Vu Phong Energy Group Representative Contributes to Refining the Draft Electricity Law (Amended)

Recently, Mr. An, Pham Dang, Deputy General Director of Vu Phong Energy Group and Director of VP Carbon, participated in and contributed his insights during a seminar to discuss the refinement of the Draft Electricity Law (Amended). The National Assembly Committee on Science, Technology, and Environment organized the seminar in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI). The event took place on the afternoon of September 6, 2024, in Ho Chi Minh City, with the participation of numerous delegates, including experts, regulators, and representatives from the energy sector. At the event, various practical and essential discussions were held, providing input for the amendment of the Electricity Law from different perspectives.

The seminar aimed to gather opinions from experts and businesses to complete the Draft Electricity Law (Amended), which aims to promote sustainable energy transition in Vietnam. The attendees agreed that the draft has embodied the Party and State’s directives to reform mechanisms and policies to establish a synchronized, competitive, and transparent electricity and energy market. The draft also aims to diversify ownership models and business methods, apply market pricing to various energy types, and encourage investment in wind, solar power, and other renewable energies while formalizing electricity price regulation.

The Draft Electricity Law (Amended) is focused on creating a more robust legal framework for the power sector, while opening new opportunities for renewable energy businesses. A key highlight of the seminar was the proposal of new mechanisms for electricity auctions, establishing a legal framework for electricity trading between private enterprises, and policies on investment allocation for grid infrastructure. These adjustments address the challenges in connecting renewable energy sources to the national grid, a significant issue for solar and wind energy projects.

The seminar saw participation from several reputable organizations, experts, and businesses in the energy sector

During the seminar, delegates shared perspectives on the feasibility of new regulations in the Draft Electricity Law (Amended). Representatives from large companies in the industry, international organizations, and independent experts emphasized the importance of establishing a reasonable market mechanism that facilitates profitable and sustainable investment in renewable energy projects.

As a representative of Vu Phong Energy Group, a pioneering renewable energy company in Vietnam, Mr. An, Pham Dang presented several viewpoints and comments on renewable energy investment and project development.

This included recent recommendations from government agencies on defining and regulating the self-generating and self-consuming of solar power. Specifically, self-generating and self-consuming electricity refers to power produced and consumed by the same entity to meet on-site demand, with excess electricity sent to the grid not exceeding 20% of the installed capacity in the North and 10% in the South. This regulation establishes a solid legal foundation and opens business opportunities amid the green transition towards 100% renewable energy use. Combined with renewable energy certificates (I-RECs), this helps meet environmental and sustainability standards, such as the U.S. Clean Competition Act and the EU’s Carbon Border Adjustment Mechanism.

Additionally, detailed regulations on connection procedures, safety standards, and fire protection are essential to ensure the national grid’s safety, protect investor rights, and help businesses maximize the benefits of renewable energy projects.

Mr. An, Pham Dang – Deputy General Director of Vu Phong Energy Group participated in contributing ideas at the seminar (Photo source: Industry and Trade News (*))

Mr. Thi, Ta Dinh, Vice Chairman of the Committee on Science, Technology, and Environment, emphasized that the discussions and insights of National Assembly delegates, experts, scientists, managers, especially businesses – the subjects directly affected by the policies in the draft Law about electricity pricing, the electricity market, Power Purchase Agreements, renewable and new energy development, and enforcement measures… will serve as valuable input. These discussions, especially from businesses directly impacted by the policies, will help the Committee on Science, Technology, and Environment compile a review report for submission to the Standing Committee of the National Assembly. This will then be presented to the National Assembly for review and comments during the XIII Session, expected in October.

(*): Báo Công Thương

Vu Phong Energy Group

See more Vietnamese articles