Energy DEVELOPMENT OF ENERGY INDUSTRY IN VIETNAM Mr. Phạm Trọng Thực, Director of New & Renewable Energy Department HCM City, June 4, 2012
Contents I. Overview of Energy Industry in Vietnam II. III. IV. Power Development Planning Strategies of National Energy Development Wind Power Development Existing and Plans
I. OVERVIEW OF ENERGY INDUSTRY IN VIETNAM
Nguồn năng lượng Việt Nam Energy sources in Vietnam Coal Total estimated coal reserves (anthracite): 5,88 billion tones, in which the reserve of coal types (A + B + C) is around 4,9 billion tones. Gas-Oil potential Total estimated oil and gas: 3,3-4,4 billion m 3 TOE, in which the gas reserve is around 55-60%. Hydropower potential ti and exploitable ability Technical potential of hydropower: ~123 billion kwh, equavalent to 31,000 MW capacity. Eco-technical potential: 18,000-20,000 MW.
Energy sources in Vietnam Renewable energy potential Geothermal: technical potential - 340 MW Solar: average number of sunny hours ~2000 -:-2500 hours/year, with the radiant energy of ~150kCal/cm 2.year. Theoritical potential estimated of ~43.9 billion TOE/year Wind: -Powerdensity at the island of 800-1400 kwh/m 2.year, - Power density of 500-1000 kwh/m 2.year in the Centre coastal areas of the Centre and South regions and in the Highland - Power density in other areas: less than 500 kwh/m 2.year. Potential of around 1,700 102,000 MW
Energy sources in Vietnam Biomass: - Reserves of firewood and agricultural residues: ~43-46 million TOE/year, in which there are of around 60% firewood (26-27 billion TOE/year), 40% agricultural residues (17-19 billion TOE/year) - Theoritical potential of biogas: ~0.4 million TOE/year, with the exploitable ability of 10%. Uranium potential: Total potential of U3O8 ore in Vietnam: ~218.167 tones, at the middle level of the world
Annual energy production Types of energy Unit Year (billion) 2007 2008 2009 2010 (planned) Power production kwh 67.47 75.7 82.94 93.3 Commercial power kwh 58.18 66.5 73.76 81.95 Coal Tones 43.16 44.8 43.70 44.0 Crude oil Tones 15.99 16.0 13.8 15.0 Natural gas m 3 6.86 7.3 8.0 8.0
Energy balance and exploitation of primary energy sources
II. POWER DEVELOPMENT PLANNING
1. Status of power development
1. Status of power development Classification of installed capacity and production in 2010
2. Prediction of the power demand until 2020 No. Component 2009 2010 2015 2020 (GWh) (%) (GWh) (%) (GWh) (%) (GWh) (%) 1 Forest agriculture & fisheries 701,3 0,9 791,8 0,9 1155,3 0,7% 1747,2 0,6 2 Industry & construction 38500,8 50,6 45104,2 51,3 90317, 53,3 155944, 54,1 3 Commerce & hotel restaurant 3511,7 4,6 4314,9 4,9 9338,99 5,5% 5% 18362,4 6,4 4 Management & residential consumers 30535,4 40,2 34237,1 39,0 59632, 35,2 93431,7 32,4 5 Other activities 2797,0 3,7 3412,2 3,9 8862,8 5,2 18689,6 6,5 6 Commercial power 76046 100 87860 100 169306 100 288175 100 7 Lost in transmission and distribution 8449,6 9,7 10097,9 10,0 17384, 9,0 26197,7 8,0 9 Self-use 2613,3 3,0 3130,3 3,1 6953,8 3,6 13098,9 4,0 10 Power production 87109,0 100979 193162 327472 11 Pmax (MW) 13867 16060 30600 51734
3. Power development planning Specific objectives: Provide sufficient power for domestic demand, power production and import by 2015 are of around 194-210 billion kwh; 330-362 billion kwh by 2020; 695-834 billion kwh by 2030. Prioritize the development of renewable energy resources for power production, increasing the percentage of power generated from these resources from 3,5% of total power production by 2010, up to 4,5% and 6,0% in 2030. Reduce elasticity it coefficient/gdp i from the current average coefficient of 2.0 to of 1.5 by 2015 and 1.0 by 2020. Pushing up the electrification program in those rural, mountainous and island areas to ensure that by 2020 for most of the rural households to have power.
3. Power development planning Classification of power production by 2030 2020 2030 24% 4,50% RE: 4.5% 2,10% 3% 19,60% 46,80% Hydro 10,10% power 6,00% Coal Natural gas RE 14% Nuclear 4% 9,30% Imported 56,40% RE: 6% Hydro power Coal Natural gas RE Nuclear Imported
Scenarios of exploitable renewable energy resource until 2030 RE resources 2011 2012 2013 2014 2015 2020 2025 2030 Small hydro 527 665 845 1045 1245 2345 3845 4755 Biomass 6.6 13.6 28.6 48.6 98.6 503.6 1354 2204 Bagasse and rice husk 5 10 20 30 50 355 1105 1855 Municipal solid waste 1.6 3.6 8.6 18.6 48.6 148.6 248.6 348.6 Biogas 0 0 0 0 34 49 99 Solar 0 0 0 0,8 9,8 34.8 64.8 Wind 22.5 82.5 123 162.5 232.5 1012.5 2963 6213 Geothermal 0 0 0 0 80 140 263 Tide 0 0 0 0 0 0 0 Total (MW) 562.7 775 1025 1305 1676 4488.5 9739 15802
III. STRATEGIES OF NATIONAL ENERGY DEVELOPMENT
Strategies of national energy development 1. Power Ensure providing sufficient power for socio-economic development. Prioritize development of hydropower, coal thermal and gas thermal. Encourage development of RE power plants. Formulation and development of competitive power market in Vietnam by 2020. Study and develop nuclear power plant. Before 2050, nuclear power plant will take account of 15-20% of commercial electricity generation Complete the rural electrification program: 100% rural householdh can access to the grid before 2020 Ensure the sustainable development and reduce the negative impact to the environment
Energy development strategy 1. Coal sector Intensify exploitation and investigation deeper coal mine 300m and explore the mine beneath -400-1100m at Quang Ninh coal mine Encourage local authority to invest in exploring and exploiting coal to meet the local coal requirement. Develop sustainable coal sector to meet the coal requirement for socio-economic development Develop domestic coal market by 2015 The development of the coal sector needs to harmonize with the social, tourism, defensive security development and ecological protection
Energy development strategy 2. Petroleum sector Prioritize the development and exploitation of natural gas. Diversifyif investment t and joint-venture t mechanism in exploring and exploiting natural gas mine and constructing gas-turbine power plant Ensure the ability to reserve gas within 45 days before usage day by 2010 and 60 days before usage day by 2020, 90 days before usage dae by 2025 Build oil refinery power plant to gradually meet the domestic demand and upgrade the capacity of these plants to 25 30 million tons of crude oil before 2020; For the year 2015 2020, build the connection system for gas pipes with the region
IV. WIND ENERGY DEVELOPMENT
Wind resource assessment (WB Atlas 2011) Wind speed Low < 6m/s Area, km 2 197,34 2 Averag e 6-7m/s 100,36 1 Avg to high 7-8m/s High 8-9m/s Very high >9m/s 25,679 2,178 113 %/total area 60.6 30.8 7.9 0.7 0.0 Potential, 401,4444 102,71 8,748 452 MW 4 6 Technical No Region Technical potential il wind (MW) potential 1 North 50 (EVN) 2 Central 880 3 South 855 Total 1785
Province Wind Project Development No of Investors No of Project Installed capacity (MW) Status IR IP TD UC IO Ninh Thuận 9 13 1068 8 4 1 Bình Thuận 10 12 1541 6 4 1 1 BR Vũng Tàu 1 1 6 1 Tiền Giang 1 1 100 1 Bến Tre 2 2 280 2 Trà Vinh 1 1 93 1 Sóc Trăng 4 4 350 4 Bạc Liêu 1 1 99 1 Cà Mau 2 2 300 2 Tổng 31 37 3837 24 9 2 1 1 IR Investment report; IP Investment project; TD TKKT; UC under construction; IO in operation
Preferential support mechanism to wind energy 1. Decision number 37/2011/QĐ-TTg dated June 29 th, 2011 on support mechanism to wind energy project development in Vietnam Wind power development planning Support mechanism for wind energy development: Responsibility to purchase electricity generated from wind Feed in tariff for grid-connected wind power projects: - Buyer is responsible to buy all electricity it generated from wind power projects at the price equivalent to 7,8 US$ (excluding VAT and will be adjusted with the exchange rate fluctuation VND/USD) - Government will support buyer with 1,0 UScent/kWh via the Environmental Protection Fund (VEPF)
Preferential support mechanism to wind energy 1. Decision number 130/2007/QĐ-Ttg dated August 2nd, 2007 on financial policies and mechanism for clean development mechanism projects: products of CDM projects will be sponsored by VEPF 2. Decree number 151/2006/NĐ-CP dated December 20th, 2006 of the government on investment credit and Decree number 106/2008/NĐ-CP September 19th, 2008: wind energy project is in the list of projects which will receive preferential investment credit by the government
Wind energy development strategy Wind measurement program: 2010 2014 Wind energy development planning Circulars of Ministry of Industry and Trade on wind project development Standardized power purchase agreement for wind power project Study on grid code and grid connection for wind energy