What has Vietnam accomplished in terms of renewable energy development?

Hydropower (46 percent), coal (29 percent), and natural gas (22 percent) dominated Vietnam's electricity mix in 2014. By the end of 2019, wind and solar accounted for 5,700 MW of installed power, accounting for approximately 10% of total availability.

1. Strengthen

According to the Ministry of Industry and Trade, electricity demand for economic growth will continue to rise at a high rate of 8-10 percent per year beginning in 2021. Besides, the effect of climate change creates droughts, which may result in a lack of water in hydropower reservoirs. Moreover, several thermal power projects under the Power Master Plan VII have been postponed, placing a strain on the electricity supply.

In these circumstances, the production of renewable energy sources, especially wind and solar power, is regarded as an unavoidable trend. This is one of the critical solutions that can both protect the environment and make use of wasteland where crops cannot be grown.

Many policies and regulations have been released by the Vietnamese government to promote the production of renewable energy resources. The rapid advancement of science and technology, especially the Industrial Revolution 4.0, is having a significant impact on the world. As a result, our Party has decided that the application of science and technology is extremely important in today's energy growth. Electricity of Vietnam (EVN), for example, has launched a website called EVNSOLAR to assist individuals and businesses interested in selling solar PV goods. The website will link buyers and sellers in order for them to share product information in a secure and convenient manner.

Furthermore, the Ministry of Natural Resources and Environment is currently finalizing policies for the adoption of a thorough revision of the Environmental Protection Law. The Ministry of Industry and Trade also released Decision 2023/QD-BCT on July 5, 2019, authorizing Vietnam's rooftop solar power production program for 2019-2025. These ministries concentrated on content classes that moved thinking away from the economics of fossil energy sources and toward a renewable economy, low carbon economy, and green energy. At the same time, they stressed and claimed that waste must be turned into material and natural resources for recycling; providing technical regulations to effectively regulate emission sources; and prioritizing the creation of renewable energy areas for green economic development.

2. Weakness

Despite many milestones, Vietnam's renewable energy industry continues to face challenges. Transmission grid infrastructure, for example, has not kept up with the progress of renewable energy projects, resulting in grid-connected wind and solar power projects in some areas, such as Ninh Thuan, Binh Thuan, being unable to unleash 100 percent of their capacity. Rooftop solar power, despite its high potential and ease of implementation, has fallen short of expectations due to high initial investment costs and a lack of strong financial institution support.

The market for solar power products and services is very diverse; however, no clear technical requirements for quality and safety have been developed. Recently, the building industry has implemented more regulatory procedures for the installation of solar power panels, making it harder for individuals and companies looking to invest.

3. Opportunity

• Biomass

  • Rice husk is concentrated in approximately 1000 rice mills and is available next to water routes for transportation. Meanwhile, rice straw used to be left in fields and burnt or thrown in rivers, but due to the recent mechanization of rice collection, the straw can be now easily collected.

• Wind

  • Vietnam has good conditions along the long coastline.

• Solar

  • Ho Chi Minh city and other municipalities' rooftop projects are pushed. Non-rooftop Feed-in-Tariff (FIT) 9.35 US cents to be finished and replaced by a competitive bidding model.

• Waste to energy

  • The large supply of fuel provided by local authorities around the country.

  • Tipping fees make the projects profitable if the technology is good (pre-drying etc.).

  • FIT is provided by EVN.

  • Urgency and population and Government pressure local authorities to do something with the overused landfills.

4. Threaten

• Biomass

  • Rice husk price tends to be floating. If used the price and supply has to be well secured. While rice straw is still scattered, and the user needs to collect it.

• Wind

  • Grid capacity must be secured.

• Solar

  • Overcapacity in Ninh Thuan province where are the best conditions for solar. Grid is unable to take all production.

  • Competitive bidding among enterprises.

• Waste to energy

  • High organic portion and humidity of waste.

  • Recycling happens at the source, no side material flows coming to landfills (no extra revenue available).

  • Long sales cycle due to excessive bureaucracy and red tape of the local authorities.

Pham Ha Linh

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References

• Claudio, and Pietro Karjalainen (2020). “Vietnam 2020 Renewable Energy Outlook”. Retrieved from https://asianinsiders.com/vietnam-bold-ambitions-for-a-greener-future-in-energy-production/

• Cong Thuong (2020). “VIETNAM’S RENEWABLE ENERGY INDUSTRY: MARKET OPPORTUNITIES”. Retrieved from https://vietnamcredit.com.vn/news/vietnams-renewable-energy-industry-market-opportunities_14110

• CTTDT (2020). “Phat trien nang luong phai gan voi bao ve moi truong”. Retrieved from http://www.monre.gov.vn/Pages/phat-trien-nang-luong-phai-gan-voi-bao-ve-moi-truong.aspx