At a wind farm in Ninh Thuan (Photo: VNA) Ha Dang Son, Director of the Centre for Energy and Green Growth Research,opines that Plan VIII would help Vietnam move one step closer to its net-zerotargets as it provides for the phase-out of thermal power plants toward 2030.
Another worth-noting green provision involves renewable energy, which is set at70% of the country's power mix by 2050. The provision, he believes, would givefresh impetus to the country's just energy transition.
"The Ministry of Industry and Trade has aligned the plan with Vietnam'scommitments in COP26 and JETP Political Declaration to pursue a dual goal ofpower security and green transition," said Son.
The director also praises the plan for its provision for new power grids in theCentral Region and Southern Region, which would allow for more renewable energyplants to engage in the system.
Ngo Tuan Kiet, head of the Institute for Energy Technologies, opines that PlanVIII would help accelerate energy projects in progress, reducing the risk ofpower shortages between 2025 and 2030.
Another good point of Plan VIII is that it is more flexible than the previousplans, giving policymakers more elbow room to pursue the dual goal.
The head also reveals that his institute was picked as an adviser to theMinistry of Industry and Trade during the formulation of the plan. From April2022 to April 2023, the ministry was actively revising its drafted versions tokeep the plan in line with the latest developments in the world.
"The ministry has incorporated into the plan a vision for energy hubs thatwould produce green power for not only domestic consumption but alsoexports," said Kiet.
Economist Vo Tri Thanh told Vietnam News that the timely approval of Plan VIIIwould reduce the policy uncertainty perceived by investors, giving a boost tothe economy across the board.
"Plan VIII would pay the way for a more competitive power market,"said Thanh.
Against a backdrop of complicated geopolitical conflicts and fast-pacedtechnological advancement, the plan would require unconventional ways ofimplementation to get its results within such a short time frame.
Analysts from the Vietnam Energy Magazine opine that several novel mechanismsintroduced by Plan VIII are essential for the country's transition to greenenergy, including carbon taxes and energy bids.
However, they believe that the list of mechanisms is not exhaustive. They callfor another mechanism to be added to the plan, which would serve as a catalystfor the phase-in of offshore wind energy in the country.
They also call for specific favourable policies to speed up slow-pacedprojects, such as Ca Voi Xanh and Long Phu, to have them completed on schedule.
"We need to conduct more studies on a mechanism for direct power purchase.The absence of such a mechanism has been a major hindrance to the growth ofrenewable energy," said an analyst./.
VNA
