Tuesday, November 5, 2024 1:21:20 PM - Markets open
VN-INDEX 1,245.15 +0.44/+0.04%
HNX-INDEX 224.39 -0.06/-0.03%
UPCOM-INDEX 91.75 +0.14/+0.16%
New solutions needed for urgent power projects
vietnamnews - 11/5/2024 10:47:27 AM
 (0 ratings. You must sign in to rate.)
To meet the electricity demand with a growth rate of about ten per cent each year, the annual investment volume in power sources and grids must reach US$7.6 billion. That places a large financial burden on State-owned economic groups such as Việt Nam Electricity (EVN), Việt Nam Oil and Gas Group (PetroVietnam) and Vietnam Industry Coal and Mineral Industries Group (Vinacomin).
 

The draft revised electricity law will comprise some provisions to speed up investment in emergency power projects. — Photo baochinhphu.vn
 
Complicated and time-consuming investment and construction procedures are among the main reasons for the stagnation of urgent power projects, the Ministry of Industry and Trade's Electricity and Renewable Energy Authority has said. 
 
The authority said that enterprises, especially State-owned ones and their subsidiaries find it difficult to implement power projects as multi-tiered procedures will directly affect the projects' progress. 
 
For power projects using State capital, the overlap in regulations related to many laws from planning and investment to construction laws makes implementation more complicated. That will create significant barriers for investors.
 
Enterprises also face challenges in capital mobilisation, the authority noted. 
 
To meet the electricity demand with a growth rate of about 10 per cent each year, the annual investment volume in power sources and grids must reach US$7.6 billion. That places a large financial burden on State-owned economic groups such as Việt Nam Electricity (EVN), Việt Nam Oil and Gas Group (PetroVietnam), and Việt Nam Industry Coal and Mineral Industries Group (Vinacomin).
 
From 2006 to 2020, the Government issued many decisions to accelerate the construction of urgent power projects. For example, Decision No 1195/QĐ-TTg in 2005 and Decision No 2414/QĐ-TTg in 2013 created specific mechanisms to shorten the preparation and implementation time of power projects, ensuring electricity supply for socio-economic development. These policies have created favourable conditions for putting important power projects into operation on time.
 
Since 2020, although the Construction Law has provisions for emergency power projects, the implementation of these projects has still encountered difficulties due to the lack of a clear legal corridor. The criteria for determining urgent energy security issues have not been specifically regulated, leading to difficulties in applying specific mechanisms for power grid projects.
 
Amended Electricity Law helps
 
According to the authority, the draft revised electricity law will have some provisions to speed up investment in emergency power projects.
 
Under the draft, the Prime Minister will have the right to decide on emergency power projects and assign State-owned enterprises as investors, except for projects using emergency public investment capital under the Law on Public Investment.
 
Emergency power projects will be exempted from procedures for in-principle investment approval and forest land use purpose conversion, except for those under the decision-making authority of the National Assembly. This helps shorten the time for enterprises to prepare investments and speed up the implementation of important projects.
 
Investors who implement emergency power projects will be offered many incentives, including government guarantees under the provisions of the Law on Public Debt Management and the right to make all decisions on construction activities.
 
Having been in effect for nearly 20 years, with four previous amendments, the Electricity Law still faces challenges that the current provisions have yet to fully address. Thus, experts have emphasised the importance of revising the law to align with the Party's energy policies and ensure consistency across the nation’s legal framework.
 
Economic expert Nguyễn Thường Lạng said two key aspects that should be prioritised in the new law are the integration of green standards and smart technology, as well as the updating of management benchmarks.
 
He underscored the necessity of restructuring the management framework to ensure the successful execution of significant electricity development initiatives, including Power Development Plan VIII, the National Energy Development Plan and the Politburo’s resolution on national energy strategy orientations.
 
Director of the Clean Energy and Green Growth Research Centre Hà Đăng Sơn said that clarity in legal regulations regarding bidding and auctions, as well as the specific responsibilities of investors in electricity projects, was essential. He also called for clear accountability to address risks and overcome legal obstacles.
 
The draft Electricity Law includes nine chapters and 119 articles, focusing on key areas such as ensuring national energy security, encouraging renewable energy development, fostering competitive electricity markets and improving safety regulations for electricity usage and infrastructure. — VNS
 
Read original article here
Newer News
11:05 Foreign suppliers pay over VNĐ18 trillion in taxes via electronic portal
11:03 Hanoi takes drastic measures to disburse public investment
11:00 VN's key exports are on a path of recovery: industry experts
10:57 Brand management will help sustainable business development, experts say
10:50 Fresh coconuts quenching new overseas markets
Older News
10:44 Vietnam's seafood sector primed for growth with favourable exports
04/11 Numerous US businesses set to arrive in HCM City to implement signed agreements
04/11 Foxconn to invest US$80 million in Bắc Giang for chip manufacturing expansion
04/11 Rice exports likely to set new record in 2024
04/11 VN among the top three ASEAN countries in term of industrial competitiveness
04/11 How the US election result can impact Vietnam's exports
01/11 Vietnam develops 'purely Vietnamese' generative AI
01/11 Ministry of Finance deploys pilot project for smart border gates
01/11 Vietnam poised to become the third-largest data centre market in ASEAN
31/10 Surging rice import is business as usual: MARD
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 1:15:00 PM
VN-INDEX 1,245.15 +0.44/+0.04%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.