High growth requires a breakthrough in energy

Speaking at the Forum "Investment in energy development towards the goal of high and sustainable economic growth" on August 21, Associate Professor, Dr. Tran Dinh Thien affirmed that energy is not only infrastructure, but also a prerequisite for the national development strategy.

According to him, over the past decade, Vietnam has witnessed significant progress, especially in the period 2015-2023 when wind and solar power developed explosively thanks to attractive pricing policies. However, the hot development also revealed shortcomings: unsynchronized planning, overlapping procedures, and inflexible management mechanisms caused social resources to be wasted, and the system revealed many bottlenecks.

Mr. Thien emphasized that to achieve the goal of becoming a high-income country by 2045, Vietnam must maintain a growth rate of 8-10% per year in the 2026-2030 period. This entails a huge demand for energy, with an estimated need to add 150,000 MW of renewable energy by 2035, equivalent to about 1,500 new projects. This is a challenge far beyond the current implementation capacity, forcing Vietnam to make breakthroughs in mechanisms, policies and governance.

Capital and institutions

Citing analysis by Dr. Can Van Luc, Associate Professor Dr. Tran Dinh Thien said that to maintain the expected growth rate, the average social investment level must reach at least 38% of GDP. Each year, Vietnam needs to mobilize about 240-245 billion USD, of which the electricity sector alone accounts for more than 21 billion USD. With the budget only able to meet about 35%, most of the remaining resources must come from the private sector and international capital.

However, the major obstacle is not only capital but also institutions. According to statistics from the Ministry of Finance , there are currently more than 2,200 projects with a total capital of about 6 million billion VND stalled due to procedural and legal problems. This directly affects large-scale energy projects such as nuclear power, pumped storage hydropower or LNG, which are key sources of supply for long-term energy security.

Technology and human resources

According to Mr. Ha Dang Son, Director of the Center for Energy and Green Growth Research, there is no absolutely optimal energy technology. Nuclear power is expensive but stable, and is less affected by the world market. Solar power is cheap and quick to deploy but unstable, only generating about 12 hours a day. Wind power has great potential, but Vietnam is almost completely dependent on foreign technology.

Therefore, energy development strategy must be based on a diverse combination of technologies, accompanied by appropriate policy mechanisms to both take advantage of advantages and overcome limitations.

Mr. Le Anh Tuan, Chairman of the Council of Hanoi University of Science and Technology, added that to master technology, especially in the fields of nuclear power and renewable energy, Vietnam must invest heavily in high-quality human resources. "It is impossible to meet the demand by training only bachelors. We need well-trained engineers, masters, and doctors, linked to research and application," Mr. Tuan emphasized. At the same time, policies to treat and attract talent are needed to retain core experts.

Associate Professor, Dr. Bui Quang Tuan, Vice President of the Vietnam Economic Science Association, said that in addition to developing power sources, Vietnam needs to pay attention to energy efficiency, a factor that determines growth quality.

He pointed out that in the recent period, many solar power projects have been put into operation but their capacity could not be released because the transmission system was not completed in time. This not only wastes resources but also loses development opportunities. Therefore, the institution must be open to the private sector to participate in investing in transmission infrastructure; at the same time, it is necessary to build a transparent electricity market, balancing energy security and market competition.

In addition, science, technology and innovation will be the key. A smart power transmission system, reducing losses and optimizing operations are the conditions for Vietnam to effectively utilize renewable energy sources, which are increasingly accounting for a large proportion.

Anh Tho

Source: https://baochinhphu.vn/tang-truong-cao-doi-hoi-su-but-pha-tu-nang-luong-102250821165519817.htm