GET FiT Viet Nam Proposal

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1 GET FiT Viet Nam Proposal Country: Viet Nam Responsible agency: Ministry of Industry and Trade (MOIT) & Ministry of Natural Resources and Environment (MONRE)

2 Outline 1. Development in energy sector in Vietnam 2. Overarching project goal and scope of the NAMA Support Project; 3. Target group and financial support mechanism; 4. Project outputs; 5. M&E; 6. Some selected on-going RE-NAMAs. 2

3 Developments in Energy Sector And Target Power Development Plan Master Plan VII: Demand of primary energy of Vietnam: Unit: Million TOE Year Base Scenario Coal Oil Gas Non-commercial energy Total

4 Power Development Plan Demand of primary energy for power sector Year Base Scenario Coal (Million Tons) Gas (Billion m3) Oil (Thousand Tons) Vietnam imports coal from and will import gas from

5 Developments in Energy Sector And Target Power Development Plan Generation Install Capacity 5

6 Power Development Plan Goals for RE and Energy saving Renewable energy development: targeted for 4.5% the total generation 2020 and 6.0% in Energy saving: targeted for 5-8% in 2015 and 8-10% in Feed-in Tariff (FiT) to be applied for RE, starting with wind power plants; and Financial mechanisms and incentives for RE to be established. 6

7 Overarching project goal and scope of the NAMA Support Project Promote the implementation of national strategies and electricity development plan; Employ a sector-wide approach to directly benefit public and private stakeholders of the RE sector; Create indirect benefits for a broader target group by supporting a climate friendly and reliable power supply; adapts the GET FiT concept 7

8 Target group and financial support mechanism national and international project developers and investors in RE projects and directly benefit from the FiT premium payments; includes all power consumers in Vietnam that benefit from the additional, climate friendly and reliable power provided by grid connected RE generation projects; 8

9 Project outputs Financial Cooperation (FC) component The REDF is established: governance structure, procedures, eligibility criteria and financial model. The REDF operational to process RE applications: operational guidelines; HR capacity; steering and investment committees; RE project applications assessment process. Concept and capacity for further development of the REDF: concept and procedures for the further development of the REDF are developed, staff is assigned and HR capacity is built up. Technical Cooperation (TC) component REDF is established and operational with regard to coordination, communication and decision making within MOIT and among relevant national administration. Institutional and human resource capacities to support efficient and effective decision making within the national administration with regard to the implementation of the REDF are build up. A MRV-based data management and overall information service system is established. 9

10 M&E M&E Financial Cooperation (FC) component result-based M&E system in line with the OECD DAC evaluation criteria; include the monitoring of the REDF and the RE projects financed the REDF; independent M&E Consultant will be assigned to conduct regular monitoring visits during the construction and operation phase of every RE project to verify the performance and undertake a final impact evaluation study. M&E Technical Cooperation (TC) component result-based monitoring system will be set up for the TC component according to OECD DAC quality standards (WebMo Web-oriented Monitoring System); indicators will be defined prior to the start of the Project, which are in addition to the core indicators of the NAMA facility, and are either sector or project specific; external evaluation will be conducted alongside the final report by an independent consultant. 10

11 Some selected on-going NAMAs Program for Support Wind Power Development in Viet Nam Objectives: To build an favorable environment for wind turbine technology sized grid and to enhance the effectiveness of currently supporting policies in Viet Nam for the development of wind energy Outcome 1: policy framework to support wind power Outcome 2: capacity building for wind power development Outcome 3: eliminate technical barriers for wind energy potential Outcome 4: pilot wind power project with a capacity of 5 MW and a MRV system. 11

12 Some selected on-going NAMAs Biogas for onsite power generation for pig farms Objectives: To develop a favorable environment for using biogas power at pig farms, along with enhance sustainable development in medium and large scale farm in rural area by reducing GHG emission Outcome 1: A policy framework and investment mechanism Outcome 2: Appropriate technology for biogas electricity generation Outcome 3: The management system of electricity production from biogas Outcome 4: Awareness raising on NAMA and GHG mitigation along with enhancing cooperation of stakeholders in implementing NAMA biogas Outcome 5: Three demonstration models Outcome 6: biogas electricity generation will be at least 50% in 2020 and 70% in 2030 (connect to national grid or local station). The estimate GHG reduction in 2020 is 3 million ton of CO2e/year and 7 million ton of CO2e/year in

13 Thank you very much! 13