RENEWABLE ENERGY IN VIETNAM

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RENEWABLE ENERGY IN VIETNAM

• Prof. Dr. Le Chi Hiep
• Chairman, Energy Council (VNU-HCM)
• lechihiep_at_vnuhcm.edu.vn
• lechihiep_at_gmail.com
• THE WORKSHOP OF ODA UNESCO PROJECT FOR PROMOTION
  OF ENERGY SCIENCE EDUCATION FOR SUSTAINABLE
  DEVELOPMENT IN ASIA (VIETNAM)Hanoi, 30 31 May
  2011

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OUTLINE

• 1. BRIEF INTRODUCTION - RENEWABLE ENERGY IN
  VIETNAM, POTENTIAL AND INSTALLED CAPACITY
• 2. LEGAL FRAMEWORK NATIONAL POLICY
• 3. DISCUSSION CONCLUSION

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• VIETNAMPopulation 85.8 millions (2009)
• Area 332,000km2Capital Hanoi

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1. BRIEF INTRODUCTION

• RENEWABLE ENERGY IN VIETNAM - POTENTIAL AND
  INSTALLED CAPACITY

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Total estimated potential 11.73TWh/year
Total generation from small hydro and renewable energy 8.39TWh/year (estimated, in 2025)
It means, about 71.52 of the total potential
renewable energy is estimated to be utilized for
power generation by 2025.
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MAIN RENEWABLE ENERGY RESOURCES IN VIETNAM

• WIND ENERGY
• SOLAR ENERGY
• SMALL HYDROPOWER
• BIOFUEL and BIOMASS
• GEOTHERMAL ENERGY
• ENERGY FROM URBAN and INDUSTRIAL WASTE
• TIDAL ENERGY

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1.1. WIND ENERGY

• World Bank
• - Vietnam has higher potential for wind energy
  development compared to most other countries in
  Southeast Asia.
• - Vietnam could produce more than 510
  gigawatts of electricity from land-based and
  off-shore wind farms, 10 times the country's
  expected national demand in 2020.

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Wind Power Potential in Vietnam
Wind speed (m/s) 6 - 7 7 - 8 8 - 9
Area () 30.8 7.9 0.7
Area (km2) 100,300 25,700 2,200
Potential (GW) 402 103 8.8
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• BINH THUAN and NINH THUAN are considered as the
  best territories for wind power development (9)
  in Vietnam.
• Off-shore wind potential is many times greater
  than that of land-based.

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VIETNAM OFF-SHORE WIND POTENTIAL
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• There are a significant number of foreign
  investors and Vietnamese companies setting up
  wind park projects in Vietnam, ranging from 6MW
  to 150MW.
• So far, there were 21 wind projects under way
  that could produce enough electricity to connect
  to the grid (Binh Thuan, Ninh Thuan and Lam Dong).

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• In 2010, the total installed wind power capacity
  was estimated to be 9MW (7.5MW of which had been
  connected to the national grid, the remainder
  were household wind turbines).

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SOME INSTALLED WIND POWER SYSTEMS

• 30kW Nam Dinh (1999, hybrid system,
  wind-diesel).
• 0.8MW Bach Long Vi Island
• Binh Thuan Wind power plant
• - The project has been developed by the
  Vietnamese company REVN.
• - Total power 120MW
• - The first five 1.5 MW turbines from the
  German manufacturer Fuhrländer have been
  installed in Binh Thuan province at the end of
  July 2009.

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SUMMARY GRID CONNECTED WIND POWER PROJECTS
(UNDER IMPLEMENTATION)

• Phuong Mai (Binh Dinh, 15MW 21MW) under price
  negotiation.
• Ninh Phuoc (Phuoc Minh/Phuoc Nam, Ninh Thuan,
  first phase 50MW, second phase 100MW) project
  report completed.

• Ninh Phuoc (An Hai/Phuoc Hai, Ninh Thuan, first
  phase 70MW, second phase 110MW) project report
  completed.
• Thuan Bac (Ninh Thuan, 18MW) Investment license
  granted.

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• Phuoc Huu (Ninh Phuoc, Ninh Thuan, 50MW)
  Investment license granted.
• An Hai/An Phuoc (Ninh Thuan, 60MW) Investment
  plan approved.

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1.2. SOLAR ENERGY

• Mean Annual Sunshine Hours
• - North 1800 2100 hours of sunshine a year,
  on average.
• - South 2000 2600 hours of sunshine a year,
  on average.

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MONTHLY MEAN SUNSHINE HOURS (Hours/day)
Location HANOI (21o03N, 105o54E)
January 2.2
February 1.6
March 1.4
April 2.7
May 5.3
June 5.2
July 5.9
August 5.3
September 5.4
October 5.3
November 4.2
December 3.5
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MONTHLY MEAN SUNSHINE HOURS (Hours/day)
Location DANANG (16o03N, 108o12E)
January 4.4
February 5.1
March 3.4
April 6.9
May 8.3
June 7.9
July 8.3
August 6.7
September 5.8
October 4.7
November 4.0
December 3.6
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MONTHLY MEAN SUNSHINE HOURS (Hours/day)
Location HOCHIMINH City (10o45N, 106o41E)
January 7.9
February 8.8
March 8.8
April 7.7
May 6.3
June 5.7
July 5.8
August 5.6
September 5.4
October 5.9
November 6.7
December 7.2
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MONTHLY MEAN SOLAR RADIATION (kWh/m2/day)
Location HANOI (21o03N, 105o54E)
January 2.24
February 2.40
March 2.53
April 3.46
May 5.23
June 5.31
July 5.59
August 5.10
September 4.79
October 4.18
November 3.45
December 2.97
Annual Mean Solar Radiation 3.93kWh/m2/day
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MONTHLY MEAN SOLAR RADIATION (kWh/m2/day)
Location DANANG (16o03N, 108o12E)
January 3.5
February 4.3
March 5.2
April 5.8
May 6.4
June 5.9
July 6.5
August 5.7
September 5.2
October 4.2
November 3.1
December 2.5
Annual Mean Solar Radiation 4.85kWh/m2/day
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MONTHLY MEAN SOLAR RADIATION (kWh/m2/day)
Location NHA TRANG (12o15N, 109o11E)
January 4.66
February 5.29
March 5.69
April 5.91
May 5.90
June 5.66
July 5.66
August 5.51
September 4.92
October 4.42
November 4.04
December 4.15
Annual Mean Solar Radiation 5.15kWh/m2/day
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MONTHLY MEAN SOLAR RADIATION (kWh/m2/day)
Location HOCHIMINH City (10o45N, 106o41E)
January 5.1
February 6.3
March 6.6
April 5.7
May 5.0
June 4.9
July 5.1
August 5.0
September 4.8
October 4.5
November 4.3
December 4.6
Annual Mean Solar Radiation 5.2kWh/m2/day
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Solar Applications

• Two main applications
• - Solar hot water
• - Solar photovoltaics

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• Solar hot water has been developed since 1990. At
  the early period, it was very difficult to get
  the attention of the community.
• But, since around 1998, the number of installed
  solar hot water systems has gradually increased,
  especially in Ho Chi Minh city.

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• Currently, solar hot water has become one of
  renewable energy products at high competition.
• That leads to the increase of the number of
  companies doing business in this field.
• But, there is so far nearly no full industry
  referring to solar hot water. The main components
  of the system (solar collector,) are imported,
  mainly from China.

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• Solar photovoltaics has been also applied long
  time ago.
• But, due to many difficulties, it has not
  exercised its influence on the society.

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• In 1990, the first 300Wp-unit was installed at
  Can Gio district, Ho Chi Minh city.
• From 1994, solar photovoltaics has been expanded
  in the whole country.
• Currently, total installed solar photovoltaics is
  a little more than 3MWp.

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• Main features of photovoltaic development in
  Vietnam
• - Most budgets funded by international
  organizations and several funded by national
  agencies (there is so far nearly no personal
  budget invested to set up the system).
• - It leads to unstable and unsustainable
  development.
• - All solar panels are so far imported.

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• Currently, there are several companies doing
  business on solar photovoltaics in Vietnam.

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RED SUN Long An, near Ho Chi Minh City. By planning, its expected capacity is 3MWp/year (first step) and 5MWp/year (next step).
FIRST SOLAR Cu Chi, Ho Chi Minh City. At the end of January 2011, the US First Solar Group was granted a license to build a solar panel factory in Vietnam with a total investment capital of one billion dollars.
IC ENERGY Chu Lai, Quang Nam, with a total investment capital of 390 millions dollars (May 2011).
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1.3. SMALL HYDROPOWER

• Yearly average rainfall 1,860mm.
• There are more than 2,200 big-to-small rivers and
  streams.
• Vietnam is considered as one of rich hydropower
  resource countries.
  

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• Under the existing Vietnams regulations, a
  hydroelectric project of less than 30MW and using
  10 hectares is classified as small-scaled.
• Small hydropower potential (less than 30MW)
  estimated to be nearly 4000MW.

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SMALL HYDROPOWER POTENTIAL
Scale, MW 0.1 - 1 1 - 5 5 - 10 10 - 15 15 - 20
Potential, MW 126.8 1,030 1,048 648 563
Scale, MW 20 - 25 25 - 30 30 - 35 35 - 40 40 - 50
Potential, MW 309 290 135 175 144
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INSTALLED SMALL HYDROPOWER
Scale, MW 0.1 - 1 1 - 5 5 - 10 10 - 15
Installed capacity, MW 31.5 53.15 45.4 37
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CURRENT NUMBER OF SMALL HYDROPOWER STATIONS
Scale, MW 0.1 - 1 1 - 5 5 - 10 10 - 15
Number of stations 111 22 5 3
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• But, the government will put the screws on small
  hydropower projects because of deforestation and
  environmental fears, especially flooding.

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1.4. BIOFUEL and BIOMASS

• An urgent need to meet the energy demand of the
  country.
• A high priority on investment and exploitation of
  agricultural waste and its by-products.

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• - Biodiesel (produced from cassava, coconut,
  sesame, peanut, flax, jatropha, and from animal
  products such as catfish fat) has been
  determined to be strongly promoted.

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• JATROPHA CURCAS
• - Four million hectares of deforested hill are
  considered to be suitable for growing JATROPHA
  CURCAS.
•  

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ESPECTED PLAN

• Biofuel output, including ethanol, would reach
  250,000 tons/year by 2015 and 1.8 million
  tons/year by 2025, meeting 5 percent of the total
  fuel demand of the country.

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PROJECTS

• Vietnam plans to produce 100,000 tons/year of 5
  ethanol blend and 50,000 tons/year of 5
  biodiesel blend by 2010, meeting 0,4 of fuel
  demand.
• The country has five biofuel plant projects under
  construction.
• Three, including an 85 million plant by
  PetroVietnam, will start producing 240 million
  liters of 99,7 ethanol a year. The plants will
  use cassava and sugarcane as feedstock.

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• A joint Vietnam-Korean bio-diesel production
  plant was inaugurated in Yeochu city, Kyeonggi
  province, the Republic of Korea (RoK) on March
  23, 2010.
• - Capacity 200 tons/year (from waste oil,
  animal fat, palm and coconut oil A joint effort
  between the Vietnam Institute of Industrial
  Chemistry (VIIC), the Hankyong University and the
  Korea International Cooperation Agency (KOICA).
• - Under the deal, Vietnam will receive
  technology and production lines to build a
  bio-diesel plant with a projected capacity of
  4,000 tons a year.

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• Three more ethanol plants with capacities
  100,000tons/year are being built in the centre
  and north.
• THE FIRST PLANT PRODUCING BIODIESEL FROM CATFISH
  FAT WAS INAUGURATED IN THE MEKONG DELTA CITY OF
  CAN THO IN EARLY 2009 (MINH TU CO., LTD). THIS
  PLANT CAN PRODUCE 50,000 LITERS OF BIODIESEL A
  DAY.
• REFINERS IN CAN THO AND AN GIANG ARE MAKING
  BIO-DIESEL FROM CATFISH FAT, THE MEKONG DELTA
  FACTORIES CURRENTLY PROCESS 30,000 TONS OF
  CATFISH FAT EACH YEAR.

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• BY THE END OF 2011, VIETNAM WILL HAVE FIVE
  BIOFUELS PLANTS WITH A TOTAL CAPITAL OF 365,000
  TONS OF ETHANOL, WHICH, MIXED WITH GASOLINE, WILL
  YIELD 7.3 MILLION TONS OF E5 PETROL.
• PETROLIMEX BEGAN SELLING BIO-PETROL (5 PERCENT
  ETHANOL AND 95 PERCENT PETROL) IN AUGUST AT
  FILLING STATIONS IN HCM CITY, HANOI, VUNG TAU,
  HAI PHONG AND HAI DUONG AND WILL ADD SALES POINTS
  IN DA NANG, HUE AND CAN THO THIS YEAR.  THE
  BIOPETROL IS OFFERED AT 500 DONG PER LITER LESS
  THAN NORMAL GAS.

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• Biomass, including wood and agricultural residues
  (rice husk, rice straw, coffee husk, bagasse,
  sugar cane, coconut residues,) is widely used
  for energy production in Vietnam.
• Currently biomass is considered as a
  non-commercial energy source, collected and used
  locally.
• Potential 30 - 50 million tons/year, with only
  30-40 currently used for cooking and power
  generation in sugar mills (150MW).

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Potential of biomass for electricity generation
Type of biomass Total production, tons/year Estimated electricity power, MW
Rice husk 6,000,000 70 - 150
Bagasse 5,000,000 150 - 200
Wood residues 440,000 5
Waste and others 30 - 50
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Potential of biomass for electricity generation
Type of biomass Total production, tons/year Total available, tons/year Estimated electricity power, MW
Rice husk 6,000,000 2,300,000 70 - 150
Bagasse 5,000,000 4,200,000 150 - 200
Wood residues 440,000 5
Waste and others 30 - 50
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2. LEGAL FRAMEWORK NATIONAL POLICY
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Legal framework for biofuel production trading. Nearly completed Highest level of investment incentives.
2007 TWO NATIONAL STANDARDS FOR BIO-ETHANOL AND BIO-DIESEL WERE ISSUED
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2008 THE MINISTRY OF INDUSTRY AND TRADE APPROVED PROJECTS TO GROW TREES AS MATERIALS FOR PRODUCING BIOFUELS, TO DEVELOP TECHNOLOGIES FOR PRODUCING BIOFUELS, TO DESIGN PLANS AND POLICIES TO SUPPORT THE DEVELOPMENT OF BIOFUELS IN VIETNAM AND TO TEST AND APPLY ETHANOL PETROL IN VIETNAM.
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2008 THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT ALSO APPROVED A PROJECT TO RESEARCH AND DEVELOP JATROPHA BUSHES IN VIETNAM.
2007 - 2008 THE MINISTRY OF FINANCE IN 2007 AND 2008 ISSUED TWO CIRCULARS ON STATE FUNDING FOR BIOFUEL DEVELOPMENT PROGRAMS.
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2009 THE MINISTRY OF SCIENCE AND TECHNOLOGY ISSUED TWO NATIONAL STANDARDS ON BIOFUELS.
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• In order to support foreign investors, the
  Vietnamese Government has determined that
  renewable energy is a field worthy of investment
  incentives. Investors can enjoy advantages such
  as import tax exemption and land fee exemption
  over a certain period of time.
• On 2 August 2007 the Vietnamese Government issued
  decision 130/2007/QD-TTg on financial mechanisms
  and policies for investment projects implemented
  in accordance with the Clean Development
  Mechanism (CDM).

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• On 4 July 2008 the Ministry of Finance and the
  Ministry of Nature and Environment jointly issued
  Joint Circular 58/2008/TTLT-BTC-BTNMT to guide
  implementation of the provisions set out in
  decision 130/2007/QD-TTg.

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• Decision No.110/2007/QD-TTg, aiming targeting RE
  of 4051 MW by 2025
• Decision No.1855/QD-TTg, it sets up the target
  with share of RE (3-2010 5-2020)

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• Decision No. 177/2007 Scheme on Developments of
  Biofuels up to 2015, with 2025 Vision
• Decision No. 1855/2007 National Energy
  Development Strategy up to 2020, with 2050 Vision
• Decision 158/2008 National Target Program to
  respond to climate change

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• On-going DRAFT DECREE ON RENEWABLE ENERGY
  PROMOTION.

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3. DISCUSSION CONCLUSION
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• Vietnam is one of good places for applying
  renewable energy because RE is distributed
  through-out the country.
• The government has recognized the important role
  of RE in economic development of the country.

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• Although the overall policy is positive and
  forward thinking, the existing legislative
  framework in the RE sector is somewhat complex
  and overlapping
• ? So far there are still difficulties and
  barriers to develop RE in Vietnam.
• ? There has been no considerable progress in
  utilizing renewable energy in daily life.

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• Barriers
• - Reasonable policies to encourage foreign and
  domestic investors.
• - Favorable power pricing rules, environmental
  tax (price distortions from existing subsidies
  and unequal tax burdens between RE and other
  energy sources, unequal government subsidies and
  taxes).
• - Production cost ? Technology transfer,
  upgraded technologies.
• - Customers (it is still hard to find customers
  inadequate information,).

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• It should be focused on
• - Wind energy
• - Solar energy
• - Biofuel biodiesel bioethanol
• Problem Small hydropower ????

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• In order to promote the RE applications, all the
  current difficulties and barriers in policies and
  finance must be solved and removed by issuing
  appropriate policies.
• ? DECREE or LAW ON RENEWABLE ENERGY.

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• POSITIVE SIGNALS
• But, over the last five years, the RE
  development in Vietnam has become faster
• - WIND FARMS
• - INVESTMENT PROJECTS ON SOLAR PHOTOVOLTAICS
  PRODUCTION
• - BIODIESEL and BIOMETHANOL

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• Based on current positive signals, we do hope, RE
  in Vietnam will develop faster in the near future.

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• In order to wait in front for the coming RE
  explosion in Vietnam, beside policies we should
  focus strongly on the training as well to solve
  the human resources problem.

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• ? CURRICULUM / Related BOOKS

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REFERENCES

• Renewable Energy in Asia The Vietnam Report,
  August 2005
• http//www.monre.gov.vn/
• www.frenchriverland.com/final20-20Report20Hydro
  electric20power20plant.ppt
• http//vietnambusiness.asia/axe-to-fall-on-small-h
  ydropower-projects/
• http//agmhp.aseanenergy.org/media/documents/2010/
  10/05/o/v/overview_of_small_hydropower_development
  _in_vietnam.pdf

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THANK YOU FOR YOUR ATTENTION