Auction mechanism for sustainable development of renewable energy market under scrutiny
A Policy Dialogue on “Auction Mechanism for Sustainable Development of the Renewable Energy Market” was held via an online format on January 11 by independent think tank Vietnam Initiative for Energy Transition (VIETSE).
The purpose of the dialogue is to introduce research results with multi-dimensional analyses on technical, socio-economic, and legal aspects relating to the auction mechanism of renewable energy, with the primary goal of supporting the sustainable development of the renewable energy market.
Energy experts, economists, and lawyers also gathered in order to debate issues related to infrastructure development which can meet energy transition needs towards net-zero carbon commitment by 2050.
In her address at the event, Ngo Thi To Nhien, executive director of the VIETSE, said incentives offered by the Government has helped the nation to better attract both domestic and foreign investment in renewable energy over recent years.
These policies, however, remained inconsistent and this has contributed to undermining the commitments of investors in implementing planned projects, she noted.
In order to achieve the nation’s renewable energy goals in the future, the Government must soon deploy an auction mechanism for sales of the renewables, Nhien said. In addition, the mechanism has been launched in 60 countries across the globe, thereby paving the way for these countries to develop the renewable energy sector in a reasonable, cost-effective, and transparent manner.
The employment of the auction mechanism will also serve to help the country fulfill other goals, such as creating jobs, promoting capacity building in technology, and strengthening national energy security.
“The higher the proportion of renewable energy, the higher the electricity price,” said Chair of the Binh Thuan Wind and Solar Power Association Bui Van Thinh.