Of which, the power source needs $96 billion, and the power grid $37.3 billion. Over the past time, besides investment in renewable energy sources, the private sector has also invested in transformer stations and lines in the national power transmission system. However, when investors offered to hand over projects to the State at a price of VND0, they encountered problems with legal procedures, so projects could not be transferred.
The National Power Transmission Corporation (EVNNPT) explained that, according to the current law, to receive property handed over at a price of VND0, it requires asset revaluation. However, there is no regulation on how the asset is revaluated and how State-owned enterprises receive private property into public property. Mr. Nguyen Tuan Anh, Deputy Director of the Electricity and Renewable Energy Authority, added that, according to the regulations, the investment in transmission grids for the general transmission of the national power system is implemented by the electricity sector, based on the list of projects approved by competent authorities in the national electricity development planning, following the Electricity Law and regulations, especially the regulations on state monopoly in power transmission activities. This is the reason that private investors have not been able to invest in transmission grids but only invest in grid infrastructure to connect to the system.
Meanwhile, the recent Politburo Resolution No.55-NQ/TW on the strategic direction of Vietnam’s national energy development to 2030, with a vision to 2045, states that it ‘encourages and creates favorable conditions for all economic sectors, especially the private sector to participate in energy development’, ‘maximize socialization in investment, exploitation, and use of facilities and services in the energy industry, including the national power transmission system, based on ensuring national defense and security’.
The policy of the Party and State has already been explicit. Therefore, it is necessary to consider amending the Electricity Law and related regulations in the direction of creating all favorable conditions for the socialization of the electricity industry. In which, authorities should pay special attention to regulations on handover and distribution of profits, costs, and responsibility for post-investment management and operation. At the same time, there should be a legal basis to clearly define the responsibilities of the State and the private sector in investing in power transmission grids and solving related problems.
By Lac Phong – Translated by Gia Bao
- First private-invested 500/220kV transmission line in Vietnam connected
- VN lacks mechanisms for private investment in renewable energy
- Vietnam faces transmission conundrum for renewable energy
- Power transmission grid should be developed: insiders
- Vietnam to cut 1.3 billion kWh of renewable energy this year
- HCMC speeds up Cat Lai-Tan Cang power transmission line project
- Vietnam needs US$133.3 billion investment in power projects by 2030
- Ninh Thuân seeks to become a center of renewable energies
- Renewable energy yet to meet potential: conference
- Transmission line problems might dash solar power plant hopes