The National Energy Development Strategy by 2030, with vision to 2045 aims to ensure national energy security, which serves as a foundation for growth.
A solar energy farm in Ninh Son district, the southern province of Ninh Thuan, which is put into operation last year.
With such importance, the Politburo has approved a resolution which sets directions for the strategy.
According to the Politburo, Vietnam is facing challenges in meeting national energy security targets and still has to import energy due to insufficient domestic supplies. Many power projects have been delayed and several projects invested by State-owned enterprises have incurred losses while the efficiency of energy exploitation remains low.
Therefore, the strategy will prioritise rapid and sustainable energy development along with environmental protection and national security safeguarding. It also aims to diversify sources of energy and effectively use renewable, clean and new energy sources.
Vietnam will prioritise wind and solar power and encourage investment in power plants using urban waste, biomass and solid waste in parallel with environmental protection and the circular economy.
According to the resolution, the proportion of renewable energy should account for 15 to 20 percent of total power output by 2030 and 25 to 30 percent by 2045.
The Politburo has set saving energy and protecting the environment as the core policy.
By 2030, the energy-saving level is set to make up for 7 percent of total power consumption and about 14 percent by 2045.
The Politburo has also urged for the use of technology in the energy sector, looking towards a future in which Vietnam will be able to manufacture most energy-producing and using devices.
According to the strategy, the country will build a smart and effective power network connected to the region. By 2030, Vietnam will be among three ASEAN countries with the highest access-to-electricity index.
Local oil refinery facilities are expected to meet 70 percent of domestic demand.
To realise those targets, the Politburo will encourage all economic sectors, especially private businesses, to invest in energy projects. It asked for creating a transparent environment and removing all barriers to attract and encourage the private sector to invest in domestic and foreign energy projects.
It is necessary to speed up oil and gas exploration activities to increase reserves and production.
The Politburo has called for the development of a new coal strategy to make effective investment overseas, import coal in the long term as well as tap the coal potential in the Red River Delta./.VNA
Renewable energy has emerged as one of the most preferred sectors for investment in Vietnam,but the development of such projects has been hampered by a number of challenges, according to a survey by Grant Thornton,
Legal or regulatory obstacles with a low level of certainty and issues concerning grid access for private projects, are the most pressing to private investment.