Vietnam is facing difficulties in establishing mechanisms and policies for green transition, the Deputy PM said, noting that many investors have expressed interest in renewable energy projects but have yet to solve technology-related challenges concerning ensuring the balance and stability of the national power grid, producing and using green hydrogen and ammonia, energy storage solutions and electricity export.
Vietnam aims to address legal obstacles in the near future while simultaneously piloting offshore wind and solar power projects with energy storage solutions, and flexible power supply, he said.
The Deputy PM emphasised that Vietnam has built some energy transition projects such as enhancing capacity of hydropower plants in combination with solar and wind power, developing biomass electricity, transitioning to green transportation, reducing methane emissions on over 1 million hectares of rice fields and developing 5,000 MW of rooftop solar power, but financial support is required to carry them out soon.
Vietnam hopes to receive technical assistance and expertise in devising and perfecting institutions, transferring technology and assessing the feasibility of energy centres and offshore wind power, the official said.
He suggested that GFANZ establish clear financial mechanisms regarding the responsibilities of stakeholders, including Government, financial institutions and businesses, the specificity of funding sources for the renewable energy sector, and promptly materialise them through projects.
The Deputy PM also said that the alliance should have specific commitments relating to finance and technology transfer from G7 countries and international partners within the Joint Energy Transition Partnership (JETP).
Schapiro, for her part, said GFANZ will allocate financial resources for research, innovation, and technology transfer in the renewable energy sector.
She said she expects to receive clear requests and proposals from Vietnam's ministries and sectors regarding mechanisms for mobilising funds in the international market for enterprises investing in smart grid development, renewable energy, fossil energy transition, green fuel production from solar and offshore wind power.
