return icon

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


Agro-forestry-aquatic product exports drop 11% in five months

Agro-forestry-aquatic product exports were estimated at 20.26 billion USD in the first five months of 2023, down 11.1% year on year, according to the Ministry of Agriculture and Rural Development (MARD).

Biting the bullet

Flagging demand has compelled manufacturers to reduce their production and workforce.

Colorful paper masks in Hoi An

In the central city of Hoi An is a house on Bach Dang Street that is home to hundreds of colorful paper masks made by artist Bui Quy Phong, who has devoted his whole life to these masks.

Pu Luong – A hidden gem of northwest region

Nestled in the middle of mountains, Pu Luong Valley attracts tourists with its cool mountainous atmosphere, peaceful scenery and magnificent terraced fields.

Vietnamese students win prize at Huawei ICT Competition 2022-2023

A team of Vietnamese students won the third prize in the Cloud Track category of the Huawei ICT Competition 2022-2023 Global Final held in China’s Shenzhen city, the Ministry of Information and Communications announced on May 29.

VND230 trillion mobilized for Covid-19 combat in 2020-2022

More than VND230 trillion, or roughly US$10 billion, was mobilized to directly serve the Covid-19 prevention and control effort between 2020 and 2022, according to a report by a National Assembly (NA) supervisory delegation.

Achilles heel in tourism

Vietnam’s tourism industry has made only meager strides in diversifying its products despite years of growth.

The most addictive dish on Ha Giang plateau

Ha Giang attracts tourists not only for its majestic natural landscape and honest ethnic people but also for its bold, regional specialties that cannot be found anywhere else.

Liquidity needs to be ensured: Central bank

The Governor of the State Bank of Vietnam (SBV) sent important messages about monetary policies at a meeting with businesses held by SBV and HCM City People’s Committee late last week.

Firms hesitate to access loans due to weak consumption demand

The State Bank of Vietnam last week cut its policy rates for the third time this year to prop up economic growth.

Banks experience significant increases in non-performing loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.


Work on Cat Bi Airport’s Terminal T2 to start in Q4

Vietnam should consider announcing the end of COVID-19: NA deputy

At the ongoing fifth session of the 15th National Assembly (NA) held on May 29, Nguyen Lan Hieu of the NA Delegation of Binh Dinh province suggested that the end of COVID-19 should be announced.

Cut on automobile registration fees to facilitate auto industry

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered a positive effect to the auto industry in the context of the automobile market facing many difficulties.


Vietnam leaves good impressions at multi-ethnic festival in Czech Republic