1. Viewpoints, strategies and development
goals
Viewpoints on development
- RE development shall be in synergy with the realization of
economic, social and environment goals
- RE development and use shall be concerted with an
expansion of RE industry
- Focus shall be given to proven technologies in the RE field
(including hydropower, wind power, solar power, biomass
energy and biogas)
- Incentives/support policies shall be matched with the
market mechanism
- Restructuring and state management capacity building shall
come together in the RE field.
Strategic and development goals
Encourage/mobilize all resources from the society , develop RE with
reasonable prices, gradually increase the RE share in the national
energy production and consumption in order to ensure less
dependence on fossil sources, and contribute to better energy
security, mitigating climate change, environmental protection and
sustainable socio-economic development.
Monday, December 11, 2017
Wednesday, December 6, 2017
Renewable Energy in Vietnam
In spite of Vietnam´s current dependency on fossil fuels and coal, the Vietnamese government actively supports renewable energy, and the sector is thereby becoming increasingly interesting for Dutch companies and organisations. While realising the challenges, business opportunities can be found in biomass, wind and solar energy.
With a population of over 90 million people, Vietnam has the third largest population in Southeast Asia after Indonesia and the Philippines. Since the mid-eighties, the country has transitioned from the rigidities of a centrally planned economy into one of Asia’s fastest growing emerging markets. It reached lower middle income status in 2010 and is a member of WTO and regional forums, including the Association of Southeast Asian Nations (ASEAN). After several years of lower economic growth, Vietnam’s economy is gaining momentum again and is expected to grow by 6-7% annually in the upcoming years. Currently, the country has negotiated several Free Trade Agreements (FTAs), including one with the EU that is expected to be in place in 2018.
Due to both rapid industrialisation and remarkable economic growth, domestic energy consumption levels have increased with almost double the speed of Vietnam´s already high GDP growth levels, growing on average by approximately 12% per year between 2006 and 2016. Diffrent estimations of energy demand in Vietnam vary from increasing threefold to eightfold from 2015 to 2030.
According to the Boston Consulting Group, Vietnam’s middle and affluent class will double in size between 2014 and 2020, from 12 million to 33 million. By 2020, Vietnam’s average per capital income will rise from USD 1,400 to USD 3,400 a year.
With a population of over 90 million people, Vietnam has the third largest population in Southeast Asia after Indonesia and the Philippines. Since the mid-eighties, the country has transitioned from the rigidities of a centrally planned economy into one of Asia’s fastest growing emerging markets. It reached lower middle income status in 2010 and is a member of WTO and regional forums, including the Association of Southeast Asian Nations (ASEAN). After several years of lower economic growth, Vietnam’s economy is gaining momentum again and is expected to grow by 6-7% annually in the upcoming years. Currently, the country has negotiated several Free Trade Agreements (FTAs), including one with the EU that is expected to be in place in 2018.
Due to both rapid industrialisation and remarkable economic growth, domestic energy consumption levels have increased with almost double the speed of Vietnam´s already high GDP growth levels, growing on average by approximately 12% per year between 2006 and 2016. Diffrent estimations of energy demand in Vietnam vary from increasing threefold to eightfold from 2015 to 2030.
According to the Boston Consulting Group, Vietnam’s middle and affluent class will double in size between 2014 and 2020, from 12 million to 33 million. By 2020, Vietnam’s average per capital income will rise from USD 1,400 to USD 3,400 a year.
Monday, December 4, 2017
Vietnam Conglomerate Plans $1 Billion Solar Parks Project
Vietnam’s TTC Group, a sugar, energy, real estate and tourism conglomerate, is planning to spend as much as $1 billion on an ambitious plan to build one of the country’s largest portfolios of solar projects in an effort to capitalize on the nation’s growing power needs.
“Solar energy is very hot right now as the recent pricing set by the government is reasonable, development costs are much cheaper and coal-fired power plants have caused so many concerns," CEO Thai Van Chuyen said in an interview at the company’s headquarters. “Vietnam always needs more power every year for its expanding economy."
The Ho Chi Minh City-based company is looking for new investors for 10 to 20 solar parks it expects to have in operation by 2018, Chuyen said. The company, which will fund 30 percent of the project, is in talks with banks and financial institutions for the remainder of the funds needed for the parks, which would account for total capacity of as much as 1,000 MW, he said.
TTC’s interest in solar marks an expansion into clean energy in a country that relies on hydropower for most of its renewable capacity. Vietnam is also facing a power gap. The country will need to invest $74 billion in coal, gas, wind, solar and hydro power plants through 2025 as power demand doubles, Bloomberg New Energy Finance wrote in a report in March.
“Solar energy is very hot right now as the recent pricing set by the government is reasonable, development costs are much cheaper and coal-fired power plants have caused so many concerns," CEO Thai Van Chuyen said in an interview at the company’s headquarters. “Vietnam always needs more power every year for its expanding economy."
The Ho Chi Minh City-based company is looking for new investors for 10 to 20 solar parks it expects to have in operation by 2018, Chuyen said. The company, which will fund 30 percent of the project, is in talks with banks and financial institutions for the remainder of the funds needed for the parks, which would account for total capacity of as much as 1,000 MW, he said.
TTC’s interest in solar marks an expansion into clean energy in a country that relies on hydropower for most of its renewable capacity. Vietnam is also facing a power gap. The country will need to invest $74 billion in coal, gas, wind, solar and hydro power plants through 2025 as power demand doubles, Bloomberg New Energy Finance wrote in a report in March.
Friday, December 1, 2017
Vietnam’s vision for a renewable energy future
In recent decades, Vietnam’s demand for energy has increased along with its rapid economic development. This surge in demand could provide the impetus to develop Vietnam’s emerging renewable energy industry.
Vietnam’s GDP grew at an annual rate of 6.8 per cent between 1990 and 2013, and is projected to hover around 7 per cent annually from 2016 to 2030. Industrialisation, coupled with population increases, drives the need for more energy and especially more electricity. This is evident in the increase of final energy consumption at an average annual rate of 5.7 per cent between 1990 and 2012, and of electricity use at 14 per cent annually during the same period.
To meet increasing power demand, Vietnam’s Power Master Plan VII projects its output will need to increase to 194–210 billion kilowatt hours (kWh) in 2015, to 330–362 billion kWh in 2020, and to 695–834 billion kWh in 2030. As renewable sources are part of Vietnam’s energy mix, surging power demand will also boost the demand for renewable energy.
In comparison to other more traditional energy sources such as oil and coal, renewable energy is relatively new in Vietnam. Its presence is strongly driven by government policies, and is mostly positioned within sustainable development and greenhouse gas (GHG) reduction frameworks.
The Sustainable Development Strategy 2011–2020, for example, identifies clean and renewable energy development and its growing share in Vietnam’s energy consumption mix as priorities for a sustainable economy. The National Strategy on Climate Change also highlights the development of ‘new and recycled energies including wind power, solar energy, tidal energy, geothermal energy, biofuel and universal energy’ as avenues to reduce greenhouse gas emissions. Similarly, the National Action Plan on Green Growth 2014–2020 explicitly mentions the need to promote clean and renewable energy to reduce GHG emissions.
Vietnam’s GDP grew at an annual rate of 6.8 per cent between 1990 and 2013, and is projected to hover around 7 per cent annually from 2016 to 2030. Industrialisation, coupled with population increases, drives the need for more energy and especially more electricity. This is evident in the increase of final energy consumption at an average annual rate of 5.7 per cent between 1990 and 2012, and of electricity use at 14 per cent annually during the same period.
To meet increasing power demand, Vietnam’s Power Master Plan VII projects its output will need to increase to 194–210 billion kilowatt hours (kWh) in 2015, to 330–362 billion kWh in 2020, and to 695–834 billion kWh in 2030. As renewable sources are part of Vietnam’s energy mix, surging power demand will also boost the demand for renewable energy.
In comparison to other more traditional energy sources such as oil and coal, renewable energy is relatively new in Vietnam. Its presence is strongly driven by government policies, and is mostly positioned within sustainable development and greenhouse gas (GHG) reduction frameworks.
The Sustainable Development Strategy 2011–2020, for example, identifies clean and renewable energy development and its growing share in Vietnam’s energy consumption mix as priorities for a sustainable economy. The National Strategy on Climate Change also highlights the development of ‘new and recycled energies including wind power, solar energy, tidal energy, geothermal energy, biofuel and universal energy’ as avenues to reduce greenhouse gas emissions. Similarly, the National Action Plan on Green Growth 2014–2020 explicitly mentions the need to promote clean and renewable energy to reduce GHG emissions.
Thursday, November 30, 2017
Renewables in Vietnam: Current Opportunities and Future Outlook
Vietnam is one of the most efficient power market in Southeast Asia, driven by low-cost resources such as hydro and coal. The country has achieved almost 99 percent electrification with relatively low cost in comparison to neighboring countries, leading it to be a net energy exporter. With energy demand projected to increase by more than 10 percent annually in the next five years and required power capacity to double; the government is moving forward to develop the renewable energy sources to ensure energy security and addressing the growing power demand.
Current supply and future demand
Supply
Energy sources are diverse in Vietnam, ranging from coal, oil, natural gas, hydropower, and renewable energy. According to the 2016 Vietnam Electricity Annual Report, hydropower and coal fired power led amongst the power generation sources. Renewable energy, which includes wind, biomass, and solar accounted for less than half a percent of power generated in the country.
Demand
With growing industrialization and modernizing of the economy, energy demand is predicted to increase by over 10 percent annually during 2016-2020 and by eight percent per annum during 2021-2030. Electricity consumption is projected to increase four-fold by 2030 compared to 2014.
Current supply and future demand
Supply
Energy sources are diverse in Vietnam, ranging from coal, oil, natural gas, hydropower, and renewable energy. According to the 2016 Vietnam Electricity Annual Report, hydropower and coal fired power led amongst the power generation sources. Renewable energy, which includes wind, biomass, and solar accounted for less than half a percent of power generated in the country.
With growing industrialization and modernizing of the economy, energy demand is predicted to increase by over 10 percent annually during 2016-2020 and by eight percent per annum during 2021-2030. Electricity consumption is projected to increase four-fold by 2030 compared to 2014.
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