1. RENEWABLE ENERGY AND WIND ENERGY DEVELOPMENT IN VIETNAM
MINISTRY OF INDUSTRY AND TRADE
The General Directorate of Energy
RENEWABLE ENERGY AND WIND ENERGY DEVELOPMENT IN VIETNAM
Pham Trong Thuc
Director, Department of New and Renewable Energy
November 2015

2. Main contents Overview Wind power development:
1.1. Power sector development
1.2. RE development policies and targets
Wind power development:
2.1 Potential and Supporting mechanism
2.2 Supporting mechanism
2.3 Current situation
2.4 Challenges
Action plans for wind power development

3. 1. Overview 1.1. Power sector development 2014
Others
Imported
CCGT
Gas fired
Oil fired
Coal fired
Hydro
Total installed capacity by Dec. 2014: 34 GW (peak load 22. GW)
42% of installed generation capacity comes from renewable energy and hydro power projects

4. 1.1. Power sector development 2014
P installed = 11.6 GW
Generation Type 2005
Gas turbine: 45%
Hydropwer: 38%
DO-based thermal: 2%
Coal based thermal: 13%
Generation Type 2014
Hydropwer: 40%
Gas turbine: 22%
Coal based thermal: 28%
Gas based thermal: 1%
Imported: 2%
Diesel +
Wind: 5%
P installed = 34 GW
DO based thermal: 2%

5. 1.2. RE development policy and targets
Reasonable for RE development in Vietnam
Sustainable development
Challenges in Power generation
Increasing coal import for
Increasing electricity import
Exhausting of hydro power resource
Greatly fluctuated price of fossil fuel
High potential on RE resources in Vietnam
Decreasing trend of production cost
Local manufactures???

6. 1.2. RE development policies and targets
The National Strategy on Green Growth approved in 2012:
‘‘Development of a low carbon economy on sustainable basis, emission reduction and increase in greenhouse gases (GHGs) absorption”
Reduce GHGs factor down to 266 million tones of CO2
Energy field decreases to 141,1 million tones CO2 (53%) by
 Promote effective exploitation and increase the proportion of new and renewable energy sources in the nation’s energy production and consumption are of key solutions

7. Generation structure in 2025 Generation structure in 2030
1.2. RE development policies and targets
(to be continued)
Power development Plan – PDP VII
RE in generation mix to 2030 (draft revised PDP VII)
Generation structure in 2025
Coal based thermal: 58%
Gas turbine + DO: 19%
Small Hydro + renewable: 4%
Nuclear Power
Imported: 2%
Hydro power: 25%
P installed = 85 GW
Generation structure in 2030
Coal based thermal: 60%
Gas turbine + DO: 18%
Small Hydro + renewable: 5%
Nuclear Power: 4%
Imported: 1%
Hydro power: 12%
P installed = 116 GW

8. 1.2. RE development policies and targets (to be continued)
RE share of electricity generation (In present PDP No7)
For small hydro, wind, solar and biomass to 4.5 % of totalled installed generation capacity by and 6.0 % by 2030;
Wind power generation: up to 1 GW by 2020, 6.2 GW by 2030;
Biomass energy: up to 500 MW in 2020 and 2 GW by 2030;
PV Power (draft): up to 2000 MW for large PV solar farm; up to 4000 MW for solar rooftop
RE electricity supply for remote areas, islands by RE off-grid Projects
21,300 households;
Investment capital 1,481 bill VND or 70.5 mill USD.

9. 2. Wind energy development 2.1. Potential – Theoretical
Theoretical Potential for Wind Power
Mean speed at 80m height (m/s)
Estimated Developable Land Area (km2)
Theoretical Potential (MW)
<4
95,916
959,161
4-5
70,868
708,678
5-6
40,473
404,732
6-7
2,435
24,351
7-8
220
2,202
8-9 20
200
>9 1 10
Tổng
209,933
2,099,333
Source: Wind Resource Atlas of Vietnam, WB report 2010
(assumed average density of 10MW/km2)

10. 2. Wind energy development 2.1. Potential – Planning development
22 provinces with potential area of km2
Source: Wind Atlas 2010

11. 2. Wind energy development
2.2. Development Plan and Supporting mechanism for WPP
Development Plan
Draft Master Plan for potential development area of wind energy
Provincial Development Plan for Wind Power
Bình Thuận, July 2012: up to 700MW by 2020;
Ninh Thuận, April 2013: up to 220 MW by 2020;
Sóc Trăng, May 2014: up to 200MW by 2020;
Bến Tre, March 2015: up to 150 MW by 2020;
Quang Tri, June 2015: up to 110 MW by 2020

12. 2. Wind energy development
2.2. Development Plan and Supporting mechanism for WPP
Regulations and supporting mechanisms for WPP
Decision No. 37/2011/QD-TTg issued by the Prime Minister dated 29/6/2011on mechanisms to support development of wind power projects.
Power purchase responsibility: EVN must take and pay electricity generated from WPP
FIT for grid-connected wind power project: 7.8 US$/kWh (VAT exclusive; subject to VND/USD fluctuation)
Circular No. 32/2012/TT-BCT dated 12/11/2012 promulgating implementation of WPP development and standard PPAs for wind power projects.
Procedures for development of wind power projects
Application for price support from VEPF.
Registration sequence for the development of off-grid wind power projects.
SPPA for wind power projects
Circular No. 06/2013/TT-BCT dated 8/3/2013 promulgating content, order, procedure for formulation, appraising and approving wind power planning

13. Supporting mechanism for WPP
2.2. Development Plan and
Supporting mechanism for WPP
Other supporting mechanisms for WPP
Import tax: Import tax exemption for equipment which is not domestically manufactured.
Corporate income tax:
Tax rate: 10% for the first 15 years, possible extension up to 30 years
Tax exemption for the first 4 years, 50% reduction for next 9 years
Fast depreciation: 1.5 times faster than normal projects.
Exempt land-use tax/charges.
Exempt environmental protection fees.

14. Developers: about 50 sites
2. Wind energy development
2.3. Current situation
Development of Atlas for RE/wind energy resource potential
Measurement situation
MOIT/WB program 2010
MOIT/GIZ program
MOIT/KfW program
Developers: about 50 sites

15. Approved Capacity (MW)
2. Wind energy development
2.3. Current situation
Wind power projects - current situation
Name
Approved Capacity (MW)
In operation (MW)
COD
Current situation
BINH THUAN
700 1
Phong điện 1 - GĐ 1 30
2009 2
Phong điện 1 - GĐ 2 90
2016 A 3
Phú Lạc - GĐ 1 24
III/2016 U 4
Phú Lạc - GĐ 2 26
2018 5
Phú Quý 6
2012
Thuận Nhiên Phong 32 7
Phước Thể L
NINH THUAN
220 8
Điện gió Công Hải 47
12/2015 9
Điện gió Trung Nam 11
Điện gió Mũi Dinh
6/2015
SOC TRANG
200 12
Điện gió Trasesco - EAB 65 IL 13
Điện gió Âu Mỹ 40
BEN TRE
150 14
Điện gió Thanh Phong
29.7
2017 F 15
Điện gió Hàn Quốc - Bến Tre 60 16
Điện gió Bình Đại-BT GĐ1 17
Điện gió Bình Đại-BT GĐ2

16. 2. Wind energy development
2.3. Current situation
Wind power projects - current situation
QUANG TRI
110 18
DA Hướng Linh 30
2017 A
BẠC LIÊU 17
DA Bạc Liêu- GĐ 1 16
2013 O
DA Bạc Liêu- GĐ 2
83.2
1.6
2015 U
LÂM ĐỒNG 19
DA Cầu Đất- GĐ 1
BÌNH ĐỊNH 20
DA Phương Mai 1 21
DA Phương Mai 3 22
DA Nhơn Hội
61.1
1,380
993
53.6
O: Under operation;
U: Under construction;
A: FA approved;
F: FS Preparation;
L: Land acquisition;
IL: Investment license given

17. 2. Wind energy development
2.4. Constraints and shortcoming
National reliable, systematic and consistent database.
Economic and financial aspects: Investment costs for RE projects are higher than those for conventional energy projects in Vietnam.
Technical human resource: At present, no RE discipline can be found in universities TVET institutions, creating a big gap of human resources for this new “green” technology area.
Technical infrastructure: Vietnam’s infrastructure (roads, bridges, power system, traffic equipment, etc.) is out of date. Goods transportation is of great difficulties.
National grid connection
Supply of auxiliary equipment and services: most main and auxiliary equipment for RE is not localized. For wind power, some manufacturers can be found in the domestic market, such as GE US, CS Wind Tower Korea, etc., but all their products are exported to the world market.
Implementation arrangements

18. 3. Action plan for development of WPP
Developing the spatial map on Renewable energy including wind energy
Review and assesment of prevailing mechanism and suggestion for new FIT: 2015 – 2016
Developing the national standard for wind energy technology equipment:
Building the mechanisms to support development of local equipment production filed and services in the solar energy field;
Assessment of status: 2016
Research and proposal on supporting mechanisms:
Implementing capacity building programs for PBs, universities and vocational training units:

19. Thank you!