CURRENT STATUS OF WIND POWER DEVELOPMENT IN VIETNAM
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1 MINISTRY OF INDUSTRY AND TRADE General Department of Energy CURRENT STATUS OF WIND POWER DEVELOPMENT IN VIETNAM Pham Trong Thuc Director of Department of New and Renewable Energies June 2015
2 AGENDA 1. Policies and targets for renewable energy (RE) development 2. Potentials for wind energy resources and current development of wind power projects 3. Support policies and mechanisms for development 4. Constraints, shortcomings and solutions
3 1. Development policies and targets 2012 National Green Growth Strategy goal: Development of a low-carbon economy on a sustainable basis, reduced GHG emissions and increased GHG absorption Reduced GHG emissions to 266 mil. tons of CO2 For energy sector: reduced GHG emissions to mil. tons of CO2 (53%) by Promotion of effective exploitation and increased RE share as one of key solutions. Decision 1208/QD-TT (Master Plan VII): : Vietnam s power demand continues to increase at 14.1%/year : Reduce to 9.9%/year : Grow at 8.1%/year : Grow at 7.2%/year In response to this, the GoV plans to increase the RE share in the national energy mix (Master Plan VII): 2020: RE share of 4.5% 2030: RE share of 6%.
4 1. Development policies and targets RE Share in power generation and import mix up to 2030 (Master Plan VII) 2.10% 3% 4.50% % % 19.60% 46.80% 6% 10% 15% 9% 56% Hydro power Coal Natural gas RE Nuclear Imported
5 1. Development policies and targets Targets for RE utilization up to : RE power will account for approx. 5.6% of total installed capacity: 1,000 MW from wind power, 500 MW from biomass and 2,700 MW from other RE types. 2030: RE power will account for approx. 9.4% of total installed capacity: 6,200 MW from wind power, 2,000 MW from biomass and 5,600 MW from other RE types. RE Capacity (MW)
6 2.1. Potentials for wind power Mean speed at 80m height (m/s) Estimated Developable Land Area (km2) Theoretical Potential (MW) <4 95, , , , , , ,435 24, , > Tổng 209,933 2,099,333 Source: Wind Resource Atlas of Vietnam, WB report 2010 (assumed average density of 10MW/km2)
7 Technical Potential MoIT 2012 Assessment No. Province District Speed (m/s) Area (km²) Potential (MW) > Hà Tĩnh Kỳ Anh Quảng Bình Lệ Thủy Kon Tum KonPlông Bình Định 5 Gia Lai Phù Mỹ, Phù Cát, Quy Nhơn Mang Yang, Krong Cho, Chư Sê, Chư Prong Phú Yên 7 Daklak TX Tuy Hòa Tuy Hòa Ea H'leo Krong Năng Krong Buk Cư M'gar Khánh Hòa Cam Ranh Ninh Hải Ninh Thuận Phan Rang Ninh Phước
8 Technical Potential No. Province District Speed (m/s) Area (km²) Potential (MW) 10 Bình Thuận > 7.0 TP Phan Thiết Tuy Phong Bắc Binh Hàm Thuận Bắc Hàm Thuận Nam Bà Rịa Vũng Tàu Đất Đỏ Bến Tre Binh Dai, Ba Tri Trà Vinh Chau Thanh, Duyen Hai Sóc Trăng Vĩnh Châu ) 15 Bac Lieu Vinh Thanh Dong 16 Lam Dong Cau Dat 17 Quang Tri Huong Linh Area (km²) 1, ,451
9 2.2. Current development of wind power projects Local wind power development plans Binh Thuan, July 2012: 700MW up to 2020; Ninh Thuan, April 2013: 220 MW up to 2020; Soc Trang, May 2014: 200MW up to 2020; Ben Tre, March 2015: 150 MW up to Wind measurement programs : 3 sites (MOIT/WB) : 10 sites (MOIT/GIZ) : 20 sites (MOIT/KfW)
10 2.2. Current development of wind power projects Registration, preparation, deployment and operation: - Number of projects registered: 48, total capacity of 4,876MW - Number of projects put into operation: 03 (52MW-Furlander 1.5, GE1.6, Vestas2.0) Financing sources: - ODA: 02 projects (Phu Lac- KfW, Loi Hai- Danida) - State budget: 01 project (Phu Quy Island) - Government guarantee: 01 project (Bac Lieu Project, financed by US Eximbank) - IIPP: remaining projects
11 3. Support mechanisms for wind power project development Decision No.37/2011/QD-TTg dated 29 July 2011 on the promulgation of support mechanisms for the development of wind power projects in Vietnam: Wind power development planning Support mechanisms for the development of wind power projects: - Power purchase responsibility: EVN shall be required to purchase all power generated from RE sources on the basis of SPPA. - Price support to grid-connected wind power projects: US$/kWh (VAT exclusive; subject to VND/USD fluctuation) - Infrastructure/land incentives - Subsidies for off-grid wind power projects Decision No.130/2007/QD-TTg dated 02 August 2007 on several financial mechanisms/policies for CDM investment projects. Products from CDM projects shall be subsidized by VEPF. Decree No. 75/2011/ND-CP dated 8 August 2011 on investment credit: The development of and investment in wind power projects shall be entitled to the state support to investment credits.
12 3. Support mechanisms for wind power project development Circular No. 32/2012/TT-BCT by MOIT dated 12 Nov 2012 stipulating the development of wind power projects and SPPA for wind power projects: Procedures for development of wind power projects: project proposal, wind measurement report, project preparation, feasibility study results, preliminary implementation solutions, decommissioning conditions, operating and reporting mechanism, justifications for project effectiveness, equipment, safety regulations during construction stage, land use issues, environmental protection, etc. 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 by MOIT dated 8 March 2013 stipulating contents, sequence, procedures for appraisal and approval of wind power development plans. National Wind Power Development Plan Provincial Wind Power Development Plan Budget for planning exercise
13 3. Support mechanisms for wind power project development Supplementary instruments: 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 4. Constraints and shortcomings 1. National reliable, systematic and consistent database. 2. Economic and financial aspects: Investment costs for RE projects are higher than those for conventional energy projects in Vietnam. 3. 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. 4. Technical infrastructure: Vietnam s infrastructure (roads, bridges, power system, traffic equipment, etc.) is out of date. Goods transportation is of great difficulties. 5. National grid connection 6. 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. 7. Implementation arrangements
15 4. Solutions Management Focal points for planning management, technical assistance for the development of RE support/policy mechanisms; ODA sources for development support or RE projects; Resource mapping and RE database; Establishment of national standards for wind power technology equipment; Development of support mechanisms for domestic equipment manufacturing and service industry in the wind power sector; Organization of capacity development programs for universities, TVET institutions; Considerations on the possible promulgation of RE Law.
16
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