capacity needs assessment for grid-connected bioenergy

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Executive Summary Capacity Needs Assessment for Grid-Connected Bioenergy Development in Viet Nam (Biomass, Biogas and Waste to Energy) hé · i x ch a ñ ß n h g g h n Üa « c n t a Ö m i v Ministry of Industry and Trade

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Page 1: Capacity Needs Assessment for Grid-Connected Bioenergy

Executive Summary

Capacity Needs Assessment for Grid-Connected Bioenergy Development in Viet Nam (Biomass, Biogas and Waste to Energy)

hé· i x c ha ñß nh gg hn Üa« c nt aÖ miv

Ministry of Industry and Trade

Page 2: Capacity Needs Assessment for Grid-Connected Bioenergy

Bản quyền thuộc về: DựánHỗtrợNănglượngtáitạoGIZ-GDE/MOIT

Nội dung: BáocáotómtắtnghiêncứuvềcơchếhỗtrợpháttriểnđiệnnănglượngsinhhọcnốilướitạiViệtNam

Để có thêm thông tin, xin liên hệ: DựánHỗtrợNănglượngTáitạoGIZ-GDE/MOIT Tầng5,85NguyễnDu,HàNội Tel:04-39412605Fax:04-39412606 Email:[email protected] Website:http://www.renewableenergy.org.vn/

Biên tập NguyễnQuốcKhánh

Page 3: Capacity Needs Assessment for Grid-Connected Bioenergy

Executive Summary

Capacity Needs Assessment for Grid-Connected Bioenergy Development in Viet Nam (Biomass, Biogas and Waste to Energy)

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4 EXECUTIVE SUMMARY

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5ExEcutivE Summary

Renewableenergy(RE)andbioenergyinparticularareincreasinglybecomingoneofVietnamGovernment’sprimaryconcerns.Itstarget isforelectricitygenerationfromREtocontribute4.5%oftotalpowergenera-tionin2020and6%in2030.Duetoinsufficientsupportingpolicies,othereconomic,financial,institutionalandtechnicalbarriers,aswellaslimitedawareness,thegrid-connectedbioenergysectorstillhasmadelittleprogressandneedsfurthercapacitydevelopmentintermsoftechnologies,knowledgeandfinance,etc.Thestudy‘Capacityneedsassessmentforgrid-connectedbioenergydevelopmentinVietNam(biomass,biogasandwastetoenergy)’undertakenbyGIZandMOITisanattempttopromotethesector.Asaresult,recom-mendationsforcapacitydevelopmentweremadeinfivecoreareasandinvolveavarietyofstakeholders:

Figure 1: Fivecoreareasofstakeholderinvolvement

Theexistingandrequiredcapacitiesaswellasthecapacitygapsofdifferentstakeholderswereidentifiedatorganisationalandindividuallevel.Short-andmedium-termmeasuresforimprovementwerethenproposedforeachcorearea.

Key short-term recommendations include improving capacity in a range of areas such as technology,projectmanagementskills,trainingcurriculumdevelopment,equipmentandinternationalcooperationinre-search,training,andtechnologytransfer.

Medium-term recommendationsemphasisethenecessityforagoodinformationandcommunicationsys-temforREaswellastheestablishmentofatechnologytransfercentreandcapacity-buildingprogrammes. Thesemeasureswillsupportall involvedstakeholdersandhelptoupgradethecapacityofallresponsiblestaff.Withoutadoubt, thesuccessful implementationof thosestrategies forcapacity improvement in thegrid-connectedbioenergysector requiresclosecollaborationamongstakeholdersaswellas theeffectivecoordinationofMOITcentrallyandlocally.

1. The creation of a favorable developing

framework for grid-connected bio-energy

2. The regulation and adm inistration of the sector

3. The development of human resources

4. The provision of

equipment and services to grid-connected bio-energy projects

5. The development, planning,

building, O&M of grid-

connected bio-energy projects

Summary

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6 EXECUTIVE SUMMARY

Summary ................................................................................................................................ 5

List of Figures ........................................................................................................................ 7

List of Tables .......................................................................................................................... 7

Abbreviations......................................................................................................................... 8

1. Rationale of the study ..................................................................................................111.1. Objectivesandscopeofthestudy....................................................................................................... 111.2. Policiesandlegalframeworkforthedevelopmentofrenewableenergieswithafocuson grid-connectedbioenergy....................................................................................................................111.3. Currentstatusofgrid-connectedbioenergygeneration.......................................................................12

2. Methodology ................................................................................................................ 132.1. Studymethod.......................................................................................................................................132.2. Overviewoftargetmodel.....................................................................................................................142.3. Timeframeofthestudy........................................................................................................................162.4. Stakeholdermap..................................................................................................................................17

3. Presentation of the results ......................................................................................... 193.1. Overviewofstakeholdersbycorearea................................................................................................193.2. Analysisofstakeholdercapacitybycorearea.....................................................................................21

4. Recommended capacity development measures .................................................... 274.1. Organisationallevel:Shortandmedium-termrecommendations........................................................274.2. Individuallevel:Shortandmedium-termrecommendations................................................................28

5. Conclusions ................................................................................................................. 31

Table of contents

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7ExEcutivE Summary

List of Figures

Figure 1: Fivecoreareasofstakeholderinvolvement....................................................................................5Figure 2:Stakeholdermapofgrid-connectedbioenergysector...................................................................17Figure 3: Representativesofkeystakeholdersinfivecoreareasinterviewedandquestioned...................21

List of Tables

Table 1: Fourstepsinthestudymethodandachievedtasks.......................................................................13Table 2: Timeframeofthestudy....................................................................................................................16Table 3: Existingandrequiredcapacitiesandcapacitygapsatorganisationallevel....................................22Table 4: Existing andrequiredcapacitiesaswellascapacitygapsatindividuallevel.................................24Table 5: Shortandmedium-termrecommendationsfortheorganisationallevel..........................................27Table 6: Shortandmedium-termrecommendationsforindividuallevel.......................................................28

LIST OF FIGURESLISTOFTABLES

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8 EXECUTIVE SUMMARY

ABBREVIATIONS

EPC Engineering,ProcurementandConstructionEPTC ElectricPowerTradingCompany(underEVN)FiT feed-intariffGO GovernmentOfficeNGO non-governmentalorganisationODA officialdevelopmentassistancePC People’sCommitteePDP PowerDevelopmentPlanPPA powerpurchaseagreementRE renewableenergySWOT strengths,weaknesses,opportunitiesandthreatsVGGS VietNamGreenGrowthStrategy ExtendedgroupofstakeholdersADB AsianDevelopmentBankAECID SpanishAgencyforInternationalCooperationandDevelopmentAFUHCM HCMCAgricultureandForestryUniversity

AI-MOC AdministrationofInfrastructure–MinistryofConstructionCCO-MONRE ClimateChangeOffice–MinistryofNaturalResourcesandEnvironmentCEMRT-ERAV CenterforElectricityMarketResearchandTraining-ERAVCOP-MONRE CenterofOzoneProtection–MinistryofNaturalResourcesandEnvironment

DARD-CT ProvincialDepartmentofAgricultureandRuralDevelopment(CanThoPeople’s Committee)DC-MARD DepartmentofCrops–MinistryofAgricultureandRuralDevelopmentDCT-AFUHCM DepartmentofChemicalTechnology-HCMCAgricultureandForestryUniversityDDP-VDB DivisionofDevelopmentPolicies–VietnamDevelopmentBankDEM-DNU DepartmentofEquipmentManagement–DaNangUniversityDIE-MPI DepartmentofIndustrialEconomics–MinistryofPlanningandInvestmentDL-MARD DepartmentofLivestock-MinistryofAgricultureandRuralDevelopmentDOIT-HCMC DepartmentofIndustryandTrade–HoChiMinhCityPCDOIT-BD DepartmentofIndustryandTrade–BinhDuongPCDOIT-CT DepartmentofIndustryandTrade–CanThoPC

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DOIT-DN DepartmentofIndustryandTrade–DaNangPCDOIT-HP DepartmentofIndustryandTrade–HaiPhongPCDOST DepartmentofScienceandTechnologyDOST-BD DepartmentofScienceandTechnology–BinhDuongPCDOST-CT DepartmentsofScienceandTechnology–CanThoPCDOST-DN DepartmentofScienceandTechnology–DaNangPCDOST-HCMC DepartmentofScienceandTechnology–HoChiMinhCityPCDOST-HP DepartmentofScienceandTechnology–HaiPhongPCDPI DepartmentofPlanningandInvestmentDSENRE-MPI DepartmentofScience,EducationandNaturalResourcesandEnvironment–Ministry ofInvestmentandPlanningFDE-MOF FinancialDepartmentforEnterprises-MinistryofFinanceFE-CTU FacultyofEnvironment–CanThoUniversityFE-UNREHCM FacultyofEnvironment–HoChiMinhUniversityofEnvironmentandNaturalResources

FF-CTU FacultyofFisheries–CanThoUniversityFMT-AFUHCMC Faculty of Mechanics and Technology – Ho Chi Minh City Agriculture and ForestryUniversityGIZ DeutscheGesellschaftfürInternationaleZusammenarbeitGIZ-TVET TechnicalandVocationalEducationandTrainingProgrammeVietNam–GIZGIZ-RESP SupportfortheDevelopmentofRenewableEnergyinVietNamProject–GIZGREEN-ID GreenInnovationandDevelopmentCenterHE-MOET HigherEducationDepartment–MinistryofEducationandTrainingIES InstituteofEnergySciencesIPSARD InstituteofPolicyandStrategyforAgricultureandRuralDevelopmentIPSI IndustrialPolicyandStrategyInstituteISPONRE InstituteofStrategyandPolicyforNaturalResourcesandEnvironmentNRED-MOIT NewandRenewableEnergyDepartment–MinistryofIndustryandTradePED-MOET ProfessionalEducationDepartment–MinistryofEducationandTrainingPMU-VBL-MARD ProjectManagementUnit–VietNamBiogasLivestockSector–MinistryofAgriculture andRuralDevelopmentSDCC SustainableDevelopmentandClimateChangeConsultancyCompany

SHEER-HUST School of Heat Engineering and Refrigeration – Hanoi University of Sciences andTechnologies

SIDA SwedishInternationalDevelopmentCooperationAgencySNV NetherlandsDevelopmentOrganisationSONGHONG SongHongJointStockCompanyUSAID UnitedStatesAgencyforInternationalDevelopmentVBA VietnamBiogasAssociationVEA-MONRE VietnamEnvironmentAdministration–MinistryofNaturalResourcesandEnvironment

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VSA VietNamSugarAssociationVSCs VietNamSugarCompanies WorldBank

Corestakeholdersaslistedunder3.1(Overview of stakeholders by core areas)AGU AnGiangUniversityAGVT AnGiangVocationalTrainingCollegeAIT AsianInstituteofTechnologyAIT-VN AsianInstituteofTechnologyinVietnamCAMIX wasteandwastewatersolutionscompanyCTU CanThoUniversityDNU DaNangUniversityDARD-CT DepartmentofAgricultureandRuralDevelopment–CanThoPCDOC DepartmentofConstructionDOIT DepartmentofIndustryandTradeDONRE DepartmentofNaturalResourcesandEnvironmentENERTEAM EnergyConservationResearch&DevelopmentCenterEPU ElectricPowerUniversityERAV ElectricityRegulationAuthorityofVietnamEVN VietnamElectricityGroupGDE-MOIT GeneralDirectorateofEnergy–MinistryofIndustryandTradeGMGC GoldMillenniumGroupConsultingHCMC-VC HoChiMinhCityElectricityVocationalCollegeHNHBGroup HoaiNamHoaiBacGroupHUSTHanoi HanoiUniversityofSciencesandTechnologiesHUSTHCM HoChiMinhUniversityofScienceandTechnologyICF IndoChinaCapitalFundIOE InstituteofEnergyIMST InstituteofMiningScienceTechnologiesIPSI IndustrialPolicyandStrategyInstituteMARD MinistryofAgricultureandRuralDevelopmentMOC MinistryofConstructionMOET MinistryofEducationandTrainingMOF MinistryofFinanceMONRE MinistryofNaturalResourcesandEnvironmentMOLISA MinistryofLabour,InvalidsandSocialAffairsMOST MinistryofScienceandTechnologyMPI MinistryofPlanningandInvestmentNTU NhaTrangUniversityPECC3 PowerEngineeringConsultingJointStockCompany3RCEE-NIRAS ResearchCenterforEnergyandEnvironment–NIRASTHIC TuyHoaIndustrialCollegeUNREHCMC HoChiMinhCityUniversityofEnvironmentandNaturalResourcesURENCO UrbanEnvironmentCompanyUSTH UniversityofScienceandTechnologyofHanoiSTAMEQ DirectorateofStandards,MetrologyandQualityVAST VietnamAcademyofScienceandTechnologyVDB VietnamDevelopmentBankTRANSERCO TransportServiceCorporationBWTE BiologyEnergy-WasteTreatmentCompanyLtdVEPFMONRE VietnamEnvironmentProtectionFundVLU VanLangUniversityVNU VietnamNationalUniversity

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11ExEcutivE Summary

1. Rationale of the study

1.1. Objectives and scope of the study

Thedevelopmentof renewableenergy (RE)holdsgoodpromise in improvingVietNam’snationalpowersupplyand itsgeneral socio-economicdevelopment.RE-related targetshavebeen integrated ina rangeofdifferentnationaltargetprogrammesoftheGovernmentofVietNamstartingwith2008’sNationalTargetProgramforRespondingtoClimateChange,2007’sNationalEnergyDevelopmentStrategy,2011’sNationalClimateChangeStrategy,and2012’sVietNamGreenGrowthStrategy(VGGS).

Incentivemechanismssuchasfeed-intariff(FiT)ratesforbiomassandwastepowerprojects,taxreductionsforimported/exportedequipmentandmaterials,andfinancialsupportforthoseprojectswereintroducedbythegovernmentin2014.Inordertolayagoodfoundationforbioenergysectorpromotionanditsstrategicplanning, the Ministry of Industry and Trade (MOIT) and GIZ worked together on the ‘Capacity NeedsAssessmentStudyfortheGrid-connectedBio-energySectorwithaFocusonBiomass,BiogasandMunicipalDomesticWaste’(hereinafterreferredtoas‘CNAStudy’).AIT-VNwasselectedtoconductthestudy.TheCNAStudyaimedattwomajorobjectives:

i. assessanddeterminetheexistingandrequiredcapacitiesandcapacitygapsatinstitutionaland individuallevelforeachcoreareainthegrid-connectedbioenergysector;andii. proposeshort(upto2year)andmedium(2-5years)termrecommendationsoncapacitybuilding foreachcorearea.

Thestudyshallalsoactasareferencesourceforrelevantunitsandorganisations.

Threeareasofgrid-connectedbioenergyelectricity, includingbiomass,biogasandmunicipalsolidwaste,wereexaminedattheorganisationalandindividualcapacitylevel.Recommendationsweredevelopedinordertoovercometheidentifiedcapacitygaps.InvolvedstakeholdersincludefunctionalunitsatMOIT,universities,researchinstitutes,banks,consultingagencies,non-governmentalorganisations(NGOs),associationsandenterprisesinvestinginREprojects.

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12 EXECUTIVE SUMMARY

1.2.Policies and legal framework for the development of renewable energies with a focus on grid-connected bioenergy

SupportingpoliciesonREdevelopmenthavebeenadoptedbytheGovernmentofVietNam.StrategiesandmasterplansincludetheElectricityLawNo.28/2004/QH11andthePowerDevelopmentPlan(PDP)No.7,whichplanforanREcontributiontototalelectricitygenerationof4.5%in2020and6.0%in2030.AsstatedinthePDPNo.7,biomasspowershallreachaninstalledcapacityof500MWby2020and2000MWby2030.

Furtherdecisionsandregulationsencouraginginvestmentinbioenergyprojectsinclude:

- RegulationofavoidedcosttariffsandstandardPPAforsmallrenewableenergypowerplants connectedtothenationalgrid[MOIT2008]. - JointCircularNo.58/2008/TTLT-BTC-BTN&MTdated4July2008issuedbyMOFandMONRE explainingtherulesofgovernmentsupportforcleanenergyprojects. - EstablishmentoftheVEPFtosupportenvironmentalprojectslikegrid-connectedbioenergyprojects in2002. - Twodecisions(No.31/2014/QD-TTgdated5May2014onthesupportmechanismforthe developmentofsolidwastepowerprojectsandNo.24/2014/QD-TTgdated24May2014onthe supportmechanismforthedevelopmentofbiomasspowerprojectswereissued;theseincludea setFiTrateandotherincentivessuchastaxexemptions.

In addition, the government receives international financial and technical support in the field of RE, inparticular bioenergy. Projects co-implemented by international organisations include the GIZ RenewableEnergySupport(RESP)Projectwhichfocusesontheimprovementofthelegalframeworkandmechanismsforbioenergyprojects,theWorldBankEnergySectorManagementAssistanceProgramme,whichaimstomapbiomassresources,andprojectsbyotherdonorsinthebroaderfieldofREincludingSNVNetherlandsDevelopmentOrganisation,theEUDelegation,USAID,ADB,AECID,etc.

1.3.Current status of grid-connected bioenergy generation

Biomass

Biomassresourcesareabundant, ranging fromagriculturalwaste,straw,husk,bagasse,woodandwoodwastetopeanutshellsandcoconutandcashewwaste.Thepotentialelectricitygenerationcapacityofthesesourcesisabout2,500MW[Cuong2011a].Atpresent,electricityproductionfrombiomassonlymakesupapproximately150MWoutof21,500MWoftotalinstalledcapacityin2010.Consumptionofbiomassenergymostlylimitedtocookingandheatingpurposes.

Potentialgrid-connectedbiomasspowerprojectsinclude41sugarmillswithanestimatedcapacityof500MW; 6 grid-connected plants using bagasse electricity technology with a total capacity of 150 MW arecurrentlyinstalled.Otherprojectsincludesmall-scalepilotfacilities,withinefficientoperationandout-of-dateequipmentwhicharenotconnectedtothegrid.Therefore,thereshouldbefurthermechanismstoalleviatetheseconstraintsinordertomeettheVietnameseGovernmenttargetsoutlinedinthePDPNo.7.

Biogas

Withvarioussourcesfromfoodandcropprocessingaswellasdomesticanimals,biogaselectricityprojectsaremainlysmall-scale(e.g.200,000household-scalebiogasprojectsin53ruralandmountainousprovinces)andnotgrid-connected.Themainobjectiveistoprovidecookinggastohouseholds,meettheinternalpowerdemand,and increaseenvironmental protection, for example inwastewater treatment.There isonlyone2-MWindustrial-scalebiogasplantutilizingpigmanure,whichfacestheproblemofgasbeingunusedandaccordinglyflaredoffwithoutmakingproperuseofthisenergy.Populartechnologiesemployedarerestrictedtosmall-scalebiogasdigestersandbiogasstoragebags.

Waste

Twenty-eightmillion tonsofsolidwaste,70%domesticand30%industrial,construction,medicalorotherresidues,aregeneratedannually[VEA,2009].Wastetreatmenttechnologyisoflowstandard,suchaspoorlyoperatedlandfills,openburningorsimplydumpingwasteintorivers,canalsorfields.Someprojectshavebeen developed to promote grid-connected bioenergy power. For example, the Go Cat waste-to-energyelectricityplantinHoChiMinhCitywith2.4MWofinstalledcapacity,aJapanesefundedwaste-to-energyprojectatNamSonlandfill,isexpectedtobecomeoperationalin2014.Thismarketofinvestmentstillhaslimitations,includinghighinvestmentcost,economicinefficiencyandinadequateFiTs.

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13ExEcutivE Summary

1 TheCADREmethodologywasdevelopedbyGIZandappliedinmanycountries.

2. Methodology

2.1. Study method

The‘CapacityDevelopmentNeedsDiagnosticsforRenewableEnergy(CADRE)’methodology1wasemployedtoidentify:(1)capacityneedsofthegrid-connectedbioenergysector;(2)existingcapacities;and(3)capacitygaps.

Thetarget modelforthegrid-connectedbio-energysectorwasconstructedtodetailthesethreeelements.Thebasictargetmodeliscomposedof(1)coreareasofthesectorincludinglegalframeworks,regulationandadministration,humanresources, investment,equipmentandservicesprovision,projectdevelopmentandoperation;and(2)applicationsandprocessesforeachcorearea.Thefollowingtablesummarisesthemethodologicalsteps.

02

Study method Content and tasksStep 1: Identification of the scope of the study

SWOT(strengths,weakness,opportunitiesandthreats)analysisofeachcorearea(inakick-offandscopingworkshop)andcompletionof:(1)basictargetmodelincl.5coreareasandrelatedprocesses/applications;(2)stakeholderlandscapefor5coreareas;(3)arrangementoftheparticipationofthekeyorganisationsinthestudy.

Step 2:Data collection

Collectionofdataonthecapacityneedsofparticipatingstakeholdersviainterviewsandquestionnairesheetsincludinginformationon:(1)organisation’smission;(2)organisation’scurrentcapacity;(3)relationshipamongstakeholders;(4)organisation’ssolutionstoimprovecapacityatorganisationalandindividual

levels.

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14 EXECUTIVE SUMMARY

Step 3: Data analysis

Preparationofananalysissummaryincludingtheidentificationof:(1) organisation’sstatus,mandates,responsibilitiesandactivitiesrelatedtogrid-

connectedbioenergy;(2) existingcapacities;(3) requiredcapacitiesattheorganisationallevel;(4) organisationalcapacitygaps;(5) individualcapacitygaps;(6) solutionsandrecommendationsfromtheinterviewee’sperspectives.Thisinformationwasintegratedintothebasictargetmodel.

synthesis (3) organisationalcapacitygaps;(4) Existingindividualcapacities;(5) Requiredcapacitiesattheindividuallevel;(6) Individualcapacitygaps.Recommendationsforcapacitydevelopmentwereformulatedforeachcoreareaatorganisationalandindividuallevelsforashortandmedium-termperiod.

2.2. Overview of target model

Thetargetmodelwasdevelopedbasedonthefollowingfivecoreareas:

Core area 1: To create a favourable development framework for RE (focus on biomass, biogas and waste-to-energy)

Activitiesinclude:

i. development of strategies and plans relatedtobioenergy,suchasthePowerDevelopmentPlan (2011),regionalREdevelopmentplanssuchastheNationalEnergyDevelopmentStrategy(2007), etc.(involvedorganisations:MOIT/GDE,MPI,MOF,MOET,MONRE,MOC);

ii. development of policies and support mechanismstoencourageforeign/ODA/privateinvestmentin grid-connectedbioenergyprojects(involvedorganisations:MOF,MPI,MOIT/GDE);

iii. development of national target programmessuchasREnationaltargetprogrammesincluding onbioenergydevelopmentandspecificREtypes(e.g.biomass,biogas,waste-to-energy);integration ofREuseinkeynationalprogrammesliketheNationalEnergyEfficiencyProgram,ruralelectrification, afforestation,povertyalleviation,VGGS,etc.;

1.Capacitiestocreateafavorabledevelopmentframeworkforgrid-connectedbioenergy

3.Capacitiestodevelophumanresources

2.Capacitiestoregulateandadministerthesector

4.Capacitiestoprovideequipmentandservicesforgrid-connectedbioenergyprojects

5.Capacitiestodevelop,plan,build,operateandmaintaingrid-connectedbioenergyprojects

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15ExEcutivE Summary

iv. developmentoffinancingoptionsincludingthedevelopmentoffiscalmechanismsforREinvestment, bioenergydevelopmentandtheset-upofREdevelopmentfundstosupportpotentialprojects (involvedorganisations:MOF,MONRE,MOIT/GDE);

v. development and introduction of technologiesincludingthedevelopmentoftechnologicalapplications ofgrid-connectedbioenergyandresearchonRE;taxincentivesandreductionsforequipment import,andprotectionofpatentsforinventionsandtechnicalimprovements(involvedorganisations: MOST,MOIT).

vi. implementation of strategies and policies, which involves:

a. coordinationofactivitiesinbioenergyprojectlicensingandguidelinedevelopment(Involved organisations:MOIT/GDE,provincial/municipalPeople’sCommittees(PCs)); b. supportforinvestorswithregardtoresident’scompensation,siteclearance,infrastructure, humanresourcedevelopment,etc.;monitoringofbio-energyprojects,andmanagementof localelectricity-relatedactivitiesinconformitywithcurrentlegislation(involvedorganisations: districtPCs,regionalelectricityunit,communeauthorities,DOIT);

vii.human resources development:EstablishmentofanationalprogrammeforhumanresourcesinRE; developmentofanREmajorinhighereducationandvocationaltraininginstitutes/colleges(involved organisations:MOETandGDE/MOIT,seefurtherorganisationsundercorearea3)

Core area 2: To regulate and administer the sector

Activitiesinclude:

i. supportactivitiesforREandgrid-connectedbioenergyprojectsincludingtheissuanceofstandard powerpurchasingagreements(PPAs)andtechnicalstandardsforgrid-connectedbiogas,biomass andwaste-to-energy;developmentandupgradeofpowertransmissionlines,implementgovernmental decisionsandcircularsonsupportmechanismsforgridconnectedbioenergyincludingFiTs,l icenses,funding,loansforgrid-connectedbio-energyprojects(involvedorganisations:ERAV,EVN, MOST/STAMEQ,MONRE/VEPF);

ii. planningandsupplyingofREelectricity(bioenergy)toruralareasandislands(involvedorganisations: EVN,ERAV).

Core area 3: To develop human resources

Activitiesinclude:

i. upgradeoforganisationalandindividualcapacities(qualifications,technicalskills)forthosewho areinvolvedingrid-connectedbioenergydevelopment(involvedorganisations:MOET,MOIT/ GDE,MinistryofLabour,InvalidsandSocialAffairs(MOLISA),MOIT,MARD,MOC,MONRE, MOSTandrelatedPCdepartmentsofPCs).

ii. strengtheningofscientificresearchactivitiesincludinginfrastructurefacilities,trainingprogrammes, theapplicationofnewtechnologiesinthefieldsofbiomass,biogasandwaste-to-energy(involved organisations:universities,vocationaltraininginstitutions,researchinstitutes,consultingfirms(see detailedlistunder3.1)).

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16 EXECUTIVE SUMMARY

Timeframe Participants Outcome

StageI:Identificationofthestudyscope

1to31May2013 Internationalconsultant,GIZRESPteam,AIT-VNlocalconsultingteam

Basictargetmodel:

(1)coreareaswithaccompanyingprocessesandapplications

(2)mapofstakeholdersinthegrid-connectedbioenergysector

(3)listofmainstakeholdersinthestudy

StageII:Datacollection

1Juneto30August2013

-67organisationsandstakeholdersinfivecoreareasinHanoi,HCMC,HaiPhong,DaNangandCanTho(interviews)

-81governmentalofficers,experts,engineersandconsultants,projectdevelopers,researcherswithbackgroundrelatedtogrid-connectedbioenergy(questionnaire)

(1)interviewtranscripts(2)statisticalanalysisofcapacityneedsatindividuallevels

(SeeAnnex2andAnnex3inlongversion)

StageIII:Analysisandsynthesisofcollecteddata

1Septemberto30December2013

Localconsultingteam,GIZofficeandinternationalconsultant

(1)identifiedcapacitygapsatorganisationalandindividuallevelsforeachparticipatingorganisation;togetherwithsolutionsandrecommendedmeasures

(2)proposalofrecommendationsforeachcoreareainashort-termperiod(upto2years)andmedium-termperiod(3–5years)

2.3. Timeframe of the study

Thetargetmodelwasdevelopedbasedonthefollowingfivecoreareas:

Table 2:Timeframeofthestudy

Core area 4: To provide equipment and services for bioenergy projects

Activitiesinclude:

i. adaptationsoftechnologiesforlocalmanufacturing,assembly,repairandmaintenanceofbioenergy equipment;engineering,procurementandconstruction(EPC)services(involvedorganisations: manufacturingandservicecompanies,consultingandconstructioncompanies(seedetailedlist under3.1);

ii. provisionofcapitalandfinancialmanagementservices;establishmentofnetworksand cooperationactivitiesinbioenergy.

Core area 5: To develop, plan, build, operate and maintain bioenergy projects

Activities cover different aspects: funding, project development and implementation (includingequipmentpurchaseandservicemanagement),managementandoperationofbioenergypowerplants(involvedorganisations:investors,projectdevelopers,professionalconsultingcompanies,constructioncompanies,EPCs(seedetailedlistunder3.1).

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17ExEcutivE Summary

2.4. Stakeholder map

The stakeholder map illustrates a range of organisations involved in the grid-connected bioenergy sector within the five core areas. In the centre are organisations of high importance.

14

6

Figure 2: Stakeholder map of grid-connected bioenergy sector

Regulate and administer the

sector

Create favourable development

framework for grid-connected

bioenergy projects

Develop, plan, maintain and operate grid-

connected bioenergy

projects

12

3

4

5

LD, DC-MARD

DIE-MPI AI-MOC

PED-MOET

VEA-MONRE CCO-MONRE COP-MONRE

GDE-MOIT

MOST MOET

MPI

ERAV

STAMEQ

Research institutes

Universities

Associations/ NGOs

EPC

GO

DOIT DONRE

DOC DPI Advanced

training providers

Vocational training colleges

Professional Consulting Companies

Banks Investment

funds

Equipment Provider

Developer and owner of: biomass, biogas and waste-to-energy projects

Donors involved in the bioenergy sector: GIZ, SNV, USAID, WB, ADB, EU delegation

Develop human resources

Provide equipment and services for grid-connected bioenergy projects

EVN

VEPF

Figure 2:Stakeholdermapofgrid-connectedbioenergysector

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18 EXECUTIVE SUMMARY

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19ExEcutivE Summary

3. Presentation of the results

3.1. Overview of stakeholders by core area

Core area 1: Create a favourable development framework for grid-connected bioenerg

03

Stakeholder type National level Provincial levelDecision-maker role (highest responsibility)

GDE-MOIT(policyandlegalframeworkdevelopment;supportmechanismsforREprojects;state-ledgrid-connectedbioenergyplanning;approvalofREprojects>30MWinstalledcapacity)

ProvincialandmunicipalPCs(implementpoliciesandsupportingmechanismsaswellasalocalsupportingframeworkforgrid-connectedbioenergy;approvaloflocalgrid-connectedprojects<30MWinstalledcapacity)

Advisory role MPI,MOF,MONRE,MOSTE,MARD,MOET,MOC

DOIT,DOC,DONRE,DARD

Stakeholdert ResponsibilityElectricityRegulatoryAuthorityofVietnam(ERAV)

Regulationandmonitoringoftheelectricalgrid,setupanddevelopmentoftheelectricitymarket,licensingfornationalgrid-connectedbioenergyprojects,assuranceofgridstability,standardsforgrid-connectedREelectricity,PPA

ElectricityofVietnam(EVN)

Provisionoftransmissionlines,integrationofbioenergyprojectstothenationalgrid,REprojectconnectiontothegrid,signingofPPA

VietnamEnvironmentalProtectionFund(VEPF)

Financialresourcesforenvironmentalprotectionprojectsandactivities;financialnormsandstandardstosupportthoseprojects,includinggrid-connectedbioenergy.

DirectorateofStandards,MetrologyandQuality(STAMEQ)

GovernmentalagencyunderMOSThavingresponsibilityforadvisinginthefieldsofstandardisation,metrologyandqualitywithintheframeworkofthedevelopmentofnationalpolicies,strategiesandmasterplans

Core area 2: Regulation and administrationconnected bioenerg

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20 EXECUTIVE SUMMARY

Stakeholder ResponsibilityResearchinstitutes Basicandadaptiveresearch,advancedtechnologytransfer,draftingpolicies,

developmentstrategiesandincentivemechanismsforthegrid-connectedbioenergysectorRelevantorganisations:IOE,IPSI,IMST,AITtechnicalandconsultingcompanies(seecorearea4below),etc.

Universities UndergraduateandpostgraduatetraininginREtechnologies(includinggrid-connectedbioenergy)andRE-focusedeconomics&businessadministrationRelevantuniversities:AGU,CTU,DNU,NTU,HUST,HUST-HCM,VNU,EPU,UNREHCMC,USTH,VLU,VAST

Advancedtrainingproviders

Short-termtraining,longercapacity-buildingprogrammesinRE,professionalskillssuchaspreparationoftechnicalandfinancialproposalsforgrid-connectedbioenergyinvestment,REstrategies,bioenergyplanning,projectmonitoring.ThereisstillnoadvancedtrainingforREwithinVietNam

VocationalTrainingColleges

Educationoftechnicians,skilledworkersinREtechnologies(focusingonequipment,operationandmaintenanceinbioenergyplants).Uptonow,novocationaltrainingschoolsoffertrainingonRE-relatedtopics.Relevantcolleges:AGVT,HCMC-VC,THIC,etc.

Stakeholder ResponsibilityEquipmentprovider Productionofselectedaccessories,materials,technologytransfer,equipment,

replacementitems,plantconstructionandmaintenance.Relevantorganisations:HNHBGroup,DinhHaiEquipmentLtd,DaiPhatMachineryLtd.,MinhTuLtd,etc.

Engineering,procurementandconstruction(EPC)

Technicaldesign,equipmentprocurement,construction,technologytransfer,training,maintenance.Relevantorganisations:CAMIX,etc.

Professionalconsultingcompanies

Technicalandfinancialproposals,assessmentofeconomicefficiencyofinvestment,engineeringdesign,technologytransfer,consultationinconstructionandtraininginplantmanagementandoperationRelevantorganisations:PECC3,RCEE-NIRAS,FichtnerVietNamLtd,ENERTEAM,GMGC,technicaluniversities(seeabove),researchinstitutions(seeabove),NGOs(seebelow),etc.

Banksandinvestmentfunds

Loanstogrid-connectedbioenergyprojects,assessmentofinvestmentefficiency,possibleriskandprojectmonitoringRelevantorganisations:ICF,VDB,commercialbanks,ODAfunding

AssociationsandNGOs

Introductionofnewtechnologies,incentivemechanisms,consultationsonprojectdevelopmentandimplementation,awarenesstrainingRelevantorganisations:VietNamBiogasAssociation,VietNamSugarAssociation,VietNamEnergyAssociation,CleanEnergyAssociation;AssociationforEnvironmentalProtection,Green-ID,LiveandLearn

Core area 3: Develop human resources

Core area 4: Provide equipment and services to grid-connected bioenergy projects

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Field Stakeholders in the field includeBiogas Localandforeigninvestorsandprojectdevelopers,large-scalepig,poultryormilkcow

farmersRelevantorganisations:SanMiguelPureFoodsVietnamLtd,TNHTruemilk,TRANSERCO,etc.

Biomass Localandforeigninvestors,sugarfactoriesRelevantorganisations:LamSonSugarCaneJointStockCompany(JSC),GiaLaiSugar–ThermalPowerJSC,KhanhHoaSugarJSC,NinhHoaSugarJSC,TTCGroup,TRANSERCO,etc.

Waste Localandforeigninvestors,state-runurbanenvironmentcompaniesRelevantorganisations:URENCOs,Hitachi,NamSonwaste-basedpowerplant–fundedbyJapanese-VietnameseGreenAidProgramme(GAP),TamSinhNghiaInvestment-DevelopmentJSC,VietnamWasteSolutionInc.,BEWTE,etc.

Core area 5: Project development and operation

Alsoactiveinthebioenergysectoraredonor organisationsincludingSNVNetherlandsDevelopmentOrganisa-tion,ADB,WorldBank,USAID,theEUdelegationandGIZ.

3.2. Analysis of stakeholder capacity by core area

Theanalysiswasundertakenviaquestionnaire-basedsurveysandinterviews.Intotal,67keystakeholderswereselectedfor interviewand81keystakeholdersoptedforquestionnaires.ThesekeystakeholderswerecarefullychosentoberepresentativesoffiveCoreAreasaswellasinternationaldonors.

Inaddition,27capacityneedsassessmentreportsof27keyparticipatingorganisationsinthestudywereanalysedfor existing capacities, required capacities and capacity gapsattheorganisationalandindividuallevel.

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eriannoitseuQweivretnI

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Core Area 2

Core Area 3

Core Area 4

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Int. donors

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Figure 3:Representativesofkeystakeholdersinfivecoreareasinterviewedandquestioned

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Table 3:Existingandrequiredcapacitiesandcapacitygapsatorganisationallevel

Core area

Currentsituationandexistingcapacities

Requiredcapacities Capacitygaps

1 Centrallevel:- limitedstaffnumberinchargeofRE- technicalstaffhavelimitedREeducationorspecificexpertiseingrid-connectedbioenergy

- ineffectivemanagementprocedures,insufficientcoordination

- limitedexperienceinpolicyformulation,projectdevelopment

Locallevel- staffwithoutREknowledgeandspecificskills

- noresponsiblestaffforRE/grid-connectedbioenergy

- noguidelinesforpolicyimplementation,planningforREonlyselectivelyavailable

- DOITlacksupportingdata,toolsandmethods,andfinancialandhumanresourcestofulfiltheassignedduties,includingprojectevaluationandresearchplanning

Forbothcentral&locallevel:- effectivemanagementandcoordinationofstakeholders

- strategyandpolicydevelopment

- implementationandmonitoringofnationaltargetprogrammes

- projectassessment- monitoringandevaluationofgrid-connectedbioenergyprojects

- improvedcommunication

Thereshouldbe:- 3–4newrecruitsatDepartmentofNew&RenewableEnergyunderGDE

- 1–2recruitsresponsibleforRE/grid-connectedbioenergyatDOITatcentralandlocallevel

Inadequateexperiencein:- REpotentialandprojectassessment

- monitoringandevaluationofgrid-connectedbioenergyprojects

Lackof:- completeinformationsystemforimprovedflowbetweencentralandlocalunits

- expertise,tools,dataforsharing

2 - staffwithREexperienceatERAVandVEPFbutnotwithregardtogrid-connectedbioenergyprojects

- limitedbudgetforREcapacitybuilding

VEPF:standardsforfinancialsupportapproval

ERAV:evaluationofgrid-connectedbioenergyprojects

budgetforbioenergyandrelatedtechnologytraining

3 - limitedstaffwithintensivebioenergytrainingfromtechnicaluniversitiesandresearchinstitutions

- limitedqualifiedinstructorsingrid-connectedbioenergy

- currentcurriculacanonlyberevisedbysomeinstructorsandresearcherswhotookpartininternationalREprojects

- laboratoriesforresearchandadvancedtrainingingrid-connectedbioenergy

- developmentandintegrationofgrid-connectedbioenergyintothetrainingcurricula

- technologyresearchandadaptation

- nolaboratoryforresearchongrid-connectedbioenergytechnologiesandtechnologyadaptation

- lackofbudgetforfundamentalandadaptiveresearchonnewtechnologies

- littledemandfromyoungscientistsforgrid-connectedbioenergytechnologies

- shortageofadvancedtrainingopportunitiesforyoungstaffinresearchinstituteanduniversities

4 (1)Constructionservicecompanies

- Servicesforsmall-andmedium-scalebiogasprojectswithlimitedtechnologicalcapacity

- Combinationoftraditionalandnewtechnologies,reducingoperationalcostsforinvestors

Capacityin:- pre-feasibility/feasibility studies- structuredesign,construction,management,monitoringandtechnical-financialevaluationforbiogasenergyprojects

- knowledgeandskillsinbiogasenergyprojects

- expertiseinconstructiondesignandsafetytechniquesforbiogasenergyprojects

- projectmanagementandmonitoring

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4 (2)Professionalconsultingcompanies

- specializationintechnologyresearchandreplicationinbiogas

- lackofexperienceinindustrial-scaleprojectsandtheapplicationofadvancedtechnologies

- lackofinfrastructure,equipmentandlaboratoriesforresearchingrid-connectedbioenergy

- experienceinforeign-fundedprojects(landfillgasrecovery,wastedisposaltechnology)

- employeeswithsolidbackgroundsinenvironmentalengineering,notinwaste-to-energytechniques

Capacityin:- pre-feasibility/feasibility

studies- preparationoftechnicalandfinancialproposals

- newtechnologyresearchandapplicationreplication

- evaluationofeconomic/financialefficiencyofbioenergyprojects

- consultationonbioenergytechnologyandprojectmanagement

- laboratoriesforresearchanddevelopment

- professionalsandexpertsingrid-connectedbioenergy

(3)Banksandfundingagencies

- staffinchargehasfinancialbackgroundandself-studiedRE

- VDBinvolvedinhydropowerandwasteinvestmentprojects;notingrid-connectedbioenergyyet

- VDBandIndoChinaCapitalconsidersREinvestment;staffequippedwithbioenergybackgroundbutfoundnorelevanttrainingcoursesinVN

- assessmentofeconomic-financialaspectsandbioenergyinvestmentefficiency

- assessmentoflegalissues- managementandsupervisionofgrid-connectedbioenergyprojects

- understandingofsupportmechanisms

- knowledgeingrid-connectedbioenergyandrelatedtechnologies

- skillsinprojectassessment,evaluationandprojectinvestmentcost-efficiency

(4)Associations

- currentstaff:olderwithextensiveexperienceandprofessionalknowledge;urgentneedforyoungexperts

- limitedknowledgeandskillsingrid-connectedbagasseorbiogasenergy;limitedbudget

- forums,seminarsandconferenceorganisationongrid-connectedbagasseandbiogasenergy

- consultationonbiomass,biogaspowertechnologies,servicesandtrainingingrid-connectedbiomass

- goodknowledgeofRE-relatedstrategiesandpolicies

Lackof:- qualifiedresourcestaffandexperts

- budgetforadvocacy,humanresources,R&D

(5)NGOs

- staffavailablewithexperienceworkingwithinternationalexperts,householdbiogasapplicationandenergyplanning

- understandingofgrid-connectedbioenergyandrelatedtechnologies

- generalknowledgeingrid-connectedbioenergyandrelatedtechnologies

5 (1)Biogasprojectdevelopers

- smallinvestorswithlimitedhumancapacityandinvestmentcapital

- limitedcapacityinprojectmanagementandpost-handoveroperations

- limitedaccesstogovernmentpoliciesandmechanisms

- lackofknowledgeonbiogasenergyandtechnologies

- management,operationandmaintenanceofgrid-connectedbiogasenergyplants

- funds/capitalforinvestment- understandingoftechnologiesandpoliciesinthefield

capitalshortageforinvestmentingrid-connectedbiogasplantsandlackofadvancedbiogastechnologies

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5 (2)Biomassprojectdevelopers

- sugarcompaniesarethemainbiomassenergydeveloperswithoutdatedtechnologies

- lackofexpertstaffongrid-connectedbioenergyfrombagasse

- limitedcapacityinmanagementandoperationofelectricitygenerationequipment

- technicalandfinancialproposalwriting

- evaluationofeconomic/financialeffectivenessofprojects

- managementofbagasseprojects

- operationandmaintenanceofgridconnectedbagasseenergyprojects

- understandingofbiomassenergyandtechnologies

- out-of-datetechnologies- lackofmodernequipmentforbiomassenergy

- lackofcapitalforinvestment

(3)Waste-to-energyprojectdevelopers

- URENCOsarepotentialinvestorsinwaste-to-energy

- URENCOslackofprofessionalstaffinwaste-to-energyprocesses;notrainingcoursesprovideduptonow

- technicalandfinancialproposalwriting

- assessmentandplanningofwastecollection/disposalpotentials

- managementandsupervisionofwaste-to-energyprojects

- understandingofwaste-to-energyprocessandtechnologies

Lackof:- qualifiedhumanresourcesinthefield

- advancedtechnologiesingrid-connectedwaste-to-energy

Core area

Currentsituationandexistingcapacities

Requiredcapacities Capacitygaps

1 Centrallevel

- responsiblestaffhasnobackgroundinREtechnologies

- managementandadministrationtrainingcoursesareprovidedonannualbasis,butnotrainingonRE

- strategy/goal/actionplanpreparation

- draftingofincentivesandsupportmechanisms

- coordinationandimplementationofnationaltargetprogrammes

- coordinationofinformationflowamongministries/stakeholdersinvolved

- appraisalofproposalsforfinancialsupport

- monitoringandevaluationoflarge-scalebioenergyprojects

- community-basedadvocacyandeducation

*Lackofskillsin:-managingstakeholders- developingandimplementingstrategies,actionplans,andnationalandregionalREdevelopmentplans

- developingnationaltargetprogrammesandsupportpackages

- writingreports/proposals/legaldocuments

- assessingpolicyimpactandcurrentsituationofbioenergydevelopment

- preparingbioenergystandardsandregulations

- evaluating,supervisingandmonitoringbioenergyprojects

*Lackofknowledgeonbioenergytechnologiesandsupportpolicies;lessonlearnedfromothercountries

Table 4:Existingandrequiredcapacitiesaswellascapacitygapsatindividuallevel

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1 Locallevel

DOIT:Staff(mainlyelectricalengineers,powermanagersandoperators)withnobackgroundinRE/REplanning,assessmentofbioenergypotentialand/orREprojectmonitoringDOST:staffwithnoexperienceworkingingrid-connectedbioenergyprojects/withforeignexpertsorconsultants;nottrainedinthefield.

- Responsiblestaffneedindividualcapacitiesin:

- preparationofREdevelopmentstrategiesandplanning;technical/financialproposalsatprovinciallevel

- implementationofsupportingpoliciesforgrid-connectedbioenergyprojects

- supervisingandmonitoringgrid-connectedbioenergyprojects

- managementandcoordinationofstakeholdersandconsultants

- knowledgeofgrid-connectedbioenergyandrelatedtechnologies;incentives/policiesforbiomass,biogasandwaste-to-energyprojects.

*Lackofskillsin:- managementandcoordinationofstakeholders

- analysisandforecastingofelectricityneedsandpotentialbioenergyatprovinciallevel

- preparationandimplementationofstrategiesandactionplansforthebioenergysubsector

- evaluationandmonitoringofgrid-connectedbioenergyprojectsatprovinciallevel

- assessmentofinvestmentefficiency

- riskmanagement*Lackofknowledgeonrelatedtechnologiesandpoliciesinthefield

2 ERAVProfessionalstaffwithgoodeducation(PhD,MSc,etc.),economicsandenergyengineeringbackgroundsfromHUSTandgoodEnglishskills,butnotinvolvedinanybioenergyprojectsandhavenotattendedanytrainingcourseinbioenergy

Abilityto:- setuptechnicalstandardsfortheintegrationofgrid-connectedbioenergytothegrid

- researchintegratedtechnicalsolutions

- understandREandtheelectricitymarket

N/A(noinfoontheanalysisofindividualcapacitygaps)

VEPF

Responsiblestaff:well-educatedwitheconomic/financebackgrounds,self-studiedRE,notinvolvedinbioenergyprojects,noopportunitiestolearnaboutREincentives

abilitytoappraisegrid-connectedbioenergyprojectstoobtainfunding-understandingofREandtechnologies/policiesforbiomass,biogasandwaste-to-energy

*Lackskillsin:appraisinggrid-connectedbioenergyprojects;estimationofinvestmentcost,preparationoftechnicalguidelines;evaluationofeconomicefficiency*Lackknowledgeonsupportpolicies,experiencesfromdevelopedcountries,andrelevantbioenergytechnologies

3 Researchinstitutes

- researcherswithnobackgroundingrid-connectedbioenergy

- knowledgeofgrid-connectedbioen-ergywasgainedviaself-learningandshort-termtraining

- goodcapacityinbasicandadaptiveresearchinbiogas/biomassandindesigningsmallandmedium-scalebioenergyprojects

- needforprofessionalskillsinplan-ningforbioenergydevelopment,calculatingFiT,evaluatingeconomiceffectiveness,etc.

- basicandappliedresearchandin-depthknowledgeofgrid-connectedbioenergytechnologies

- teachinganddevelopmentofcurriculuminthefield

- theoryandpracticecombina-tion

Lackofcapacityinlarge-scaleapplicationresearchprojects;in-depthknowledgeofgrid-connectedbioenergytechnologies

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3 Universities

- 2–3keylecturersattechnicaluniversitiesweretrainedoverseasforMastersorPhDsinRE

- 1–2groupsoflecturersineachuniversitytransferredtechnologiesrelatedtobiogas/biomassandreplicatestudymodelsforpractice

- lecturersparticipatedininternationalcooperationREprojects

4 Constructionservicecompanies Capacityin- feasibilityassessment,technicaldesignandfinancialproposalsforgrid-connectedbioenergyprojects;

- constructionsupervision,projectmanagement,economicevaluation,technologyresearchandtransfer

Lackofcapacityin:- feasibilityassessment,technicaldesignandfinancialproposalsforgrid-connectedbioenergyprojects;

constructionsupervision,projectmanagement,economicevaluation,technologyresearchandtransfer

- Lackofcapacityinengineeringdesignforlarge-scaleprojectsandknowledge/backgroundinrelatedtechnologies;

- capacityimprovedmainlythroughpracticalexperiencesandself-learning;

- limitedmanagementskills,lackofspecialists

ProfessionalconsultingcompaniesAbilitytoresearchanddeployinpractice;experienceinbiogas/biomasssmallandmedium-sizedprojects;qualifiedstaffFinance-bankingservicesMoststaffmajorinfinanceandeconomicsandlackknowledgeingrid-connectedbioenergyandrelatedtechnologies

5 Biogas,biomassandwaste-to-energyprojectdevelopers

Capacityin:- assessmentofpotentialbioenergyinvestments

- technicalandfinancialproposalformulation

- outsourcingandcontractor/consultantmanagement

- projectmanagement- capitalmanagement- managementandoperation,evaluationofgrid-connectedbioenergyplants

- understandingoflegalformalitiesandrelatedtechnologies

Lackof:- capacitytoassessinvestment

- capacityinformulatingtechnical-financialproposals

- capacityinoutsourcingandcontractor/consultantmanagement

- capacityinproject/capitalmanagement

- capacitytoevaluate,manageandoperategrid-connectedbioenergyplants

- understandingoflegalformalitiesandrelatedtechnologies

- limitedknowledgeoftechnologiesinREandgrid-connectedbioenergy

-poorcapacityinbioenergyprojectmanagementandoperation

-limitedunderstandingofpoliciesandsupportmechanismsforbio-energyprojects

-limitedtechnologiesrelatedtobiogasandbiomasswasteprocessing

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4. Recommended capacity development measures

4.1. Organisational level: Short and medium-term recommendations

Table 5:Shortandmedium-termrecommendationsfortheorganisationallevel

04

Core area Shortterm(upto2years) Mediumterm(2–5years)1.Policyandstrategy

(R1):Performawareness-raisingandcapacitydevelopmentonbioenergypolicyandmechanismsforcentralisedanddecentralisedgovernmentunits.

(R2):MakeadditionalstafffortheDepartmentofNewandRenewableEnergyavailablethroughdonorsupport.

(R3):IntroducefirstpilotcommunicationschemesbetweenMOITandrelevantministries/PCsfortheproperimplementationofsupportpolicies;anddevelopandmaintainanonlineconsultationsystem.

(R4):Recruitstaffforgrid-connectedbioenergyforMOCandMARD;AppointonestaffmemberinMARDandMOCtocoordinateeffectivecooperationwithMOIT,MOCandMARD.

(R5):Assignresponsiblestaffforestablishingproceduresandguidelinesonmethodsforconductingbioenergyplanning,assessingcurrentstatusandpotentialandpredictingelectricityneedsatlocallevels.

(R6):EquiptheunderstaffedDepartmentofNewandRenewableEnergy,whichplaysacrucialroleinestablishinglegalframeworksandimplementingREmasterplans,withadditionalemployees.

(R7):Establishnation-widecommunicationschemesbetweenMOITandrelevantministries/PCsfortheproperimplementationofsupportpolicies;anddevelopandmaintainonlineconsultationsystem.(R8):Maintainaninformationsystemtosupportstakeholders(managedbyMOIT)inmakingdecisionsandpreparinginvestmentproposals.(R9):IncreaseandestablishmediacommunicationsonRE,grid-connectedbioenergyanditsrolesintheVGGSviachannelsinprovincesandcities.(R10):Recruitfurtherstaffongrid-connectedbioenergyforMOC&MARD;increasecapacityofstaffinMARD&MOCresponsibleforcoordinatingeffectivecooperationwithMOIT,MOC&MARD.(R11):Furtherdevelopthecapacitiesofresponsiblestaffwithregardtobioenergyplanning,assessmentofcurrentstatusandpotentialandpredictionofelectricityneedsatlocallevel.

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2.Regulationand Administration

Norecommendations(butpartlycoveredwithinotherrecommendations)

(R12):Strengthencapacityinthemanagementofgrid-connectedbioenergyforcorestaffofERAVandEVN.

3.HumanResources

(R13): Enhanceinternationalcooperationamonguniversities,researchinstitutesandinternationalorganisations,e.g.intheformofjointprogrammesinresearchingnewtechnologiesinbiogasandbiomass;jointtrainingprogrammesinHUST,HCMCUTandotheruniversities;exchangeprogrammeintechnologytransferinIOE;internationalconferencesongrid-connectedbioenergy;andfacultyexchangeprogrammesinkeytechnicaluniversities.

(R14):Integratebiomassandbiogastraininginuniversitycurriculums.

(R15):Organizeannualconferences,expertseminarsandforumssupportedbytheGovernment/donorstoexchangeideasandexperiencesinbioenergysector.

(R16): TrainhighqualifiedcandidatesalreadyholdingaDoctordegreeinREforresearchinstitutionsandtechnicaluniversities.(R17):TeachRE,includingbioenergy,inselecteduniversitiesoverthenextthreeyears.

(R18) & (R19):Investinfacilitiesandlaboratoriesrelatedtobiogas,biomassandwaste-to-energytechnologiesatuniversitiessuchasHUST,HCMUT,NongLamUniversityandHUA,aswellasatselectedresearchinstitutions.

(R20):EstablishaNationalProfessionalTrainingCenteronRE,includinggrid-connectedbioenergy,fordevelopingREhumanresourcesandcooperatingwithnationalandinternationaluniversities/institutes.

4Equipmentandservices

Norecommendations(butpartlycoveredwithinotherrecommendations).

(R21):Investinfacilitiesandlaboratories(relatedtobiogas,biomassandmunicipaldomesticwastetechnologies)forresearchcentresandprofessionalconsultingcompanies(HUST,HCMCUT,UNRE-HCMC,IOE,IES,etc.).

5Projectdevelopmentandoperation

(R22):Upgraderelatedtechnologiesinsugarfactorieswhichhavealreadyinstalledheat/powergenerationequipment.

(R23): EstablishaCentralTechnologyTransferCenterinDARD&MARDforbiogasandbiomasstechnologytransferaswellastrainingforcommunities.

4.2. Individual level: Short and medium-term recommendations

Table 6: Shortandmedium-termrecommendationsforindividuallevel

Core area Short term (up to 2 years) Medium term (2 to 5 years)1.Policyandstrategy

(R1):Capacity-buildingprogramme(phaseI)forMOIT-responsiblestaffincluding(1)capacitybuildingindevelopingandimplementingREstrategies;(2)anintroductorycourseongrid-connectedbioenergyandrelatedadvancedtechnologies;(3)managementskillstraining;and(4)professionalskillstrainingtodevelopsupportmechanismsforgrid-connectedbioenergy.

(R2):Enhanceknowledgeonsupportingpolicies/mechanismsandrelevanttechnologiesforresponsiblestaffofministriesandprovinceswhocontributedirectlytotheREdevelopmentstrategyofVietNam;anddesigntrainingprogrammetoenhanceknowledgeandskillsrelatedtogrid-connectedbioenergyandrelevanttechnologiesforstafffromMPI,MOF,MONRE,MOC,MOET,MOSTandrelatedprovincialdepartments.

(R3): Capacity-buildingprogramme(phase II)forresponsiblestaffatMOITimpartsskillson(1)nationalandregionalbioenergyplanning;(2)technicalstandardsforbiomass,biogasandwaste-to-energyprojects;(3)assessmentofgrid-connectedbioenergyprojects;and(4)monitoringandevaluationoftheseprojects.

(R4) & (R5):EnhanceindividualcapacityoftheresponsiblestaffofMARD,DARD,CentersofAgricultureTraininginprovinces,MOC,DOCinprovinceswithregardto(1)anoverviewofbioenergyandrelatedtechnologies;(2)anoverviewofsupportmechanismsandincentivesforbioenergy;(3)planningrelatedtobiogas,biomassandmunicipalwasteresources.

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2.Regulationandadministration

(R6):OverviewforresponsiblestaffatERAV,EPTC-EVNon(1)REandgrid-connectedbioenergy;and(2)electricitygenerationtechnologiesandstandardsforthepowernetworkintegrationofbioenergyprojects.(R7):Overviewforresponsiblestaffatinvestmentfunds,commercialbanksandVEPFon(1)RE,biogas,biomassandwaste-to-energytechnologies;(2)policies,incentivemechanismsandfundprocessforgrid-connectedbioenergyprojects.

(R8):Businessadministrationtraininginbioenergyforcorestaffinrelevantunits(ERAV,EPTC,DOIT,etc.)

3.Humanresources

(R9):Upgradecapacitiesofselectedresearchersandinstructorsattechnicaluniversitiesandinstitutionson(1)grid-connectedbioenergyandrelatedtechnologies;(2)biogas,biomassandwaste-to-energytechnologies;and(4)curriculum-developmentskillsandREtraining.

(R10):Elaborateanationaltargetprogrammetobuildupagroupofstrongexpertsandprofessionalsinthefieldwithinternationalcertificates.

4.EquipmentandServices

(R11):Capacity-buildingprogrammeforcivilengineersin(1)advancedbiogastechnologies;(2)constructionengineeringdesignforlarge-scalebiogasprojects;(3)structureandconstructiontechniques;and(4)safetytechniques.

(R12):Enhanceindividualcapacityofkeytechnicalconsultantsingrid-connectedbioenergyprojects.

(R13):Enhancecapacitiesofresponsiblestaffatselectedcommercialbanksandinvestmentfundson(1)grid-connectedbioenergyandrelatedtechnologies;(2)assessmentofthoseprojects;(3)businessmodelsingrid-connectedbioenergy;and(4)projectmonitoring.

(R14):Projectmanagementcoursesforprofessionalconsultingandconstructioncompanies.

(R15): DevelopthecapacityofresponsiblestafffromVSA,VBAandotherassociationsaswellasNGOson(1)promotionskills;(2)advancedbiomasstechnologies;(3)technicalandfinancialproposalsforgrid-connectedbioenergyprojectinvestment;and(4)voiceofassociationsandNGOsinpolicymaking.

5.Projectdevelopmentandoperation

(R16):Capacity-buildingprogramme(phaseI)on(1)understandingofgrid-connectedbiogasenergy;(2)overviewofgrid-connectedbiogas;and(3)developmentoftechnicalandfinancialproposalsforinvestmentinthefield.

(R17):Capacity-buildingprogrammeforurbanenvironmentalcompaniesfocusingongrid-connectedwaste-to-energytechnologiesandthedevelopment/managementofthoseprojects.

(R18):Capacity-buildingprogrammeforpotentialsugarcompaniesfocusingon(1)cogenerationtechnologiesinsugarcompanies;(2)calculationofbagasseenergypriceperkw;and(3)assessmentofprojecteffectiveness.

(R19):Capacity-buildingprogramme(phaseII)forbiogasprojectdevelopersontheassessmentofeconomicandfinancialaspectsofthoseprojects;projectmanagementskills;andoperation/maintenanceskills.Trainingneedsassessmentsforeachtargetgroupofparticipants

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5. Conclusions

Bioenergy has great potential for power generation and a positive impact on the environment and livingconditionsofcommunities.Itshouldbeoffirstprioritytohaveasynchronisedandsystematicdevelopmentofhumanresourcesatcentralandlocallevelsforthesustainabledevelopmentofthissector.

CapacitydevelopmentmeasuresarecrucialtopromoteREdevelopment.Closecooperationofallstakeholdersinthesectorisimportantinorderto(1)introduceregulatingpolicies;(2)promoteinnovation;(3)develophigh-qualityhumanresources;and(4)strengthenscienceandtechnology.Thosefourpillarsshallhelptobuildupasustainablegrid-connectedbioenergysectorinthefuture.

05