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Development of Renewable Energy Application in Vietnam

Energy and Petroleum DepartmentMINISTRY OF INDUSTRY

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Presentation Layout

1. Overview of VN Primary Energy Resources

2. VN Renewable Energy Action Plan

3. Renewable Energy Resources for Electricity

4. Renewable Energy Application

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1. Overview of VN Primary Energy Resources1.1 Conventional:

Coal

Petroleum Oil and Gas, …Hydro (large scale for electricity)

1.2 Non-Conventional:

Hydro (small scale <10 MW)1.2.1 Renewable:

Solar

WindBiomass

GeothermalTidal and Wave, …

1.2.2 New:Biogas, Nuclear, Fuel Cell, Magneto-Hydrodynamic Generation, …

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1. Overview of VN Primary Energy Resources1.1 Conventional:

Coal:

Petroleum Oil and Gas:

Hydro (large scale for electricity):

Potential 3880 MTCommercial Production 13.9 MT (2003)

30 MT (2020)

18 MT (2010)

Potential 14,595 MW; 63.57 TWhCommercial Production 4,069 MW; 19 TWh (2003)

6,459 MW; 27 TWH (2010) 4,497 MW; 18 TWH (2020)

Potential 2,300 MT (crude oil) + 1,2071,507 Gm3 (gas)

1618 Gm3 gasCommercial Annual Production 1718 MT crude oil

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1. Overview of VN Primary Energy Resources1.2 Non-Conventional:

Hydro (small scale <10 MW):

1.2.1 Renewable:

for electricity: Potential - 8001400 MW

for other uses: Water pumping, mill, …Current - 110155 MW

Not identified

Solar:PV: Applicable Potential - 2 MW; 50,000 hhs

for other uses: Heating, refrigeration, drying, …

Current - 0.6 MW; 5,000 households

Not identifiedRadiation 45.9 kWh/m2

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1. Overview of VN Primary Energy Resources1.2 Non-Conventional:

Biomass:

1.2.1 Renewable:

for electricity: Applicable Potential - 250400 MWfor other uses: Heating, cooking, …

Current - 50 MW

Not identified

Wind:

for electricity: Potential - Not identified

for other uses: Water pumping (100200 W), …

Current - 0.5 MW

Not identified

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1. Overview of VN Primary Energy Resources1.2 Non-Conventional:

Geothermal:

1.2.1 Renewable:

for electricity: Potential - 50200 MW

for other uses: Sauna/steam-bath, cooking, …

Current - 0 MW

Not identified

Tidal and Wave: Not identified

1.2 Non-Conventional:

1.2.2 New:Biogas: Very high potential but not identified

Current 35,000 household scale sets

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1. Overview of VN Primary Energy ResourcesConclusion

• Vietnam has abundant energy resources both conventional and non-conventional.

• Non-conventional energy resources are most suitable for energizing far-most/remote/isolated areas with electricity and/or heat.

• Uses of non-conventional energy will:- Save fossil fuel- Protect environment- Economically supply energy to remote areas

Barriers to new and renewable energy:- Lack of legal framework- Lack of promoting/encouragement policy- Human resources

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2. VN Renewable Energy Action Plan

Prepared in 2001 by MOI/EVN with WB assistance.

10-year large-scale renewable energy development program focusing to renewable electrification for rural/remote/mountain areas.

2 phases, beginning 2001, ending 2010:(1) 5-year capacity building,(2) 5-year implementation.

Renewable energy will provide cost-effective and reliable electricity to help rural people improve their standard of living and increase their income.

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2. VN Renewable Energy Action PlanPotential:

•Fast-growing power sector and rich renewable energy resources, which could be used to generate electricity:- Large scale: Potential 15,5000 MW; Current use 4,000 MW; Projected 9,000 MW (2010); share of 45% power generation capacity,- Small hydropower potential (under 10 MW per site) is estimated at 8001,400 MW,-Biomass cogeneration could supply an additional 250400 MW.-Solar PV,-Wind power resources, while poorly identified, could play a role on coastal areas in the central regions,-Geothermal,-Tidal and Wave, …

•Renewable electricity has considerable potential to supply isolated rural households and villages: More than 1,100 remote/mountainous communes/villages, representing about 750,000 households and 3 mill. people, are outside EVN’s plans for connection to the grid by 2010.

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2. VN Renewable Energy Action PlanMajor Barriers:•Inadequate policy and regulatory framework to encourage renewable

electricity•Inadequate awareness about technologies, cost and performance.•Lack of commercial business to provide renewable electricity equipment and services.•Lack of financing sources, high price, data, planning, …

Strategies:

•Renewable electricity will be used where it is least cost and economically viable,•Renewable electricity will be supplied on commercial basis,•Communities, individual consumers and investors together to contribute/share cost and benefit,•Under government guidance,•Access to long-term credit,•Limited grant assistance.

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3. Renewable Energy for Electricity

The potential of renewable energy for electricity has been recognized in Vietnam, though its promise has not yet been realized.

• Grid connected mini-hydro and biomass systems,•Mini-hydro for isolated community grids, alone or in hybrid systems with diesel,•Household scale pico-hydro systems,•Household scale solar PV systems.

Options:

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Resource Potential Current Usage Geographical potential

MW Thousand hh served

MW Thousand hh

servedHydro power 800–1,400   110–

155  North and center

- pico-hydro 90–150 200–250 30–75 100 North and center

- isolated mini-grids 300–600 300 20 n.a. North and center

- grid connected mini hydro 400–600 n.a. 60 n.a. North and center

Off-grid solar PV systems 2 50 0.6 5 South and center

Biomass bagasse, rice husks, and so forth

250–400 n.a. 50 n.a. South and center

Geothermal ~50–200 n.a. 0 n.a. Center

Wind power TBD TBD 0.2 1 Central coastal region

Total 1,100–1,900 500–600 160–215

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n.a. Not applicable.TBD = to be determined.

3. Renewable Energy for ElectricityPotential and Current Use of Renewable Energy in

Total

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3. Renewable Energy for ElectricityPotential and Current Use of Renewable Energy for

Grid Connection

 Resource

Potential Current Usage Geographical potential

MW MW

Grid-connected hydro power1

400–600 60 North and center

Biomass—sugar bagasse2

100–200 50 South and center

Biomass—rice husk3 150–200 0 South and center

Geothermal4 50–200 0 Center

Grid-connected wind power5

TBD 0 Islands and center coast

Total 700–1,200 110  

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4. Renewable Energy Application

Gia Lai: Solar PV + Mini-hydro 125 kW (1999, NEDO) (100 + 25)

Kon Tum: Solar PV + Wind 9 kW(7 + 2)

Solar PV + Diesel 7.5 kW (7.5 mill. DM)(13 kW)

New Project: Solar PV + Biomass bricketes

Collaboration between AIT and IESponsored by SIDA

Others …

Germany

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4. Renewable Energy ApplicationIn context of Rural Electrification in Vietnam

1. Current status of RE:

Districts electrified 98.6% (grid connected)Communes electrified 90.6%Households electrified 82.22%

2. Targets:

Households electrified: 90% by 2010Quality and good service !

3. Projects:

RE I: 150 M$, 902 communes, 600 thousands householdsRE II: 300 M$, 1300 communes, 1000 thousands households

Including 100 communes electrified by renewableRE III: 270 M$

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4. Renewable Energy ApplicationIn context of Rural Electrification in Vietnam

4. Government guidelines:

• Different parties to contribute/participate• Applicable methodology• Legal institutional model for community service• Appropriate subsidiary• MV network to be invested/managed by EVN• LV network to be invested by local authorities/people• Drops to houses to be invested by households• Poorest areas have GOV subsidiary

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Thanks you for your attention !