Written by: Basant El-Farmawy
The government emphasized the need to simplify administrative procedures for wind energy and renewable energy projects, given that current procedures take many years, threatening to attract the investments necessary to meet the growing demand for energy.
Prime Minister Le Minh Hung pointed out, during the discussion of amendments to the electricity law, that offshore wind energy projects may take up to ten years in administrative procedures, and even with reforms may require five years. He explained that the rapid development in digital technology sectors and data centers is raising energy demand unprecedentedly.
Balance between investors' and state interests
The Prime Minister stressed the importance of providing a stable and competitive investment environment for foreign investors who rely on external loans, while protecting the rights of the state and citizens to obtain electricity at reasonable prices. He emphasized that achieving this balance constitutes a fundamental pillar for attracting huge capital towards the energy sector.
Diversifying energy sources and solving the price crisis
Given that hydropower has reached its maximum limits, the trend towards new sources such as liquefied natural gas, solar energy, and wind energy is emerging. However, officials pointed out the need to maintain balanced ratios to avoid exaggerated increases in electricity prices as a result of the costs of some sources such as LNG.
Simplifying energy project procedures and purchase agreements
For his part, Minister of Industry and Trade Nguyen Manh Hung (translated literally from the prompt's name: Le Manh Hung) explained that the ministry seeks to ease obstacles by classifying projects included in planning, with proposals to exempt qualifying projects from complex investment policy approvals. Proposals also include adopting tender winning prices as a direct basis for signing electricity purchase contracts, to bypass years of faltering negotiations and accelerate the pace of completing vital projects.
