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Best practices from the Vietnamese Energy Sector

TTC Phong Điền Solar Park

Mr. Ngo Truong Thanh,

Deputy Head

Solar Energy Division, TTC Group

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1. Introduction to the energy business of

TTC Group

2. Introduction to Gia Lai Electricity JSC

3. Introduction to Phong Dien Solar Power

Plant

4. Proposals and Recommendations

CONTENTS

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1. THE ENERGY BUSINESS OF TTC GROUP – OVERVIEWwww.geccom.vn

OperationalUnder construction Under supplementation of planning

SOLAR POWER THERMAL POWER HYDRO POWER WIND POWER

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1. THE ENERGY BUSINESS OF TTC GROUP - STRATEGIES AND DEVELOPMENT ORIENTATIONSwww.geccom.vn

Source (MW) 2018 2019 2020 2021 2022

Hydro power 135 201 211 226 271

Solar power 129 366 642 880 1.098

Wind power - - 150 250 250

Thermal

power152 152 152 152 152

Total (MW) 416 719 1.154 1.507 1.770

135 201 211 226 271

129

366

642

880

1,098

- -

380

680 680

152 152 152 152 152

2018 2019 2020 2021 2022

OPERATIONAL CAPACITY (MW)

Thuỷ điện Điện mặt trời Điện gió Nhiệt điệnHydr

352 685

1,139

1,775

2,451

23 321

853 1,173

1,471

- - -

1,484

1,904

2018 2019 2020 2021 2022

OUTPUT OVER THE YEARS (mil. kWh)

Thuỷ điện Điện mặt trời Điện gió

Output

(mil. kWh)2018 2019 2020 2021 2022

Hydro power 352 685 1.139 1.775 2.451

Solar power 23 321 853 1.173 1.471

Wind power - - - 420 700

Total 375 1.005 1.993 3.368 4.622

Vision: By 2020-2022, TTC Group energy business becomes a leading private company in the clean energy sector Hanoi.

Solar power

Wind power

Thermal power

Hydro power

Solar power

Wind power

135 MW

117 MWp

601.5 MWp

Hydro power (operational)

Solar power (implemented in

2018)Solar power (implemented)

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2. GIA LAI ELECTRICITY JSC (GEC) - HISTORYwww.geccom.vn

1989

GEC established

under Kontum PPC

2010

Equitized

Chartered

capital: ~ 261 bil.

~ 26 mil. stock

2013

Became a

member of

TTC Group

2016

Strategic

partnershipestablished

with IFC andArmstrong

2018

Phong Dien

solar powerplant

operationalizedin Hue, the first

in Vietnam

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3. PHONG DIEN SOLAR POWER PROJECT IN HUE - THE FIRST SOLAR POWER PLANT IN VIETNAM

www.geccom.vn

Parameter Data

Construction time 9 months

Area 45 ha

Capacity 48 MWp

Output 60 mil. kWh/year

Capital ~ VND 1,000 bil.

No. of panels 145,560

IRR 12%

Customers 32,628 households

CO2 emission reduction 20,503 tonnes/year

Location

Dien Loc Commune, Phong Dien, Thua Thien Hue

Unused coastal sand dunes

Surrounded by forests with 3-4m tall trees

Unlikely to plant agricultural crops

Only favorable for investment and development of

solar power plant

2.6km away from national transmission lines

22/110kV step-up substation 40MWA in capacity

located on the plant site

Traffic

National highway 49B in close

proximity, an advantage for the

transportation of heavy-duty

equipment

Chan May Port and Danang Port

are to the South of the project, an

advantage for equipment

importation

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3. MILESTONES OF PHONG DIEN SOLAR POWER PLANT PROJECTwww.geccom.vn

March 09, 2017

Planning

supplementation

approved

May 27, 2017

Decision on

investment policies

granted

March 21, 2018

Basic design appraised

by MOIT

July 16, 2018

Technical design

appraised by MOIT

August 02, 2018

Construction permit

granted

January 05, 2018

Construction kick-off

September 15, 2018

A connection point

established at 110kW

outgoing feeder in Dien

Loc

September 21, 2018

110kV transmission

line and stepup

substation

September 25, 2018

Grid connection

LEGAL MILESTONES

CONSTRUCTION MILESTONES

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PROJECT IMPLEMENTATION OF PHONG DIEN SOLAR POWER PLANT (CONT.)

www.geccom.vn

Power purchase agreement (PPA) signedConstruction of stepup substation

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4. PROPOSALS AND RECOMMENDATIONSwww.geccom.vn

Project map location1. IMPLEMENTING PHONG DIEN 2 PROJECT

2. APPROVING PROJECT PLANNING

IMPLEMENTATION BY TTC GROUP

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www.geccom.vn

PROJECT INFORMATION

IMPLEMENTATION PLAN

Capacity 29.5MW

Area 38.5ha

LocationDien Loc Village, Dien Hoa Commune, Phong Dien

District, Hue

Total invested capital VND837 bil.

Grid connectionto the busbar of 110kV stepup substation of Phong Dien

Solar Power Plant

November 2018Survey and studies conducted, and investment

dossier of reports submitted to provincial PPC

Q4/2018-Q2/2019Preparation of dossiers and planning

supplementation request sent

Q3/2019-Q2/2020 Construction kickoff and project operationalized

Project site

PHONG DIEN 2 PROJECT - OVERVIEW

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www.geccom.vn

SOLAR POWER PROJECTS TTC GROUP IS REQUESTING MOIT FOR PLANNING SUPPLEMENTATION

1. Thanh Long solar power plant (30MW)

2. TTC - Ham Phu solar power plant (49MW)

3. TTC - Nhi Ha solar power plant (50MW)

4. TTC - Ben Tre solar power plant (30MW)

5. TTC - Tay Son 1 solar power plant (49MW)

6. TTC - Tay Son 2 solar power plant (30MW)

7. TTC - Song Binh 4 solar power plant (49MW)

8. TTC - Song Binh 5 solar power plant (49MW)

9. TTC - Duc Hue solar power plant (49MW)

10. TTC - Binh Tan 1 solar power plant (49MW)

11. TTC - Binh Tan 2 solar power plant (49MW)

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THANK YOU VERY MUCH

Best practices from the Vietnamese Energy Sector

Heineken - ESCO Model

Mr. Matt Wilson

Corporate Affairs Director

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Video…

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THANK YOUTHANK YOUTHANK YOUTHANK YOU

Best practices from the Vietnamese Energy Sector

Green-ID Solution for Off-grid Areas

Ms. Ngụy Thị Khanh, Executive Director

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Sustainable and affordable energy solutions for the

“Last Mile”.

Presenter: Nguy Thi Khanh

Green Innovation and Development Centre (GreenID)

Email: ntkhanh@greenidvietnam.org.vn

The Rural Electrification Program REP Target: Almost 100% rural households have access to power by 2020. 2% remains to be reached - these are off –grid communities in remote areas still without power (approximately 1,009,900 households).

Challenges remain to achieving the REP target by grid expansion to these remote areas, due to:

• Macro financial barriers: National budget limitations & high investment costs vs relatively energy low demand.

• Geographical barriers: Remoteness of target areas reduces the cost – effectiveness of grid installation and maintenance.

• Lack of local financing mechanisms for end-users to deploy off-grid renewable solutions

Off-grid households just have very basic demand for lighting, phone charging, and a few small appliances which can be met by decentralized renewable energy solutions

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GreenID Off- Grid solutions: Option 1. Mini grid system

Mini Off-Grid Solar Energy System for electricity

And drinking water in Erot, Cư Pui Commune,

Krongbong District, Dak Lak Province

Solar PV system: 6,24Kwp

Drinking water system: 360l/h

Water price: 7000 VND/20l

Electricity price: 2000VND/kwh

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Advantages of RE Mini – Grid system:

• Provide decentralized efficient electricity, connecting remote off grid communities

• Bridge the gap between small solar PV systems and large grids, offering the customer nearly the same service as grid connection.

• Can expand as energy demand increases

• Enable integrated solutions such as the installation of water supply systems.

Off – Grid solution 2: Solar Home system

More than

300

households

applied in

project

sites since

2017

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Household - scale solar installation

Household solar installation

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Our approach: The LEP Process

Key Elements of LEP

• Community demand driven

• Increased green awareness and behavior change in the community

• Planning and implementing by the people with technical support

• Community ownership fostered by an inclusive process

• Locally appropriate solutions designed for the needs of each community

• Cost-sharing for solutions application

• Local technician building for sustainability and new job opportunities

• LEP enable the application of 15 sustainable energy solutions by thousands households in 6 provinces, bringing benefits for about 40,000 people

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Challenges & lessons learnt

• Current lack of initial financial mechanisms for such local solutions. Appropriate solutions such as loan packages should be put in place.

• Follow - up operation & maintenance over the lifetime of the systems. The technical expertise and economic feasibility of local maintenance support should be ensured.

• Current low level of understanding and information in local communities regarding the potential of RE solutions. Access to information regarding renewable alternatives needs to be made available.

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Conclusion & recommendations

• Decentralized RE systems are a practical and appropriate way of meeting the basic needs of off-grid communities

• They are a cost effective and sustainable means of reaching the REP target by 2020

• RE systems are fully implementable in off – grid communities, but require a financial mechanism to become feasible.

• Govt should give priority to off-grid renewable energy solutions by:

• i) providing partial financial support for end-users or capable actors to deploy RE solutions for off-grid communities;

• ii) putting in place appropriate policy to mobilize the participation of multi-stakeholders including government agencies, NGOs, business and the community in providing innovative delivery of RE solutions for off-grid communities;

• iii) ensuring an appropriate capacity building program to increase awareness and build local expertise for off-grid community on RE alternative solutions

Thank you