Prime Minister Pham Minh Chinh specifically called upon the Ministry of Industry and Trade (MoIT) and associated bodies to swiftly finalize and present mechanisms and policies for direct electricity trading between power producers and major consumers in a cabinet meeting on April 20.

With the deadline slated for completion before April 30, 2024, the call leaves the MoIT with just one week left to fulfill the task.

The move, urged time and again in the past months given the unprecedented power shortage in northern Vietnam last summer, coupled with the imminent hot summer this year, seeks to alleviate concerns among citizens and businesses regarding electricity supply.

Renewable Energy, Including Rooftop Solar Panels, Prioritized

In a bid to address the pressing need for electricity trading mechanisms, the MoIT is urged to focus on facilitating direct transactions between power producers and large-scale consumers.

This includes incentivizing the adoption of rooftop solar panels in residential and commercial settings, as well as promoting the development of gas, offshore, and onshore wind power projects.

Additionally, policies concerning waste electricity and biomass power are under consideration.

Zero-Dong Policy for Excess Rooftop Solar Power

This comes against the MoIT's latest proposal, released just a few days ago, that rooftop solar power installed in homes and offices for self-use and connected to the national grid will be sold for VND 0.

In the draft Decree on rooftop solar power development, pending comments, this type of electricity may or may not be connected to the national grid and sold to other organizations or individuals. The projected scale of this type of development by 2030 is approximately 2,600 MW, equivalent to 50% of office buildings and residential structures.

According to the draft, if this type of electricity is not connected to the grid, its development will be without limit. Organizations and individuals are encouraged to install storage systems to utilize excess energy in production and business operations.

If this energy source is connected to the power grid, individuals can choose to feed excess electricity into the system, with the State recording the output but not providing payment. In other words, individuals can sell excess electricity, but the price is set at VND 0. This proposal remains unchanged from the draft issued by the Ministry of Industry and Trade late last year.

Grid Upgrades, Efficiency, and Transparency

The Prime Minister's directive also emphasizes the urgent completion of the 500 kV circuit 3 line, with a deadline set for June 30. Local authorities are tasked with ensuring the timely progress of transmission projects, including those facilitating electricity imports from Laos.

Moreover, efforts to clear land and secure corridors for power transmission lines are underway and should be further strengthened.

Addressing concerns about electricity distribution and pricing, the Prime Minister underscores the importance of rational electricity allocation, especially during peak demand periods.

He advocates for the prudent use of electricity and stresses the need for appropriate pricing mechanisms, characterized by healthy competition and state regulation.

In a bid to bolster the domestic energy sector, the Prime Minister has instructed power plants to prioritize the use of locally manufactured products.

Additionally, ministries and regulatory bodies are urged to enhance oversight and prevent negative impacts on both electricity production and consumption.

Efforts to raise public awareness about energy conservation and policy developments are also highlighted. The press and media are called upon to allocate sufficient airtime for educating the public on efficient energy usage and understanding electricity bills.

Moreover, there is an emphasis on transparency in disseminating information related to the electricity industry to foster societal consensus.

To ensure the swift and effective implementation of these directives, the Office of the Government will oversee the gathering and classification of proposals for further action. This includes directing ministries and branches to address identified issues and provide timely updates on progress.