Renewable energy enterprise towards the mission of sustainable development

Looking back at the renewable energy picture in 2021, it is even more clear that the sustainable development goal is the right direction, bringing long-term value to businesses and the Vietnamese electricity market.

Sustainable development in the field of renewable energy is not only a matter of revenue and profit, but also covers the satisfaction of interests between three parties including (State, enterprises, electricity users), combined with investor satisfaction, social responsibility and environmental protection.

Overview of the Forum “Mechanism to attract investment for sustainable development of renewable energy in Vietnam” organized by Business Forum Magazine in November 2021

Looking back at 2021, in the context that Vietnam has no new electricity purchase price policy for solar power combined with the sweep of COVID-19, the picture of the renewable energy market becomes bleak. Sharing their thoughts and aspirations to the Business Forum, energy businesses said: When falling into a deadlock situation caused by subjective and objective factors, new investors understand more deeply that the value of sustainable the development is precious!

Not outside the impact due to COVID-19, the renewable energy market has also suffered heavy damage, investors have experienced a year with many worries and concerns. Especially, wind power projects are being carried out, racing against the expiration of the FIT price deadline on October 31 has left many great consequences, when more accidents occur in the transportation, installation and operation of super-long and super-weight wind turbines. Disputes over land, inflated compensation prices, and even bloodshed involving people, businesses and state management agencies. The above incident shows that many businesses have had to pay too high a price for the plan of “To live from hand to mouth” which lacks long-term and sustainable solutions.

The COVID-19 epidemic returned like a “punch ball”, causing wind power investors under construction to be seriously affected when one-third of the projects could not reach the finish line with a total capacity of about 2.000MW, equivalent to Investment capital over 3 billion USD is not known how to recover and how to repay? With the policy, the extension of the FIT pricing mechanism has been proposed many times, but there is currently no final decision and investors are still trying to wait for the consideration of the competent authorities.

The capacity reduction of renewable energy projects, including wind power, continues to take place. And if previously the main cause was due to overloaded lines, in 2021 it will also be affected by reduced loads (a consequence of COVID-19 causing economic stagnation, the ability to consume electricity is significantly reduced).

According to business calculations, with more than 20.790 MW of renewable energy, if we cut 10% on average, we will lose about 12 trillion VND per year (average 500 million VND/MW); A significant amount of damage has negatively impacted the revenue and profit of renewable energy Investors in 2021.

The above consequences show that renewable energy development lacks solutions to calculate transmission capacity, lacks long-term overall strategies, and lacks specific statistics on the consumption capacity of each locality, since then it is not possible to give an exact allocation figure for each region… causing damage to renewable energy investing enterprises when they had to cut their capacity by 60% of the generating capacity in the past time.

Assessing the potential of the renewable energy market in 2022, the representative of Binh Thuan Wind and Solar Power Association – Mr. Bui Van Thinh said; The biggest incentive for RE at this time is probably the strong commitment of the heads of state, including the Prime Minister of Vietnam, to Net Zero by 2050 at COP26.

Specifically, right after the Conference, expected the capacity for offshore wind power in 8 Power Plan draft will increase from 2.000MW to 5.000MW by 2030. This has helped many coastal provinces from the North to the South race each other to register offshore wind power with a total capacity of over 100.000MW, promising a potential vibrant renewable energy market that develop in the coming year.

However, for wind power to develop commensurately, sustainably and towards medium and long-term goals, according to Mr. Thinh, it is necessary to have clear and consistent policies. At the same time, it is necessary to pilot a offshore wind power project to perfect the policy for this potential power source. If Vietnam is hesitant about ensuring security and defense, Vietnam can refer to Taiwan. Because the obstacle is not a geographical issue, but an appropriate management and policy.

“After October 31, 2021, how is the purchase price of wind power? Especially 2.000 MW overcome difficulties to the finish line, currently there are no constraints policy. Regarding transmission, how is the electricity grid development planning? The private enterprises can participate in the investment and construction of the transmission system in the form of BOT – a formal contract signed between consultants and competent state agencies for the construction and operation of works within a period of time. The timeout, will all be handed over to the government authority as the traffic has done, or not?” – Mr. Thinh shared.

Beside, representatives of businesses said that it is necessary to adjust the electricity selling price so that EVN has a reasonable policy of purchasing renewable energy with an increasing proportion, ensuring win-win development between the State and enterprises? Avoid letting businesses fall into the situation of having to “cried their heart out” as in the past time, because the decision to cut the generating capacity with enough reasons will reduce the ability to attract investment, and of course this will is not considered healthy development.