Competitive power market key to promoting renewables hinh anh 1Illustrative image (Source: VNA)

Hanoi (VNA) – Vietnam is prioritising developing a competitive electricity market, which is vital to promoting renewable energies, said Head of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung.    

He made the statement at a CIEM seminar in Hanoi on November 28, where participants discussed the growth of renewable energies in concert with a competitive power market.

According to Pham Duc Chung, a CIEM member, renewable energy producers in Vietnam enjoy incentives in tax, land leasing prices and loans.

However, the dependency of electricity firms on State support has led to a power market without competition, making it hard to attract investment in renewables.

To address these shortcomings, Chung stressed continuing a complete overhaul of the Electricity of Vietnam (EVN) as planned with a focus on restructuring its executive board to boost independence among EVN members.

Improving the capacity of the Electricity Regulatory Authority and Competition Authority is also necessary, he said.

Nguyen Van Vy, Head of the Vietnam Energy Association, proposed preferential investment credits for renewable projects.

He also suggested issuing an environmental tax on the use of fossil fuels, adding that the fees should be channeled into developing sustainable energies.-VNA