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Solar+WindCongress 2019Vietnam

CONTENTS

2019Overview of Vietnam market 4

Vietnam Electricity Mix In Present And Future 7

Great Potential of Vietnam Solar Market 10

Supply and Demand 12

Potential Booming Sphere: Rooftop Solar 14

Vietnam Wind Market

SOLAR+WIND CONGRESS 2019 VietnamSpeakers Introduction

Agenda

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23

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Overview of Vietnammarket

Vietnam, An Attractive MarketOverview Of Vietnam Renewable Market

Vietnam has a great performing market in the world with a GDP growth of 6.71percent in the second quarter of 2019. Vietnam targets economic growth of between 6.6~6.8 this year. Until the first half of 2019, it reaches the economy grew at 6.76 percent.

Vietnam’s geographic location gives it an abundance of renewable energy resources: In terms of wind power, Vietnam has a coastal line of 3400km, with an average wind speed of 6M/s, with total wind power potential between 24GW and 26.7GW. Regarding solar power, Vietnam has a high potential for solar energy production, with 1,600-2,700 sunlight hours per year and an average direct normal irradiance of 4-5 kWh per sqm per day. (According to the figures released by World Bank in 2016.)

Source from:Trading Economics

8

7.5

7

6.5

6

5.5

5

Jan 2017 Apr 2017 Jul 2017 Oct 2017 Jan 2018 Apr 2018 Jul 2018 Oct 2018

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Vietnam Electricity Mix In Present And Future

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Vietnam's Electricity Law requires national power development master plans to be established for ten year periods. In the Revised PDMP VII in 2016, sets out a goal for a 7% share of the total power generation capacity to be covered by renewable energy by 2020, and 10% by 2030 with the help of 18 GW of new onshore wind and PV generation capacity and 12 GW of solar.

21600

26000

9000

800850 750 1000

Hydro

Coal

Gas turbine

Wind

Solar

Biomass

Import

Vietnam electricity supply mix and tendency from 2020 to 2030 (from EVN, Feb 2019.)

2020 - 2030

2020 2025 2030

140000

120000

100000

80000

60000

40000

20000

Import

Blomass

Solar

Wind

Gas turbine

Coal

Hydro

According to the latest statistics from the Electricity of Vietnam ( EVN ), Vietnam has 82 solar power plants connect to the power network, with a total 4464 MW capacity, and it accounts about 8.28% in Vietnam electricity supply mix, which is far more than 850 MW set for 2020.2020 Vietnam Electricity Mix: (from EVN, Feb 2019)

2020 Electricity Supply Mix

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Great Potential ofVietnam Solar Market

There is only an iota of solar power plants, 8MW approximately, developed in Vietnam before Feed-in tariff ( FiT ) releasing in April 2017. Vietnam’s total installed PV capacity remains negligible thus far, with slightly more than 100 MW plugged in by

Vietnam’s power demand keep the growth rate of 10.3%~11.3% a year from 2016~2020, and it will follow that growth pattern and keep the level of 8.0%~8.5% at the year of 2021~2030, according to EVN, Feb / 2019.

the end of 2018, according to statistics from the International Renewable Energy Agency (IRENA). And now, there are 82 solar power plants, with 4,464MW capacity connected to the power network.Aoccording to the statistics from MoIT, around 25GW of solar and 9GW of wind will be development at the end of 2030.

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However, it’s impossible to meet that huge demand with present power-generation capacity and hydropower, coal, oil, and gas are gradually depleted and difficult to develop, which indicates that there would be a great potential for the development of renewable energy. Theoretically, It’s immense potential for wind and solar-based projects and is sufficient enough to address the growing power demands

Power demand until 2030 is forecasted to grow at a high rate

Supply and Demand

Source from Vina Capital

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Potential Booming Sphere: RooftopSolar

Vietnam is suffering from power network overload, transmission losses, unsteady fuel supply to generation, severe weather and so on.A n d n o w , d e v e l o p i n g transmission lines of 220kv and 500kv is not feasible, regarding it requires 2 years and 3 years at least to complete, respectively. Moreover, around 22 RE power plants were informed to lower productivity. Moreover, Large-scale solar & wind project face the problem of unbankable PPA, arbitration law protection and EVN’s curtailment, etc.To address the challenge from the huge demand in the future, EVN recommends to develop roof top so lar and Genera l manage of EVN is now asking supports from the Ministry of Industry and Trade (MoIT) and local government to incentive re la ted ent repreneurs and company to join its plan for rooftop solar. Attractive FiT for rooftop solar:

Source: Ministry Of Industry And Trade ( MoIT ), FiT draft.

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There are 4GW of roof top solar potential from now on to 2030, according to Vina Capital’s figure.

SEGMENT TYPICAL SYSTEM SIZE(KW)

AVAILABLE ROOFTOPS(#)

MARKET SIZE TILL 2030(MW)

large factories >1,000 5,000 2,000

small factories 100-1,000 40,000 700

commercial units 5-100 600,000 1,200

residential/other small units <5 3,000,000 188

TOTAL 3,645,000 4,088

Statistics from World Bank Group ( Feb/2019 )also identify that possibility and great potential.

PARAMETER HCMC DANANG

Total area 2,096km2 1,285km2

Area of interest 366km2 175km2

Total number of detected rooftops 955,411 646,958

Total number of suitable rooftops 316.535(33%) 148,88(23%)

Total surface area of suitable rooftops 50,391,567m2 9,145,406m2

Total estimated roof PV capacity 6,379MW 1,140MW

Total potential annual electricity 17,889,006MWH 3,088,135MWH

2017-2018 JAN-JUNE 2019 JULY 1("FIT 2")

Support Mechanism Net-meeting,COD by 30/6/19 Net-billing,COD by 30/6/19 4 models,effective,1/7/2019

FIT Level 9.35 US/kWh 9.35 US/kwh Zonal FITs (4 zones)

Capacity Limit 1MW 1MW 1MW

National RTS Installed Capacity 17.5MW >30MW-50MW

Number of RTS Consumers 1,510 1,800

Deputy head of EVN Business Division Tran Viet Nguyen said that offices and branches of EVN installed rooftop solar systems at 54 locations with a total capacity of 3.2 MW in 2018. Approximately 1,800 customers including offices, businesses and households are installing rooftop solar systems with a total capacity of 30.12 MW. There are 30MW~50MW rooftop solar installed capacity growth nationally from Jan~June 2019, according to reports of Clean Energy Investment Accelerator.

Solar+WindCongress 2019Vietnam

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No. Solar powertechnology

Traffic for ZoneⅠ

Traffic for zoneⅡ

Traffic for zoneⅢ

Traffic for zoneⅣ

VND/kWh UScent/kWh

VND/kWh UScent/kWh

VND/kWh UScent/kWh

VND/kWh UScent/kWh

1Floating solar power project

2,281 9.98 1.963 8.59 1,758 7.69 1,655 7.24

2Ground mounted

solar power project

2,102 9,20 1,809 7.91 1,620 7.09 1,525 6.67

3

Rooftop solar power

project(power selling household

and power consumptionhousehold

model)

2,486 10.87 2,139 9.36 1,916 8.38 1,803 7.89

Source: Ministry Of Industry And Trade ( MoIT ), FiT draft.

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MINISTRY OF INDUSTRY AND TRADE SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness

No. 2023/QD-BCT Hà Nội, 05 July 2019

DECISION

on the Approval of Rooftop Solar PV Promotion Program

THE MINISTER OF THE MINISTRY OF INDUSTRY AND TRADE

Pursuant to the Government's Decree No. 98/2017/NĐ-CP dated 18 August 2017 on functions, tasks, jurisdiction and organizational structure of the Ministry of Industry and Trade

Pursuant to the Prime Minister’s Decision No. 2068/QĐ-TTg dated 25 November 2015 on the Approval of the Viet Nam's Renewable Energy Development Strategy to 2030, vision to 2050

Pursuant to MOIT's Decision 3816/QĐ-BCT dated 02 October 2017 on the functions, tasks, jurisdiction and organizational structure of the Electricity and Renewable Energy Authority

At the proposal of the Director General of the Electricity and Renewable Energy Authority

DECIDES:

Article 1. Approval of the Program "Rooftop Solar PV Promotion Program" (henceforth known as the RTS Program), includes these main contents 1. Name of the Program: Rooftop Solar PV Promotion Program 2. Objectives of the RTS Program

a. Overall objective: to implement the Viet Nam's Renewable Energy Development Strategy to 2030, vision to 2050 via solutions on the development of the market for rooftop solar (RTS) technology.

b. Specific objective: At the end of 2025, 100,000 (one hundred thousand) RTS systems (or the equivalent of 1,000 MWp) are installed and in operation in the country

3. Program Components: 3.1 Develop and complete policies, regulations relevant to the support of the development of

rooftop solar with the orientation to shift to market conditions.

The component includes the following groups of activities:

a) Research and evaluate the RTS potential and the impact upon the distribution grid b) Research and propose mechanisms, policies, and regulations to promote the

development of RTS

3.2 Standards, inspection, and testing The component includes the following groups of activities: a) Research and develop standards, codes, and guidelines for technical equipment,

installation, connection to the grid and operation of the RTS system;

According to Decision on the Approval of Rooftop Solar PV Promotion Program (No.2023, QD-BCT), released by Ministry of Industry and Trade on 05 July 2019, It’s overall objective is to implement Vietnam’s Renewable Development Strategy to 2030, vision to 2050 via solution on the development of the market for rooftop solar technology. Document indicate that 100,000 (one hundred thousand) rooftop solar system (or the equivalent of 1000 MW) will be installed and in operation at the end of 2025.

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Vietnam Wind Market

According to the report of Vietnam resource by World Bank Group 2016, Vietnam has total wind power potential between 24GW and 26.7GW. .The government has also raised the Feed-in-Tariff (FiT) for both onshore and offshore wind and set a target with 800 MW wind power of 2020 by its Revised PDMP VII. Vietnam Energy Association indicated that over 9GW of wind will be developed by 2030.

2018

20

49

135.0

24

159.0

37.8

31.5

196.8

228.3

0 40 60 80 100

New Total

120 140 160 180 200 220

2017

2016

2015

Figure from Global Wind Energy Council.

Offshore9.8/kWh

Onshore8.5/kWh

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Liability

unbankable PPA

termination

arbitration law

government guarantees

curtailment

etc.

Vietnam government will increase the tariffs after 1 November 2021. Another key fact that slow Vietnam wind development down is unbankable PPA, which suggest that local banks do not have sufficient liquidity to finance wind power projects on a non-recourse basis.

SOME SPEAKERS OF SOLAR+WIND CONGRESS 2019 VIETNAM

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Nguyen MinhDeputy Director

Electricity Regulatory Authority of Vietna

Kushagra NandanCo-Founder & President/COO

SunSource Energy

Nguyen Ho NamFounder & Chairman

Bamboo Capital Group

Samresh KumarManaging Director

VinaCapital

Trung Mai VanDirector Of Business Development

SolarBK

Logan KnoxGeneral Director

UPC Renewables Vietnam

Frank PhuanCo-founder and executive Director

Sunseap Group Pte Ltd

Nguyen Quoc HuanFinance & Supply Chain Finance

Business PartnerTTC Group

Thomas JakobsenManaging Director

Indochina Energy Partners

Cristiano SpillatiManaging Director

Limes Renewable Energy

Andy NguyenManaging directorLibra Energy Asia

Andrea LovatoVice President & Head of Renewable

DevelopmentACWA Power

Edward DouglasPartner

Armstrong Asset Management Pte Ltd

Daniel MalloManaging DirectorSociete Generale

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Agenda

8:10 Registeration

9:10 Openning address

9:20 Overview of Vietnam Renewable Energy Market

9:55 Investment & Development portfolio of solar in Vietnam

10:40 Tea Break

11:00 Rooftop solar development strategy in Vietnam

11:45 Utility scale solar development in Vietnam

12:30 Lunch

14:00 Topic Pending (Solar topic)

14:45 Opportunities and challenge for solar & wind power development

15:30 Investment and development portfolio of solar & wind

16:15 Tea Break

16:35 Risk Assessment and Financial Modeling for solar & Wind power

17:10 Topic Pending

17:50 Closing address

18:05 Cocktail party

AGENDA

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Contact usJessica BaiProgramme Director

Mail:jessica@pvbox.com.cn

Tel:+86(0)13951800766

Tanya MaProgramme Manager

Mail:tanya@pvbox.com.cn

Tel:+86(0)15861827191

Max WuProgramme Manager

Mail:max@pvbox.com.cn

Tel:+86(0)18225839479