Research Project on Renewable Energy Economics, Kyoto University




TOP > ディスカッションペーパー > No.66 How can Vietnam upgrade its transmission grid system to absorb renewable energy?

No.66 How can Vietnam upgrade its transmission grid system to absorb renewable energy?

March 2024
Ph.D. Candidate, Graduate School of Economics, Kyoto University

This study examines the potential of Vietnam to enhance its power transmission grids with the aim of reducing curtailment issues and accommodating more solar and wind power. A literature review and semi-structured interviews were conducted with experts in the field. The findings suggest that there are several obstacles that Vietnam Electricity (EVN) and the National Power Transmission Corporation (NPT) must overcome to modernize their transmission grid systems to keep pace with power generation. While utilizing Official Development Assistance(ODA) as a component of public finance would be a suitable option for EVN and NPT to upgrade their transmission grids, as they have historically utilized ODA loans, finance from the Just Energy Transition Partnership (JETP) may also be a viable option. JETP's Resource Mobilization Plan focuses on enhancing sustainable transmission in specific locations to reduce curtailment and increase integration of renewable energy (RE) sources. Additionally, it is important to recognize that private sector participation in transmission systems can be categorized into two types: "backbone" transmission and “individual” transmission systems that connect power plants to the national grid. For the former, the Ministry of Industry and Trade (MOIT) should develop regulations based on the Electricity Law amendments, while the latter should be considered based on actual cases of the Xuan Thien Group and the Trungnam Group. Furthermore, the NPT's transmission tariff should be increased from 5% to 10% of the retail tariff for end consumers, to ensure that the NPT can meet its economic costs and investment needs.

Keywords:transmission grid system, private sector participation, investment, curtailment, renewable energy, Vietnam