Mr. Ngo Dong Hai
Journalist: What is your opinion about the national energy development strategy in the process of integration, industrialization and modernization acceleration of the country?
Mr. Ngo Dong Hai: Over the last 30 years, during the reform process of the country, conquering many difficulties and challenges, the energy sector of Vietnam has grown rapidly at the average rate of more than 14% per year (during 2011 – 2016), principally satisfied energy requirements for socio – economic development, national defense and security. Energy security has gradually been fostered and strengthened.
Journalist: With the investment capital amount projected at more than USD 148 billion for the country’s energy development from now until 2030, can you tell me how this huge financial amount can be arranged?
Mr. Ngo Dong Hai: Experiences in many countries demonstrate that energy investment and development can not entirely rely on a sole financial source, particularly the state budget.
If Vietnam can flexibly and properly adopt policies and mechanisms, create a synchronuous energy development market, many domestic and international investment resources will obviously be attracted to jointly solve the energy puzzle in the best manner. For that reason, in order to attract investment capital, energy market development policies and mechanisms should be put in place. When an obvious, transparent and suitable energy development strategy is made available, the energy market development will be feasible.
Journalist: Whereas other countries restrain their use of fossil fuels, Vietnam still values coal fired thermal power plants. What do you think about this issue?
Mr. Ngo Dong Hai: Establishing a renewable energy development stragety together with preserving conventional energy sources such as thermal power, hydropower is an inclusive solution that has been approved by the Government to serve socio – economic development requirements of the country from time to time, in accordance with the international and regional economic integration progress.
In order to develop a comprehensive energy security strategy, a bi-directional approach is needed. In details, energy supply sources should be maximized via encouraging and facilitating investments in the energy area. At the same time, a strategy to affect demand side which is electricity consumption behaviors and technologies should be developed.
Environmental protection in coal fired thermal power projects have been a troublesome problem to the authorities. Therefore, the objective of efficient and sustainable development of the energy sector accompanied by environmental protection has been clearly indicated in the National Energy Development Strategy. It is widely shown by experiences in the world that if we duly take into consideration and have a clear direction of technology right from the project preparation, environmental protection will be fundamentally achievable, adaptable to climate change and satisfactory to people’s life in the future.
But if Vietnam develops too many coal fired thermal power plants, the country will be dependent on energy supply sources. Therefore, the extent of coal fired thermal power development will be subject to the national energy security development orientation in the coming time.
Journalist: It is said that the current electricity tariff in particular and energy price in general do not correspond to market prices, sir?
Mr. Ngo Dong Hai: On the other hand, tariff adjustment should be taken into consideration to motivate investment in and development of other energy sources, especially renewable energy sources. At present, the Government strategizes to adjust electricity tariff in order to take into account consumption demand of different social subjects, varying from business consumers to residential consumers in all classes of people including poor households. However, it is time for us to introduce a clear tariff distinction between the one applicable to public services and market oriented tariff applicable to businesses. With such an obvious strategy, electricity tariff in particular and energy price in general will match up to market prices and the international price level.
PV: What recommendations do you have to help Vietnam energy sector develop sustainably?
Mr. Ngo Dong Hai: To meet energy demand of such a fast growing economy is a really challenging mission, particularly when Ninh Thuan Nuclear Power Project has been suspended and the hydropower potential in Vietnam has been almost exhaustedly exploited. Nevertheless, many opportunities are still available in Vietnam, which are spare grounds for energy conservation in residential uses and production activities. If an energy conservation motivating strategy or policy is in place, the national energy security can be achieved.
In addition, Vietnam has a large potential for renewable energy development, especially wind and solar energy. However in the current international economic integration, Vietnam should consider regional collaboration in energy security, on one hand securing the national energy supply, on the other hand contributing to development of a sustainable regional energy market.
PV: Thank you very much!