Newsletter July 2023

Ministry proposes new electricity tariffs

The Ministry of Industry and Trade (MoIT) has released a draft of the Prime Minister's decision on the structure of retail electricity tariffs for public feedback. The draft proposes a new pricing scheme based on a percentage of the average retail price of electricity for different groups of users.

The proposed scheme includes specific retail prices for various groups such as production, business, administrative, non-business, daily use, electric vehicle charging stations and tourist accommodation.

Regarding the retail electricity tariffs for daily use, the plan proposed by the MoIT, which suggests reducing the pricing tiers from six to five, is not much different from the proposal in September 2022. This change narrows the gap between the first steps and expands the pricing range for higher consumption levels.

For production, business, administrative customers, electric vehicle charging stations, and tourist accommodation establishments, the prices are categorised based on voltage levels, ranging from 1 to 35kV, with the lowest price set at 54% and the highest price at 167% of the average retail price of electricity. Click here to read the article .

No more power shortage in northern region: Official

Since the end of June, the water levels in hydropower reservoirs have been rising and technical problems of a number of thermopower turbines solved, ensuring a basically sufficient power supply in the north, said Deputy Minister of Industry and Trade Do Thang Hai.

However, he said that the power system in July will face many difficulties, especially in the northern region where a number of heat waves are forecast and despite the improvement, water levels in hydropower reservoirs are still low.

Following the Government and the Prime Minister’s directions, the Ministry of Industry and Trade has requested the Vietnam Electricity (EVN) to continuously update the operation of the power system and power market, ensuring power supply in 2023, while actively building plans to respond to difficult situations in the power system, he said.

At the same time, the EVN was asked to coordinate with customers, especially those with large consumption, to design electricity load adjustment plans to ensure the power system security. Click here to read the article .

Vietnam approves energy plan for the next decade, promoting renewables

Vietnam’s government has green-lit a national plan for its power industry. The plan will see the country move away from coal while opening wind and gas avenues.

Power Development Plan 8 (PDP8) aims to secure Vietnam’s energy future up until 2030, with further aim of achieving carbon neutrality by 2050. By 2030, Vietnam aims to draw a minimum of 30.9% of its energy from renewable sources, increasing to 67.5% by 2050. Offshore wind, from which Vietnam generated no power in 2020, should give the country 15GW by 2035, accounting for around 18.5% of the total power mix.

The PDP8 also provides guidance for the provision of solar energy. A government statement said: “From now to 2025, there is no limit to the capacity of rooftop solar power development provided that the prices are reasonable, and the existing transmission network is not overloaded, particularly in the areas where power shortage is likely to occur.” Click here to read the article .

The biggest renewable energy event in Vietnam in 2023 - The Future Energy Show Vietnam & The Solar Show Vietnam

The Future Energy Show Vietnam & The Solar Show Vietnam, the largest energy event in Vietnam, returns to Ho Chi Minh City once again this week. This year’s event is especially significant given it will be the first event following Vietnam’s recent significant energy policy announcements.

Over 4,500 solar and renewable energy experts have already signed up to attend, and the number is rising daily as excitement builds to explore the latest innovative energy solutions, make new connections with industry leaders and strategize for Vietnam’s energy future.

The Future Energy Show Vietnam & Solar Show Vietnam’s free-to-attend exhibition will convene 120+ exhibitors, offering attendees the chance to evaluate solutions from leading energy players. Click here to read the article .

VSSES Organizes A Seminar On Rooftop Solar Energy – A Green Solution For Businesses In Hai Phong

At the end of last May, VSSES organized the seminar: “Energy Cost Optimization in Manufacturing Operation with Rooftop Solar Energy” in Hai Phong with an aim of helping manufacturers in Vietnam gain a deeper understanding of renewable energy in general and rooftop solar power in particular.

The event attracted a large number of representatives from many manufacturing enterprises based in VSIP Hai Phong. They all expressed great concern about finding green solutions such as rooftop solar energy to reduce harm to the environment, fulfill customer’s demand for sustainable products as well as saving money on monthly energy cost in the current context of increasing electricity price. Click here to read the article .

Optimizing Energy Costs In The Context Of Rising Electricity Prices With Rooftop Solar Energy

Recently, Vietnam Electricity Group (EVN) has issued Decision No: 377/QD-EVN dated April 27, 2023 on adjusting the average retail electricity price with VND 1920.3732/kWh (excluding VAT) from May 4, 2023. This adjustment is equivalent to an increase of 3% compared to the current average retail electricity price.

The reason for this price increase is that EVN’s total cost of electricity production and business has continuously increased in the past two years, leading to a loss of more than VND 26,000 billion in production and business activities in 2022.

With the current situation of rising electricity prices, most manufacturing enterprises have to pay a large amount of electricity production costs, which directly affects their profits. Therefore, finding a solution to manage and save electricity costs is extremely necessary. Click here to read the article .