Experts call for allowing private capital in power grid construction

With power transmission lines and sub-stations getting overloaded in some provinces, authorities and experts have urged the Government to allow renewable energy investors to install transmission systems and transfer them to EVN for operation.

Power transmission systems in some localities are overloaded after a number of renewable energy projects linked up. Experts have called on the Government to allow private investors to instal transmission systems

 



Transmission lines, especially in Ninh Thuan and BinhThuan provinces, have become overloaded after several renewable power plantswent online. Ninh Thuan wants the Government to allow them tobuild transmission infrastructure.

Many experts agreed with this, saying besidesadjusting zoning plans for renewable energy, the Government should create amechanism for private investment in transmission systems.

Assoc Prof Dr Bui Quang Tuan, Director of the VietnamInstitute of Economics, said this would address the lack of capital.

Phuong Hoang Kim, Director of the Ministry ofIndustry and Trade’s Electricity and Renewable Energy Authority,told Nguoi Lao Dong (The Labourer) newspaper that with huge sumsneeded for electricity development and the Government no longer guaranteeingloans for power projects, the private sector should be allowed to invest insome stages.

The Electricity Law stipulates a Governmentmonopoly in transmission, meaning the Government installs, manages and operatestransmission systems, he said.

Therefore, the private sector is not allowed to doso. "Even if enterprises ... build transmission lines and hand overat zero VND, the electricity industry has no mechanism to receive theseassets," he said.

The law also stipulates transmission costs shouldbe less than 100 VND/KWh and subsidised by the Government to keep electricityprices under control.

If the private sector invests in transmission, itwould determine the price, which cannot be as cheap as State-regulated rates,but it is not easy to sharply raise electricity prices since they are fixed bythe State, he explained.

From the perspective of energy security, Prof DrTran Dinh Long, Vice Chairman of the Vietnam Electrical EngineeringAssociation, said in many countries power transmission remains a monopoly ofthe Government because this is the "backbone" of the electricalsystem.

So, if Vietnam has a plan to allow the privatesector into power transmission, there should be a thorough discussion in theNational Assembly before laws are amended, he said.

Transmission lines of 220KV and above shouldremain a Government preserve, he said.

Transmission lines of 110KV and less and linesfrom power projects far from existing transmission lines could be opened to theprivate sector, he said.

In addition to quickly building transmission linesin areas where they are overloaded, the electricity sector also needs tobalance transmission from various sources, he said.

For instance, from 8am to 4pm it is preferable forsolar plants to transmit power to the grid.

According to EVN, as of the end of June thecountry had 89 solar power plants with a total capacity of 4,543 MW, far inexcess of the 850 MW by 2020 envisaged in the power plan.-VNS/VNA

 
 

Other News

.
Transport service operators begin installing yellow number plates from today
Transport service operators begin installing yellow number plates from today
BUSINESSicon  02/08/2020 

Vehicles that have registered for transport services have started installing yellow number plates with black letters and numbers from today, August 1, instead of the current white plates.

Vietnam needs full market economy: experts
Vietnam needs full market economy: experts
BUSINESSicon  02/08/2020 

 Economists have said Viet Nam would gain many benefits from a full and modern market economy.

Business plans thrown into turmoil amid COVID-19 spike
Business plans thrown into turmoil amid COVID-19 spike
BUSINESSicon  01/08/2020 

Dang Thanh Nga, 40, in Ha Noi called 10 sewers back to work for her garment factory just a few days ago as orders increased last week. 

Mobile World tries different development models, closes some chains
Mobile World tries different development models, closes some chains
BUSINESSicon  01/08/2020 

The Gioi Di Dong (Mobile World) has seen its key brands such as The Gioi Di Dong, Dien May Xanh and Bach Hoa Xanh growing rapidly, but has also had to shut down ineffective business chains.

Startups in HR receive millions in funding despite Covid-19
Startups in HR receive millions in funding despite Covid-19
BUSINESSicon  01/08/2020 

Nearly all businesses are experiencing hardships because of Covid-19. However, this hasn't happened with startups in the HR industry. They are still receiving millions of dollars worth of funding.

Vietnam to pilot night-time economic activities in 10 major cities
Vietnam to pilot night-time economic activities in 10 major cities
BUSINESSicon  31/07/2020 

The Government has approved a project on night-time economy development in Vietnam which will allow major cities and tourist attractions to pilot night-time services until 6 a.m.

Border trade rules to be tightened
Border trade rules to be tightened
BUSINESSicon  01/08/2020 

Tran Quoc Toan, Deputy Director-General of the Import-Export Department, Ministry of Industry of Trade, talks on Vietnam’s decision to gradually eliminate all temporary import and re-export activities through Vietnam-China sub-border gates.

Businesses endeavour to retain employees
Businesses endeavour to retain employees
BUSINESSicon  31/07/2020 

More than 7.8 million workers lost their jobs in the first half of 2020, putting severe pressure on labour authorities to tackle social security issues.

Booming gold market risky for individual investors: experts
Booming gold market risky for individual investors: experts
BUSINESSicon  31/07/2020 

The recent surge of gold prices may cause risks for individual buyers, experts and analysts have warned.

Vietnam to post world’s fifth-highest economic growth: WB
Vietnam to post world’s fifth-highest economic growth: WB
BUSINESSicon  31/07/2020 

Vietnam is projected to be the fifth highest-growing economy in the world this year and the country has a unique opportunity to increase its footprint in the global economy in both trade and investment, 

Pharma firms uphold fair price mechanisms
Pharma firms uphold fair price mechanisms
BUSINESSicon  31/07/2020 

Amid Vietnam’s upcoming new rules on drug tenders, multinational pharma giants are advocating price negotiation for an open business environment and predictable policies, in order to make sustainable future investments.

Vietnamese goods face tough road to foreign markets due to trade remedies
Vietnamese goods face tough road to foreign markets due to trade remedies
BUSINESSicon  31/07/2020 

With an array of free trade agreements (FTAs) inked and coming into force, countries around the world have also increased technical barriers to protect their domestic industries,

Block 114 – bright spot in offshore exploration
Block 114 – bright spot in offshore exploration
BUSINESSicon  31/07/2020 

Block 114 is located in Song Hong Basin, offshore Vietnam’s northern continental shelf, about 65km from Quang Tri province, and 86km from Da Nang city in the central region.

Vietnam gains $6.5 billion trade surplus in 7 months
Vietnam gains $6.5 billion trade surplus in 7 months
BUSINESSicon  31/07/2020 

Vietnam achieved a trade surplus of $6.5 billion in the first seven months of this year, including $1 billion in July, according to the General Statistics Office (GSO).

M&A activity expected to set new records in post-COVID period
M&A activity expected to set new records in post-COVID period
BUSINESSicon  31/07/2020 

Analysts believe that new records in the number and value of M&A deals will be set in the post-Covid-19 period.

EVFTA, Covid-19 change the face of VN logistics industry
EVFTA, Covid-19 change the face of VN logistics industry
BUSINESSicon  02/08/2020 

Vietnam’s logistics market has great opportunities to improve as the EVFTA has been inked and the country is receiving investment inflow from Europe.

Vietnam preparing international labour resources
Vietnam preparing international labour resources
BUSINESSicon  30/07/2020 

Vietnam’s labour sector is strongly integrating globally. 

Foreign investors pledge some US$19 billion into Vietnam
Foreign investors pledge some US$19 billion into Vietnam
BUSINESSicon  30/07/2020 

Despite the impact of the Covid-19 pandemic, new foreign investment approvals in Vietnam reached some US$18.8 billion between January and July, inching down by a mild 6.9% year-on-year.

Businesses warned of challenges from Gen Z attitudes about work
Businesses warned of challenges from Gen Z attitudes about work
BUSINESSicon  02/08/2020 

Members of Generation Z, born in 1996 and after, have begun joining the labor market and will quickly become the major labor force in the economy.

Japanese praise Vietnam's investment environment
Japanese praise Vietnam's investment environment
BUSINESSicon  31/07/2020 

Japanese businesses in Vietnam say the country is a safe and successful destination for investors.

 
 
 
Leave your comment on an article

OR QUICK LOGIN