Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Bidding forelectricity projects instead of using the feed-in tariff price mechanism wouldmake Vietnam's electricity more transparent and offer cheaper consumer powerprices, experts said at a conference in Hanoi on November 27.
Do Duc Quan, Deputy Director of the Ministry of Trade and Industry’sElectricity and Renewable Energy Department, said across the world, biddinghelps ensure transparency and draws investment.
There are two bidding options, including bidding according to transformerstation, where a region has a transformer station that has enough capacity totransmit electricity and this station opens bidding for electricity projectsaround it.
The second option is bidding to choose investors to develop part of or a wholeelectricity project on a site.
Oliver Behrend, Senior Investment Officer of the Infrastructure Division of theInternational Finance Corporation under the World Bank Group, said Vietnamshould not be too obsessed with bidding as it won't solve all problems.
Vietnam needs to apply bidding mechanisms to screen participants and have asuitable contract framework to mobilise capital, he said.
Hyunjung Lee, Senior Energy Economist, Energy Division, Southeast AsiaDepartment, Asian Development Bank (ADB), said bidding would increasecompetitiveness and the participation of international investors.
Vietnam needs to prepare the bidding process well to be efficient and attract alot of investment from the private sector, he said.
Quan said the Ministry of Industry and Trade would work with World Bank and ADBto run bidding mechanisms for power projects.
From 2018 to the end of June 2019, solar power capacity has increased more than51 times from 86MW to more than 4,400 MW, according to the Ministry of Industryand Trade.
Nguyen Anh Tuan, member of the ScienceCouncil, Vietnam Energy Association, said during the preparation and submissionof the revised VII Electricity Planning at the end of 2015 and early 2016, fewsolar and wind power projects were proposed to be put in the planning as theState didn't provide incentives to develop them.
Therefore, the planning had total estimatedcapacity based on proposals in the invested solar and wind power projects for2016-20 and beyond, such as 800 MW of wind power and 850 MW of solar power by2020 and about 27,000 MW of renewable energy by 2030.
Besides that, planning needs to havecapital for development of power transmission, expert Vu Dinh Anh said, becausethis development needs hundreds of billions of dollars. Therefore, electricityplanning must also be linked to capital planning.
Nguyen Tai Anh, Deputy General Director ofElectricity Vietnam (EVN), said too many solar projects in Ninh Thuan and BinhThuan provinces have put great pressure on the transmission grid. EVN hascalled investors to build a transmission system for those regions under theplanning.
By June 2020, EVN expects to completetransmission grid projects in the two provinces.
Nguyen Tuan Anh, Head of Plan and PlanningDivision at the Electricity and Renewable Energy Department, said the Ministryof Industry and Trade supports calling for private investment to develop thetransmission grid./.
Do Duc Quan, Deputy Director of the Ministry of Trade and Industry’sElectricity and Renewable Energy Department, said across the world, biddinghelps ensure transparency and draws investment.
There are two bidding options, including bidding according to transformerstation, where a region has a transformer station that has enough capacity totransmit electricity and this station opens bidding for electricity projectsaround it.
The second option is bidding to choose investors to develop part of or a wholeelectricity project on a site.
Oliver Behrend, Senior Investment Officer of the Infrastructure Division of theInternational Finance Corporation under the World Bank Group, said Vietnamshould not be too obsessed with bidding as it won't solve all problems.
Vietnam needs to apply bidding mechanisms to screen participants and have asuitable contract framework to mobilise capital, he said.
Hyunjung Lee, Senior Energy Economist, Energy Division, Southeast AsiaDepartment, Asian Development Bank (ADB), said bidding would increasecompetitiveness and the participation of international investors.
Vietnam needs to prepare the bidding process well to be efficient and attract alot of investment from the private sector, he said.
Quan said the Ministry of Industry and Trade would work with World Bank and ADBto run bidding mechanisms for power projects.
From 2018 to the end of June 2019, solar power capacity has increased more than51 times from 86MW to more than 4,400 MW, according to the Ministry of Industryand Trade.
Nguyen Anh Tuan, member of the ScienceCouncil, Vietnam Energy Association, said during the preparation and submissionof the revised VII Electricity Planning at the end of 2015 and early 2016, fewsolar and wind power projects were proposed to be put in the planning as theState didn't provide incentives to develop them.
Therefore, the planning had total estimatedcapacity based on proposals in the invested solar and wind power projects for2016-20 and beyond, such as 800 MW of wind power and 850 MW of solar power by2020 and about 27,000 MW of renewable energy by 2030.
Besides that, planning needs to havecapital for development of power transmission, expert Vu Dinh Anh said, becausethis development needs hundreds of billions of dollars. Therefore, electricityplanning must also be linked to capital planning.
Nguyen Tai Anh, Deputy General Director ofElectricity Vietnam (EVN), said too many solar projects in Ninh Thuan and BinhThuan provinces have put great pressure on the transmission grid. EVN hascalled investors to build a transmission system for those regions under theplanning.
By June 2020, EVN expects to completetransmission grid projects in the two provinces.
Nguyen Tuan Anh, Head of Plan and PlanningDivision at the Electricity and Renewable Energy Department, said the Ministryof Industry and Trade supports calling for private investment to develop thetransmission grid./.
VNA
