Vietnamese lawmakers approved the resolution on resumption of the nuclear power project in Ninh Thuan province. (Photo: National Assembly)
Vietnam's National Assembly has approved the revival of nuclear power on Nov. 30, with plans to develop nuclear energy to expand the use of low-carbon energy and achieve the national net-zero target by 2050.
Additionally, the National Assembly passed amendments to the Electricity Law to strengthen renewable energy regulation and make electricity pricing structures more equitable.
Vietnam reenters nuclear energy after 8-year pause
Vietnam had initially planned to build nuclear power plants in Ninh Thuan province, with two plants approved for construction in 2005. The initial investment was approximately 200 trillion VND (about 7.9 billion USD). However, due to insurmountable safety, funding, and technical issues, the project was suspended in 2016.
With Vietnam's commitment to achieving net-zero emissions by 2050, discussions on using nuclear energy have resurfaced, leading to the decision to restart the Ninh Thuan nuclear power plant project. The Vietnamese government stated that once the plan is approved, relevant departments will review and revise the national energy and electricity industry development strategy.
The authorities will also develop a nuclear power development plan, potentially expanding the construction of nuclear power plants, including not only traditional large-scale plants but also considering small and micro plants. According to a Vietnamese government report, 32 countries worldwide currently use nuclear power plants, and another 20 are considering using nuclear energy to meet energy needs and fulfill climate commitments.
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IAEA Director General Yukiya Amano visited a public display at the project management offices for the Ninh Thuan nuclear power plant during his official visit to Vietnam in 2014. (Photo: Wikimedia Commons)
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Electricity Law amendment to make electricity pricing equitable
On the same day as the decision to restart nuclear power, the National Assembly also passed amendments to the Electricity Law, updating energy policies across six major areas. These include strengthening regulations for solar and wind power and gradually reducing the occurrence of cross-subsidies in electricity pricing.
Currently, Vietnam's retail electricity prices follow a nationwide standard and are adjusted through a cross-subsidy mechanism to meet regional differences. However, this does not reflect actual costs, leading to situations where high-usage households bear the costs for low-usage households, household electricity rates are generally higher than those for businesses, and electricity prices in island areas are higher than in other regions.
With the new law, retail electricity rates will be adjusted based on the load characteristics of the power system to reflect actual consumption costs. Le Quang Huy, Chairman of the National Assembly's Committee on Science, Technology, and Environment, stated that considering the complexity of power industry restructuring and financial feasibility, it is unlikely that the cross-subsidy mechanism will be immediately abolished.
Regarding renewable energy regulation, the amended Electricity Law mentions a maximum price mechanism, where the winning bid price in electricity transactions is the upper limit negotiated between buyers and investors. The government will later establish more detailed regulations for electricity transactions. Additionally, in the wind power sector, offshore wind power project shares cannot be transferred until strict compliance standards are met.
Source: The Investor、VnEconomy(1)、(2)、VIR