RENEWABLE ENERGY DEVELOPMENT PROGRAM. PoA-REDP in Vietnam

Transcription

1 RENEWABLE ENERGY DEVELOPMENT PROGRAM PoA-REDP in Vietnam Ministry of Industry and Trade Vietnam

2 ROAD MAP 1. Overview of the REDP 2. Lessons learnt 3. Challenge 2

3 Policy target: Increasing share of RE to 5.6% of total capacity in 2020, and about 9.4% in Economic context: Shortage of financial source for electricity as well as RE development. Difficulty for private sector to access the financial resource to develop the RE projects. REDP objectives OVERVIEW OF THE REDP REDP was launched with expectation of achieving the policy goal. The project was funded by World Bank with the aim of support private sector accessing the financial source for RE. Carbon finance component under REDP is expected to help developers getting benefit from CERs and increasing sub-project s feasibility. 3

4 REDP outline Total capital: 320 mil USD Estimated capacity: 210 MW Implementation period: OVERVIEW OF THE REDP Number of project: Estimated output: 880 GWh/year, Expected emission reduction: 300,000 mil tco2/year. 4

5 Key eligibilities: SHPs with capacity less than 30 MW 100% electricity output is from renewable energy resource New and Grid connected project OVERVIEW OF THE REDP Refinancing from REDP FIRR of CPA must be less than FIRR PoA-REDP s reference Apply methodology of ACM0002 on base line To comply with Vietnamese regulations, WB safeguards 5

6 OVERVIEW OF THE REDP REDP structure Ministry of Industry and Trade (MOIT) Re-financing by Ministry of Finance (MOF) Dam Safety Review Panel (DSRP) Project Management Board (PMB) CPA Implementers (Project developers) SHP 1 SHP 2 SHP 3 PB 1 PB 2 PB 3 Participating Banks 6

7 OVERVIEW OF THE REDP CDM EB PoA-REDP WB X Y 2 3 WB CFU 4 5 DOE MOIT (CME) MOF 1 6a 6b Developer PBs 7

8 OVERVIEW OF THE REDP POA- REDP implementation (C/ME) PMB under GDoE Developers DNA Việt Nam Issue LoA/monitoring CDM-POA-DD CDM-CPA-DD CDM-CPA-DD Certification/ Verification DOE EB under UNFCCC Registration/issue CERs

9 PoA REDP mile stones: PoA DD and first CPA DD were provided LoA by DNA Vietnam in June, PoA DD and first CPA DD approved by EB in December, SPA was signed between MOIT and WB in December, OVERVIEW OF THE REDP ERPA was signed between MOIT and WB in December, First five Sub-ERPAs between MOIT and developers signed in November,

10 OVERVIEW OF THE REDP PoA REDP mile stones: Up to now, there are 9 CPAs succesful registration. First 31,132 CERs were issued for CPA Sung Vui in 2014 Second 80,415 CERs is expected to be issued in this year for first five CPAs in 1014 Next 5 CPAs have just registered succesfully in September, Next 5 sub-erpas will be signed in October, Around 427,301 CERs/year is expected to be issued when 10 CPAs put into operation. Preparing pipeline CPAs 10

11 Information of CPAs: OVERVIEW OF THE REDP No Project Name Commissioned Date Installed Capacity (MW) Generation (MWh/year) Estimate Annual ERs (tco2) 1 Sung Vui May ,700 43,620 2 Song Rieng February ,500 8,100 3 Pa Chien April ,800 44,880 4 Nam Tha 4 July ,900 27,540 5 Hoa Phu December ,472 79,483 Total , ,623 11

12 Information of CPAs: OVERVIEW OF THE REDP No Project Name Commissioned Date Installed Capacity (MW) Generation (MWh/year) Estimate Annual ERs (tco2) 1 Trung Thu October ,611 66,994 2 Bao Lam 1 November ,965 62,270 3 Ban Ang November ,825 37,059 4 Bai Thuong December ,353 13,306 5 Thanh Son January ,731 57,225 Total , ,856 12

13 For developers: LESSON LEARNT Should joint PoA due to: - Save time and money when developing CDM project. - Cost of preparing DD/MR/verification/registration for CPA under PoA is lower then the ones which apply for separate CPA. - Reduce the cost for transaction of CERs. Select PoA/CME that has experience in PoA implementation. Prepare project documents carrefully. Understand carbon market situation to select pricing method of fix or variable. 13

14 LESSONS LEARNT For CME: The project design should appropriate and not too complicate so that it could attract the developer and smooth operation of project. Becareful in selection of buyer Understanding carbon market situation to select pricing method of fix or variable. Skill in negotiation of CERs price Understanding in carbon finance field, CDM rules, technology of CDM project, related regulations and legal to negotiation of ERPA/sub-ERPA It s very important to hire high qualified CDM consultant, DoE 14

15 LESSONS LEARNT For CME: CME has to deal with the risks which may be occured in the future as below: - Developers could sell their project, - False in certification of CPAs - False in verification of MRs - Risk of reduce CERs because of unsubstanable of RE projects etc. Good cordination between relevant stakeholders. Getting support from PBs could touch half of success. Be careful in proving the additionally of CDM projects. 15

16 CHALLENGE Limited awareness of decision makers, enterprises, communities etc on neccesary and benifit of climate change, developement of CDM projects and PMR in Vietnam. Indentify clearly the roles and responsibilities of relevant stakeholders when developing of PMR in Vietnam to prevent overlap between ministries/agencies. Shortage of human resource and limited capacity to develop CDM project and carbon finance in Vietnam such as focal point at governal/provincial level, consultants, developers etc. Volatile carbon finance market, unstability of marcroeconomic environment have great impacts on viability of CDM projects. Limited participation from relevant stakeholders such as commercial banks, financial organizations, relevant agencies etc. 16

17 Thank you! 17