Hanoi (VNS/VNA) - The Vietnam Sustainable Energy Alliance (VSEA) raisedconcerns over the draft of the National Power Development Plan for the 2021 -2030 period (PDP VIII).

Asthe draft still includes the use of coal power for 10 years andcontinues to extend its development to the 2045, VSEA’s representative said:“The option contains many risks and is not feasible."

Commentingon the draft, the alliance said it was a "setback", addingabout 3,000 MW of coal power and reducing about 8,000 MW of renewableelectricity by 2030. 

VSEA'srecommendation clearly stated that the concentration of traditional powersources for the current grid was only to ensure the stability of the currentpower system but would lose the opportunity to catch up and integrate globally,creating impetus for the country's advanced energy economy and greendevelopment.

VSEAsaid that though draft PDP VIII aimed for the development of power sourcesin reducing coal power and promoting the exploitation and use ofrenewable energy sources, the structure and expected development of powersources did not reflect the same idea.

Overthe next ten years, there should be no more new renewable energy sourcesapproved, according to the draft.

Thoughthe VSEA recognised the current grid could not yet meet the development ofrenewable energy sources in Vietnam and managers must reduce capacity in manyplaces, it said suppressing renewable energy was not the optimal solution.

Thealliance said with rapid improvements in technology, solar power in Vietnam wasable to compete with the cost of coal power production this year, while windpower was forecast to compete with new coal power by 2025.

Regardingconcerns about solar power which generates electricity for six hours during theday and causes local overloading of the grid, the alliance said the matter willbe overcome with solutions such as selling electricity on-site tofactories, applying smart technology in power grid management andadministration, upgrading the power grid and letting the private sector takepart in public bidding to choose solar power investors.

Whilethe draft PDP VIII increases coal-fired power to about 22,000 MW by 2030 andanother 8,000 MW by 2045, VSEA said: “We believe that the feasibility of theseprojects needs to be re-evaluated based on actual access to capital, thedevelopment of these projects in the past and recent major changes in theindustry as major financial sources for coal power in Vietnam have all beenclosed.”

VSEAadded there were fluctuations of coal prices. The coal price in the first sixmonths of 2020 was 98.8 USD per tonne but now it increased to 159.7 USD pertonne.

Thealliance said: "With coal price increasing to 150-160 USD per tonneat present, electricity price ranged from 10-11 cent/kWh, more expensive thanoffshore wind power according to FIT at 9.8 US cent/kWh."

Inconclusion, the alliance said PDP VIII should stick to the path of renewableenergy development, avoid being hindered by recent renewable energy obstacles,adding instead of cutting clean electricity and avoiding dangerous coalpower sources.

Thealliance suggested the incentive mechanism has helped the solar power market inVietnam grow from zero to about 17,000MW in two years, but in thecurrent draft, the solar power industry in Vietnam will be strangled, causing aseries of Vietnamese private enterprises in this field to close.

VSEAsaid, instead the Power Master Plan VIII should introduce solutions toencourage private participation in the grid and immediately considerresearching and applying non-storage battery solutions.

OnSeptember 16, a seminar on the matter was held online. Nguy Nhu Khanh,Director of GreenID, also suggested reconsidering coal power projects with lowfeasibility and including solutions to encourage the private sector toinvest in the power grid.

Withthe same view, Assoc. Prof. Dr. Le Anh Tuan, Deputy Director of theInstitute of Climate Change Research, Can Tho University, also saidthe draft Power Plan VIII could "tighten" the green transitionroadmap of Vietnam. 

Hesaid that Vietnam was trying to reduce greenhouse gas emissions, but the draftwould increase coal power capacity and cut green and renewable energy, addingthis will cause many impacts and consequences. 

Tuansaid: “Recently, the European Parliament voted to support the idea ofimposing an emission tax on imported goods as the first step in creating anew technical standard that countries exporting goods to Europe, including Vietnam,adding the country must pay attention to or the local goods would bepriced too high by a partner for emissions from the use of unfriendly energy."

MaiVan Trung, Vice President of Nami Energy, said the majority of exportersnow face the challenge of using clean electricity in the total electricityusage capacity for export products. 

In2022, Vietnam's exports will be subject to a certain ceiling, which means thatbig brands will impose a proportion of renewable energy in export products.Therefore, in Power Plan VIII, priority should be given to the development ofrenewable and clean energy. 

Speakingat the discussion, National Assembly deputy Nguyen Quang Huan, Chairman of theBoard of Directors of Halcom Vietnam Joint Stock Company, said even thoughit was not possible to immediately cut coal power and there must be agradual reduction plan in the near future, they should find ways to solvethe problem as the country still imported coal which was not stable in thelong run./.