On June 1, answering National Assembly deputies’ questions about renewable power, Dien said wind and solar power has been developing rapidly in recent years because of the fast increase in electricity demand and the state’s attractive policy on encouraging investment in renewables.

Vietnam has great potential for developing wind and solar power. However, the paradox is that the areas where there is big potential in sunshine and wind are the places with low additional charge. So, to use the electricity produced there, Vietnam will have to make heavy investment to develop an electricity transmission system or an electricity storage system.

The electricity generation from renewables depends on weather conditions. To promote renewables effectively, there must be a stable electricity ground which can generate 24 hours a day. When there is no wind and sunshine, the electricity output from the stable sources will be mobilized.

According to Dien, in Vietnam, coal-, oil-, gas-fired and biomass electricity is considered base electricity (in other countries, nuclear power is included). Though these electricity sources are more expensive and the emissions they generate are higher, they still need to be maintained to ensure an uninterrupted electricity supply and safety of the entire electricity system.

Meanwhile, the prices of coal, oil and gas are determined internationally and they don’t depend on Vietnam. In the last few years, because of supply disruption, the production costs of oil- and gas-fired electricity have been higher than other sources, not including transmission costs.

Regarding wind and solar power, the production costs depend on technologies and equipment. Experts said as technologies develop rapidly, equipment production costs decrease by 6-8 percent year on year. In the long term, these are the cheapest electricity generation sources, if not including transmission costs.

Regarding renewables prices, the Ministry of Industry and Trade has built a price framework based on current laws and contracts signed with 102 solar and 109 wind power plants.

“I can say that the price mechanism for transitional power projects is suited to the conditions in Vietnam and the world,” Dien said.

Dien said importing electricity is a long-term strategy aiming at ensuring national power security. Vietnam began importing coal and oil in 2020 to generate electricity, and is about to import gas. It has been importing power from China and Laos.

Electricity import from Laos is not only an economic matter, but also aims at strengthening the comprehensive relationship between Vietnam and Laos. The import volume is small, just 572MW, or 0.73 percent of the whole system.

Tran Thuong