RENEWABLE ENERGY IN VIETNAM Prof. Dr. Le Chi Hiep Chairman, Energy Council (VNU-HCM) [email protected] [email protected] THE WORKSHOP OF ODA UNESCO

RENEWABLE ENERGY IN RENEWABLE ENERGY IN VIETNAMVIETNAM

Prof. Dr. Le Chi HiepProf. Dr. Le Chi Hiep

Chairman, Energy Council (VNU-HCM)Chairman, Energy Council (VNU-HCM)[email protected]

[email protected]

THE WORKSHOP OF ODA UNESCO PROJECT FOR PROMOTION OF ENERGY SCIENCE EDUCATION FOR SUSTAINABLE DEVELOPMENT IN ASIA (VIETNAM)

Hanoi, 30 – 31 May 2011 11

OUTLINEOUTLINE

1. 1. BRIEF INTRODUCTION - BRIEF INTRODUCTION - RENEWABLE ENERGY IN VIETNAM, RENEWABLE ENERGY IN VIETNAM, POTENTIAL AND INSTALLED CAPACITYPOTENTIAL AND INSTALLED CAPACITY

2. 2. LEGAL FRAMEWORK & NATIONAL LEGAL FRAMEWORK & NATIONAL POLICY POLICY

3. 3. DISCUSSION & CONCLUSIONDISCUSSION & CONCLUSION

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VIETNAMVIETNAM

Population – 85.8 Population – 85.8 millionsmillions (2009) (2009)

Area – 332,000Area – 332,000kmkm22

CapitalCapital – Hanoi – Hanoi

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1. BRIEF INTRODUCTION1. BRIEF INTRODUCTION

RENEWABLE ENERGY IN RENEWABLE ENERGY IN VIETNAM - POTENTIAL VIETNAM - POTENTIAL AND INSTALLED AND INSTALLED CAPACITYCAPACITY

Total estimated potential 11.73TWh/year

Total generation from small hydro and renewable energy

8.39TWh/year (estimated, in 2025)

It means, about 71.52% of the total potential renewable energy is estimated to be utilized for power generation by 2025.

MAIN RENEWABLE ENERGY MAIN RENEWABLE ENERGY RESOURCES IN VIETNAMRESOURCES IN VIETNAM

WIND ENERGYWIND ENERGYSOLAR ENERGYSOLAR ENERGYSMALL HYDROPOWERSMALL HYDROPOWERBIOFUEL and BIOMASSBIOFUEL and BIOMASSGEOTHERMAL ENERGYGEOTHERMAL ENERGYENERGY FROM URBAN and ENERGY FROM URBAN and INDUSTRIAL WASTEINDUSTRIAL WASTETIDAL ENERGYTIDAL ENERGY

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1.1. WIND ENERGY1.1. WIND ENERGY

World Bank: World Bank:

- Vietnam has - Vietnam has higher potentialhigher potential for wind for wind energy development compared to most energy development compared to most other other countries in Southeast Asia.countries in Southeast Asia.

- Vietnam could produce more than - Vietnam could produce more than 510 510 gigawatts of electricitygigawatts of electricity from land-based from land-based and off-shore wind farms, 10 times the and off-shore wind farms, 10 times the country's expected national demand in country's expected national demand in 2020.2020.

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Wind Power Potential in Vietnam

Wind speed (m/s)

6 - 7 7 - 8 8 - 9

Area (%) 30.8 7.9 0.7

Area (km2) 100,300 25,700 2,200

Potential (GW)

402 103 8.8

BINH THUAN and NINH THUAN are BINH THUAN and NINH THUAN are considered as the best territories for considered as the best territories for wind power development (9%) in wind power development (9%) in Vietnam. Vietnam.

Off-shore wind potential is many Off-shore wind potential is many times greater than that of land-based.times greater than that of land-based.

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VIETNAM OFF-SHORE WIND POTENTIALVIETNAM OFF-SHORE WIND POTENTIAL

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There are a significant number of foreign There are a significant number of foreign investors and Vietnamese companies setting up investors and Vietnamese companies setting up wind park projects in Vietnam, ranging from wind park projects in Vietnam, ranging from 66MWMW to 150 to 150MWMW..

So far, So far, there were 21 wind projects there were 21 wind projects under way under way that could produce enough electricity to connect that could produce enough electricity to connect to the grid (Binh Thuan, Ninh Thuan and Lam to the grid (Binh Thuan, Ninh Thuan and Lam Dong).Dong).

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In 2010, the total installed wind power capacity was estimated to be 9MW (7.5MW of which had been connected to the national grid, the remainder were household wind turbines).

SOME INSTALLED WIND POWER SOME INSTALLED WIND POWER SYSTEMSSYSTEMS

3030kWkW – Nam Dinh (1999, hybrid system, wind- – Nam Dinh (1999, hybrid system, wind-diesel).diesel).

0.80.8MWMW – Bach Long Vi Island – Bach Long Vi Island

Binh Thuan Wind power plantBinh Thuan Wind power plant::

- The project has been developed by the - The project has been developed by the Vietnamese company REVN. Vietnamese company REVN.

- Total power: 120- Total power: 120MWMW

- The first five 1.5 MW turbines from the German - The first five 1.5 MW turbines from the German manufacturer Fuhrländer have been installed in manufacturer Fuhrländer have been installed in Binh Thuan province at the end of July 2009.Binh Thuan province at the end of July 2009.

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SUMMARY – GRID CONNECTED WIND POWER PROJECTS (UNDER IMPLEMENTATION)

Phuong Mai (Binh Dinh, 15MW + 21MW): under price negotiation.

Ninh Phuoc (Phuoc Minh/Phuoc Nam, Ninh Thuan, first phase: 50MW, second phase: 100MW): project report completed.

Ninh Phuoc (An Hai/Phuoc Hai, Ninh Thuan, first phase: 70MW, second phase: 110MW): project report completed.

Thuan Bac (Ninh Thuan, 18MW): Investment license granted.

Phuoc Huu (Ninh Phuoc, Ninh Thuan, 50MW): Investment license granted.

An Hai/An Phuoc (Ninh Thuan, 60MW): Investment plan approved.

1.2. SOLAR ENERGY1.2. SOLAR ENERGY

Mean Annual Sunshine HoursMean Annual Sunshine Hours

- North: 1800 – 2100 hours of sunshine a year, - North: 1800 – 2100 hours of sunshine a year, on average.on average.

- South: 2000 – 2600 hours of sunshine a year, - South: 2000 – 2600 hours of sunshine a year, on average.on average.

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MONTHLY MEAN MONTHLY MEAN SUNSHINE HOURSSUNSHINE HOURS ((Hours/dayHours/day))

Location: HANOI (Location: HANOI (2121oo03’N, 10503’N, 105oo54’E)54’E)

JanuaryJanuary 2.22.2

FebruaryFebruary 1.61.6

MarchMarch 1.41.4

AprilApril 2.72.7

MayMay 5.35.3

JuneJune 5.25.2

JulyJuly 5.95.9

AugustAugust 5.35.3

SeptemberSeptember 5.45.4

OctoberOctober 5.35.3

NovemberNovember 4.24.2

DecemberDecember 3.53.51818


Location: DANANG (Location: DANANG (1616oo03’N, 10803’N, 108oo12’E)12’E)



MarchMarch 3.43.4

AprilApril 6.96.9

MayMay 8.38.3

JuneJune 7.97.9

JulyJuly 8.38.3

AugustAugust 6.76.7






Location: HOCHIMINH City (Location: HOCHIMINH City (1010oo45’N, 10645’N, 106oo41’E)41’E)



MarchMarch 8.88.8

AprilApril 7.77.7

MayMay 6.36.3

JuneJune 5.75.7

JulyJuly 5.85.8

AugustAugust 5.65.6





MONTHLY MEAN MONTHLY MEAN SOLAR RADIATIONSOLAR RADIATION ((kWh/mkWh/m22/day/day))

Location: HANOI (Location: HANOI (2121oo03’N, 10503’N, 105oo54’E)54’E)



MarchMarch 2.532.53

AprilApril 3.463.46

MayMay 5.235.23

JuneJune 5.315.31

JulyJuly 5.595.59

AugustAugust 5.105.10





Annual Mean Solar Radiation: 3.93kWh/m2/day

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Location: DANANG (Location: DANANG (1616oo03’N, 10803’N, 108oo12’E)12’E)



MarchMarch 5.25.2

AprilApril 5.85.8

MayMay 6.46.4

JuneJune 5.95.9

JulyJuly 6.56.5

AugustAugust 5.75.7






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Location: NHA TRANG (Location: NHA TRANG (1212oo15’N, 10915’N, 109oo11’E)11’E)



MarchMarch 5.695.69

AprilApril 5.915.91

MayMay 5.905.90

JuneJune 5.665.66

JulyJuly 5.665.66

AugustAugust 5.515.51






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Location: HOCHIMINH City (Location: HOCHIMINH City (1010oo45’N, 10645’N, 106oo41’E)41’E)



MarchMarch 6.66.6

AprilApril 5.75.7

MayMay 5.05.0

JuneJune 4.94.9

JulyJuly 5.15.1

AugustAugust 5.05.0






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Solar Applications

Two main applications:

- Solar hot water

- Solar photovoltaics

Solar hot water has been developed since 1990. At the early period, it was very difficult to get the attention of the community.

But, since around 1998, the number of installed solar hot water systems has gradually increased, especially in Ho Chi Minh city.

Currently, solar hot water has become one of renewable energy products at high competition.

That leads to the increase of the number of companies doing business in this field.

But, there is so far nearly no full industry referring to solar hot water. The main components of the system (solar collector,…) are imported, mainly from China.

Solar photovoltaics has been also applied long time ago.

But, due to many difficulties, it has not exercised its influence on the society.

In 1990, the first 300Wp-unit was installed at Can Gio district, Ho Chi Minh city.

From 1994, solar photovoltaics has been expanded in the whole country.

Currently, total installed solar photovoltaics is a little more than 3MWp.

Main features of photovoltaic development in Vietnam:

- Most budgets funded by international organizations and several funded by national agencies (there is so far nearly no personal budget invested to set up the system).

- It leads to unstable and unsustainable development.

- All solar panels are so far imported.

Currently, there are several companies doing business on solar photovoltaics in Vietnam.

RED SUN Long An, near Ho Chi Minh City. By planning, its expected capacity is 3MWp/year (first step) and 5MWp/year (next step).

FIRST SOLAR Cu Chi, Ho Chi Minh City. At the end of January 2011, the US First Solar Group was granted a license to build a solar panel factory in Vietnam with a total investment capital of one billion dollars.

IC ENERGY Chu Lai, Quang Nam, with a total investment capital of 390 millions dollars (May 2011).

1.3. SMALL HYDROPOWER1.3. SMALL HYDROPOWER

Yearly average rainfall: 1,860mm.

There are more than 2,200 big-to-small rivers and streams.

Vietnam is considered as one of rich hydropower

resource countries.

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Under the existing Vietnam’s regulations, Under the existing Vietnam’s regulations, a hydroelectric project of less than 30a hydroelectric project of less than 30MWMW and using 10 hectares is classified as and using 10 hectares is classified as small-scaled.small-scaled.

Small hydropower potential (less than Small hydropower potential (less than 3030MWMW): estimated to be nearly 4000): estimated to be nearly 4000MWMW..

SMALL HYDROPOWER POTENTIAL

Scale, MW

0.1 - 1 1 - 5 5 - 10 10 - 15 15 - 20

Potential, MW

126.8 1,030 1,048 648 563

Scale, MW

20 - 25 25 - 30 30 - 35 35 - 40 40 - 50

Potential, MW

309 290 135 175 144

INSTALLED SMALL HYDROPOWER

Scale, MW

0.1 - 1 1 - 5 5 - 10 10 - 15

Installed capacity, MW

31.5 53.15 45.4 37

CURRENT NUMBER OF SMALL HYDROPOWER STATIONS

Scale, MW

0.1 - 1 1 - 5 5 - 10 10 - 15

Number of stations

111 22 5 3

But, the government will put the screws on small hydropower projects because of deforestation and environmental fears, especially flooding.

1.4. BIOFUEL and BIOMASS1.4. BIOFUEL and BIOMASS

An An urgent needurgent need to meet the energy demand to meet the energy demand of the country.of the country.

A A high priorityhigh priority on investment and on investment and exploitation of agricultural waste and its by-exploitation of agricultural waste and its by-products.products.

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- Biodiesel (produced from cassava, coconut, sesame, peanut, flax, jatropha, and from animal products such as catfish fat) has been determined to be strongly promoted.

JATROPHA CURCAS:

- Four million hectares of deforested hill are considered to be suitable for growing JATROPHA CURCAS.

ESPECTED PLAN

Biofuel output, including ethanol, would Biofuel output, including ethanol, would reach reach 250,000 tons/year by 2015 and 1.8 250,000 tons/year by 2015 and 1.8 million tons/year by 2025million tons/year by 2025, meeting 5 , meeting 5 percent of the total fuel demand of the percent of the total fuel demand of the country.country.

PROJECTS

Vietnam plans to produce 100,000 tons/year of 5% ethanol blend and 50,000 tons/year of 5% biodiesel blend by 2010, meeting 0,4% of fuel demand.

The country has five biofuel plant projects under construction.

Three, including an $85 million plant by PetroVietnam, will start producing 240 million liters of 99,7% ethanol a year. The plants will use cassava and sugarcane as feedstock.

A joint Vietnam-Korean bio-diesel production plant was inaugurated in Yeochu city, Kyeonggi province, the Republic of Korea (RoK) on March 23, 2010.

- Capacity: 200 tons/year (from waste oil, animal fat, palm and coconut oil – A joint effort between the Vietnam Institute of Industrial Chemistry (VIIC), the Hankyong University and the Korea International Cooperation Agency (KOICA).

- Under the deal, Vietnam will receive technology and production lines to build a bio-diesel plant with a projected capacity of 4,000 tons a year.

Three more ethanol plants with capacities 100,000tons/year are being built in the centre and north.

“THE FIRST PLANT PRODUCING BIODIESEL FROM CATFISH FAT WAS INAUGURATED IN THE MEKONG DELTA CITY OF CAN THO IN EARLY 2009 (MINH TU CO., LTD). THIS PLANT CAN PRODUCE 50,000 LITERS OF BIODIESEL A DAY”.

“REFINERS IN CAN THO AND AN GIANG ARE MAKING BIO-DIESEL FROM CATFISH FAT, THE MEKONG DELTA FACTORIES CURRENTLY PROCESS 30,000 TONS OF CATFISH FAT EACH YEAR”.

“BY THE END OF 2011, VIETNAM WILL HAVE FIVE BIOFUELS PLANTS WITH A TOTAL CAPITAL OF 365,000 TONS OF ETHANOL, WHICH, MIXED WITH GASOLINE, WILL YIELD 7.3 MILLION TONS OF E5 PETROL”.

“PETROLIMEX BEGAN SELLING BIO-PETROL (5 PERCENT ETHANOL AND 95 PERCENT PETROL) IN AUGUST AT FILLING STATIONS IN HCM CITY, HANOI, VUNG TAU, HAI PHONG AND HAI DUONG AND WILL ADD SALES POINTS IN DA NANG, HUE AND CAN THO THIS YEAR. THE BIOPETROL IS OFFERED AT 500 DONG PER LITER LESS THAN NORMAL GAS”.

Biomass, including wood and agricultural residues Biomass, including wood and agricultural residues ((rice husk, rice straw, coffee husk, bagasse, sugar rice husk, rice straw, coffee husk, bagasse, sugar cane, coconut residuescane, coconut residues,…) is widely used for energy ,…) is widely used for energy production in Vietnam.production in Vietnam.

Currently biomass is considered as a non-Currently biomass is considered as a non-commercial energy source, collected and used commercial energy source, collected and used locally.locally.

Potential: Potential: 30 - 50 30 - 50 million tons/yearmillion tons/year, , with onlywith only 3030%%--4040%% currently used currently used for cooking and power generation for cooking and power generation in sugar mills (150in sugar mills (150MWMW).).

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Potential of biomass for electricity generation

Type of biomass

Total production, tons/year

Estimated electricity

power, MW

Rice husk 6,000,000 70 - 150

Bagasse 5,000,000 150 - 200

Wood residues 440,000 5

Waste and others

30 - 50

Potential of biomass for electricity generation

Type of biomass

Total production, tons/year

Total available, tons/year

Estimated electricity

power, MW

Rice husk 6,000,000 2,300,000 70 - 150

Bagasse 5,000,000 4,200,000 150 - 200

Wood residues

440,000 5

Waste and others

30 - 50

2. LEGAL FRAMEWORK 2. LEGAL FRAMEWORK & NATIONAL POLICY & NATIONAL POLICY

Legal framework for biofuel production & trading.

- Nearly completed- Highest level of investment incentives.

2007 TWO NATIONAL STANDARDS FOR BIO-ETHANOL AND BIO-DIESEL WERE ISSUED

2008 THE MINISTRY OF INDUSTRY AND TRADE APPROVED PROJECTS TO GROW TREES AS MATERIALS FOR PRODUCING BIOFUELS, TO DEVELOP TECHNOLOGIES FOR PRODUCING BIOFUELS, TO DESIGN PLANS AND POLICIES TO SUPPORT THE DEVELOPMENT OF BIOFUELS IN VIETNAM AND TO TEST AND APPLY ETHANOL PETROL IN VIETNAM.

2008 THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT ALSO APPROVED A PROJECT TO RESEARCH AND DEVELOP JATROPHA BUSHES IN VIETNAM.

2007 - 2008 THE MINISTRY OF FINANCE IN 2007 AND 2008 ISSUED TWO CIRCULARS ON STATE FUNDING FOR BIOFUEL DEVELOPMENT PROGRAMS.

2009 THE MINISTRY OF SCIENCE AND TECHNOLOGY ISSUED TWO NATIONAL STANDARDS ON BIOFUELS.

In order to support foreign investors, the Vietnamese Government has determined that renewable energy is a field worthy of investment incentives. Investors can enjoy advantages such as import tax exemption and land fee exemption over a certain period of time.

On 2 August 2007 the Vietnamese Government issued decision 130/2007/QD-TTg on financial mechanisms and policies for investment projects implemented in accordance with the Clean Development Mechanism (CDM).

On 4 July 2008 the Ministry of Finance and the Ministry of Nature and Environment jointly issued Joint Circular 58/2008/TTLT-BTC-BTN&MT to guide implementation of the provisions set out in decision 130/2007/QD-TTg.

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Decision No.110/2007/QD-TTg, aiming targeting RE of 4051 MW by 2025

Decision No.1855/QD-TTg, it sets up the target with share of RE (3%-2010; 5%-2020)

Decision No. 177/2007: Scheme on Developments of Biofuels up to 2015, with 2025 Vision

Decision No. 1855/2007: National Energy Development Strategy up to 2020, with 2050 Vision

Decision 158/2008: National Target Program to respond to climate change

On-going DRAFT DECREE ON RENEWABLE ENERGY PROMOTION.

3. 3. DISCUSSION & DISCUSSION & CONCLUSIONCONCLUSION

Vietnam is one of good places for applying renewable energy because RE is distributed through-out the country.

The government has recognized the important role of RE in economic development of the country.

Although the overall policy is positive and forward thinking, the existing legislative framework in the RE sector is somewhat complex and overlapping

So far there are still difficulties and barriers to develop RE in Vietnam.

There has been no considerable progress in utilizing renewable energy in daily life.

Barriers:

- Reasonable policies to encourage foreign and domestic investors.

- Favorable power pricing rules, environmental tax (price distortions from existing subsidies and unequal tax burdens between RE and other energy sources, unequal government subsidies and taxes).

- Production cost Technology transfer, upgraded technologies.

- Customers (it is still hard to find customers: inadequate information,…).

It should be focused on:It should be focused on:

- Wind energy- Wind energy

- Solar energy- Solar energy

- Biofuel: biodiesel & bioethanol- Biofuel: biodiesel & bioethanol

Problem: Small hydropower ????Problem: Small hydropower ????

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In order to promote the RE applications, all the current difficulties and barriers in policies and finance must be solved and removed by issuing appropriate policies.

DECREE or LAW ON RENEWABLE ENERGY.

POSITIVE SIGNALS

But, over the last five years, the RE development in Vietnam has become faster:

- WIND FARMS

- INVESTMENT PROJECTS ON SOLAR PHOTOVOLTAICS PRODUCTION

- BIODIESEL and BIOMETHANOL

Based on current positive signals, we do hope, RE in Vietnam will develop faster in the near future.

In order to wait in front for the coming In order to wait in front for the coming RE explosion in Vietnam, beside RE explosion in Vietnam, beside policies we should focus strongly on policies we should focus strongly on the the trainingtraining as well to solve the as well to solve the human resourceshuman resources problem. problem.

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CURRICULUM / Related BOOKS

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REFERENCESREFERENCES

1.1. Renewable Energy in Asia: The Vietnam Report, Renewable Energy in Asia: The Vietnam Report, August 2005August 2005

2. http://www.monre.gov.vn/

3.3. www.frenchriverland.com/final%20-%20Reportwww.frenchriverland.com/final%20-%20Report%20Hydroelectric%20power%20plant.ppt%20Hydroelectric%20power%20plant.ppt

4. http://vietnambusiness.asia/axe-to-fall-on-small-hydropower-projects/

5. http://agmhp.aseanenergy.org/media/documents/2010/10/05/o/v/overview_of_small_hydropower_development_in_vietnam.pdf

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THANK YOU FOR THANK YOU FOR YOUR ATTENTIONYOUR ATTENTION

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Documents

RENEWABLE ENERGY IN VIETNAM Prof. Dr. Le Chi Hiep Chairman, Energy Council (VNU-HCM) [email protected] [email protected] THE WORKSHOP OF ODA UNESCO