Application of Strategic Environment Assessment in Power Development Plan, Viet Nam

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1 Application of Strategic Environment Assessment in Power Development Plan, Viet Nam Sumit Pokhrel Deputy Technical Program Head GMS Environment Operations Center (EOC)

2 Key elements of SEA Integration underpinned by supporting policy and institution Interact (dialogue) information influence

3 Scope of revised PDP 7 ( ) Projected installed capacity of 88,833 MW 2030 under baseline scenario; reduction by 21,382 MW compared to original PDP 7 Projected investment: US $ billion billion by 2030 fixed costs accounted for 54.4% (222.4 billion), the cost of fuel accounted for 44.1% (180 billion US D)

4 Building SEA system for the power sector in Viet Nam has been a continues process (PDP 6 to update of PDP 7) Evolving from ex-post to ex-ante Institute of Energy was a logical choice to conduct SEA

5 Influence (1) Key SEA Recommendations Adjustment of supply mix in revised PDP7: Hydro-power remained constant as optimized in PDP 7 Thermal power to be reduced, displaced by higher proportion of renewable energy (10-12%) compared to 9.5% in PDP 7 by 2030 Reduction in capacity of nuclear plants and to be developed at the later stage of PDP 7 Cancellation of several candidates plants based on impact evaluation (4 thermal and 4 hydro power plants); fuel switch to LNG in few instances Change routing of 500kV and 220 Kv transmission lines Stronger integration of management solutions (multipurpose projects, safety standards and compliance, social safeguards-resettlement and compensation) Identified issues and orientation for project based EIA Decision 428/Ttg dated: 18/3/2016 re: approval of revised PDP VII Prioritize development of renewable energy in accordance to national energy security strategy, and increased emphasis on power trade Approved Improve the transmission line system, in addition to minimizing power loss and improving efficiency Recognized

6 Influence (2) O ther achievements include Energy efficiency integrated into demand scenarios Potential of payments for ecosystem services recognized

7 Inform (1) Diversification of investment risks (diversification of portfolio) and ensure energy security C lear articulation of economic benefits of shift towards Renewable Energy and Energy Efficiency during S EA of PDP VII, provided a strong basis for development of scenarios

8 Inform (2) S cenarios for revised PDP VII: S cenario 1: Baseline (integrating EE and RE measures); accounted for reduction in demand forecast; S cenario 2: Increase renewable energy; S cenario 3: Peak load (high load) accounting for higher demand projections. S cenario 1 was preferred options considering low cost, system reliability and feasibility; further alternatives were further explored considering environmental impact

9 Inform (3) Evaluation of environmental impacts (zone of influence): Thermal plants: (climate change, public health, solid waste cooling water, displaced people) Pollution levels notable concentrated in areas with high population density, industrial development and economic (the North East and South East)

10 Inform (4) Evaluation of environmental impacts (zone of influence): Hydropower plants: (forest and biodiversity loss, change in downstream hydrology, re-settlement)

11 Inform (5) Evaluation of environmental impacts: Nuclear power plants: (cooling water, nuclear waste, and safety) Huge uncertainty regarding impact and safety

12 Inform (6) Evaluation of environmental impacts: Transmission line: (eco-system fragmentation) High biodiversity area Area(ha) Bạc Liêu 3.72 Bạch Mã 0.61 Cát Lộc 7.21 Chùa Hương 6.37 Cúc Phương Đèo Cả-Hòn Nứa 0.84 Kẻ Gỗ 8.54 Kon Cha Rang - An Toan Kon Ka Kinh 3.45 Đèo Lò Xo Nam Cát Tiên Ngọc Sơn 4.73 Núi Chúa Sông Thanh 9.86 Trường Sơn 7.86 Yok Đôn

13 Interact C ommon agenda for interaction/ dialogue for involved stakeholders: Alignment of development objectives (e.g. energy security) Improve understanding of investment options/choices 1. Reduce investment risks (economical, social, environmental) and ensure better rate of return 2. Internalize environmental cost and benefit 3. Make plans socially more inclusive Decision-oriented and build consensus (participatory process)

14 Integration Requires ensuring right set of conditions: Policy conditions/ legal requirement S trong ownership of S EA by sector line agency S cientifically robust analytical framework (scenarios, alternatives, and valuations) Multi-stakeholder participatory mechanism Technical capacity (PDP VI to PDP VII)

15 Institution C learly defined Implementation function Regulating role Appraisal process/ mechanism Monitoring and Evaluation

16 THANK YOU!