RENEWABLE ENERGY AND WIND ENERGY DEVELOPMENT IN VIETNAM

RENEWABLE ENERGY AND WIND ENERGY DEVELOPMENT IN

VIETNAM Pham Trong Thuc

Director, Department of New and Renewable Energy November 2015

MINISTRY OF INDUSTRY AND TRADEThe General Directorate of Energy

Pham Trọng Thực Hanoi, 09 November, 2015Pham Trọng Thực Hanoi, 09 November, 2015

Main contents

1. Overview

1.1. Power sector development

1.2. RE development policies and targets

2. Wind power development:

2.1 Potential and Supporting mechanism

2.2 Supporting mechanism

2.3 Current situation

2.4 Challenges

3. Action plans for wind power development


1. Overview1.1. Power sector development 2014

Total installed capacity by Dec. 2014: 34 GW (peak load 22. GW) 42% of installed generation capacity comes from renewable energy and hydro power projects

OthersImportedCCGTGas firedOil fired Coal firedHydro


1.1. Power sector development 2014

P installed = 11.6 GW

Generation Type 2005

Gas turbine: 45% Hydropwer: 38%

DO-based thermal: 2%

Coal based thermal: 13%

Generation Type 2014

Hydropwer: 40%Gas turbine:

22%


Gas based thermal: 1%

Imported: 2% Diesel + Wind: 5%

P installed = 34 GW

DO-based thermal: 2%

DO based thermal: 2%


1.2. RE development policy and targets

Reasonable for RE development in Vietnam

Sustainable development

Challenges in Power generation

Increasing coal import for 2015-2030

Increasing electricity import

Exhausting of hydro power resource

Greatly fluctuated price of fossil fuel

High potential on RE resources in Vietnam

Decreasing trend of production cost

Local manufactures???


1.2. RE development policies and targets

The National Strategy on Green Growth approved in 2012:

‘‘Development of a low carbon economy on sustainable basis, emission reduction and increase in greenhouse gases (GHGs) absorption”

– Reduce GHGs factor down to 266 million tones of CO2

– Energy field decreases to 141,1 million tones CO2 (53%) by

2020.

Promote effective exploitation and increase the proportion of

new and renewable energy sources in the nation’s energy

production and consumption are of key solutions

Pham Trọng Thực Hanoi, 09 November, 2015

Power development Plan – PDP VIIRE in generation mix to 2030 (draft revised PDP VII)

1.2. RE development policies and targets (to be continued)

Thuỷ điện+TĐ tích năng

25%

NĐ than58%

NĐ khí+Dầu19%

TĐ nhỏ+NLTT

4% Điện HN0%

Nhập khẩu2%

Cơ cấu điện năng năm 2025Generation structure in 2025


Gas turbine + DO: 19%

Small Hydro + renewable:

4%Nuclear Power

Imported: 2%

Hydro power:

25%

P installed = 85 GW

Thuỷ điện+TĐ tích

năng12%

NĐ than60%

NĐ khí+Dầu18%

TĐ nhỏ+NLTT

5%

Điện HN4% Nhập khẩu

1%

Cơ cấu điện năng năm 2030Generation structure in 2030


Gas turbine + DO: 18%

Small Hydro + renewable:

5%

Nuclear Power: 4% Imported:

1%

Hydro power:

12%

P installed = 116 GW


1.2. RE development policies and targets (to be continued)

RE share of electricity generation (In present PDP No7)- For small hydro, wind, solar and biomass to 4.5 % of totalled

installed generation capacity by 2020 and 6.0 % by 2030;- Wind power generation: up to 1 GW by 2020, 6.2 GW by

2030; - Biomass energy: up to 500 MW in 2020 and 2 GW by 2030; - PV Power (draft): up to 2000 MW for large PV solar farm; up

to 4000 MW for solar rooftopRE electricity supply for remote areas, islands by RE off-grid Projects- 21,300 households;- Investment capital 1,481 bill VND or 70.5 mill USD.


2. Wind energy development2.1. Potential – Theoretical

Mean speed at 80m height

(m/s)

Estimated Developable Land

Area(km2)

Theoretical Potential

(MW)

<4 95,916 959,161

4-5 70,868 708,678

5-6 40,473 404,732

6-7 2,435 24,351

7-8 220 2,202

8-9 20 200

>9 1 10

Tổng 209,933 2,099,333

Theoretical Potential for Wind Power

Source: Wind Resource Atlas of Vietnam, WB report 2010 (assumed average density of 10MW/km2)


2. Wind energy development2.1. Potential – Planning development

22 provinces with potential area of 116.670 km2

Source: Wind Atlas 2010


Development Plan Draft Master Plan for potential development area of

wind energy Provincial Development Plan for Wind Power

Bình Thuận, July 2012: up to 700MW by 2020;

Ninh Thuận, April 2013: up to 220 MW by 2020;

Sóc Trăng, May 2014: up to 200MW by 2020; Bến Tre, March 2015: up to 150 MW by 2020; Quang Tri, June 2015: up to 110 MW by 2020

2. Wind energy development2.2. Development Plan and Supporting mechanism for WPP


Regulations and supporting mechanisms for WPP Decision No. 37/2011/QD-TTg issued by the Prime Minister dated

29/6/2011on mechanisms to support development of wind power projects. Power purchase responsibility: EVN must take and pay electricity generated

from WPP FIT for grid-connected wind power project: 7.8 US$/kWh (VAT exclusive;

subject to VND/USD fluctuation)

Circular No. 32/2012/TT-BCT dated 12/11/2012 promulgating implementation of WPP development and standard PPAs for wind power projects.

Procedures for development of wind power projects Application for price support from VEPF. Registration sequence for the development of off-grid wind power projects. SPPA for wind power projects

Circular No. 06/2013/TT-BCT dated 8/3/2013 promulgating content, order, procedure for formulation, appraising and approving wind power planning

2. Wind energy development2.2. Development Plan and Supporting mechanism for WPP


Other supporting mechanisms for WPP• Import tax: Import tax exemption for equipment which is not

domestically manufactured.

• Corporate income tax:

– Tax rate: 10% for the first 15 years, possible extension up to 30 years

– Tax exemption for the first 4 years, 50% reduction for next 9 years

• Fast depreciation: 1.5 times faster than normal projects.

• Exempt land-use tax/charges.

• Exempt environmental protection fees.

2.2. Development Plan and Supporting mechanism for WPP


2. Wind energy development2.3. Current situation

Measurement situationDevelopment of Atlas for RE/wind energy resource potential 2015 - 2016

MOIT/WB program 2010

MOIT/GIZ program 2012 - 2015

MOIT/KfW program 2016 - 2018

Developers: about 50 sites


2. Wind energy development2.3. Current situation Wind power projects - current situation

Name

Approved Capacity

(MW)

In operation

(MW) CODCurrent

situation

BINH THUAN 700

1 Phong điện 1 - GĐ 1 30 30 2009

2 Phong điện 1 - GĐ 2 90 2016 A

3 Phú Lạc - GĐ 1 24 III/2016 U

4 Phú Lạc - GĐ 2 26 2018

5 Phú Quý 6 6 2012

6 Thuận Nhiên Phong 32 U

7 Phước Thể 30 L

NINH THUAN 2208 Điện gió Công Hải 47 12/2015 U

9 Điện gió Trung Nam 90 U

11 Điện gió Mũi Dinh 32 6/2015 U

SOC TRANG 200 12 Điện gió Trasesco - EAB 65 IL

13 Điện gió Âu Mỹ 40

BEN TRE 150

14 Điện gió Thanh Phong 29.7 2017 F

15 Điện gió Hàn Quốc - Bến Tre 60 2017 F

16 Điện gió Bình Đại-BT GĐ1 30 2017 F17Điện gió Bình Đại-BT GĐ2 90


2. Wind energy development2.3. Current situation

Wind power projects - current situation

O: Under operation; U: Under construction; A: FA approved;F: FS Preparation;L: Land acquisition;IL: Investment license given

QUANG TRI 110 18 DA Hướng Linh 30 2017 A

BẠC LIÊU 17 DA Bạc Liêu- GĐ 1 16 16 2013 O

18 DA Bạc Liêu- GĐ 2 83.2 1.6 2015 U

LÂM ĐỒNG 19 DA Cầu Đất- GĐ 1 30 2017

BÌNH ĐỊNH

20 DA Phương Mai 1 30 2017 A

21 DA Phương Mai 3 21 2017 A

22 DA Nhơn Hội 61.1 2017

1,380 993 53.6


1. National reliable, systematic and consistent database.

2. Economic and financial aspects: Investment costs for RE projects are higher than those for conventional energy projects in Vietnam.

3. Technical human resource: At present, no RE discipline can be found in universities TVET institutions, creating a big gap of human resources for this new “green” technology area.

4. Technical infrastructure: Vietnam’s infrastructure (roads, bridges, power system, traffic equipment, etc.) is out of date. Goods transportation is of great difficulties.

5. National grid connection6. Supply of auxiliary equipment and services: most main and

auxiliary equipment for RE is not localized. For wind power, some manufacturers can be found in the domestic market, such as GE US, CS Wind Tower Korea, etc., but all their products are exported to the world market.

7. Implementation arrangements

2. Wind energy development2.4. Constraints and shortcoming


Developing the spatial map on Renewable energy including wind energy

Review and assesment of prevailing mechanism and suggestion for new FIT: 2015 – 2016

Developing the national standard for wind energy technology equipment: 2016 - 2020

Building the mechanisms to support development of local equipment production filed and services in the solar energy field;

Assessment of status: 2016

Research and proposal on supporting mechanisms: 2017 - 2018

Implementing capacity building programs for PBs, universities and vocational training units: 2016 - 2020

3. Action plan for development of WPP

RENEWABLE ENERGY AND WIND ENERGY DEVELOPMENT IN VIETNAM

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