Wind to speed up Vietnam’s clean energy investment
Two speakers from Vietnam at the Green Growth & Business Forum early June spoke of the country’s commitment to promote and facilitate investment in renewable energy – with wind energy, appearing having the greatest potential – and the announcement late May that French enterprises will provide Vietnam with the latest information on renewable energy development, the application of new technologies, the ability to transfer technology, and financial support. Read More
Green Growth and Business Forum: Vietnam Focus
Two speakers from Vietnam spoke at the Green Growth and Business Forum in Singapore on the country’s potential to grow clean energy and provide opportunities for investment in the sector.
Speaking on “Renewable energy for green growth implementation of Ministry of Industry and Trade (MOIT) of Vietnam was Hoang Van Tam, Head of Climate change Division, Industrial Safety Techniques and Environment Agency, MOIT
He presented the Government’s policy, strategy orientation and implementation plan, highlighting:
- Considering development of potential, available RE sources. In first stage focus on deployment of matured technologies with reasonable cost and subsidy levels suitably to conditions of the Country’s economy.
- Promoting, increasing share of RE in national energy balance, including energy production in general and electricity, thermal and fuels in particular.
- Priority for off-grid projects in electrification program in remote mountainous areas. Pay attention on RE development in areas where cost is lower than diesel or expansion of national power grid.
- Integrating RE development with improving social security, property alleviation.
- Integrating RE development with environmental protection, contributing in energy security and sustainable development.
He pointed out the potential for different energy generation from what is currently produced in Vietnam. Wind appears to have the greatest potential and while only 55 MW is currently produced, with current or planned projects, there is the opportunity to produce more than 3000 MW.
Bio gas and bio mass also have incredible potential in a current which is a major agricultural food producer. Bio gas has the potential for 2000 MW from the current 150 MW. While biomass is currently producing a mere 1.6 MW, but has the potential for much more.
He also made it clear his Government was committed to move from its fossil fuel dependence to encourage more renewable energy. He concluded by drawing attention to:
- Vietnam has a high potential to develop RE in general and biomass & waste power projects in particular on various scales.
- Government has an interest in RE development due to rapidly increasing power demand (ensuring of a sustainable socio-economic development).
- Government has recently shown its commitment to promote RE development through several incentives (taxation incentives, feed-in tariff, land use fee, environmental fee etc.).
- To support for investors, planning RE power at national and provinces are considered need.
Providing a Country Profile, including the Opportunities and Challenges to scaling up Renewable energy in Vietnam was Dr. Nguyen AnhTuan of the Institute of Energy Vietnam.
Unlike some other countries in Southeast Asia, Vietnam already has 98% of its population (87 million) connected to the grid. But from a low level currently, Vietnam intends to move strongly into renewable energy. It plans to increase the share of new and renewable energy in total commercial energy to 3% by 2010, 5% by 2020 and 11% by 2050.
It also plans to harmonize national environmental standards with international standards and by 2015 all energy production facilities shall comply with new environmental standards.
Vietnam also wants to improve rural energy and electricity access:
•Increase the percentage of rural households using commercial energy for cooking to 50% by 2010, to 80% by 2020
•Increase the percentage of rural households accessed to electricity to 95% by 2010, 100% electrification by 2020
Vietnam is fortunate that 47.5% of its current energy production comes from Hydro power, thereby maintaining a lower level of C)2 emissions from energy production that many other Asian countries. But is still has 22.3% of its energy coming from coal fired sources, so it plans to do more with new renewable energy investment and production.
Dr Nguyen summed up by saying:
Vietnam has high potential to develop RE projects on various scales and the Government has an interest in RE development due to rapidly increasing power demand for ensuring of a sustainable socio-economic development.
Government has recently shown its commitment to promote RE development through several incentives, but not strong enough to attract investors from inside and outside of the country.
Dr Nguyen believes a combination of intervention measures are necessary to address both economic and non-economic barriers. The choice of measures is country and technology specific, and depends on the current level of market diffusion of a given RE technology as well as the national context
•Integrated approach for supporting RE,
•Strong regulatory framework,
France helps Vietnam develop renewable energy
French enterprises will provide Vietnam with the latest information on renewable energy development, the application of new technologies, the ability to transfer technology, and financial support.
French Ambassador to Vietnam Jean Noel made the commitment at a conference in Hanoi on May 20, stressing that renewable energy is one of France’s priority cooperation areas for Vietnam.
“Energy cooperation is a key pillar in the Vietnam-France strategic partnership, and this area is expected to make great strides this year,” said the diplomat.
Vietnamese Deputy Minister of Industry and Trade Le Duong Quang said that although the country has potential for renewable energy development, the investment in the sector is still not commensurate with its strength.
He cited the low efficiency of renewable energy resources, alongside policy and technology application barriers, as the main reasons for limited investment.
According to Quang, Vietnam’s energy demand has increased by an average of 15 per cent per year over the last decade.
However, in the context of dwindling domestic fossil fuels, Vietnam depends more on world energy prices. It is forecast that the country will have to import coal to feed thermal power plants by 2015.
The exploitation of renewable energy sources including solar and wind is essential, contributing to ensuring national energy security and boosting sustainable development.