ERAV Electricity Regulatory Authority of Vietnam

Transcription

1 MINISTRY OF INDUSTRY AND TRADE ELECTRICITY REGULATORY AUTHORITY OF VIETNAM SOLAR ENERGY DEVELOPMENT POLITICAL AND REGULATORY FRAMEWORK IN VIETNAM Presented by: Mr. Dinh The Phuc Deputy Director General of Authority of Viet Nam 1

2 CONTENTS 1. VIETNAM POWER SECTOR OVERVIEW 2. CURRENT POLICY FRAMEWORK ON RE 3. POTENTIAL OF SOLAR ENERGY 4. ISSUES AND CHALLENGES 5. CONCLUSION 2

3 1. VIETNAM POWER SECTOR OVERVIEW Peak Load ( ) MW National North Centre South Year Average energy growth rate in : 11.67% Electricity production in 2015: 162 Billion kwh 3

4 1. VIETNAM POWER SECTOR OVERVIEW Generation Installed Capacity (2015) Diesel and Small HPP; 4,3% Gas Turbine; 19,1% Other; 0,2% Import; 2,6% Hydro; 34,4% Oil Thermal; 2,3% Coal Thermal; 36,0% Total 38,923 Hydro 13,369 Gas Thermal 468 Coal Thermal 14,000 Oil Thermal 880 Gas Turbine 7,446 Diesel and Small HPP 1,670 Other 90 Import 1,000 Gas Thermal; 1,2% 4

5 2. CURRENT POLICY FRAMEWORK ON RE General Electricity Law 2004 (revised and supplemented in 2012): Speed up exploitation of new energy and renewable energy for electrical generation; set up incentive mechanisms for RE projects development. (Article 4, item 4) Updated Power Development Plan approved by PM in March 2016 (Decision 428/QD-TTg): Speed up exploitation of RE for electrical generation, gradually increase the penetration of RE in power system. (Article 1, item 2.a) Decision 1670/QĐ-TTg approved by PM in November 2012 on Smart grid development Roadmap: Apply smart grid technology for integration of distributed RE into power grid, encourage the development of RE sources and increase the penetration of RE in power system. (Article 1, item 1.b) Decision 2068/QĐ-TTg dated 25/11/2015 on development strategy and vision of RE to Identify the huge target and potential of RE including solar Encourage and prioritize the development of RE in power system; Integrate RE with Smart grid, storage system and end users 5

6 2. POLICY FRAMEWORK ON SOLAR ENERGY Specific Circular 39/2015/TT-BCT dated 18/11/2015 on Distribution Code: General technical requirements for connection of small generation to Distribution network Specific technical requirements (frequency, voltage ) for solar power plants and rooftop connected to distribution network at low, medium voltage level or 110kV. Draft of revised Grid Code (Transmission Code) is uploaded to the MoIT s website and sent to stakeholders to get comments. It will be released by the end of Take into account the the technical requirements and standards for larger solar farm (more than 30 MW) 6

7 2. POLICY FRAMEWORK ON SOLAR ENERGY (Draft) Draft of Decision for incentive mechanism of solar energy projects development is being submitted to Prime Minister for review and approval. Feed in tariff for: Solar energy plants connected to power system; Rooftop Solar (capacity under 50kWp); Obligation to purchase electricity: EVN must purchase all electricity Import tax exemption for goods which can not be produced inland Corporate tax exemption as highest priority. Land use fee exemption for solar energy projects 7

8 3. POTENTIAL OF SOLAR ENERGY High solar potential, especially in central and southern region - Solar energy intensity: 4-6kw/m2 - Average sunshine: 150 kcal/m2 ( hours per year) => Theoretical potential of 43.9 billion TOE Solar energy can be used on average 300 days/year. 8

9 3. POTENTIAL OF SOLAR ENERGY The target of solar energy development in electricity generation is indicated in the Updated Power Master Plan VII (including Solar farm and Rooftop solar) as below: 2020: 850 MW, 0.5% of the total electricity generation 2025: 4,000 MW, 1.6% of total electricity generation 2030: 12,000 MW, 3.3% of the total electricity generation 9

10 3. POTENTIAL OF SOLAR ENERGY Solar energy projects in Vietnam 1. Rooftop Solar systems in the Ministry of industry and trade 12kW 2. Mixed solar - diesel in Bai Huong village, Cu Lao Cham, Quang Nam 28kW 3. Rooftop Solar at Big C in Binh Duong province 212kW 4. Rooftop Solar in National Convention Hall in Hanoi KW 5. Solar farm in Mo Duc, Quang Ngai province (under construction) 19MW. 6. Solar farm in Tuy Phong, Binh Thuan province (under construction) 30 MW 10

11 4. ISSUES AND CHALLENGES - GENERAL Legal framework and institutional development: Conflict in term of land using Other regulations are not encourage the investors (CDM application; export, import procedures, etc). Economic and financial aspect: High cost for electricity generated by solar energy than traditional sources. FIT has not been appoved yet Lack of access to financial resources (bankers/agencies/investors..) Solar energy technology in general: Limitted knowlegde on solar energy technology Lack of equiment and service suppliers/providers. Lack of skilled professionals and engineers, technical in the field of solar energy No auxiliary technologies for solar energy sectors Lack of experience in connection/integration into power grid 11

12 4. ISSUES AND CHALLENGES - INVESTORS Limited capacity and experience of the investors in management and monitoring construction, O&M. Lack of financial resources. Difficulty to access bank s loan with reasonable interest rate. Especially in crisis period when bank s interest rate is unstable. Which leads: Low quality project s construction, affect safety of downstream community. Project s progress slower than committed. 12

13 4. ISSUES AND CHALLENGES LOCAL STATE BODIES Inaccurate planning due to out-of-date basic material (hydrology, topography, geology, etc ). Insufficient management, inspection, monitoring of registered project. Which leads: Unstable & asynchronous Planning, uncertain projects; Some projects may negatively affect the natural environment and society. 13

14 5. CONCLUSIONS / SOLUTIONS Viet Nam is considered to have great potential for renewable energy as well as opportunities and challenges of solar energy developments. Development of RE source is one of the necessary solutions to meet energy demand and ensure power energy security, especially for remote areas, islands... to increase the rural electrification. It is necessary to establish enough mechanism and policies to encourage RE development and create a legal framework for investors in RE sector. Smart Grid is solution to implement solar and RE in productive and efficient Support from international organizations/developed countries in terms of financial and technical support to promote RE development in Viet Nam is really needed. 14

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