SOLAR POWER MARKET DEVELOPMENT TENDENCY

Transcription

1 SOLAR POWER MARKET DEVELOPMENT TENDENCY 1

2 POTENTIAL & CURRENT STATUS Small Hydro Biomass Biogas Potential: > MW Present: >1670 MW Potential: >2000 MW Present: 150 MW Solar energy Wind energy Geothermal M.Solid wastes Potential: 4-5kWh/m 2 Present: 5MW Grid-connected: > 1.MW Potential: ~8,000 MW (>=6 m/s) Present: 52 MW Many projects (F/S): 3000MW Ocean energy Potential: >320 MW Present: 2.4 MW Potential of tidal power: MW Present: 0 MW (Nguồn: MOIT) 2

3 POWER PRODUCTION FROM RENEWABLE ENERGY IN VIETNAM Small Hydro Solar power Others Biomass Wind power Solar Power Coverage in RE is very low approximated 0,1% 3

4 SOLAR POWER POTENTIAL AREA Average Radiant (kwh/m2/day) North Region North Central Region South, Highland and South Central Region

5 LEGAL DOCUMENTS ON SOLAR POWER DEVELOPMENT Decision no.428/2016/qđ-ttg approving the National master plan for power development for the period with the vision to2030 (inbrief, Power Master Plan VII). Delicate the target to develop solar power as below: Year Coverage rate in Commercial Primary Energy 0,1% 0,5% 1,6% 3,3% Estimated Capacity 5MWp 850MWp 4GWp 12GWp 5

6 ELECTRICITY GENERATED PURCHASE Type of RE Feed-in Tariff (cents/kwh) Vietnam Thailand China Japan Germany Small Hydro Wind power Biomass Energy from waste Biogas Researching Solar power Geothermal energy Researching

7 PRICE OF ELECTRICITY 8

8 TENDECY OF LEGAL DOCUMENT TO DEVELOP SOLAR POWER In August of 2016, the Permanent Government and the Prime Minister agreed with the Ministry of Industry and Trade about the mechanisms to encourage the development of solar power projects in Vietnam - Feed-in Tariff: research to propose the Feed-in Tariff and pilot it for 3 years. - Research and supplement to regulations to implement Solar Power Projects bidding in explicit. - Research in CERs (Certified Emission Reductions) Trade on Solar Power Project. - Research in regulations regarding to business license and tax - Encourage development and localization equipment. 9

9 PRIVILEGES TO RE PROJECTS 1) Investment capital: Investors may mobilize capital from legal sources including domestic or oversea organizations 2) Import duty: exempted import duty on those goods imported to create fixed assets of the projects and the goods are material, semi-finished products which can not be produced in Vietnam imported to produce the finished product of project. 3) Corporate income tax: Corporate Income Tax (CIT) exemption in the first 4 years and 50% deduction (maximum) from tax during the next consecutive 9 years of the RE power project (tax rate of 10%). 4) Loss transfer: Loss could be carried forward to next year and deducted from taxable income. The loss transfer can be implement not over 5 years. 5) Land: enjoy exemption or reduction of land use, and land rental fee as those projects entitled to special investment treatment. 10

10 Advantage: The government is drafting the Feed-in Tariff mechanism for Solar Power. Vietnam has the strategies and clear development goals. Local government support to develop solar power projects. Disadvantage: Advantage and Disadvantage in Solar Power Implementation Expected pilot Feed-in Tariff Mechanism in the 3-year will affect the mentality of investors. Haven t processes, synchronous procedures guidance from the central to local government agency levels. Haven t planning, technical regulations... affect the project development process Investment costs and the possibility of equipment localization Investment Support Fund, incentive loans... Disadvantaged in Land Plan for development the solar farm projects in some provinces. 12

11 POTENTIAL CHÍNH SÁCH SOLAR VỀ PROJECTS NLTT 1) 500kWp Rooftop Solar ECC HCMC (in Ho Chi Minh City) 2) 2MWp Solar power plant ECC HCMC (in Phu Yen province) 3) 1MWp solar power Thanh Thanh Cong Group (Ho Chi Minh City) 4) 300MWp solar power - Thanh Thanh Cong Group (in Binh Thuan province).. Several industrial solar power projects owned by big corporations/ partners: Tuan An group, Hoang Ha group, REDSUN around 100MWp located in different provinces such as Ninh Thuan, Phu Yen, Dong Nai 13

12 THE CHÍNH SUPPORT SÁCH PROJECT VỀ NLTTTO DEVELOPMENT SOLAR POWER 1) Supporting The Development Of Solar Power In Southern Vietnam (Solar Hub) UK Fund (support o implement Pre FS, FS, website) 2) Supporting rooftop solar PV program in HCMC World Bank (potential assessment, technical support, PPP mechanism ) 3) Investment Incentive Support for Solar power project in HCMC (Feed-in Tariff pilot, technology research, Market Promotion Activities ) Pilot Feed-in Tariff support for 50 Household and 20 Enterprises (2MWp Capacity) Solar Power Installed Potential of Public Building. Building the database to assess the efficiency of solar power in HCMC. (theory yield: 4 5 kwh/kw/day, real yield 3,5 kwh/kw/day) Meter Equipment Problem. 14

13 INSTALL SYSTEM AND COLLECT DATA 15

14 CHÍNH BARRIERS SÁCH TO VỀ THE NLTT RE DEVELOPMENT 1) Policy barriers: only Law on Economical and Efficient Use of Energy is available, most major policies and mechanisms for RE is lacked, a comprehensive law on RE is not yet issued. Therefore it s hard to govern the energy activities in line with the objectives set for socio-economic development. 2) Institutional barriers: Limited capacity of management from local to central government in terms of organizations, procedures and resources to operate the RE area. 3) Technical barriers: low technological level and capacity of management, most equipment is imported, lack of skilled engineers for researching and training in RE industry and standards for exploiting RE. 16

15 BARRIERS TO THE RE DEVELOPMENT 4) Financial/funding barriers: - High investment cost - Difficult to access to loans/ funds without government support - Unattractive FIT 5) Information barriers: - Lack of information or reliable database for investors to develop the projects - Lack of information about land planning for all RE projects - Successful models/ stories are not communicated and share the experience to public and investors. 6) Low public awareness and participation: Without public participation, RE action could be limited. The policy implementation could be very difficult. 17

16 THANK YOU FOR LISTENING! 18