1 Development of Renewable Energy Application in Vietnam Energy and Petroleum Department MINISTRY OF INDUSTRY

2 Presentation Layout 1. Overview of VN Primary Energy Resources 2. VN Renewable Energy Action Plan 3. Renewable Energy Resources for Electricity 4. Renewable Energy Application

3 1. Overview of VN Primary Energy Resources 1.1 Conventional: Coal Petroleum Oil and Gas, … Hydro (large scale for electricity) 1.2 Non-Conventional: Hydro (small scale <10 MW) Renewable: Solar Wind Biomass Geothermal Tidal and Wave, … New: Biogas, Nuclear, Fuel Cell, Magneto- Hydrodynamic Generation, …

4 1. Overview of VN Primary Energy Resources 1.1 Conventional: Coal: Petroleum Oil and Gas: Hydro (large scale for electricity): Potential  3880 MT Commercial Production  13.9 MT (2003)  30 MT (2020)  18 MT (2010) Potential  14,595 MW; TWh Commercial Production  4,069 MW; 19 TWh (2003)  6,459 MW; 27 TWH (2010)  4,497 MW; 18 TWH (2020) Potential  2,300 MT (crude oil) + 1,207  1,507 Gm3 (gas)  16  18 Gm3 gas Commercial Annual Production  17  18 MT crude oil

5 1. Overview of VN Primary Energy Resources 1.2 Non-Conventional: Hydro (small scale <10 MW): Renewable: for electricity: Potential  1400 MW for other uses: Water pumping, mill, … Current  155 MW Not identified Solar: PV: Applicable Potential - 2 MW; 50,000 hhs for other uses: Heating, refrigeration, drying, … Current MW; 5,000 households Not identified Radiation 4  5.9 kWh/m2

6 1. Overview of VN Primary Energy Resources 1.2 Non-Conventional: Biomass: Renewable: for electricity: Applicable Potential  400 MW for other uses: Heating, cooking, … Current - 50 MW Not identified Wind: for electricity: Potential - Not identified for other uses: Water pumping (100  200 W), … Current MW Not identified

7 1. Overview of VN Primary Energy Resources 1.2 Non-Conventional: Geothermal: Renewable: for electricity: Potential - 50  200 MW for other uses: Sauna/steam-bath, cooking, … Current - 0 MW Not identified Tidal and Wave:Not identified 1.2 Non-Conventional: New: Biogas: Very high potential but not identified Current  35,000 household scale sets

8 1. Overview of VN Primary Energy Resources Conclusion Vietnam has abundant energy resources both conventional and non-conventional. Non-conventional energy resources are most suitable for energizing far-most/remote/isolated areas with electricity and/or heat. Uses of non-conventional energy will: - Save fossil fuel - Protect environment - Economically supply energy to remote areas Barriers to new and renewable energy: - Lack of legal framework - Lack of promoting/encouragement policy - Human resources

9 2. VN Renewable Energy Action Plan Prepared in 2001 by MOI/EVN with WB assistance. 10-year large-scale renewable energy development program focusing to renewable electrification for rural/remote/mountain areas. 2 phases, beginning 2001, ending 2010: (1)5-year capacity building, (2)5-year implementation. Renewable energy will provide cost- effective and reliable electricity to help rural people improve their standard of living and increase their income.

10 2. VN Renewable Energy Action Plan Potential: Fast-growing power sector and rich renewable energy resources, which could be used to generate electricity: - Large scale: Potential 15,5000 MW; Current use 4,000 MW; Projected 9,000 MW (2010); share of 45% power generation capacity, - Small hydropower potential (under 10 MW per site) is estimated at 800  1,400 MW, -Biomass cogeneration could supply an additional 250  400 MW. -Solar PV, -Wind power resources, while poorly identified, could play a role on coastal areas in the central regions, -Geothermal, -Tidal and Wave, … Renewable electricity has considerable potential to supply isolated rural households and villages: More than 1,100 remote/mountainous communes/villages, representing about 750,000 households and 3 mill. people, are outside EVN’s plans for connection to the grid by 2010.

11 2. VN Renewable Energy Action Plan Major Barriers: Inadequate policy and regulatory framework to encourage renewable electricity Inadequate awareness about technologies, cost and performance. Lack of commercial business to provide renewable electricity equipment and services. Lack of financing sources, high price, data, planning, … Strategies: Renewable electricity will be used where it is least cost and economically viable, Renewable electricity will be supplied on commercial basis, Communities, individual consumers and investors together to contribute/share cost and benefit, Under government guidance, Access to long-term credit, Limited grant assistance.

12 3. Renewable Energy for Electricity The potential of renewable energy for electricity has been recognized in Vietnam, though its promise has not yet been realized. Grid connected mini-hydro and biomass systems, Mini-hydro for isolated community grids, alone or in hybrid systems with diesel, Household scale pico-hydro systems, Household scale solar PV systems. Options:

13 ResourcePotentialCurrent UsageGeographical potential MWThousand hh served MWThousan d hh served Hydro power800–1, – 155 North and center - pico-hydro90–150200–25030–75100North and center - isolated mini-grids300– n.a.North and center - grid connected mini hydro400–600n.a.60n.a.North and center Off-grid solar PV systems South and center Biomass bagasse, rice husks, and so forth 250–400n.a.50n.a.South and center Geothermal~50–200n.a.0 Center Wind powerTBD 0.21Central coastal region Total1,100–1,900500–600160– n.a. Not applicable. TBD = to be determined. 3. Renewable Energy for Electricity Potential and Current Use of Renewable Energy in Total

14 3. Renewable Energy for Electricity Potential and Current Use of Renewable Energy for Grid Connection Resource PotentialCurrent UsageGeographical potential MW Grid-connected hydro power 1 400–60060North and center Biomass—sugar bagasse 2 100–20050South and center Biomass—rice husk 3 150–2000South and center Geothermal 4 50–2000Center Grid-connected wind power 5 TBD0Islands and center coast Total700–1,200110

15 4. Renewable Energy Application Gia Lai: Solar PV + Mini-hydro  125 kW (1999, NEDO) ( ) Kon Tum: Solar PV + Wind  9 kW (7 + 2) Solar PV + Diesel  7.5 kW (7.5 mill. DM) (1  3 kW) New Project: Solar PV + Biomass bricketes Collaboration between AIT and IE Sponsored by SIDA Others … Germany

16 4. Renewable Energy Application In context of Rural Electrification in Vietnam 1. Current status of RE: Districts electrified  98.6% (grid connected) Communes electrified  90.6% Households electrified  82.22% 2. Targets: Households electrified: 90% by 2010 Quality and good service ! 3. Projects: RE I: 150 M$, 902 communes, 600 thousands households RE II: 300 M$, 1300 communes, 1000 thousands households Including 100 communes electrified by renewable RE III: 270 M$

17 4. Renewable Energy Application In context of Rural Electrification in Vietnam 4. Government guidelines: Different parties to contribute/participate Applicable methodology Legal institutional model for community service Appropriate subsidiary MV network to be invested/managed by EVN LV network to be invested by local authorities/people Drops to houses to be invested by households Poorest areas have GOV subsidiary

18 Thanks you for your attention !