg, in which: Coal mining output is 51-54 million tons/year by 2025, then increased to 55-57 million tons/year by 2030. To maintain coal production at about 60 million tons/year by 2035.

- Researching solutions to carry out the task of oversea investment in coal mining and long-term import.

- Continue to study reasonable solutions for exploration, trial exploitation and industrial exploitation of brown coal source in Song Hong coal basin.

b/ Oil and gas industry:

- Focus on developing the gas fields of Block B and Ca Voi Xanh so that gas can be transported to shore from 2024 - 2025.

- Research and develop the infrastructure complexes of gas/LNG/electricity center to coordinate with the development of gas power plants in each region.

- Push up the exploration and assessment of the potential and exploitation of oil and gas fields in the country.

- In the potential scenario, the exploited gas can be increased the output from 10 billion m3 at present, to 23 billion m3 in 2025 and about 24 billion m3 in the period of 2030 -2035. Pay attention to oil and gas fields of Condensate, Ken Bau with reserves of over 200 billion m3 of gas and Condensate which has been explored to determine reserves offshore Quang Tri province, with this gas field, it could generate tens of MW of electricity annually. 

c/ Electricity industry:

- Focus on solving constraints in investment to implement the important source projects: Quang Trach 1 and 2 coal-fired power plants; combined gas turbines (TBKHH) O Mon 3 and 4; Dung Quat 1 and 3 combined gas turbines; Bac Ai pumped-storage hydropower in the period from now to 2030.

- Coordinate with the Vietnam Oil and Gas Group to deploy the chain of LNG import warehouses and ports and new gas power centers.

- Developing the important backbone transmission network and transmission lines to connect large-scale power sources, related to power supply security, and at the same time upgrading techniques and management skills to increasingly improve the quality of power supply.

- Developing - upgrading the grid connection and transmission from solar and wind power sources will increase rapidly.

- By 2030: Total capacity of power sources is about 138.1 GW, of which coal-fired power accounts for 27.4%; hydropower (including pumped-storage hydropower): 18.8%; gas – diesel electricity: 18.9%; renewable energy: 30.2% (wind power 14%, solar power 14%, biomass 2.2%) and imported electricity: 4.7%. Electricity production reached about 536.6 billion kWh, the electricity structure for coal-fired power production accounted for 40%; hydropower: 17%; gas – diesel: 21%; renewable energy: 17% (wind power 9%, solar power 6%, biomass 2%) and imported electricity: 5%.

It is forecasted that by 2050, the total capacity of all types of power sources will reach about 320 GW, in the period of 2030 - 2050, the average annual need to put into operation is about 9,100 MW. In the scenario of not developing nuclear power, the structure of electricity output in 2050 is: Hydropower: 8.6%; coal-fired power: 23.7%; gas - diesel thermal power: 32.1%; renewable energy: 32.5% (wind power, solar power 30.4%; biomass power 2.1%) and imported: 3.1%.

Total investment capital demand for power source development in the period of 2020 - 2050 is about 350 - 400 billion USD, on average, about 12 - 13 billion USD per year.

CHALLENGES IN THE DEVELOPMENT OF VIETNAM ENERGY INDUSTRY

1/ In the period of 2021 - 2025, there may be a big power shortage if there are no drastic and timely solutions: In this period, it is necessary to put into operation about 8,000 MW of new power source capacity every year. However, many power source projects, especially coal-fired power plants, are behind schedule approved by the Prime Minister in Power Development Plan VII (adjusted); it is expected that in 2021, 3,600 MW of 03 thermal power plants: Duyen Hai 2 BOT, Song Hau 1 and Hai Duong BOT can be put into operation; In 2022, there will be an additional 2,400 MW of Thai Binh 2 and Nghi Son 2 BOT coal-fired power projects to be into operation. Thus, by the end of 2022, only 6,000 MW of conventional power sources can be added, about 8,000 MW shortage of demand; This is a forecast, but to what extent a specific and positive solution has not yet been seen.

2/ Ensuring sufficient coal supply is a big challenge: Coal reserves with favorable mining conditions have been exhausted, most of coal mines have to go below 500m deep, investment costs and coal prices have been increased. The annual domestic coal mining capacity is about 44-53 million tons, while coal demand is up to 115 million tons (in 2025) and 140 million tons (in 2030) and 170 million tons (in 2050). Ensuring sufficient coal supply faces many challenges in the following stages: investment, mining, import, supply, etc.

3/ The oil and gas industry also faces great challenges: Some oil and gas basins and fields exploited in recent years are showing signs of exhaustion; international competition and political competition in the oil and gas sector are very fierce; The global, regional situation and especially the competition and sovereignty disputes in the China Sea is very complicated. Proposing solutions in stages of: Exploration, exploitation, transportation, use, etc. to put projects into synchronization is essential to ensure oil and gas demand, especially gas for the electricity production projects.

4/ Energy is an infrastructural industry, annual investment capital needs account for about 25-30% of the total investment capital of the whole society. Arranging sufficient investment capital for development is the biggest challenge to ensure national energy security.

DIFFICULTY AND IMPROVEMENT IN THE DEVELOPMENT OF VIETNAM ENERGY INDUSTRY

1/ For planning tasks:

The 2017 Planning Law, which took effect from January 1, 2019, greatly impacted on the formulation, appraisal and addition to the planning of power projects, leading to a delay in the implementation progress of power projects.

The Government issued Decree No. 37/2019/ND-CP (Decree 37) dated May 7, 2019 guiding the implementation of a number of articles of the Law on Planning. However, the implementation process encountered some major problems as follows:

- Regulations on transformation: Decree 37 has not yet provided for the settlement of transformations, adjustments, and supplements to the planning of projects in the Power Development Plan VII (adjusted) before the Power Development Plan VIII and provincial Plans are approved. 

- For Scope: Decree 37 does not stipulate the scope of power projects under specific sectoral planning (national electricity planning) or provincial planning.

Because there is no clear regulation of the scope of power projects (power sources according to capacity scale, electricity grid according to voltage level) in the national electricity planning, or provincial planning, it leads to difficulties in the process of formulating and evaluating and submit for approval to adjust and supplement the planning for these projects.

- For procedures of adding projects into the planning: According to the provisions of the Planning Law and Decree No. 37, the partial adjustment of projects to the planning like new establishment will be very complicated, going through many steps, multiple levels, prolonging the investment preparation time.

2/ Problems in legal regulations on investment and construction (I&C):

- The current regulations on I&C are still inconsistent, unclear, overlapping, causing many difficulties and leading to prolonged investment preparation (interference between the Investment Law, the Construction Law, the Law on management and use of state capital invested in production and business at enterprises, Law on Public Investment...):

+ The design appraisal (Basic and technical) and the appraisal and approval of investment projects are currently under two different agencies with different functions and tasks, namely the Ministry of Industry and Trade and the State’s Capital Management Committee at Enterprise, in considering the technical aspects and investment efficiency of the project.

+ Difficulties in determining the authority to decide on investment policies for "electrical industry" projects of group A, ranging from VND 2,300 to VND 5,000 billion, I&C in many provinces as per stipulated in provisions of the Law on Investment.

+ Constraints in regulations on specific, uncommon conditions in Article 25 of the Bidding Law and regulations on uncommon works in Clause 1, Article 128 of the Construction Law.

+ Duplicate in considering and supplementing the planning and considering the investment policy decisions in Group A projects and projects of national importance.

+ Constraints in the preparation of the Environmental Impact Assessment Report in the stage of deciding on investment policy decision-making according to the provisions of the Law on Environmental Protection.

- The process of negotiating BOT contract and granting an investment license is still protracted due to the involvement of many ministries and authorities. The problems mainly come from preferential policies, foreign currency conversion, early termination of contracts, legal opinions, etc. Time to consider and give opinions of state management agencies for the problems involved are often protracted.

3/ For the activities of site clearance & compensation (SCC):

- The process of implementing site clearance and compensation still faces many difficulties due to inadequate and inappropriate legal documents, such as regulations on compensation unit prices in some localities, which created constraints.

- Difficult and prolonged in valuation and compensation plan.

- The management of land use has some limitations and inadequacies leading to disputes and complaints among the people.

- The formulation and supplementation of land planning is still not specific and detailed enough, leading to overlapping with other plans.

- The procedure is long time-consuming in applying for a change of land use purpose.

- Local residents have not cooperated and supported because the compensation unit price is not close to reality, or there is a situation of prolonging the negotiation and agreement time to raise the compensation price much higher than the reality...

- Regulations on procedures for conversion of land use purposes related to forest land and agricultural land make it difficult to negotiate the ground of the transmission lines and the procedures for conversion and take a long time to implement.

- According to current regulations, land located outside the grid corridor, but sandwiched between two 500 kV or more lines is considered for compensation and support. However, there are currently no specific regulations on support and compensation.

Currently, almost power projects face many difficulties in land clearance, seriously affecting the construction progress of the works. This is one of the main reasons for delaying the progress of power projects.

4/ For arrangement of investment capital:

The ability to sufficiently provide capital for electricity development is also a big challenge. Total investment for the development of the energy industry in the period 2021 - 2030 is about 163 billion USD (average investment is about 16.8 billion USD per year). However, the arrangement of capital faces many problems:

- It is very difficult for corporations to arrange capital, especially in large projects, because the Government has suspended the policy of guaranteeing loans. Without the Government's guarantee for loans, large projects will not be able to borrow export credits from equipment supplying countries; must switch to commercial loans with high interest rates and short loan periods, leading to reduction of investment efficiency of projects.

- Oversea development assistance (ODA) capital sources for investment in power projects are very limited, even some loans have been committed by banks and international financial institutions, but not approved by state management authorities.

- It is difficult to arrange domestic capital sources because most of domestic banks have exceeded the credit limit for investors and related units.

5/ Ensuring fuel for power generation is difficult and potentially risky:

Conventional thermal power sources using coal and gas continue to play a key role in ensuring the security of electricity supply. However, the supply of coal and gas for power generation is facing many difficulties:

- Coal supply: Coal demand for power production increased to about 54.3 million tons in 2019; expected to consume about 60 million tons in 2020; by 2025 about 71 million tons; about 93 million tons by 2030. While the domestic coal supply capacity for electricity production is only about 30-35 million tons; Thus, the demand for imported coal for power generation will increase from 25 million tons in 2020 to 50 million tons in 2030. The coal volume is large, while the investment plan to build the Coal Transshipment Port is still unclear (Tra Vinh province has not yet agreed on a plan to build a transshipment port in Duyen Hai district). The plants at Long Phu and Song Hau Power Centers, when put into operation, will face difficulties in transporting coal.

- Gas supply: Power generation from gas is an important component with the participation rate in the generation structure of about 13% in capacity and 18% in output. However, in recent years, the domestic gas source has gradually decreased, and it is forecasted that it will continue to be more difficult in the coming time.

The Southeast gas supply to Phu My and Nhon Trach Thermal Power Complex will decline after 2020, it is expected to lack about 2-3 billion m3 / year in the year 2023, 2024. Southwest gas supply to Ca Mau thermal power complex will also be in short supply from 2019 with a shortfall of 0.5-1 billion m3. Currently, PVN is negotiating with Malaysia to buy more gas to supplement this shortage.

Gas projects in Block B and Blue Whale are progressing slower than expected in Power Development Plan VII (adjusted).

Power projects using liquefied natural gas (LNG) are expected to be built in Son My (Binh Thuan); Ca Na (Ninh Thuan); Tam Phuoc (Long An); Bac Lieu… However, the development of LNG projects is also very complicated and needs to be synchronized between stages, while Vietnam has no experience. In the Power Development Plan VIII, it is necessary to carefully calculate the necessary demand in relation to Block B gas thermal power projects, gas from Blue Whale field and coal power plants. Avoid widespread planning, wasting resources.

- Diesel Oil supply: In the coming years, due to the slow arrival of coal power sources, it is necessary to increase the mobilization of diesel oil generation power sources; diesel oil demand can be up to 1-2 million tons. EVN needs to carefully consider the import plan as well as the financial plan, to avoid unexpected electricity price increases or EVN losses due to increased power generation from diesel oil.

SOME SOLUTIONS TO GUARANTEE ENERGY SUPPLY

In order to ensure sufficient energy supply for socio-economic development, especially in the period of 2021 - 2025, the Conference proposed the following solutions:

1/ Investors must ensure the progress of large-scale power projects in the 2021-2025 period, including: Hai Duong BOT thermal power project (completed in 2021), Duyen Hai 2 BOT thermal power project (2022), Van Phong 1 BOT thermal power project (completed in 2023); Song Hau 1 thermal power project (PVN - 2021), Thai Binh 2 (PVN - 2022), Long Phu 1 (PVN - 2023), Nhon Trach 3 and 4 (PVN - 2023-2024). The above progresses are only planned, and if there is no active and drastic solution, it may not be guaranteed.

2/ Increase the import of electricity from China and Laos, and at the same time supplement the planning of 220 kV grid projects related to the purchase of imported electricity.

3/ Urging and ensuring the progress of bringing gas from Block B (Southwest region) and Blue Whale field (Central region) to shore and synchronously put power projects into operation in the period of 2023 - 2024. These projects have lasted for many years but so far have not been seen, without special, drastic and positive solutions, the prolonged situation will not know when to achieve the desired results.

4/ Strengthening mining capacity, increasing coal supply capacity for power production. At the same time, the Prime Minister assigned functional agencies to consider and study the direct import of power generation units to ensure enough coal for power plants.

5/ PVN continues to actively seek new gas sources to supplement the existing gas sources in the Southeast and Southwest regions.

6/ Strengthen the development of renewable energy, especially wind and solar power sources; focus on development in the southern region. Research and implement solutions to be able to effectively use renewable power sources, ensure safe and flexible operation of the power system when wind and solar power sources have a high percentage.

7/ Strengthen the implementation of load demand control solutions such as: Increasing power saving, strongly implementing energy audit programs, strengthening the implementation of the power demand management (DSM) program, prioritize in the southern region. Well implement the Program on economical and efficient use of energy.

8/ Promote site clearance for power projects. Take drastic measures as prescribed by law to completely solve difficulties in site clearance for power projects, especially key power source projects, important transmission grid projects to serve the absorbance of capacity power centers.

9/ Implement energy prices according to the market mechanism with the State's regulation, ensuring a harmonious combination between the political - economic - social goals of the State and the production – business, self-financial objectives of energy enterprises. Energy prices should encourage energy development, create an environment that attracts investment and encourage competition in the stages of energy production, transmission, distribution, trading and use. 

PROPOSALS, RECOMMENDATIONS

In order to overcome limitations and inadequacies, overcome difficulties and challenges to ensure sustainable development and provide enough energy for the country's socio-economic development, the Vietnam Energy Association kindly requests the Prime Minister and Ministries and Industries to pay attention to and solve the following urgent issues:

1/ Proposal to the Prime Minister:

a/ Drive ministries and agencies to review, amend and complete specialized laws such as the Petroleum Law, Electricity Law, Mineral Law, Atomic Energy Law, Economical and Efficient Energy Use Law and laws related to the content and scope of regulation to the energy industry, especially in the fields of capital construction and finance, develop additional decrees guiding uniformity, avoiding conflicts between legal documents & regulations, between agencies promulgating to avoid overlapping; in line with development practice, synchronously in the implementation stages and speeding up the implementation of energy projects.

b/ Assign relevant ministries and agencies to review, adjust and soon promulgate plans related to energy development in accordance with the 2018 Planning Law, especially the National Energy Master Plan; National electricity development planning; National planning for petroleum and gas reserve and supply infrastructure; Planning for exploration, exploitation, processing and use of minerals (including coal)...

c/ Issuing a Directive on strengthening the application of solutions for economical and efficient use of energy in the 2021-2025 period with the target of saving electricity in 2025 equal to 3-5% of commercial electricity.

d/ To settle and drive relevant ministries and agencies to settle and create favorable conditions for enterprises to arrange sufficient capital for energy projects:

- Provide Government guarantees for loans, or corporate bonds for energy projects that are effective and are of great significance in ensuring national energy security.

- Allowing domestic commercial banks to lend loans to enterprises of the EVN to invest in power source and grid projects that are allowed to exceed regulations on credit safety ratio limits when lending a loan.

- Directing the EVN to implement the roadmap for divestment and equitization of member enterprises approved by the competent authorities in order to recover capital, meet the requirements for additional equity and supplement capital for investment in projects.

- Direct the Ministry of Finance to expeditiously complete and submit to the Prime Minister for decision the establishment of a Sustainable Energy Development Fund to create preferential investment capital for renewable energy projects and use economically and efficiently with revenues from taxes and fees on fossil fuels and support from donors and international financial institutions.

dd/ Assign the Ministry of Industry and Trade to lead and coordinate with relevant ministries and agencies in implementing solutions to ensure sufficient electricity supply in the 2021-2025 period, including a number of main contents:

- Give instructions to investors of power source projects approved in Power Development Plan VII (adjusted), especially projects in the South (Song Hau 1, Long Phu 1, Duyen Hai 2), to accelerate progress soon to be put into operation.

- Accelerate the development of power projects using renewable energy (about 3,500 - 4,000 MW should be put into operation each year), giving priority to the development of projects in the southern regions, especially the areas where electricity grid connection is feasible. Propagating and mobilizing electricity users (for daily life, industrial parks, trade and services) to invest in developing rooftop solar projects.

- Drive the People's Committees of the provinces to support investors in urgent energy projects, especially power grid projects in service of releasing the capacity of power sources, in compensation and site clearance.

- Withdraw and assign other investors to implement the power projects already in the planning, the investors are slow to implement or do not have enough capacity and experience, especially power source projects to be implemented according to the regulations of BOT model.

e/ Directing and implementing solutions to meet coal demand, ensuring long-term stable quality and quantity for electricity production and other consumers, including a number of main contents:

- Direct relevant ministries, branches and localities to urgently overcome obstacles to speed up the issuance of exploration and exploitation permits; overcome inadequacies and overlaps in a number of local plans that hinder the implementation of coal planning, especially in Quang Ninh province.

- To deal with the disruption of imported coal supply (increasingly) due to market and non-market reasons, it is proposed to assign the Ministry of Industry and Trade to prepare a construction and operation process for the National Coal Reserve Warehouse.

- Expeditiously develop and organize the implementation of strategies and policies on coal import and offshore investment in coal mining. The strategy focuses on clarifying the following issues: Identifying and selecting coal supplies; Solutions to ensure coal supply; Organize coal import and offshore investment in coal mining; Support policies of the State, including energy diplomacy.

Prioritize to soon supplement Thang Long Offshore wind power project into national power development plan so that from now to 2030, 3,400 MW will be put into operation, with an electricity output of 15 billion kWh/year. This is the first and unique offshore wind power project of Vietnam, if successful, it will create a premise for many other similar projects to develop, and at the same time evaluate the actual results of offshore wind power projects, especially, the electricity output is about 15 billion kWh/year, equivalent to 2 coal-fired power plants of 2x1,200 MW.

- Include in the PDP VIII, supplement the project of biomass power, waste-to-power combined with sorghum with a capacity of 3,000 MW by 2030 and followed by 3,000 MW by 2050 of Tin Thanh Group in big cities such as Hanoi and Ho Chi Minh City. Ho Chi Minh City, Da Nang... to release the rampant waste.

- It is necessary to consider amending Circular 56/2014/TT-BCT on risk-sharing provisions in power purchase agreements; consider promulgating regulations on electricity output (Qc) of electricity prices of IPP power plants so that investors can borrow loans from foreign organizations such as 650-MW An Khanh - Bac Giang Thermal Power Plant with loans of capital of a Bank of China not yet resolved.

- Currently, the FIT price of wind power will end in 2021, solar power in 2020 while the Government and the Ministry of Industry and Trade have not yet issued bidding regulations and organized public bidding for wind and solar power, the FIT price should be extended for a few more years until the organization of public bidding for wind and solar power, FIT price will be ended.

- There will soon be instructions on the plan to build a transit port for imported coal, coal management centers, warehouses and coal blending, and develop a dedicated inland/coastal shipping fleet suitable for transporting and unloading coal from transshipment ports to coal-fired power plants.

g/ Assign the Ministry of Industry and Trade to lead and coordinate with concerned ministries and agencies in implementing solutions to ensure adequate supply of oil and gas: Directing investors in projects to bring gas from Block B, Blue Whale field and power projects will soon complete the procedures, speed up the construction progress so that they can be put into operation by 2024 - 2025.

2/ Proposal to the Ministry of Industry and Trade:

- Directing industries and localities to strengthen the implementation of solutions for safe, economical and efficient energy use and demand management (DSM). In the coming years, priority will be given to the southern region.

- Directing investors to ensure the progress of putting into operation the power source projects which were approved in planning; especially thermal power sources in the South such as: Long Phu 1, Song Hau 1, BOT Duyen Hai 2.

- Direct the research and soon promulgate a fee-price mechanism to encourage the development of flexible backup sources for wind and solar power, such as: energy storage batteries, flexible backup sources, hydroelectricity energy storage, separate pricing mechanism with renewable energy transmission grids...

- Directing the PetroVietnam to ensure sufficient gas supply for power generation; implement solutions to promptly add new gas sources, to compensate for the decline of existing gas sources in the Southeast and Southwest regions.

- Directing EVN to implement solutions and negotiate to increase electricity imports from China.

- Approving, or submitting to competent authorities for approval, adjustments and supplements to the master plan and directing focused investment in 220 - 110 kV power grid works for connection and transmission of renewable energy sources (wind, solar power).

- Create conditions for the development of wind and solar power projects, giving priority to the development of projects near the load center, convenient for connection.

- Solve, or propose competent authorities to solve problems and have mechanisms and policies to ensure the progress of the Block B gas project chain, Blue Whale gas and synchronous power source projects.

- Direct the People's Committees of the provinces and cities to urgently organize the elaboration, appraisal and submission to competent authorities for approval of the provincial master plan on potential for development of renewable energy sources. Organize the formulation, appraisal and submission to the Prime Minister for approval of the National master plan on potential for development of renewable energy sources.

- Research, promulgate, or direct the EVN to promulgate mechanisms and policies to synchronously develop the power transmission and distribution system and tools to ensure the stable operation of the electricity system when wind, solar power have a high efficiency rate; develop energy storage systems (ESS), pump-storage hydropower, synchronized with renewable energy development.

- Research, promulgate, or submit to competent authorities for promulgation of regulations on bidding mechanism to select investors to develop renewable energy projects.

- Directing the EVN and the National Power Transmission Corporation to speed up the investment progress of power Grid to ensure the transmission of all generating capacity of power plants and renewable energy projects which were generated in the provinces will be integrated into the national electricity system.

- Directing research and development of wind and solar power projects in the southern region, put into operation from 2021 - 2023, in order to meet the electricity demand for this region when many thermal power plants under construction is delayed compared to the approved schedule.

- Directing the Ministry of Natural Resources and Environment and the Ministry of Finance to amend the circular on the charge of wind tower at sea equal to the fee of wind towers on the ground, it is not meant that taking toll at sea is taking entire sea surface, if doing so, investors do not have enough money to invest in offshore projects.

- Vietnam has a huge potential for offshore wind power, the Government needs a strategy to develop offshore wind power to be able to replace traditional energy sources, because only offshore wind power has a Wind speed of 9m/s or more is enough to turn a turbine of 10 MW or more to generate electricity output of billions of kWh/year, generating 24/24h.

- Requesting the Government to assign ministries, industries and research institutes to find technological solutions to build a mechanical complex to produce solar panels, inverter system, direct current transferred into alternating current... wind turbines from 2.4 MW to 10 MW and other products of Vietnam's renewable energy industry to avoid costly foreign currency imports and raise production capacity to regional and world level to be proactive in renewable energy development.

Dear Comrade General Secretary of Party, President of State, to keep the apparatus clean, use the images of "sacred sword" and "Bao Cong", at the same time, Uncle Ho has the saying "having enough strength, stone and gravel will become the boiled rice". So, the human factor is extremely important; People decide everything just need to have will, awareness, affection, responsibility, care, concern about what they need to do to overcome all challenges in life. Everything is proposed by humans and can be modified in accordance with the development cause, so are the energy projects same, typically the 500 kV North-South super high-voltage project nearly 30 years ago, over a period of over 30 years ago with 1,500 km long to overcome many difficulties, ex-Prime Minister Vo Van Kiet directly drove the construction to be completed in only 2 years, this is a lesson-learn for future generations to follow. We hope that comrade General Secretary and President of State direct Authorities from the Government to ministries and local branches to pay more attention to the role of people and energy projects to implement Resolution 55 of the Politburo into life, completed as the direction of General Secretary of Party and President of State.

The above mentioned are some proposals and recommendations of the Vietnam Energy Association on the results of the implementation of the international conference on "Promoting development and saving energy to 2030 with a vision to 2050", Party and State leaders are kindly requested to consider.

 

VIETNAM ENERGY ASSOCIATION OFFICE