At the seminar "Finding solutions for clean energy - Addressing policy bottlenecks" organized by Bao Xay Dung on October 8, Ha Dang Son, Director of the Center for Energy and Green Growth Research, noted that Vietnam faces significant challenges as it has to double its power capacity within the next five years, starting from late 2025.

He pointed out that in the past decade, almost no large-scale power projects have been initiated, creating a serious lag for the coming period. Most projects, even those under public investment, have not been activated or are only in early stages. 

Over 170 renewable energy projects remain stuck. In particular, the incomplete policy framework has made it difficult to attract private capital, while demand for both capital and capacity is growing rapidly.

As a result, the pressure to ensure sufficient electricity for economic development is becoming more urgent, both in scale and timing.

He noted that although the second turbine of the Hoa Binh hydropower expansion project is nearing completion and will add 400 MW, this figure remains too small compared to actual needs. 

"In 2026, peak load demand could spike, potentially leading to localized power outages if investment bottlenecks are not resolved in time," Son warned.

Nguyen Anh Tuan, Vice Chair of the Vietnam Energy Association, emphasized the need to anticipate electricity supply capacity through 2030 due to the high risk of shortages.

According to Tuan, in just the first eight months of the year and part of September, national electricity output reached 288 billion kWh. The full-year figure is projected to hit 307 billion kWh in commercial electricity, reflecting the economy's strong growth momentum.

"We are placing major expectations on power for industry, green transport, data, and AI. Under the revised Eighth National Power Development Plan (Plan 8), commercial electricity in 2030 is projected to reach 500-557 billion kWh. At that scale, the investment capital required is massive, while the state budget is limited," Tuan said.

To achieve this goal, mobilizing private capital is essential, and that will only be feasible with a truly open, stable, and consistent policy framework.

Removing pricing obstacles 

As an investor, Dang Quoc Bao, Deputy General Director of Trung Nam Group, witnessed the inflow of $15-20 billion into renewable energy during 2020-2021, but it has become frozen over the past three years.

"We hope the next phase will see more stable and truly sustainable policies so that investors can regain confidence," Bao said.

Nguyen Duy Giang, Deputy General Director of PV Power, pointed out that power investors are under intense pressure due to prolonged procedures and overlapping regulations.

He said his company once spent 3-4 years just completing investment approval procedures, then another 3-4 years on plant construction. By the time the project was completed, the market landscape had already changed.

Thus, he proposed eliminating investment approval requirements for projects already included in the master development plan and adjusting the bidding mechanism, which is currently organized by local authorities but supervised by the Ministry of Industry and Trade, leading to conflicting responsibilities.

Comparing Resolution 70 to Resolution 55, Ha Dang Son noted that Resolution 70 is a major breakthrough with a more realistic and market-oriented approach to the power sector, especially regarding electricity pricing.

"Resolution 70 re-evaluates the sector’s challenges and introduces regulations that are more applicable, helping unlock mechanisms and potentially setting out clearer special policies for projects," he said.

Many stakeholders, including the Ministry of Industry and Trade, EVN, and investors, are still facing difficulties, and the major bottleneck is the electricity pricing mechanism. Resolution 70 calls for major reforms in electricity pricing and the creation of mechanisms to facilitate private investment.

Additionally, local authorities must become more proactive and improve their execution capabilities. Even if the central government takes initiative, weak implementation at the local level will still hinder policy effectiveness.

It is also important to clearly separate EVN’s social welfare responsibilities. He proposed a separate bidding mechanism for fulfilling such obligations, with funding sourced from EVN’s profits and contributions from the private sector.

Improving EVN’s financial health, as the main electricity buyer, will also make it easier to negotiate and attract investment from private companies.

Tran Hoai Trang, Deputy Director General of the Electricity Regulatory Authority, acknowledged that there are still challenges in investment progress, power purchase agreement negotiations, and pricing. 

Duy Anh