Hanoi (VNA) – Vietnam needs a long-termrenewable energy development vision in line with international commitments toimprove its economic efficiency and environmental quality, mitigate climatechange and modernise industries.

Experts made the suggestion at a recent workshopon energy transition in connection with social equity held by the CentralInstitute for Economic Management (CIEM).

They said the vision will help poor householdsgain access to renewable energy and boost the development of new industrialsectors to create a cleaner environment.

Pouring investment in energy reserves and the nationalgrid is also important, participants said, adding that Vietnam should shift tousing renewable energy, especially solar, wind and biomass electricity.

CIEM Deputy Director Nguyen Thi Tue Anhsuggested increasing financial and technical transparency of state-owned groupsto build trust and create equal competition for the sake of consumers.

It is necessary to build a policy framework toincrease competition pressure in the oil and gas market, she said.

She recommended improving capacity of theElectricity Regulatory Authority of Vietnam (ERAV) and localities to implementregulations on renewable power, providing households and businesses in remoteareas with renewable energy measures, and building technical and administrativeregulations.

In fact, except for hydropower, renewable energyis little used in Vietnam. Meanwhile, the utilisation of fossil fuels for powergeneration in industrial sectors and transport is increasing rapidly, makingVietnam become a fossil fuel importer.

According to the national power development planin 2011-2020, coal-fired electricity is forecast to make up over half of thetotal power output by 2030. 

Under the national renewable energy developmentstrategy, the power system will include over 40 percent of renewable energy andhydropower by 2050.

Vietnam has devised some policies to support theuse of renewable energy such as wind and solar power, biomass and waste-burntelectricity. 

However, the proportion of such energy is stilllow and ineffective due to small-scale projects and lack of managementregulations.

There are not many programmes to supportbusinesses while commercial banks pay no attention to providing capital forenergy efficiency projects.

The electricity sector has yet focused onexpanding renewable energy markets. The slow renovation hinders the creation ofa competitive electricity wholesale and retail market.

The lack of transparency of some State-ownedenterprises makes it difficult for private companies to invest in the field. 

Poor infrastructure and human resources shortagealso restrict the development of renewable energy.-VNA