Difference between revisions of "Vietnam Energy Situation"

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= Introduction<br/> =
 
= Introduction<br/> =
  
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<span lang="en-gb"></span><span>During the last 25 years Viet Nam’s economic growth reached more than 6% each year. At the same time, the energy demand increased almost twice as fast as the GDP. Within an expected continuous increase of energy demand within the next years, Viet Nam’s energy sector will have to face many challenges, such as limited domestic fossil resources, air pollution and climate change, causing amongst other things water scarcity. Viet Nam has been ranked among the five countries, that will be most affected by climate change. Another issue is the unreliability of power supply, especially in rural areas. In order to face these challenges, legislative conditions have to be adopted and the framework conditions for investments have to be reformed in order to strengthen foreign investments and eventually stimulate the expansion of renewable energy generation capacity.</span><br/>
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During the last 25 years Viet Nam’s economic growth reached more than 6% each year. At the same time, the energy demand increased almost twice as fast as the GDP. With an expected continuous increase of energy demand in the next years, Viet Nam’s energy sector will have to face many challenges, such as limited domestic fossil ressources, air pollution and climate change, causing amongst other things water scarcity. Viet Nam has been ranked among the five countries, that will be most affected by climate change.<ref name="Dara (2012): Climate Vulnerability Monitor 2nd. http://daraint.org/climate-vulnerability-monitor/climate-vulnerability-monitor-2012/country-profile/?country=Vietnam">Dara (2012): Climate Vulnerability Monitor 2nd. http://daraint.org/climate-vulnerability-monitor/climate-vulnerability-monitor-2012/country-profile/?country=Vietnam</ref> Another issue is the country's unreliable power supply, especially in rural areas. In order to face these challenges, legislative conditions have to be adopted and the framework conditions for investments have to be reformed to strengthen foreign investments and eventually stimulate the expansion of renewable energy generation capacity.<br/>
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Further information about Viet Nam see: [[:Category:Vietnam|All articles about Viet Nam on energypedia]]<br/>
  
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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[[Vietnam Energy Situation#toc|►Go to Top]]<br/>
  
 
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= General Overview of Viet Nam's Energy Situation<br/> =
 
= General Overview of Viet Nam's Energy Situation<br/> =
  
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A reliable power supply is an important requirement for an emerging market like Viet Nam. By end of 2014, 34 GW generation capacity was installed in the country, producing around 146 TWh electricity. Assumptions of the Power Development Plan&nbsp;VII (PDPVII) predict an overall power demand increase by a factor of almost 2.4 in the next 5 years, reaching a demand of 350 TWh in 2020, with an installed capacity of 75 GW. According to the PDP, coal power plants will mainly contribute to the essential capacity expansion, replacing hydropower as primary resource for electricity generation.<br/>
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A reliable power supply is an important requirement for an emerging market like Viet Nam. By the end of 2014, 34 GW generation capacity was installed in the country, producing around 146 TWh electricity. Assumptions of the Power Development Plan&nbsp;VII (PDP VII) predict an overall power demand increase by a factor of almost 2.4 in the next 5 years, reaching a demand of 350 TWh in 2020, with an installed capacity of 75 GW. According to the PDP, coal power plants will mainly contribute to the essential capacity expansion,&nbsp;surpassing hydropower as primary resource for electricity generation.<br/>
  
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Currently, the power production is still dominated by hydropower with a share of 41% in electricity generation, followed by natural gas with 31% and coal with 26%. Due to limited domestic coal and gas resources, Viet Nam’s fossil import dependency will increase. Except from hydropower, markets for renewable energies such as for wind and solar power are in a very early stage of development. Knowledge and reliable information about project development or regulative processes is very limited. <ref>PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022 </ref><br/>
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Currently, the power production is still dominated by hydropower with a share of 41% in electricity generation, followed by natural gas with 31% and coal with 26%. Due to limited domestic coal and gas resources, Viet Nam’s fossil import dependency will increase. Except for hydropower, markets for renewable energies such as for wind and solar power are in a very early stage of development. Knowledge and reliable information about project development or regulative processes is very limited. <ref name="PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022">PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022 </ref><br/>
  
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[[File:Vietnams Power Generation Sources 2014 new.png|thumb|left|500px|Vietnams Power Generation Sources 2014 new.png]]<br/>
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'''Fig. 1: Electricity Production and Installed Capacity 2014 by Generation Technology'''<br/>
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
 
  
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[[File:Vietnams Power Generation Sources 2014 new.png|thumb|left|500px|alt=Vietnams Power Generation Sources 2014 new.png]]<br/>
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<div style="clear: both">[[Vietnam Energy Situation#toc|►Go to Top]]<br/></div>
 
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= Governance and Market Structure<br/> =
 
= Governance and Market Structure<br/> =
  
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The Vietnamese electricity market is monopolistic, dominated by the state-owned-enterprise EVN, which is supervised by the Ministry of Industry and Trade (MoIT). In the generation market, EVN is single-buyer and power transmission and distribution systems are exclusively operated by subsidiary companies of the utility. However, the goal of the government is to develop a competition-based generation, wholesale and retail market until 2023, in particular in order to attract private and foreign investments in the energy sector. The average electricity selling price has been continuously increasing in the last years, but with 1622 VND/kWh, incl. VAT,&nbsp;(7.5 USCent/kWh) it is still too low to finance overall electricity generation costs. As&nbsp;one result, EVN operated at a deficit of 790 million US$ in 2014.<ref>Vietnamnews.vn (2015): Viet Nam News. EVN reports loss $789.6 milion in 2014. Onlineartikel vom 14. Januar 2015 verfügbar unter: http://vietnamnews.vn/economy/265192/evn-reports-loss-of-7896-million-in-2014.html (zuletzt abgerufen am 4. April 2015).</ref><br/>
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The Vietnamese electricity market is monopolistic, dominated by the state-owned-enterprise EVN, which is supervised by the Ministry of Industry and Trade (MoIT). In the generation market, EVN is single-buyer and power transmission and distribution systems are exclusively operated by subsidiary companies of the utility. However, the goal of the government is to develop a competition-based generation, wholesale and retail market until 2023, in particular in order to attract private and foreign investments in the energy sector. The average electricity selling price continuously increased in the last years, but with 1622 VND/kWh (incl. VAT; approx. 7.5 USCent/kWh) it is still too low to finance overall electricity generation costs. EVN operated at a deficit of 790 million US$ in 2014.<ref name="Vietnamnews.vn (2015): Viet Nam News. EVN reports loss $789.6 milion in 2014. Onlineartikel vom 14. Januar 2015 verfügbar unter: http://vietnamnews.vn/economy/265192/evn-reports-loss-of-7896-million-in-2014.html (zuletzt abgerufen am 4. April 2015).">Vietnamnews.vn (2015): Viet Nam News. EVN reports loss $789.6 milion in 2014. Onlineartikel vom 14. Januar 2015 verfügbar unter: http://vietnamnews.vn/economy/265192/evn-reports-loss-of-7896-million-in-2014.html (zuletzt abgerufen am 4. April 2015).</ref><br/>
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[[File:Vietnam Power Market Actors 2014.png|thumb|left|600x802px]]<br/>
 
  
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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'''Fig. 2: Institutional Framework of the Electricity Sector'''<br/>
  
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[[File:Vietnam Power Market Actors 2014.png|thumb|left|500px|alt=Vietnam Power Market Actors 2014.png]]<br/>
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= Renewable Energies in Viet Nam<br/> =
 
= Renewable Energies in Viet Nam<br/> =
  
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<span>In 2014, renewable energies contributed with 41% to Viet Nam’s electricity demand, but this share was almost exclusively accounted for by hydropower. According to the MoIT Small Hydropower (SHP) can still be expanded, but in general Viet Nam’s hydropower potential is nearly exploited. In contrast, wind, solar and biomass expansion potentials are high and to a great extent untapped. In the revised PDP, expansion targets for renewable energy generation capacities are set until 2030, as shown in the figure below.</span><ref>PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022 </ref><br/>
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<span>In 2014, renewable energies (including hydropower)&nbsp;contributed with 41% to Viet Nam’s electricity demand, but this share was almost exclusively accounted for by hydropower. According to the MoIT Small Hydropower (SHP) can still be expanded, but in general Viet Nam’s hydropower potential is nearly exploited. In contrast, wind, solar and biomass expansion potentials are high and to a great extent untapped. In the&nbsp;PDP VII, expansion targets for renewable energy generation capacities are set until 2030 as shown in the figure below.</span><ref name="PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022">PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022 </ref><br/>
  
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[[File:Vietnam Power Source Capacity Targets 2014.png|thumb|left|800x923px|Vietnam Power Source Capacity Targets 2014.png]]<br/>
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'''Fig. 3: Renewables Capacity Targets until 2030 (according to PDP VII)'''<br/>
  
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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[[File:Vietnam Power Source Capacity Targets 2014 new.png|thumb|left|500px|Vietnam Power Source Capacity Targets 2014 new.png]]<br/>
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The government also has incentives for solar projects until mid 2019 and for wind project up to 2021. Vietnam aims to have solar and wind instablled capacity of 0.8MW and 0.85MW respectively by 2020. However, a total of 2.8GW wind and 10GW solar power plants have already been approved until February 2019.
  
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== Wind Power<br/> ==
 
  
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<span>Although potential for wind power development in Vietnam is high, only 52 MW have been put into operation up until now. While many projects are in the planning phase, they face substantial market barriers, such as deficient wind measurement data reliability and a low feed-in-tariff for wind energy of only 7.8 Ct/kWh.</span><br/>
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[[Vietnam Energy Situation#toc|►Go to Top]]<br/>
  
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[[File:Vietnam Wind Power Deployment Obstacles 2014.jpg|thumb|left|800px]]<br/>
 
  
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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== Wind Power<br/> ==
  
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Although potential for wind power development in Vietnam is high, only 190 MW have been put into operation up until now. While many projects are in the planning phase, they face substantial market barriers, such as deficient wind measurement data reliability and a low feed-in-tariff for wind energy of only 7.8 Ct/kWh. On September 2018, Vietnam increase the FIT from 7.8 to 8.5 US cents/kWh for onshore, and 9.8 US cents/kWh for offshore wind power projects, according to Decision No.39/2018/QD-TTg. The FIT is implement from 1 Nov 2018 and will be valid for 20 years from the commencement of the wind projects. The wind power that commenced operation before 1 Nov 2018 will be able to apply for this new tariff for the remaining period of their Power Purchase Agreement (PPA).<ref> https://www.vietnam-briefing.com/news/vietnam-increases-feed-in-tariffs-for-wind-projects.html/</ref>
  
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== Biomass Power<br/> ==
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Further information are provided on [[Wind Energy Country Analysis Vietnam|Wind Energy Country Analysis Vietnam]]. [[Vietnam Energy Situation#toc|►Go to Top]]<br/>
  
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<span>According to PDP7 a bioenergy generation capacity of 500 MW will be installed&nbsp;until 2020. The largest regional feedstock potential is located in the Mekong delta region. Feed-in tariffs for electricity co-generation and municipal-solid-waste projects are already established, but projects are&nbsp;mostly in an early planning phase.&nbsp;It is assumed that the support mechanism and framework&nbsp;have to be adopted and expanded&nbsp;on further applications and feedstock in order to strenghen biomass power deployment in Viet Nam.</span><br/>
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[[File:Vietnam Biomass Power Potential 2010.png|thumb|left|600px]]<br/>
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== Bioenergy<br/> ==
  
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== Solar Power<br/> ==
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According to the PDP7 a bioenergy generation capacity of 500 MW will be installed&nbsp;until 2020. The largest regional feedstock potential is located in the Mekong delta region. Feed-in tariffs for electricity co-generation and municipal-solid-waste projects are already established, but projects are&nbsp;mostly in an early planning phase.&nbsp;It is assumed that the support mechanism and framework conditions have to be adopted and expanded&nbsp;on further applications and feedstock in order to strengthen biomass power deployment in Viet Nam.<br/>
  
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<span>In general, Viet Nam can be considered as a country with high solar energy potential. The solar resources are comparable to countries like Italy, Spain, and California or – staying in the region – China or Thailand. According to a very recent mapping project by a Spanish research consortium estimations of overall solar resources in Viet Nam show an average GHI of 4-5 kWh/m<sup>2</sup>/day in most regions of southern, central and partially even northern Viet Nam (corresponding to 1,460-1,825 Wh/m<sup>2</sup>/year) and peak irradiation levels of up to 5.5 kWh/m<sup>2</sup>/day on average in some southern regions (corresponding to about 2,000 kWh/m<sup>2</sup>/year).</span><ref>Solar Bild</ref><br/>
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'''Fig. 5: Theoretical Potential of Power from Biomass in Viet Nam'''<br/>
  
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[[File:Vietnam Solar Irradiation Map 2015.jpg|thumb|left|600px]]<br/>
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[[File:Vietnam Biomass Power Potential 2010.png|thumb|left|500px|alt=Vietnam Biomass Power Potential 2010.png]]<br/>
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<div style="clear: both">[[Vietnam Energy Situation#toc|►Go to Top]]<br/></div>
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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== Solar Power<br/> ==
  
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=== Technologies and Applications<br/> ===
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In general, Viet Nam can be considered as a country with high solar energy potential. The solar resources are comparable to countries like Italy, Spain, and California or – staying in the region – China or Thailand. However, the current Vietnamese solar PV market is estimated to be only around 5 MWp, with 80% off-grid applications in rural areas.<br/>
  
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The Vietnamese solar PV market is currently very small with only around 4.5 MWp installed capacity at the end of 2014. Around 80% of that capacity was deployed off-grid and 20% is grid-connected. For off-grid uses, applications can be divided into two main categories. First, there are small-scale applications for domestic (lighting, home appliances etc.) or non-domestic (telecommunication, BTU etc.) uses. And second, there are larger PV off-grid systems that either include additional infrastructure for local power distribution or management (mini-grids) or additional sources of power such as diesel generators or wind turbines (hybrid systems). The former can be subdivided into Pico PV applications such as solar lanterns or solar battery chargers, Solar Home Systems (SHS) for mostly domestic appliances and larger stand-alone PV systems for mostly institutional uses such as community or medical centers. Power capacities of these systems range from less than 1 Wp for Pico PV applications to 1 kWp and more for larger stand-alone systems. Regarding larger-scale off-grid applications there are different technologies and system configurations in operation including stand-alone off-grid PV systems, hybrid systems (PV with diesel, wind and/or batteries) and PV mini-grids with a substantial part of grid infrastructure included.<br/>
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Solar energy is not yet integrated into political energy development strategies, such as the national Power Development Plan (PDP). However, solar energy will possibly be included in the revision of the PDP VII. According to press releases, larger ground-mounted PV systems are under development.<br/>
  
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Grid-connected systems are mainly based on crystalline-cell module types of different sizes. They can be clustered in residential PV rooftop units (approx. 1-50 kWp), commercial/industrial PV rooftop units (>40kWp) and ground-mounted PV systems. Almost all grid-connected systems are in inception phase and projects are usually for demonstration or pilot purposes. The main market barrier seems to be the low electricity tariff.<br/>
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Further information are provided on [[Solar Energy Country Analysis Vietnam|Solar Energy Country Analysis Vietnam]].<br/>
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<div style="clear: both">[[Vietnam Energy Situation#toc|►Go to Top]]<br/></div>
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Following the available data, roughly 60-70% of the off-grid installed capacity in Viet Nam is dominated by smaller applications such as Solar Home Systems (SHS), small base transceiver stations for telecommunications (BTS), solar public lighting systems and likewise applications. Around 30-40% of off-grid installations are bigger systems such as solar local network stations and off-grid hybrid systems in remote areas or on islands.<br/>
 
  
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= Transmission and Distribution System<br/> =
  
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=== Current Policy and Remuneration Scheme<br/> ===
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The national transmission and distribution grid has to be extended in synchronization with increasing power demand and generation capacity in order to reduce power outages, losses and increase the quality of supply. During the period of 2014-2020 an investment volume of around 12.4 billion US$ is estimated to be needed for expansion. Viet Nam’s rural electrification rate was 97.3% by the end of 2013. The government aims at 100% by 2020. According to the PDP 7 Viet Nam wants to implement a cooperation and connectivity program with neighbouring countries and Mekong sub-region power grids. High voltage line connections with Laos, Cambodia and China already exist.<br/>
  
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Currently there are no solar PV development targets implemented within the relevant energy strategies such as the Master Plan for Power Development. The PDP VII from 2011 is currently under revision and expected to be finalized and published until mid of 2015. A first draft became public end of October 2014 showing raised targets for renewable energies in general and, for the first time, a specific target for solar PV.<br/>
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In terms of power reliability Viet Nam is currently ranked 113 out of 144 countries.<ref name="World Economic Forum (2012); The Global Competitiveness Report 2012-2013, Geneva. http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf">World Economic Forum (2012); The Global Competitiveness Report 2012-2013, Geneva. http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf</ref> In rural areas, power shortages and blackouts, lasting longer than 5 min occurred around 20 times per year in 2013.<ref name="Asian Development Bank (2014); Sector Assessment (Summary): Energy. http://www.adb.org/sites/default/files/linked-documents/46391-001-ssa.pdf">Asian Development Bank (2014); Sector Assessment (Summary): Energy. http://www.adb.org/sites/default/files/linked-documents/46391-001-ssa.pdf</ref><br/>
  
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According to this draft, solar PV capacities are supposed to increase to around 7 MWp until 2020 and 1,500 MWp until 2030 with a respective share in renewable power generation capacity of 1.2% (by 2020) and 12.8% (by 2030).<br/>
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[[Vietnam Energy Situation#toc|►Go to Top]]<br/>
  
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'''Policy Framework for PV On-Grid Applications'''<br/>Currently, there has not been any specific regulation for solar PV implemented so far. This applies in particular to the following aspects of the regulatory energy framework:<br/>
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= Legal Documents<br/> =
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*There are '''no financial incentives''' (such as Feed-in-Tariffs or net-metering schemes) to promote the deployment of solar PV. PV is not yet included in the existing FIT scheme for renewable energies.
 
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*There is '''no standardized interconnection code''' (grid code) for PV systems. However, an ongoing project involving EVN, the energy authorities of Da Nang City and the International Copper Association Southeast Asia (ICA-SEA) has now made first steps in this direction and developed a proposal for an interconnection standard for PV as well as a general net-metering scheme.
 
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*There is '''no effective regulation on the sale of excess solar electricity''' generated by private or commercial PV systems. As interviews and consultations with private sector stakeholders have shown, this constitutes a significant barrier to investments in commercial PV applications.
 
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*There are some'''tax-related incentives''' in place that can be applied to renewable energy investments and technologies in general, such as an import tax exemption, a corporate tax exemption and an environmental protection fee exemption. It is yet unclear whether these incentives can also be applied to solar energy applications.<br/>
 
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*Furthermore, there are '''incentives for infrastructure and land use''' regarding investments in major power stations that could also be applied to solar energy investments. In addition, the local People’s Committees are responsible for providing available land to wind power projects.<br/>
 
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'''Policy Framework for PV Off-Grid and Rural Electrification'''
 
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The prospects of further PV off-grid development in Viet Nam are mainly framed by the national electrification strategy and related political targets and measures. This strategy has its main foundation in the Power Development Plan (PDP), which indicates the strategy to develop and create rural power until 2020. Here government stimulates EVN to develop the national power grid to supply power to 100% households by 2020.
 
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The second rural electrification project (REPII) is providing funds for this process. The objective of the REPII, which became effective in 2005, is to improve access to good, affordable electricity services to rural communities in an efficient and sustainable manner, financed with a US$200 million IDA credit and US$5.25 million GEF grant, the project included a major upgrading and expansion of rural power networks in about 1,200 communes, the conversion of the existing ad hoc local electricity management systems to the local distribution utilities (LDUs) as legal entities recognized under Vietnamese law, to improve management of power distribution in rural areas and capacity building assistance for LDUs, provincial authorities, participating regional PCs, and national authorities involved in the planning and regulation of rural electrification. Additional financing for the Second Rural Electrification Project (US$200 million IDA credit) was approved in May 2009 and is supposed to increase the outcome to 1,500 communes with 1.5 million households.<ref>(see USAID/Winrock/SVN 2014).</ref><br/>
 
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=== Solar Resource Potential and Data Bases<br/> ===
 
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The most up-to-date and scientifically comprehensive estimation of solar resources in Viet Nam was undertaken by a Spanish research consortium led by the Spanish Research Centre for Energy, Environment and Technology, CIEMAT, with support of the Spanish government and in collaboration with the Vietnamese Ministry of Industry and Trade. As a result of these efforts very detailed maps of solar resources in Viet Nam are now available for policy makers, investors and researchers.<ref> (CIEMAT et al. 2015)</ref>&nbsp;The data is supposed to be published by MoIT in 2015 ([http://www.moit.gov.vn/en/Pages/default.aspx <u>http://www.moit.gov.vn/en/Pages/default.aspx</u>]).<br/>
 
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Since there is no publicly accessible database on solar PV projects, available information on existing projects are based on individual private or institutional monitoring efforts. The most comprehensive overview has been published by Mr Thrinh Quang Dung, former director of the Solar Laboratory of the Institute of Physics in Ho Chi Minh City (Solarlab) under the Vietnamese Academy of Science and Technology (VAST). The following project overviews are mainly based on his publications.<ref> (see e.g. Dung 2015).</ref><br/>
 
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=== Existing&nbsp;Solar Projects<br/> ===
 
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By the end of 2014, roughly 15,000 small scale PV off-grid applications with a total capacity of 3,600 kWp, the vast majority being <200 Wp of size only a few with more than 1kWp, have been installed in Viet Nam. Of those, around 5,000 were solar home systems (SHS) with a size of 20-200Wp, 2,100 were telecommunication and BTS systems (300-4,000 Wp) and more than 1,000 were small size PV systems for public use such as in community centers, schools or medical centers (up to 3,000 Wp), which were deployed in rural and mountainous areas or on islands. Furthermore, around 5,000 solar signal lights (20-100 Wp) and 2,000 public lighting systems (50-250 Wp) were installed alongside streets and highways throughout the country.<br/>
 
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There are also a number of larger-scale PV off-grid systems in operation, including hybrid systems (PV-wind, PV-diesel, PV-wind-diesel) that often include grid and grid management infrastructure as well (mini grids). There is for example one project in Bai Huong village on Cu Lao Cham island (28 kWp PV plus 20 kW diesel generator) and one at Mang Yang in central highland Gia Lai province with 100 kWp PV combined with a 24 kWp mini hydro plant. Further projects are in development for several islands including PV-wind hybrid systems. In addition to these hybrid systems installed in the rural areas of Viet Nam’s mountain regions, there have been more than 50 PV hybrid projects realized on islands and naval outposts. All of these projects were put into operation together with EVN and the Vietnamese Navy as the main investors and off-takers for the energy provided by the systems.
 
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The grid-connected share of installed capacity is dominated by a rather small number of bigger roof-top systems such as the installations of Intel Corporation (220 kWp), Big C (200 kWp), the National Conference Hall in Hanoi (154 kWp), the UNDP building in Hanoi (119 kWp) or the new National Assembly in Hanoi (50 kWp). So far, there are no larger ground-mounted PV systems in operation yet. However, there have been some announcements for investments in utility size PV power plants very recently. Following media reports from January 2015, there is 30 MWp PV plant under development and planned to be grid-connected in Quang Ngai province by end of this year. The investment of 60 million USD is supposed to be made by a joint-stock company. Another announcement relates to a planned 100 MWp PV plant in central Viet Nams Quang Nam province. Following media reports from March 2015, a Russian energy company with Singaporean and Vietnamese investment partners is planning to invest 140 million USD but negotiations with EVN about “market prices” are still ongoing.<br/>
 
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=== Further Readings ===
 
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'''Publication of Solar Resource Potential Maps for Vietnam''' Results of a study analysing the solar radiation and solar energy potential in Vietnam, conducted by a consortium of CIEMAT, CENER and IDAE with support of AECID and MOIT. [http://www.tcnl.gov.vn/userfile/files/Maps http://www.tcnl.gov.vn/userfile/files/Maps of Solar Resource and Potential in Vietnam REPORT FOR PUBLISHING.pdf]
 
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==== Activities and Events ====
 
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===== '''CSO workshop Hanoi'''<br/>Sharing the same goals on sustainable energy development in Vietnam in the near future, WWF and VSEA jointly organize a Workshop that ''aims to share information of action plans of WWF and VSEA in sustainable energy sector and consult partners and experts about the plan of promoting the development of sustainable energy in Vietnam.''<br/> =====
 
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'''Date:''' 8:30 – 17:30, 11 February 2015<br/>'''Venue: '''Crowne Plaza West Hanoi - 36 Le Duc Tho Street, My Dinh Commune, Tu Liem District, Hanoi, Vietnam<br/>
 
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'''RENAC Training - “Planning grid-connected PV projects”'''<br/>
 
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The 3-day seminar “Project planning of grid-connected PV” offers its participants the opportunity to learn about important aspects for successfully planning large PV projects. Participants will be guided through the four steps of a PV project: project development, planning & engineering, construction as well as operation & maintenance. Experts in the field will explain participants the main pitfalls and risks and explain how to recognise and avoid them.<br/>'''Date and Place''': 22 – 24 April 2015, Hanoi '''Website and Application:''' [http://www.renac.de/en/current-projects/capreg.html http://www.renac.de/en/current-projects/capreg.html]<br/>
 
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= Transmission and Distribution System<br/> =
 
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The national transmission and distribution grid has to be extended in synchronization with increasing power demand and generation capacity in order to reduce power outages, losses and increase the quality of supply. During the period of 2014-2020 an investment volume of around 12.4 billion US$ is estimated to be needed. Viet Nam’s rural electrification rate was 97.3% by the end of 2013. Thus, it is another governmental target to reach 100% by 2020. Furthermore, In PDP 7 it is also stated to strive for an implementation of a cooperation and connectivity program with ASIAN and Mekong sub-region power grids. High voltage line connections with Laos, Cambodia and China already exist.
 
  
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In terms of power reliability Viet Nam is currently ranked 113 out of 144 countries. In rural areas, power shortages and blackouts, lasting longer than 5 min occurred around 20 times per year in 2013.<ref>Rank</ref><br/>
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There are a number of legal documents relevant for the implementation of Renewable Energy projects in Viet Nam. Some of these documents are listed below:<br/>
  
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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'''The Prime Minister’s Decision No. 1208/QD-TT''', Approving The National Master Plan for Power Development in The 2011-2020 Period, With Considerations to 2030, Legal Document, Hanoi, 21 July 2011
  
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= Legal Documents<br/> =
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'''The Prime Minister’s Decision No. 63/2013/QD-TTg,''' Providing for the roadmaps, conditions and structure and level of electricity market in Vietnam, Legal Document, Hanoi, 8 November 2011
  
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In Viet Nam there are a number of different legal documents relating Renewable Energies from hierarchical very different legal bodies. Laws, ordinances, decrees, orders, government decisions, circulars, guidelines and ministerial decisions respectively have different impacts on the regulative environment. Some of those documents, relating Renewable Energies in Viet Nam are listed below:<br/>
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'''The Prime Minister‘s Decision No. 37/2011/QD-TTg''', The Mechanism Supporting the Development of Wind Project in Vietnam, Legal Document, Hanoi, 29 June 2011.<br/>
  
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'''The Ministry of Industry and Trade‘s Circular No. 06/2013/TT-BCT''', Regulation on Content, Order, Procedures for Formulation, Appraising and Approving Wind Power Development Planning, Legal Document, Hanoi, 08 March 2013
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'''The Ministry of Industry and Trade‘s Circular No. 06/2013/TT-BCT''', Regulation on Content, Order, Procedures for Formulation, Appraising and Approving Wind Power Development Planning, Legal Document, Hanoi, 08 March 2013<br/>
  
 
'''The Government‘s Decision No. 24/2014/QD-TTg''', On Support Mechanism for Development of Biomass Power Projects in Vietnam, Legal Document, Hanoi, 24 March 2014
 
'''The Government‘s Decision No. 24/2014/QD-TTg''', On Support Mechanism for Development of Biomass Power Projects in Vietnam, Legal Document, Hanoi, 24 March 2014
Line 161: Line 113:
 
'''The Ministry of Industry and Trade‘s Circular No. 31/2011/TT-BCT''', Providing for The Adjustment of Electricity Sale Prices According to Basic Input Parameters, Legal Document, Hanoi, 24 March 2014<br/>
 
'''The Ministry of Industry and Trade‘s Circular No. 31/2011/TT-BCT''', Providing for The Adjustment of Electricity Sale Prices According to Basic Input Parameters, Legal Document, Hanoi, 24 March 2014<br/>
  
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[[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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[[Vietnam Energy Situation#toc|►Go to Top]]
  
 
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= Further Information =
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<br/>
  
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*[[Portal:Countries|Country portal on energypedia]]
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= Events<br/> =
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<div>'''TÜV SÜD Vietnam - Wind Energy Workshop – Status, Forecast, Challenges and its Relevance to Vietnam'''<br/>'''Date''': 2nd&nbsp; June 2015<br/>'''Venue''': The Vissai Saigon Hotel, 144 Nguyen Van Troi Street, Ward 8, Phu Nhuan District, Ho Chi Minh City<br/>'''Application''': by 29th May 2015 to [mailto:loi.dang@tuv-sud.vn loi.dang@tuv-sud.vn]<br/></div>
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'''Wind energy in Vietnam – New chances by a new feed-in-tariff'''<br/>'''Date''': Tuesday 30th July 2015<br/>'''Venue''': GIZ-Repräsentanz, Reichpietschufer 20, 10785 Berlin, Germany<br/>'''Application''': by16th july by email to pep-suedostasien@giz.de<br/>The event located in Berlin (Germany) is addressing framework conditions and project possibilities for wind energy in Vietnam.<br/>The participation is for free. Event language will be German, English and Vietnamese (simultaneous translation).<br/>
  
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= Further Information<br/> =
  
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*[[Wind Energy Country Analysis Vietnam|Wind Energy Country Analysis Vietnam]]<span dir="auto"></span>
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*[[Solar Energy Country Analysis Vietnam|Solar Energy Country Analysis Vietnam]]
  
 
= References<br/> =
 
= References<br/> =
  
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'''AWS Truepower (2011)'''. Wind resource atlas of Vietnam. 463 New Karner road, Albany New York 12205<br/>
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<references /><br/>
  
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'''IEA (International Energy Agency), Renewable Energy Division (2013).''' Investment in Renewable Energy. Authors: Waldron M., Babar H..
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'''IRENA (International Renewable Energy Agency), 2012.''' Renewable Energy Technologies: Cost Analysis Series: Wind Power.
 
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'''WE Council (World Energy Council); BNEF (Bloomberg Energy Finance) (2013)'''. World Energy Perspective. Cost of Energy Technologies.<br/>
 
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'''World Bank (2012).''' Financing Renewable Energy: Options for Developing Financing Instruments Using Public Funds. Website, URL: [http://www-esd.worldbank.org/refine/index.cfm?Page=knowledge_center <u><font color="#0066cc">http://www-esd.worldbank.org/refine/index.cfm?Page=knowledge_center</font></u>], last access 18.06.2014.<br/>
 
  
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<references /> [[Vietnam_Energy_Situation#toc|►Go to Top]]<br/>
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[[Category:Vietnam]]
 
 
[[Category:East_Asia_and_Pacific]]
 
[[Category:East_Asia_and_Pacific]]
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[[Category:Country_Energy_Situation]]
 

Latest revision as of 14:00, 25 March 2019


Vietnam
Flag of Vietnam.png
Location _______.png

Capital:

Hanoi

Region:

Coordinates:

21.0333° N, 105.8500° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

331,340

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

98,858,950 (2023)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

61 (2023)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

429,716,969,050 (2023)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

4,346.77 (2023)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

100.00 (2022)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

-15.11 (2013)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

69.82 (2013)

Source: World Bank


Introduction

During the last 25 years Viet Nam’s economic growth reached more than 6% each year. At the same time, the energy demand increased almost twice as fast as the GDP. With an expected continuous increase of energy demand in the next years, Viet Nam’s energy sector will have to face many challenges, such as limited domestic fossil ressources, air pollution and climate change, causing amongst other things water scarcity. Viet Nam has been ranked among the five countries, that will be most affected by climate change.[1] Another issue is the country's unreliable power supply, especially in rural areas. In order to face these challenges, legislative conditions have to be adopted and the framework conditions for investments have to be reformed to strengthen foreign investments and eventually stimulate the expansion of renewable energy generation capacity.

Further information about Viet Nam see: All articles about Viet Nam on energypedia

►Go to Top



General Overview of Viet Nam's Energy Situation

A reliable power supply is an important requirement for an emerging market like Viet Nam. By the end of 2014, 34 GW generation capacity was installed in the country, producing around 146 TWh electricity. Assumptions of the Power Development Plan VII (PDP VII) predict an overall power demand increase by a factor of almost 2.4 in the next 5 years, reaching a demand of 350 TWh in 2020, with an installed capacity of 75 GW. According to the PDP, coal power plants will mainly contribute to the essential capacity expansion, surpassing hydropower as primary resource for electricity generation.

Currently, the power production is still dominated by hydropower with a share of 41% in electricity generation, followed by natural gas with 31% and coal with 26%. Due to limited domestic coal and gas resources, Viet Nam’s fossil import dependency will increase. Except for hydropower, markets for renewable energies such as for wind and solar power are in a very early stage of development. Knowledge and reliable information about project development or regulative processes is very limited. [2]

Fig. 1: Electricity Production and Installed Capacity 2014 by Generation Technology

Vietnams Power Generation Sources 2014 new.png



Governance and Market Structure

The Vietnamese electricity market is monopolistic, dominated by the state-owned-enterprise EVN, which is supervised by the Ministry of Industry and Trade (MoIT). In the generation market, EVN is single-buyer and power transmission and distribution systems are exclusively operated by subsidiary companies of the utility. However, the goal of the government is to develop a competition-based generation, wholesale and retail market until 2023, in particular in order to attract private and foreign investments in the energy sector. The average electricity selling price continuously increased in the last years, but with 1622 VND/kWh (incl. VAT; approx. 7.5 USCent/kWh) it is still too low to finance overall electricity generation costs. EVN operated at a deficit of 790 million US$ in 2014.[3]

Fig. 2: Institutional Framework of the Electricity Sector

Vietnam Power Market Actors 2014.png




Renewable Energies in Viet Nam

In 2014, renewable energies (including hydropower) contributed with 41% to Viet Nam’s electricity demand, but this share was almost exclusively accounted for by hydropower. According to the MoIT Small Hydropower (SHP) can still be expanded, but in general Viet Nam’s hydropower potential is nearly exploited. In contrast, wind, solar and biomass expansion potentials are high and to a great extent untapped. In the PDP VII, expansion targets for renewable energy generation capacities are set until 2030 as shown in the figure below.[2]

Fig. 3: Renewables Capacity Targets until 2030 (according to PDP VII)

Vietnam Power Source Capacity Targets 2014 new.png



The government also has incentives for solar projects until mid 2019 and for wind project up to 2021. Vietnam aims to have solar and wind instablled capacity of 0.8MW and 0.85MW respectively by 2020. However, a total of 2.8GW wind and 10GW solar power plants have already been approved until February 2019.


►Go to Top


Wind Power

Although potential for wind power development in Vietnam is high, only 190 MW have been put into operation up until now. While many projects are in the planning phase, they face substantial market barriers, such as deficient wind measurement data reliability and a low feed-in-tariff for wind energy of only 7.8 Ct/kWh. On September 2018, Vietnam increase the FIT from 7.8 to 8.5 US cents/kWh for onshore, and 9.8 US cents/kWh for offshore wind power projects, according to Decision No.39/2018/QD-TTg. The FIT is implement from 1 Nov 2018 and will be valid for 20 years from the commencement of the wind projects. The wind power that commenced operation before 1 Nov 2018 will be able to apply for this new tariff for the remaining period of their Power Purchase Agreement (PPA).[4]

Further information are provided on Wind Energy Country Analysis Vietnam. ►Go to Top




Bioenergy

According to the PDP7 a bioenergy generation capacity of 500 MW will be installed until 2020. The largest regional feedstock potential is located in the Mekong delta region. Feed-in tariffs for electricity co-generation and municipal-solid-waste projects are already established, but projects are mostly in an early planning phase. It is assumed that the support mechanism and framework conditions have to be adopted and expanded on further applications and feedstock in order to strengthen biomass power deployment in Viet Nam.

Fig. 5: Theoretical Potential of Power from Biomass in Viet Nam

Vietnam Biomass Power Potential 2010.png



Solar Power

In general, Viet Nam can be considered as a country with high solar energy potential. The solar resources are comparable to countries like Italy, Spain, and California or – staying in the region – China or Thailand. However, the current Vietnamese solar PV market is estimated to be only around 5 MWp, with 80% off-grid applications in rural areas.

Solar energy is not yet integrated into political energy development strategies, such as the national Power Development Plan (PDP). However, solar energy will possibly be included in the revision of the PDP VII. According to press releases, larger ground-mounted PV systems are under development.

Further information are provided on Solar Energy Country Analysis Vietnam.



Transmission and Distribution System

The national transmission and distribution grid has to be extended in synchronization with increasing power demand and generation capacity in order to reduce power outages, losses and increase the quality of supply. During the period of 2014-2020 an investment volume of around 12.4 billion US$ is estimated to be needed for expansion. Viet Nam’s rural electrification rate was 97.3% by the end of 2013. The government aims at 100% by 2020. According to the PDP 7 Viet Nam wants to implement a cooperation and connectivity program with neighbouring countries and Mekong sub-region power grids. High voltage line connections with Laos, Cambodia and China already exist.

In terms of power reliability Viet Nam is currently ranked 113 out of 144 countries.[5] In rural areas, power shortages and blackouts, lasting longer than 5 min occurred around 20 times per year in 2013.[6]

►Go to Top

Legal Documents

There are a number of legal documents relevant for the implementation of Renewable Energy projects in Viet Nam. Some of these documents are listed below:

The Prime Minister’s Decision No. 1208/QD-TT, Approving The National Master Plan for Power Development in The 2011-2020 Period, With Considerations to 2030, Legal Document, Hanoi, 21 July 2011

The Prime Minister’s Decision No. 63/2013/QD-TTg, Providing for the roadmaps, conditions and structure and level of electricity market in Vietnam, Legal Document, Hanoi, 8 November 2011

The Prime Minister‘s Decision No. 37/2011/QD-TTg, The Mechanism Supporting the Development of Wind Project in Vietnam, Legal Document, Hanoi, 29 June 2011.

The Ministry of Industry and Trade‘s Circular No. 06/2013/TT-BCT, Regulation on Content, Order, Procedures for Formulation, Appraising and Approving Wind Power Development Planning, Legal Document, Hanoi, 08 March 2013

The Government‘s Decision No. 24/2014/QD-TTg, On Support Mechanism for Development of Biomass Power Projects in Vietnam, Legal Document, Hanoi, 24 March 2014

The Ministry of Industry and Trade‘s Circular No. 31/2011/TT-BCT, Providing for The Adjustment of Electricity Sale Prices According to Basic Input Parameters, Legal Document, Hanoi, 24 March 2014

►Go to Top



Events

TÜV SÜD Vietnam - Wind Energy Workshop – Status, Forecast, Challenges and its Relevance to Vietnam
Date: 2nd  June 2015
Venue: The Vissai Saigon Hotel, 144 Nguyen Van Troi Street, Ward 8, Phu Nhuan District, Ho Chi Minh City
Application: by 29th May 2015 to loi.dang@tuv-sud.vn

Wind energy in Vietnam – New chances by a new feed-in-tariff
Date: Tuesday 30th July 2015
Venue: GIZ-Repräsentanz, Reichpietschufer 20, 10785 Berlin, Germany
Application: by16th july by email to pep-suedostasien@giz.de
The event located in Berlin (Germany) is addressing framework conditions and project possibilities for wind energy in Vietnam.
The participation is for free. Event language will be German, English and Vietnamese (simultaneous translation).

Further Information

References

  1. ↑ Dara (2012): Climate Vulnerability Monitor 2nd. http://daraint.org/climate-vulnerability-monitor/climate-vulnerability-monitor-2012/country-profile/?country=Vietnam
  2. ↑ 2.0 2.1 PDP VII: Prime Minister decision No. 1208/QD-TTg. http://www.nti.org/media/pdfs/VietnamPowerDevelopmentPlan2030.pdf?_=1333146022
  3. ↑ Vietnamnews.vn (2015): Viet Nam News. EVN reports loss $789.6 milion in 2014. Onlineartikel vom 14. Januar 2015 verfügbar unter: http://vietnamnews.vn/economy/265192/evn-reports-loss-of-7896-million-in-2014.html (zuletzt abgerufen am 4. April 2015).
  4. ↑ https://www.vietnam-briefing.com/news/vietnam-increases-feed-in-tariffs-for-wind-projects.html/
  5. ↑ World Economic Forum (2012); The Global Competitiveness Report 2012-2013, Geneva. http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf
  6. ↑ Asian Development Bank (2014); Sector Assessment (Summary): Energy. http://www.adb.org/sites/default/files/linked-documents/46391-001-ssa.pdf



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