On the afternoon of October 26, during discussions on the revised Electricity Law, Minister Dien emphasized that the proposed amendments primarily focus on new energy development policies or mechanisms previously covered in decrees and circulars, now formalized in the law.

The revised draft introduces special mechanisms for renewable and new energy development, aiming to resolve current investment obstacles in the energy sector.

“The Power Master Plan 8 was issued a year ago, yet investors remain hesitant, waiting for a clear mechanism,” Dien said. Businesses are concerned about how they would recoup large capital outlays in these projects.

To address this situation, Nguyen Hong Dien noted that the revised Electricity Law draft amends regulations related to electricity pricing mechanisms, thus paving the way for a competitive retail electricity market. Specifically, prices related to electricity, transmission, and distribution would operate based on market principles but still under state regulation.

Minister Dien also noted that no company has yet proposed investing in electricity transmission projects, primarily due to the low transmission prices despite high investment costs. Currently, transmission costs stand at 5-6% of electricity production costs, while they realistically need to be around 30-35%. Thus, the law revision aims to attract investment in the transmission sector.

According to Power Master Plan 8, the total electricity capacity should reach 150,000 MW by 2030 (double the current capacity) and 530,000 MW by 2050. “Achieving this requires substantial electricity source expansion, and without proper mechanisms, meeting this goal will be challenging,” Dien explained.

Additionally, Vietnam aims to reach net-zero emissions by 2050, which necessitates the development of renewable and clean energy. However, current mechanisms supporting clean energy development are insufficient and inconsistent. “If the law is not amended, attracting investors to the energy sector will remain difficult,” Dien remarked, expressing hope for the National Assembly to pass the bill in this session.

The Minister also pointed out that hydroelectric power sources are nearly maxed out, while coal power projects require 5-6 years, and gas projects 7-8 years to complete. Nuclear energy, meanwhile, is only in its early stages.

Nguyen Hong Dien stressed that delays in passing the revised Electricity Law mean prolonged project timelines, which could jeopardize national energy security.

“We recommend that the draft law be reviewed and passed within one session, ensuring strong mechanisms to rapidly expand capacity and transform the energy structure,” Dien added.

Quang Phong