How can achieve the national energy security?

Ensuring sustainable energy security is a vital duty to a country in the international economic integration context; however there have been a lot challenges to be encountered by the state authorities, businesses as well as the people. Reporters of the Power Magazine have dialoged with some leaders and experts and recorded their points of view on this issue.

Director of Vietnam Institute of Economics: Vietnam Energy Strategy should approach both demand side and supply side

From a comprehensive perspective, during the past time the electricity supply have principally satisfied national socio – economic development requirements in Vietnam, however no conditions have been imposed on demand side yet. Consequently an energy intensive economy has been maintained in Vietnam where there has not been a connection between production and energy efficiency.

At present, energy price in general and electricity price in particular do not accurately reflect their market prices, which lead to an unbalanced demand – supply relationship. Electricity price is low whereas electricity generation cost is high, so the energy sector is hard to compete. This fact also explains why domestic and foreign businesses do not invest their money in the energy sector. Increasing pressure is also imposed on energy supply when energy demand keeps growing in the future.

For that reason, changes in economic development strategy as well as Vietnam energy strategy are needed, the present energy intensive and resource wasteful economic development should not continue meanwhile the energy sector is asked to meet energy requirements to the maximum extent.

Vietnam should change their strategic mind of energy, should approach market oriented energy pricing rather than only demand, production line or technology, etc. In the time to come, the national energy strategy should be considered in a comprehensive manner in which both demand side and supply side should be taken into consideration, otherwise the security of energy supply in Vietnam will be nowhere near achievable.

Mr. Hoang Quoc Vuong – Vice Minister of Industry and Trade: Energy efficiency and advanced production technology

Plenty of challenges persist in Vietnam, for instance energy demand is going up while environmental commitments have been more and more demanding and severe. On the one hand, this will put pressure on the national energy security, and on the other hand will force the economy to sufficiently mobilize investment capital for the energy sector.

With the aim of solving the energy puzzle for economic development, the Ministry of Industry and Trade has developed a policy framework in two ways, firstly economical and efficient energy consumption, and secondly application of environmentally friendly technologies to produce energy. In pursuit of a low carbon economy, production scheme will be shifted from an economy consuming low efficient fossil fuels to an economy consuming clean and renewable energy sources in order to secure sustainable electricity consumption.

Director of the Institute of Energy Science under Vietnam Academy of Science and Technology: The energy sector should be closely attached to the national economy

For the time being, the energy sector has been confronted with many pressures in adequately supplying energy to the economy. According to the National Energy Development Strategy up to 2020 with vision to 2050, primary energy supply by the year 2020 will amount to approximately 100 - 110 million TOE, until 2025 it will be around 110 - 120 million TOE and by the year 2050 about 310 - 320 million TOE. 

The question here is “Why the economy does not select the best development roadmap within energy supply constraints”. Especially in the context that hydropower resources have been fully exploited, nuclear power project has been halted; wind power, solar power, biomass energy sources, etc. will not be able to satisfy the demand in the coming time. 

Solving the current energy puzzle should be done together with taking into account income and living conditions of the people, production and business status of enterprises, etc. The Prime Minister has issued Decision No. 24/2011/QD-TTg dated April 15, 2011 to accommodate electricity tariff to market mechanism. The Government has issued a lot of preferential tariff policies and mechanisms for the poor, retail and wholesale tariff structures for different targeted consumers. Obviously, the more electricity consumers use, the more money they have to pay.   Therefore, the people should get accustomed to energy efficiency in residential energy consumption or businesses should change their minds in energy consumption and production models.  

Vietnam should develop the energy sector in conjunction with the national economy, so that the economy can be “conscious” of constraints of the energy sector, and hence can establish their development strategies and master plans accordingly. When the entire economy does no longer “impose a burden” on the energy sector, the national energy security can be achieved.

  • 22/06/2017 05:04