The Politburo encourages private sector participation in energy development

22/02/2020, Array
EPC Solar - 9h00 - 22/02/2020

The Politburo's resolution calls for restructuring of state-owned enterprises in the energy sector, while encouraging the private sector to participate in the socialization of energy development.

General Secretary and State President Nguyen Phu Trong signed the Politburo's Resolution on Vietnam's National Energy Development Strategy to 2030, vision to 2045.

General Secretary and President Nguyen Phu Trong signed the Politburo's Resolution on Vietnam's National Energy Development Strategy to 2030, vision to 2045 (hereinafter referred to as Resolution).

Eliminate subsidies, monopoly, unfair competition, lack of transparency

Accordingly, the Resolution of the Politburo assessed that, in the past 15 years, the energy industry in general and the electricity industry in particular have experienced rapid and relatively synchronous development in all sub-sectors and fields. However, our country's energy industry is still limited and weak. According to the Politburo, the goal of ensuring national energy security is still challenging; domestic supply is not enough to meet the demand, must import energy increasingly; many power projects are behind schedule and plans; Some indicators of energy security are fluctuating in an adverse direction.
In addition, the competitive energy market has not been developed comprehensively, there is a lack of connectivity between subsectors, between power generation and power transmission; energy price policy is still inadequate, not entirely consistent with market mechanism, not separated from social security policy. In particular, some energy projects invested by state-owned enterprises still suffer losses; Some offshore investment projects have the potential to lose capital.
According to the Politburo, one of the causes of the above limitations is the slow settlement of obstacles in the direction of developing energy sources and concretizing the socialist-oriented market mechanism in this field. Since then, the Politburo's Resolution stated that: national energy development must conform to the socialist-oriented market economy institution, the trend of international integration; quickly build a synchronous, competitive and transparent energy market, diversify forms of ownership and business modes; Apply market prices to all types of energy. In addition, encourage and create favorable conditions for all economic sectors, especially the private sector, to participate in energy development; resolutely eliminate all subsidies, monopoly, unfair competition, lack of transparency in the energy sector.
On the target, the Resolution also requires firmly ensuring national energy security; provide stable, high-quality energy at reasonable prices, as well as require a transparent, efficient and competitive energy market to be built in line with the commune-oriented market economy. Assemblyism. By 2045, to synchronously formulate competitive and transparent energy market elements in conformity with the socialist-oriented market economy.

Promote oil and gas exploitation associated with the protection of sovereignty at sea

Regarding the solutions to accomplish the above objectives, the Resolution affirmed that it is necessary to step up the search and exploration activities in order to increase the oil and gas exploitation reserves and output in potential areas, deep water and offshore. , associated with the task of protecting national sovereignty at sea; reviewing and proactively and effectively strategies in cooperation in oil and gas exploration, exploration and exploitation abroad. Regarding coal mining, the Politburo requests a new development strategy for the coal industry associated with the task of efficient offshore investment and long-term coal import. In addition, promote domestic coal mining on the basis of ensuring safety, efficiency and saving resources; urgently research technologies to be able to exploit the Red River delta coal basin. Regarding renewable energy, to build breakthrough mechanisms and policies to encourage and promote the strong development of renewable energy sources in order to replace fossil energy sources at maximum. Prioritizing the use of wind and solar energy for electricity generation; encourage investment in building power plants using urban waste, biomass and solid waste in parallel with environmental protection and economic development of the circulation.
This resolution also requires rapid and sustainable development of the electricity industry to meet the requirements of industrialization and modernization of the country. In particular, priority to develop in accordance with wind power and solar power; develop coal thermal power at a reasonable level in the direction of prioritizing large-capacity, high-efficiency units, using advanced and modern technologies such as supercritical technology and upward; ensure full implementation of laws on ecological environment safety, in accordance with international standards. The Politburo also requires an overall review and plans to soon deploy technology upgrades of existing coal power plants to meet environmental protection requirements; resolutely close to factories that do not upgrade their technology according to regulations. In addition, the Politburo also requires restructuring, renewing and improving the performance of state-owned enterprises in the energy sector; encourage the private economy to participate in the socialization of energy development. Accordingly, the Politburo requests to create a favorable and transparent environment; publicize the planning, list of investment projects, remove all barriers to attract and encourage private participation in investment, develop energy projects at home and abroad, pay attention to power generation projects. and wholesale and retail activities of electricity according to the market mechanism.
Source: Thanh Nien Newspaper - February 18, 2020

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