On April 28, the Ministry of Industry and Trade held a conference to announce the adjusted National Power Development Plan for 2021-2030 with a vision to 2050 (referred to as the revised Power Development Plan VIII).

Strict discipline required, non-performers must step aside

At the conference, Minister of Industry and Trade Nguyen Hong Dien emphasized that adjusting the Power Development Plan VIII is crucial for meeting economic and social development needs and ensuring national energy security. However, he stressed that turning the plan into reality and maintaining a stable power supply are equally important.

The Minister called on provinces and cities to urgently review and update power grid sources to align with the added capacity outlined in the revised plan.

“We have established a dynamic and favorable legal framework for localities,” he said, urging local governments to promptly approve investment policies, select qualified investors, and allocate land for energy projects.

According to Minister Dien, project timelines are critical to national energy security. Therefore, a “steel discipline” must be enforced to ensure timely and effective investment. He urged localities to be prudent in choosing technically and financially capable investors.

“In the past, many investors were selected but merely waited to 'ride the wave' and profit. This is extremely dangerous," he emphasized.

He demanded that local authorities closely monitor project progress. Once a project is included in the plan, “it must be implemented no matter how difficult it is. If you can't do it, step aside.” He emphasized that national energy security cannot depend on unqualified investors.

The Minister also called for localities to resolve obstacles for renewable energy projects following the spirit of Government Resolution 233, to enhance oversight of investors, and to timely replace delayed projects with more feasible alternatives.

“Local governments bear great responsibility in approving investment policies, selecting investors, and supporting and supervising the implementation of projects under the revised Power Development Plan VIII,” he added.

Electricity pricing must attract investors

For central ministries, Minister Nguyen Hong Dien called for coordination with the Ministry of Industry and Trade to review and amend related regulations.

He particularly stressed that financial mechanisms and electricity pricing policies must operate according to market principles. He outlined the need to fully implement competitive electricity generation, wholesale, and retail in three stages.

The Minister suggested that a strong and attractive mechanism must be established to foster the development of renewable and new energy sources to meet domestic demand and support exports.

“We see in the revised Power Development Plan VIII that from now until 2035, the annual investment demand is around USD 16-18 billion.

This figure could even rise to USD 20 billion per year. Without a market-aligned pricing policy, we cannot attract investors. Without investment, there will be no electricity,” he pointed out.

As a result, the electricity sector must review and adjust the electricity pricing framework annually.

He emphasized that the initial pricing framework must reflect the market and be attractive because “investors spend millions to earn pennies” and need an incentive. Later, once projects stabilize and revenues are consistent, the framework can be adjusted to reflect input costs.

Regarding Vietnam Electricity (EVN), Minister Nguyen Hong Dien instructed, “You must be more open in calculating the electricity price framework to attract investors. Without profit, no one will risk large investments.”

He also said that all electricity pricing frameworks, even recently issued ones, must be reviewed to ensure they align with market developments and remain attractive to investors.

Similarly, attracting investment in electricity transmission requires transparent mechanisms, accurately reflecting the cost of transmission and dispatch services, thus creating an appealing offer for investors.

The Minister further directed regulatory agencies to enhance communication efforts to widely disseminate the core contents of the revised Power Development Plan VIII, fostering social consensus.

In addition, he emphasized regular inspections and monitoring of the implementation of energy source and grid projects to ensure progress aligns with the approved plan.

"The Electricity and Renewable Energy Authority must categorize and monitor each locality monthly and quarterly, ensuring strict adherence. There will be no special favors or leniency, because this concerns national energy security," he stressed.

Tam An