15-17 Nov 2004Italy-Vietnam Cooperation Perspectives1 International workshop on Management and Protection of Vietnam’s Natural Environment and Resources Hai Phong, November 2004 Session 4: Renewable Energy UNIDO Country Office in Vietnam

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives2 1.UNIDO’s Regional Programme on Rural Energy Preparatory Assistance Phase (PA) : Early 2003 by the Energy and Cleaner Production Branch Objective: assess the potential on rural energy (RE) and income generation (field study, market analysis, etc) Status: Cambodia: project approved by the Gov and funded by Austria Laos: proposal under formulation Vietnam: support by the Gov and negotiations with donors

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives3 2. Country’s framework: key features Socio EconomyEnergy SectorRural EnergyRenewable Energy GDP averaged growth: 7.6% Indust. output: 15% SME sector backbone of the economy Household sector at risk Service/tourism booming Consump. petroleum, coal and electricity (10% ann. growth) Installed capacity: - - 8,860 MW serving the public grid - 47% large hydro power plants EVN: to invest in hydropower, associated natural gas, RE Priority: electricity supply by grid extension to the rural areas EVN to connect 100% or all communes to the public grid, by 2010 Remote communes (mountainous areas, off-shore islands)? Solar and hydro energies Wind resources (costal/islands) Hydropower most important source for electr. generation 59% Discrepancies potential and utilization of RE

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives4 3. UNIDO and Vietnam The Integrated Programme (IP) between UNIDO and the SR of Vietnam focuses on: SME Promotion Environmentally Sustainable Industrial Development Rural Industry Development Next IP : strong focus on export, technology and productivity enhancement with a Public Private Partnership approach

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives5 4. Renewable Energy in Quang Nam Province Milestones: November 2003: preparatory assistance mission  Project area identified: Quang Nam Province, Cham Island  Scope of the initiative defined August 2004: Government-Donor workshop  Findings presented  Dialogue with potential partners initiated

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives6 5. Quang Nam Province Cham Islands

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives7 6. Cham Island: Harbor

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives8 7. Project area: Cham Island 15 communes; 1,591 ha ; 2,777 inhabitants Productive utilization 85 % of island population make their living from fishing (only a few processing activities of noodles, ice, French bread, cakes) No traditional handicraft skills Fast rising tourist industry on-shore in Hoi An

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives9 8. Immediate objective The commune of Cu Lao Cham Islands participate in income generating activities through functional associations for: self-managed electricity services eco-tourism development joint marketing of its fishermen’s sea products

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives10 9. Technical Assistance Institutional, technical and financial barriers Develop agreements and partnership Support to investment projects Identification of selection criteria for the business model/replication projects

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives Business Model Demonstration of the BM, through the participation of private enterprises, cooperatives, associations, such as: Viable Hybrid RE model for power generation and distribution Solar dryer model for food / fish processing PV Battery charging station Ice making units for the fishing community Household connections for small businesses (sewing, carving, knitting, embroidery, etc.)

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives Project outputs 1. Energy supply meets eco-tourism demands and standards 2. Productive utilization of RE (services, production, processing) meets the eco-tourism standards and demands 3. New mode of Industrial Organization created around energy resources 4. Lessons available for further dissemination to similar locations

15-17 Nov 2004Italy-Vietnam Cooperation Perspectives13 Thank you!