CURRENT NEW AND RENEWABLE ENERGY PRIORITIES IN VIET NAM

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1 32 nd Meeting of the APEC Expert Group on New and Renewable Energy Technologies 1-3 April 2009, Honolulu, Hawaii, USA CURRENT NEW AND RENEWABLE ENERGY PRIORITIES IN VIET NAM By: Vu Van Thai, MOIT Phan Thi Thuy Tien, EVN Nguyen Duc Cuong, IE

2 Energy mix Status of energy demand & supply in VN Primary energy supply by type of fuel Coal (mill. Tons) Crude oils (mill. Tons) Gas (mill.m3) Energy import & export by type of fuel Coal export (mill. Tons) Crude oils export (mill. Tons) Oil products Import (mill. Tons)

3 Primary commercial energy consumption by type of energy KTOE Coal Oil products Gas Hydro power Total Final commercial energy consumption by type of energy KTOE Coal Oil products Gas Electricity Total

4 Electricity generation mix Unit: GWh Unit: MW 70,000 60,000 50,000 40,000 Import IPP/BOT Diesel Gas turbine (Oil/Gas) Oil-fired Coal thermal Hydropower 14,000 12,000 10,000 8,000 Import IPP/BOT Diesel Gas turbine (Oil/Gas) Oil-fired Coal thermal Hydropower 30,000 6,000 20,000 4,000 10,000 2, RE Power, 2.1% Share of RE-2007 Import, 4.1% Hydropower (Large- Medium), 34.8% 2.1% of Installed Capacity, including: Coal thermal, 14.4% Wind: 0.009% Small hydro: 0.921% PV Solar: 0.008% Biomass: 1.127% Oil&Gas TPPs, 44.6%

5 Demand on Energy & Electricity Generation Increasing Rapidly RE Gas Oil products Electricity Coal Mill. TOE Year 700, , , ,000 GWh 300, , , Year

6 Policy, regulation and incentive for RE development Government set up Policies for RE Decision No: 110/2007/QD-TTg, dated 18/7/2007 by Prime Minister on PDP VI. Renewable electricity planned: From : Installed new 2451 MW, average: 241 MW/year From : Installed new 1600 MW, average: 160 MW/year Decision No: 1885/QD-TTg dated 27/12/2007 by Prime Minister approving Strategy on National Energy Development up to 2020, and outlook to Main contents of strategies related to promotion of RE development: Encouraging study and use of RE, focus on remote mountainous, island areas. Strive to increase share of RE to about 3% of total commercial primary energy in 2010; 5% in 2020 and 11% in By 2020, most rural population will have access to electricity (based on RE) Decision No: 177/2007/QD-TTg dated 20/11/2007, by the Prime Minister approving Project on Biofuel Development for Period up to 2015, Outlook to The main contents are as follows: In period : Mastering technology and manufacturing additives for production of biofuels By 2015: Ethanol and bio-diezel will be 250,000 tons, accounting for 1% of gasoline and diezel demand of the whole country. By 2025: Ethanol and bio-diezel will be 1.8 million tons, accounting for 5% of gasoline and diezel demand of the whole country.

7 Inter Ministerial Circular No 58/2008/TTLT-BTC-BTN&MT dated 04 July 2008 on Guiding Implementation of some articles under Decision No 130/2007/QD-TTg of PM on mechanism, financial policy on CDM project. Type of RE projects enjoyed subsidy policy from VN EPF: Electricity from some selected RE Subsidy level for each product unit = Actual producing costs/ each unit + Planned profit/each unit Actual selling price/each unit Circular No 18/2008/QD-BCT, 18 July 2008 on avoided cost and SPPA for SPP from RE (implementing on 1/1/2009) Strategy, Masterplan on RE Development in VN for period to 2015, with outlook to 2025 Completing and will be submitted Government at the end of 2008 for approval With main contents considering: RE fund; Feed in tariff (at Economic cost) Set up target (%) of RE connected grid Set up (%) Households in off grid have access electricity based on RE Set up (%) using heat from RE Implementing plan (legal and institution)

8 Strategy, Master Plan for RE Development in VN Strategy, Master plan for RE Development in VN in the period to 2015, with outlook to 2025 was prepared and submitted Gov (at 12/12/2008) for approval. Set up the target of RE for grid connection: 3.1% in 2015; 3.8% in 2025 Set up the target of RE for off-grid: 100% HH in 2025 Set up the target of RE for heat utilization: SWH: 10mil. m 2 (2025), Biogas: 15 mil. m 3 (2025), 4 mil. ICSs in Establish framework for supporting RE: New RE Office, RE Fund Establishing measures to implement (management, support mechanisms, SH P procedures. etc.) T A RIFF W IN D BIO M A SS RE SU PPLY C U RV E X 10 P G G lobal cost=p SO C+V C A RBO N Steps for RE development based on reform tariff P SO C P EC O N P FIN V C A RBO N V L.EN V X 2 X 3 X 5 X 4 X 7 X 6 X 8 X 9 Social C ost P SO C =P EC O N +V L.EN V A voided cost at econom ic pr ices A voided cost tariff X 1 Q BA U Q FIN REMOVE INSTITUTIONAL BARRIERS TARIFF REFORM Q EC O N Q SO C Q G PREFERENTIAL PRICE CARBON FINANCE G W h

9 Grid Connected Target by Type RE Rice husk power Win power Geothermal power MSW Baggass power Small hydropower ( 30MW) Capacity (MW) Principal SHP 78.5% (2050MW) (base year) Year

10 (%) (year) Rural Electrification Target By 8 socio-economic regions Communes Household

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