32 nd Meeting of the APEC Expert Group on New and Renewable Energy Technologies 1-3 April 2009, Honolulu, Hawaii, USA CURRENT NEW AND RENEWABLE ENERGY PRIORITIES IN VIET NAM By: Vu Van Thai, MOIT Phan Thi Thuy Tien, EVN Nguyen Duc Cuong, IE
Energy mix Status of energy demand & supply in VN Primary energy supply by type of fuel 1995 2000 2001 2002 2003 2004 2005 2006 Coal (mill. Tons) 8.4 11.6 13.4 16.4 19.3 27.3 34.1 38.9 Crude oils (mill. Tons) 7.67 16.3 17.1 16.6 17.5 20.1 18.5 17.2 Gas (mill.m3) 183 1580 1720 2161 3720 6252 6890 7520 Energy import & export by type of fuel 1995 2000 2001 2002 2003 2004 2005 2006 Coal export (mill. Tons) 2.812 3.251 4.290 6.047 7.262 11.636 17.987 29.307 Crude oils export 7.652 15.423 16.732 16.876 17.143 19.501 17.967 16.419 (mill. Tons) Oil products Import 5.004 8.748 8.998 9.966 9.840 9.115 9.636 10.411 (mill. Tons)
Primary commercial energy consumption by type of energy KTOE 1995 2000 2001 2002 2003 2004 2005 Coal 3314 4372 5024 5517 6562 7088 7082 Oil products 4713 8004 8271 9345 9915 10259 11859 Gas 186 8440 1563 1945 2877 5279 6201 Hydro power 3237 4314 5573 5569 5831 5417 5374 Total 11450 18130 20431 22375 25185 28044 30516 Final commercial energy consumption by type of energy 1995 2000 2001 2002 2003 2004 2005 KTOE Coal 2603 3223 3743 4017 4912 4851 4950 Oil products 4344 7007 7283 7892 8848 10317 11864 Gas 22 18 15 19 28 21 100 Electricity 963 1927 2214 2586 2996 3437 3969 Total 7932 12175 13255 14513 16400 18626 20950
Electricity generation mix Unit: GWh Unit: MW 70,000 60,000 50,000 40,000 Import IPP/BOT Diesel Gas turbine (Oil/Gas) Oil-fired Coal thermal Hydropower 14,000 12,000 10,000 8,000 Import IPP/BOT Diesel Gas turbine (Oil/Gas) Oil-fired Coal thermal Hydropower 30,000 6,000 20,000 4,000 10,000 2,000 0 2000 2001 2002 2003 2004 2005 2006 2007 0 2000 2001 2002 2003 2004 2005 2006 2007 RE Power, 2.1% Share of RE-2007 Import, 4.1% Hydropower (Large- Medium), 34.8% 2.1% of Installed Capacity, including: Coal thermal, 14.4% Wind: 0.009% Small hydro: 0.921% PV Solar: 0.008% Biomass: 1.127% Oil&Gas TPPs, 44.6%
Demand on Energy & Electricity Generation Increasing Rapidly 160 140 120 100 RE Gas Oil products Electricity Coal Mill. TOE 80 60 40 20 0 2005 2010 2015 2020 2030 Year 700,000 600,000 500,000 400,000 GWh 300,000 200,000 100,000 0 2005 2010 2015 2020 2025 Year
Policy, regulation and incentive for RE development Government set up Policies for RE Decision No: 110/2007/QD-TTg, dated 18/7/2007 by Prime Minister on PDP VI. Renewable electricity planned: From 2006-2015: Installed new 2451 MW, average: 241 MW/year From 2016-2025: Installed new 1600 MW, average: 160 MW/year Decision No: 1885/QD-TTg dated 27/12/2007 by Prime Minister approving Strategy on National Energy Development up to 2020, and outlook to 2050. Main contents of strategies related to promotion of RE development: Encouraging study and use of RE, focus on remote mountainous, island areas. Strive to increase share of RE to about 3% of total commercial primary energy in 2010; 5% in 2020 and 11% in 2050. By 2020, most rural population will have access to electricity (based on RE) Decision No: 177/2007/QD-TTg dated 20/11/2007, by the Prime Minister approving Project on Biofuel Development for Period up to 2015, Outlook to 2025. The main contents are as follows: In period 2011-2015: Mastering technology and manufacturing additives for production of biofuels By 2015: Ethanol and bio-diezel will be 250,000 tons, accounting for 1% of gasoline and diezel demand of the whole country. By 2025: Ethanol and bio-diezel will be 1.8 million tons, accounting for 5% of gasoline and diezel demand of the whole country.
Inter Ministerial Circular No 58/2008/TTLT-BTC-BTN&MT dated 04 July 2008 on Guiding Implementation of some articles under Decision No 130/2007/QD-TTg of PM on mechanism, financial policy on CDM project. Type of RE projects enjoyed subsidy policy from VN EPF: Electricity from some selected RE Subsidy level for each product unit = Actual producing costs/ each unit + Planned profit/each unit Actual selling price/each unit Circular No 18/2008/QD-BCT, 18 July 2008 on avoided cost and SPPA for SPP from RE (implementing on 1/1/2009) Strategy, Masterplan on RE Development in VN for period to 2015, with outlook to 2025 Completing and will be submitted Government at the end of 2008 for approval With main contents considering: RE fund; Feed in tariff (at Economic cost) Set up target (%) of RE connected grid Set up (%) Households in off grid have access electricity based on RE Set up (%) using heat from RE Implementing plan (legal and institution)
Strategy, Master Plan for RE Development in VN Strategy, Master plan for RE Development in VN in the period to 2015, with outlook to 2025 was prepared and submitted Gov (at 12/12/2008) for approval. Set up the target of RE for grid connection: 3.1% in 2015; 3.8% in 2025 Set up the target of RE for off-grid: 100% HH in 2025 Set up the target of RE for heat utilization: SWH: 10mil. m 2 (2025), Biogas: 15 mil. m 3 (2025), 4 mil. ICSs in 2025. Establish framework for supporting RE: New RE Office, RE Fund Establishing measures to implement (management, support mechanisms, SH P procedures. etc.) T A RIFF W IN D BIO M A SS RE SU PPLY C U RV E X 10 P G G lobal cost=p SO C+V C A RBO N Steps for RE development based on reform tariff P SO C P EC O N P FIN V C A RBO N V L.EN V X 2 X 3 X 5 X 4 X 7 X 6 X 8 X 9 Social C ost P SO C =P EC O N +V L.EN V A voided cost at econom ic pr ices A voided cost tariff X 1 Q BA U Q FIN REMOVE INSTITUTIONAL BARRIERS TARIFF REFORM Q EC O N Q SO C Q G PREFERENTIAL PRICE CARBON FINANCE G W h
Grid Connected Target by Type RE 3000 2500 2000 Rice husk power Win power Geothermal power MSW Baggass power Small hydropower ( 30MW) Capacity (MW) 1500 1000 500 Principal SHP 78.5% (2050MW) 0 2005 (base year) 2010 2015 2025 Year
(%) 110 100 90 80 70 60 50 40 97.2 97.4 97.9 94.3 95.9 92.7 89.8 84.9 93.7 94.0 82.0 90.7 92.3 77.8 87.4 75.1 83.5 72.8 81.0 77.4 62.2 73.0 69.7 62.5 61.3 50.7 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (year) Rural Electrification Target By 8 socio-economic regions Communes Household