Vietnam encourages private investment in energy: Politburo

The Politburo will encourage all economic sectors, especially private businesses, to invest in energy projects, Party General Secretary, President Nguyen Phu Trong has said.
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The Politburo will encourage all economic sectors, especially private businesses, to invest in energy projects, Party General Secretary, President Nguyen Phu Trong has said.

A solar energy project in Ninh Son District, southern Ninh Thuan Province which was put into operation last year.

He approved a resolution which sets the direction for national energy development over the next 15 years last week.

In the resolution, Trong 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.

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.

The national energy development strategy aims to ensure national energy security, which serves as a foundation for growth. It also prioritises rapid and sustainable energy development along with environmental protection and national security safeguarding.

The strategy 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, the Party General Secretary said.

According to the resolution, the proportion of renewable energy should account for 15 to 20 per cent of total power output by 2030 and 25 to 30 per cent 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 per cent of total power consumption and about 14 per cent 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, Vietnam 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 per cent of domestic demand.

To realise those targets, 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 exploit the coal potential in the Red River Delta. VNS