OVERVIEW OF ENERGY SECTOR IN VIET NAM AND PARTNERSHIP INVESTMENT OPPORTUNITIES. Nguyen Thai Son Director of Planning Department

Transcription

1 OVERVIEW OF ENERGY SECTOR IN VIET NAM AND PARTNERSHIP INVESTMENT OPPORTUNITIES Nguyen Thai Son Director of Planning Department General Directorate of Energy MOIT

2 1 Content Overview of socioeconomic Strategy for national energy development Current status and development plan Power sector Renewable energy sector Oil and gas sector Coal sector Investment proposals Q&A

3 Overview of socialeconomic Introduction 2 Current status and development plan Area ,4 km2 Population 86,2 mil Number of provinces 63 GDP growth rate %/year - Year ,9%/year - First 4months of year % - Planning for period of ,5-7%/year

4 Development stratery Strategy for national energy development (Decision 1855/QĐ-TTg dated 27th December 2007) - - Energy development must be closely linked to national social - economic development strategy and ensure a step ahead at high speed, sustained, coordinated, diversification of energy sources and energy saving technologies. - Gradually set up the energy market, diversification of ownership and business methods, aims to satisfy the best interests of consumers. Accelerate the abolishing subsidies and remove exclusive, advanced to eliminate the implementation of social policy through energy prices; - Synchronized and rational development of energy system: electricity, petroleum, coal, new and renewable energy, including interest in clean energy development, priority development of new and renewable energy; - Improve efficiency, energy efficiency business. Focus on investment in energy efficiency, reduce losses; - Development of energy tied to preserving the ecological environment, ensuring the implementation of sustainable energy development. 3

5 Power sector Current status Generation share & load growth 2011 Total installed capacity 23500MW Commercial electricity 93,8 bil kwh Electricity growth rate Period of ,7% Year ,5% CURRENT STATUS OF GENERATION SHARE Depend on owner Depend on kind of source PVN 10% Nhập khẩu 4% Khác 1% IPP, BOT nước ngoài 10% Nhập khẩu 3.7% Khác 2.8% TKV 3% EVN 54% Tuabin khí 33.1% Thủy điện 40.3% Cổ phần 15% Tư nhân 3% Nhiệt điện dầu 2.7% Nhiệt điện than 15.1% Nhiệt điện chạy khí 2.3% 4

6 Power sector Ph íclong U«ngBÝ 5 Current status Grid Voltage Line (km) Substation (MVA) 500kV 3,890 10,650 Voltage Line (km) Substation (MVA) 220kV 10,015 22, kV kV 135,371 39,804 LV 240,424

7 Power sector Viewpoints for development a) Development of the power sector must be associated with national social - economic development strategy, ensure enough electricity to supply the national economy and social life. b) Efficient use of energy resources for power development internally the country, combined with the import of power, reasonable fuel imports, diversification of primary energy sources for electricity production, fuel conservation and ensure energy security for the future c) Gradually improve the quality of electric power to provide electricity services to the increasing quality. Implementation of the electricity price under the market mechanism to encourage investment in power sector development and encourage the use of power saving and effective. d) Power development along with protecting natural resources, environmental protection ecological guarantee the country's sustainable development e) Progressive formation and development of competitive electricity markets, diversifying forms of investment and trading. Only State monopoly transmission grid to ensure the security of national energy system. f) Development of power sector based on the rational use and effective source of primary energy resources of each region; to continue promoting rural electrification, guaranteed to provide full and continuous and safety for electricity demand in all regions nationwide. 6

8 Power sector Development Plan Generation share & elect. growth rate Electricity growth rate Period of Period of Period of ,1-16%/yr 11,3-11,6%/yr 7,8-8,8%/yr 160, , , ,000 80,000 60,000 40,000 Nuclear Power Renewable Energy Imported Coal Fired Thermal Power Oil and Gas Fired Thermal Power Hydropower & Pump Storage 20,

9 Power sector Development Plan Transmission grid CHINA Thac Ba Lai Chau Viet Tri Soc Son Son La PhLai Chem Uong Bi Ha Dong Mai a Dong Quang Ninh Hai Phong HOA BINH Thuong Din Tin Nho h Quan Ninh Binh Thanh Hoa LAOS NORTHERN REGION Vinh Ha Tinh CENTRAL Dong Hoi REGION Quang Tri Da Nang MAP FOR NATIONAL POWER SYSTEM PLANNING TO 2030 Ban Sok Yaly Plei Ku Sam Bor CAMBODIA Doc Soi Vinh Son Quy Nhon Krong Buk SongHinh D.Nai3&4 Nha Trang Di Linh Da Nhim Thac Mo Tan Dinh Tri An Bao Loc Hoc Mon Song Phu Lam Nhon May Trach Nuclear Power Nha Be Phu My O BRia Cai Lay SOUTHERN Rach Mon Gia TrNoc a REGION a NOTE 500kV: 500kV line (- 2020) 500kV: 500kV line (- 2010) 500kV: Existing 500kV line 220kV: Existing 220kV line 500kV substation(- 500kV 2020) substation(- 2010) Existing 500kV substation Existing 220kV substation Existing TPP 8

10 Power sector Development Plan Construction volume 500kV transformer Period of Period of Period of Period of Region No. of stat. No. of transf. Cap. (MVA) No. of stat. No. of transf. Cap. (MVA) No. of stat. No. of transf. Cap. (MVA ) No. of stat. No. of transf. Cap. (MVA) Northern Central Southern Total kV transmission line Region Period of Period of Period of Period of No. of trans. lines Length (km) No. of trans. lines Length (km) No. of trans. lines Length (km) No. of trans. lines Length (km) Northern Central Southern Total

11 Power sector Development Plan Construction volume 220kV transformer Period of Period of Period of Period of Region No. of stat. No. of transf. Cap. (MVA) No. of stat. No. of transf. Cap. (MVA) No. of stat. No. of transf. Cap. (MVA) No. of stat. No. of transf. Cap. (MVA) Northern Central Sounthen Total kV transmission lines Region Period of Period of Period of Period of No. of trans. lines Length (km) No. of trans. lines Length (km) No. of trans. lines Length (km) No. of trans. lines Length (km) Northern Central Sounthen Total

12 Power sector Development Plan Capital investment Total Capital Investment needed/ Average Capital Investment per year (Bil. USD) Items I- For Power generation 22,076/ 4,415 28,830/ 5,766 27,005/ 5,401 32,441/ 6, ,322/ 5,516 II- For Grid 7,245/ 1,449 10,523/ 2,105 12,345/ 2,469 15,868/ 3,174 45,981/ 2,299 Total 29,321/ 5,864 39,353/ 7,871 39,349/ 7,870 48,280/ 9, ,303/ 7,815 Investment ratio of power project in period of No. Investor Capacity (MW) Investment ratio 1 EVN + TKV+PVN ,49% 2 BOT ,70% 3 IPP + Others ,80% Total ,00% 11

13 Power sector 12 Roadmap for electricity tariff Competitive Generation Market (VCGM) Electricity Wholesale Market Electricity Retail Market Pilot Operation Full Operation Pilot Operation Full Operation Pilot Operation Full Operation

14 Renewable Energy sector Avoided cost tariff (Decision 18/2008/QĐ-BCT dated 18th July 2008) -The avoided costs of the national power system is calculated when there is a (01)kWh power from small power plants using renewable energy is emitted into the distribution grid; -Avoided costs as production costs of the generator 1kWh have the highest cost in the national electricity system, these costs can be avoided if buyers purchase1kwh from a small power plants using renewable energy replacement. SUPPORTING MECHANISM FOR WIND POWER DEVELOPMENT PROJECS (Decision 37/2011/QĐ-TTg dated 29 th June 2011) Underwriting electricity produced from grid-connected wind power plants; Investment incentives, taxes, fees; Preferential land infrastructure; Support price of electricity for grid-connected wind power project 13

15 Renewable Energy sector Development Plan Resource Capacity of Renewable Energy on-grid (MW) Capacity Total Wind power Small Hydro power Biomass (solid) Waste Geothermal Solar power Biogas Capacity of Renewable Energy off-grid (MW) Capacity Solar system 12, Small Hydro power (off grid) 31,2 25,6 58 Biogas 1,3 1 5 Wind power-diesel system 3,6 3 8 Solar-diesel system 4,6 3,8 8 wind-diesel-solar system 3.6 2,3 9 Total 56,7 45,7 102,4 14

16 Renewable Energy sector Development Plan Capital investment For grid-connected electricity from renewable energy sources for the period of the chosen scenario (20 years) with average investment rate of 1.34 million USD/MW (13.194MW). However, this capital will be invested by the mobilize capital of enterprises. Capital estimated billion VND. For electricity from off-grid renewable energy source: Total investment of billion VND. This support capital is invested by the state. For renewable energy use for heating: The total investment for the period was 42,000 billion VND. This capital is invested by people for household equipment and installation. It will be considered a small support in the early stage to stimulate using renewable energy movement and market development. The total subsidies for the basic plan implemented in the period from 2011 to 2020 with the current calculation is billion VND. In particular for electricity from renewable energy on-grid is 3953 billion (19%), renewable electricity off-grid is billion VND (72%) renewable heat is 1857 billion VND (9%). 15

17 Oil &Gas sector 16 Viewpoints for development Effective use of petroleum resources in the country, and to promote investment, search, exploration and exploitation of oil and gas abroad, combined import and export as a basis for sustainable development of the petroleum industry firmware, ensure energy security for the economy. - Developing internal resources, combined with expanding international cooperation, attracting foreign investment in search activity, exploration, increases in oil and gas reserves verified. - Prioritize search, exploration and exploitation of the deep water, offshore. - Encourage participation of all economic sectors and foreign investment in developing the field of processing, distributing products and services etc..

18 Oil &Gas sector Planning Exploration, exploitation, processing, transportation 1. Search, petroleum exploration: oil and gas reserves reach million tons of oil equivalent / year. 2. Oil and gas exploration: 3. Development of gas industry: Exploitation (million tons oil equivalent / year) + Development towards diversification of markets, gas will be provided to the industry: power generation, fertilizer, chemical, industrial, transportation and civil-scale production of about 19 billion m3 in Research pipeline connecting East - South West, a gas pipeline as a basis for transnational connection with gas pipeline in Southeast Asia. + Strengthening international cooperation and selection of strategic partner capable of longterm gas supply LNG, CNG, DME... from Russia, the Middle East, Australia, Africa... etc.. + Prepare infrastructure, promote and encourage the construction contractor collection systems offshore. + Cooperation, research technology solutions to recover gas is burned off at the platform in separating the highvalue products such as Ethan, propane-butane(lpg). Development and exploitation of gas fields with high CO2 content. + Research and Development projects of gas to form combinations of oil and gas industry, building separation Ethan tower system at the treatment plants to build gas processing plants Ethanethylene; processing gas into liquid fuels (GTL), DME from methanol. 4. Oil and gas processing industry: Exploiting overseas (million tons / year) Crude Oil (million tons / year) Gas (million m3/year) Period to Period By 2015, finish 3-5 petrochemical refineries construction with total capacity of filter around million tons/year, construction and commissioning of 1-2 production of petrochemical products basic petrochemicals. + By 2025, complete the expansion and completion of construction 6-7 petrochemical refineries with total refining capacity of million tons/year,50% meet the needs basic petrochemical products

19 Oil &Gas sector 18 Development Plan Capital investment (mil. USD) No. Type of Investment High Scenario (Billion USD) 65,170 1 Oil and gas exploration 28,784 2 Transportation &collection of gas 2,467 3 Gas Processing Plant 1,816 4 Oil Refinery & Petrochemical 18,785 5 Petroleum Services 10,983 6 Petrol & LPG depots 2,100 7 Topics, scientific research 235 The participation of the PVN: 26,020

20 Coal sector 19 Current status Opencast: + 5 mines with a capacity of over 2 million tons/year + 15 mines with a capacity of 0,1-0,7 million tons/year + A number of extraction with a capacity of less than 0.1 million tons/year Underground: + 9 mines with a capacity of over 1 million tons/year + over 20 mines with a capacity of less than 1 million tons/year Extraction method Mining production in the period Unit Total Opencast Mil. tons Underground Mil. tons Total Mil. tons

21 Coal sector Viewpoints for development - Developing the coal industry on the basis of mining, processing, cost-effective use of coal resources of the country, to serve the domestic demand is primarily to ensure national energy security. - Development of sustainable coal industry, associated with effective protection, improve the ecological environment of coal - Maximize internal resources (capital, ability to design and manufacture of equipment in the country, etc.) - Promoting foreign investment in exploration and exploitation to supplement the long-term coal for domestic needs. - To diversify forms of investment and business in the coal industry. To do business under the coal market is the management of the State to serve the aim of ensuring national energy security. 20

22 Coal sector Planning Exploration, exploitation, processing 1. Coal exploration: a) Northeast coalfield: - Distribution mainly in Quang Ninh, a part in Bac Giang and Hai Duong. This area has resources and reserves of the country's largest anthracite coal are mobilized primarily on 2030 planning. - By the end of 2015, completing the resources exploration and coal reserves of upper-level and a minus 300m area for the North East coalfield. By 2020, basically complete the exploration of coal to the bottom floor. b) Red River delta coal basin: - Distribution is mainly in the provinces of Thai Binh and Hung Yen, Nam Dinh, have great potential in type A bituminous coal (sub - bituminous), low levels of exploration, mining conditions difficult, complex and sensitive environment, ecology. - During the period , selected area contains some promising coal, geological conditions - suitable for conducting mining exploration investment for the test harness. - By 2030, completed basic exploration area contains coal mining favorable conditions improve Khoai Chau - Tien Hai. 2. Coal Mining: + Year 2012: million tons; Year 2015: million tons; Year 2020: million tons; Year 2025: million tons; Year 2030: greater than 75 million tons. 3. Processing of coal: Strive to 2020, processing of coal development in product diversification (direct fuel combustion, coal for metallurgy, coal gasification, coal to liquid fuels, raw materials for chemical industry etc...) 21

23 Coal sector 22 Development Plan Capital investment - From year 2015, Vietnam will have to import coal; - Total capital investment needs for the coal sector to 2030 about 691 trillion VND (equivalent to 33billion USD); - The average capital investment needs for the coal sector to 2030 about trillion VND/year (equivalent to 1,6 billion USD/year).

24 Invest. proposals Power sector STT Project name Type of investment Location (province) Operation year Capacity (MW) Total investme nt (bil USD) 1 O Mon II BOT Can Tho ,6 2 Quang Tri IPP/BOT (potential BOT) Quang Tri x600 2,3 3 Vung Ang 3 BOT Ha Tinh x Pump storage PP No.3 IPP Ninh Thuan x300 0,8 Progress The project is preparing bidding document to select investors. International bidding. Ministry of Industry and Trade is studying the investment guidelines of project preparation. The project is preparing bidding document to select investors. International bidding. 5 Van Phong 2 BOT Khanh Hoa x660MW 2,4 Not yet implemented 6 Nam Đinh 2 BOT Nam Đinh x660MW 2,4 Not yet implemented 7 Son My 1 BOT Binh Thuan x390MW 2 8 Song Hau 2 BOT Hau Giang x1000MW 3,5 Total 12140MW 19 Ministry of Industry and Trade is studying the proposals of the investors for investment in BOT type and plan to evaluate and approve the feasibility study (in case the project is approved by competent authorities as BOT type) Ministry of Industry and Trade are working to guide investors in project preparation 23

25 Invest. proposals Oil & Gas sector No. Project name Size Location Operation year Upgrading and expanding Dung Quat oil refinery The Nam Van Phong refinery Gas Pipeline Nam Con Son 2 Long Son oil refinery from 6.5 (existing) to 10 million tons/year 10 million tons/year ~400km length, capacity of 7 billion m3 /year 10 million tons/year Dung Quat Economic Zone, Quang Ngai province Van Phong Economic Zone, Khanh Hoa province Ba Ria Vung Tau province Long Son oil and gas industrial zone, Ba Ria - Vung Tau province To begin the construction in the period , commercial operation in 2017 Total investm ent (bil. USD) Calling for foreign investm ent ratio 2,7 49% % Commercial operation in ,3 49% % Total 20 Status & progress Investment project are set up Investment project are set up and looking for joint venture partners set the overall technical design (FEED) Study and calling for investment 24

26 Invest. proposals 25 Coal sector To request assistance in the field of research in the Red River Delta coal basin. Support the implementation of projects related to environmental protection and safety in coal mining. Enhancing ODA aid for projects in infrastructure development in Vietnam's coal industry, human resources training.

27 Question & Answer 26