Ms. NGUYEN THI THAI THONG, Minister Counsellor of the Socialist Republic of Vietnam
Ladies and gentlemen,
At the outset, on behalf of the Vietnamese delegation, I would like to express our sincere thanks to the International Forum for Clean Energy and the ASEAN-China Centre for organizing the 7th International Clean Energy Forum and giving us a platform to exchange on the topic of clean energy. This year’s theme of “Intelligent Clean Energy Leading to China-ASEAN Power Cooperation” is more relevent than ever as we move closer to the United Nations Sustainable Development Goal in 2030 and fulfill our commitment under the United Nations Framework Convention on Climate Change. We hope to contribute to the forum by sharing Viet Nam’s experience in developing clean energy and hope to learn invaluable experience from our fellow delegations.
In keeping with our thematic discussion, today I’d like to share with you some of Viet Nam’s progress in the move towards clean and sustainable energy and green economy. I will first briefly introduce the current state of Viet Nam’s energy system and the challenges we face in developing renewable energy; then I will provide some of Viet Nam’s key policy and measures in shifting towards renewable energy, including broad governmental strategies and plans, current domestic implementation, as well as international cooperation in the energy sector; and finally some insights into the development of wind power, which has taken its first steps earlier this year.
1. First, with regards to our current state of our energy system, As a developing country, Viet Nam’s energy needs are met by the utilization of hydro, coal, oil & gas, import and other sources. Hydro and coal account for the majority of Viet Nam’s power supply, with hydro accounting for 41.9%, coal 36.5% of installed capacity in 2017. On the business side, in 2017 total energy sales reached 174.65 Giga-watts/hour, achieved the growth rate of 9.3%. Energy supply reached 28.86 million customers and brought a revenue of 314.720 billion VND.
Currently, our fossil fuel resources as well as potentials for primitive energy sources are being depleted. Furthermore, as a responsible member of the international community, Viet Nam is committed to fulfilling its obligations under the 2030 SDG and Paris Agreement. Therefore, there is strong incentive for Viet Nam to move towards clean, renewable and sustainable energy sources.
The Ministry of Industry and Trade is tasked with state management in the energy sector, including the nation-wide development and utilization of renewable energy, including the implementation of the Strategy for renewable energy; selection of locations for pivotal implementation of green economy projects; establish transparent market mechanisms to promote investment and development of renewable energy; allocate human resources to developing renewable energy.
2. The development plan for renewable energy in Viet Nam is not without challenges.
First, Renewable Energy supply powerplants are built in locations where they are allowed by spatial planning and/or where weather and resource conditions are most favorable, thus in Viet Nam they are deployed in remote areas and far from demand centers such as cities or industrial zones. The capacity of the existing grids has not been designed to transfer that energy and congestions may occurs (voltage surges, overloads etc.): Connecting RES requires more transmission grid to transport energy from RES generation to consumption centers.
Secondly, renewable energy have its own impacts, namely: Severe power and frequency fluctuations; Stability problems; Increased difficulty of voltage control; Increased power losses; Power quality problems; Increased reactive power requirements; Electromagnetic interference issues; Difficulty of islanding detection.
Finally, there is an aspect of profitablity in investment in renewable energy. By our calculations, currently the cost for usage of energy sources such as solar and wind power due to production costs and technological restraints.
3. This leads me to the next part of my presentation: Viet Nam’s key policies and measures for renewable energy. On the policy front, the government of Viet Nam fully embrace the future of clean energy. In 2005 the Prime Minister promulgated Decision 2868/QD-TTg adopting the Strategy to develop Viet Nam’s renewable energy by 2030 and vision for 2050 which outlined plans to develop the energy sector.
3.1. The strategic objective is that, by 2020 most households will have access to electricity, by 2030 most households have access to modern, sustainable and reliable energy services. Clean energy development is integral to the implementation of sustainable development goals and green economy. As such, the goal is to reduce greenhouse glass emission with the rate of 25% by 2030 and 45% by 2050, and increase energy production from renewable sources from 58 billion kWh in 2015 to 101 billion kWh in 2020, 186 billion kWh in 2030 and 452 billion kWh in 2050, making up 45% of total energy production. To this end, a series of measures are adopted, including:
- Enhancing state manangement in the development and utilization of renewable energy, with the Ministry of Industry and Trade taking the lead.
- Inspection of renewable energy resources potentials.
- Planning for the development of renewable energy sources
- Solutions to increase the development and use of renewable energy, including encouraging household use of solar power, requiring real estate enterprises to use solar power in certain stages of their projects, encouraging the use of clean energy in agriculture and in rural areas, etc.
- Provison of financial support for the development and utilization of renewable energy.
- Allocate and develop human resources.
- Creation of the market and technologies for renewable energy.
- Raise public awareness on renewable energy.
- International cooperation.
At the same time, policies are put in place to encourage the development of renewable energy, namely:
- Encourage individuals and organizations to take part in the development and utilization of renewable energy
- Energy authorities are to purchase all power generated by renewable energy.
- Individuals and organizations operating in the energy sector are to contribute to the country’s development of renewable energy.
- Customers and projects will receive discounts for using renewable energy sources.
- Prioritize research in the development and utilization of renewable energy.
The implementation of the policy is staged into different periods:
- From now until 2030: develop independent renewable energy sources; invest and develop renewable energy powerplants; supply energy via renewable energy grids; develop and utilize renewable energy for thermo-energy needs; develop and utilize bio-fuels.
- For 2050: focus resources, fully exploit and utilize domestic renewable energy potential with modern technology; strengthen development of the renewable energy market and industries of manufacture in machinery and equipments for the domestic provision of renewable energy; invest in research and development.
3.2. In terms of international cooperation, the Strategy outlines some key points:
- Promote international cooperation to attract capital and technological transfer in the field of renewable energy.
- Actively receive, own and transfer international modern technologies and scientific achievements to rapidly and firmly develop the renewable energy sector in Viet Nam.
- Strengthen bilateral cooperation and expand multilateral cooperation with coutries that have advanced renewable energy industries and organizations and individuals of rich potentials to exchange experience in the development of renewable energy.
- Actively establish and implement programs and projects of international cooperation to fully take advantage of assistance in terms of expertise, intelligence, capital, equipment and investments for renewable energy.
3.3. Viet Nam’s use of clean and renewable energy is taking its first steps since the adoption of the Strategy. Currently, we have a small but growing capacity and shares of renewable energy.
With Viet Nam’s topography, there is abundance of potential for development of wind and solar power.
Overall, by estimation there is great potential for all types of renewable energy, most of which are under pivotal implementation in Viet Nam, including small hydro power, solar power, wind power, biomass, biogas, municipal waste, geothermal and tidal.
For solar power, detailed plans are in place for projects to be installed in 23 provinces from now until 2030.
3.4. Particluarly in regards to wind energy development, plans are put in place for the period until 2030, with priority in development of on-land wind power sources and research to develop offshore and continental shelf wind power after 2030. 3125 powerplants have been approved for 11 provinces, of which 197 have been installed, most are in the southern region of Viet Nam. Wind energy production is to be increased from 180 million kWh in 2015 to 2.5 billion in 2020, about 16 billion kWh in 2030 and 53 kWh in 2050. Wind energy capacity contribution is to be increased to be 1% in 2020, 2.7% in 2030 and 5% in 2050.
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