Transcript Folie 1 - VPM) G

The Policy Framework for Renewable Energy Development
in Viet Nam
Chances and Barriers for the Private Sector
Mai 8th 2009, Hanoi
Angelika Wasielke
Background
VN is well endowed with RE resources which are distributed through-out
the country.
These resources can be exploited to meet Vietnam’s rapidly increasing
energy demand as well as environmental protection.
The majority of Vietnam’s existing RE resources in VN are small hydro
power, biomass, wind energy, solar energy and geothermal energy.
Despite the high potential, RE electricity production in Vietnam is still
negligible.
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Background
Structure of RE in the Vietnamese power sources
Power sources
Capacity(MW)
%
11198
97.497
1,515
13.191
575
5.006
4,665
40.617
245
2.133
4,198
36.550
287.48
2.503
Wind
1.23
0.011
Small scale hydropower
135
1.175
Solar energy
1.25
0.011
Biomass
150
1.306
11485.48
100.000
Traditional electricity
Coal fired
Oil fired
Gas turbines
Diesel
Large scale hydropower
Renewable electricity
Total
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Potentiales
Potential for wind energy
Wind
speed
Aspects
Low
< 6m/s
Medium
6 - 7m/s
Mid-high
7 - 8m/s
High
8 - 9m/s
Very high
>9m/s
Areas, km2
197,342
100,361
25,679
2,178
113
%/total area
60.6
30.8
7.9
0.7
0.0
401,444
102,716
8,748
452
Potential, MW
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Legal Framework
The Government of VN has recognized the importance of RE especially for rural offgrid areas.
The Electricity Law requires support for RE
Decision No.110/2007/QD-TTg, aiming targeting RE of 4051 MW by 2025
Decision No.1855/QD-TTg, it sets up the target with share of RE (3%-2010;
5%2020)
MoIT commissioned the preparation of Strategy, Master Plan on RE Development for
the Period up to 2015 with Outlook to 2025, and first draft report was prepared. by
Institute of Energy
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Existing Legal Framework
The following legislation sets out the RE policy and legal framework:
Electricity Law
Law on Protection of the Environment
Investment Law
Various Decisions including:
Decision No. 177/2007: Scheme on Developments of Biofuels up to
2015, with 2025 Vision
Decision No. 1855/2007: National Energy Development Strategy up
to 2020, with 2050 Vision
Decision 158/2008: National Target Program to respond to climate
change
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Electricity Law
Electricity Law & RE
Article 4 – Electricity Development Policies
Clause 4.4: “To step up the exploitation and use of sources of new
energies, renewable energy for electricity generation.”
Article 13 – Policies and measures to encourage and promote electricity
saving (…)
Clause 1: Investment projects for the development of electricity
plants using renewable energy will enjoy preferential investment,
electricity price and tariff according to the guidance of Ministry of
Finance.
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Legal Framework
Although the overall policy is positive and forward thinking, the existing
legislative framework in the RE sector is somewhat complex and
overlapping
At this stage there is no:
Finalized RE Master Plan
Renewable Energy Law
Renewable Energy Authority
Standard Power Plant Agreement (finalized since beginning of
2009)
Angelika Wasielke
Hanoi 19.02.2009
Legal Framework
Summary
The legislation provides general support and encouragement for RE;
but : detailed implementation measures are still lacking
The legislation contemplates incentives for the sector but at this stage
there is no comprehensive approach with regard to RE
Important questions not answered: reliable electricity pricing during project
lifetime
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Masterplan for Renewable Energy
Objective
 To achieve the national goal for developing new and renewable energies
as defined in the National Stretegy for Energy Development to 2020 with
prospect to 2050.
 Increase the share of RE to 3% by the year 2015, and to about 5% of the
total capacity by the year 2025.
 To implement national goal on the development of bio energy; by the year
2015, the output of ethanol and vegetable oil will reach 250 thousand tons,
meeting 1% of total national demand; by the year 2025, the output of
ethanol and vegetable oil will reach 1.8 million tons, meeting about 5% of
the total national demand on oil and gas.
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Scenario for exploitation of RE sources
Capacity of RE sources in the period 2009 – 2025 (basic scenario)
No.
RE
2009
2010
2011
2012
2013
2014
2015
1166
1256
1349
1476
1584
2020
2025
1
Small hydro
1140
1642
1988
2454
2
Biomass
157.7 165.7 207.7 229.7 234.7 247.7 316.2
380.7
395.7
3
Biogas
4
Solar
5
Wind
9
89.5
89.5
6
Geo-thermo
0
0
0
0
18
7
Bio-energy
0
0
0
0
8
Tidal wave
0
0
0
9
Garbage
7.4
11.9
1315
1435
Total (MW)
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0
0.5
1
2
3.5
7
8
11
12
1.654 1.654 1.654 1.654 1.654 1.654
2.65
3.25
3.25
217
443
493
36
51
214.1
239.1
0
0
0
0
0
0
0
0
0
5
15
11.9
15.4
15.9
15.9
20.4
47.4
97.4
1568
1687
1859
2002
2257
3093
3709
89.5 109.5 109.5
Scenario for exploitation of RE sources
Capacity of RE sources in the period 2009 – 2025 (high scenario)
TT
RE
2009
2010
2011
2012
2013
2014
2015
2020
2025
1
Small hydro
1195
1222
1402
1594
1721
1930
1988
2684
3249
2
Biomass
157.7
170.7
197.7
219.7
234.7
247.7
316.2
400.7
462.7
Bagasse
157.7
167.7
167.7
172.7
177.7
180.7
212.7
267.7
307.7
Rice husk
0
3
30
46
51
61
86
110
110
Others
0
0
0
1
6
6
17.5
23
45
0
0.5
1
2
3.5
7
8
11
12
3
Biogas
4
Solar energy
1.654
1.654
1.654
1.654
1.654
1.654
2.65
3.25
3.25
5
Wind energy
9
89.5
89.5
89.5
109.5
109.5
217
484
556
6
Geo-thermo
0
0
0
0
18
36
51
214.1
259.1
7
Bio-fuel
0
0
0
0
0
0
0
0
0
8
Tidal wave
0
0
0
0
0
0
0
5
15
9
Garbage
7.4
11.9
11.9
15.4
15.9
15.9
20.4
57.4
232.4
1371
1496
1703
1922
2104
2348
2603
3859
4790
Total (MW)
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Hanoi 19.02.2009
Masterplan for Renewable Energy
Total investment and fund mobilization measures
 For grid connected renewable electricity: Total investment for the whole
period is 53,891 billion VND, equivelant to 3,170 billion/year on average.
However, rather than coming from public investent, this fund is mobilzed by
private companies.
 For off grid power: Total investment for the whole period is 21,447 billion
VND. This total investment is the total support amount. This supporting fund
is Government’s investment (because if the Government does not provide
this support, it still has to invest into grid development to meeting the target
of 100% of household having access to eletricity by the year 2025).
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Masterplan for Renewable Energy
Mobilization of fund for supporting wind energy
 Within Viet Nam: surtax from electricity or from carbon emission
charge, or deduction from mineral exploition tax
 International support: This source is always available in some cases
and in many forms such as ODA, soft loan, preferential certificate,
carbon fund and carbon certificate...
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Development Policies for RE
The Government encourage and support investment into gridconnected RE projects.
 Enterprise investing into grid connected renewable electricity will receive
investment support policies in the forms of preferential credit and tax.
 Prices will be indentified for each type of RE based on calculation of avoided
costs as well as consideration for compensation for investment costs,
operational costs, and reproduction and expansion of investing enterprises.
 RE Investment projects comply with full administrative procedure will be
considered pursuant to MOIT regulation on investment mangement and
construction of independent electricty projects.
 Licencing and operation of RE project will follow the current regulation of the
Government on invetsment project management.
 Power generated from RE sources will be purchased by local EVN branches
based on small contract form as regulated by EVN.
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Development Policies for RE
Financial incentives
 Organizations and individuals within and outside Vietnam invest into renewable
electricity projects will receive coporate income tax exemption for producing
RE in 10 – 15 years.
 Equipment, materials and technologies imported for RE projects will receive
import tax exemption, VAT exemption and some other additional cost support
provided that these items have not been produced within Vietnam.
 RE projects will receive natural resource tax exemption.
 RE projects will be able to make medium and long term loans (7 to 10 years) at
preferential interest rates from the Renewable Energy Development Fund.
 The Government need to have concrete policies for price subsidy for 1kWh of
electricity produced from renewbale energy.
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GTZ Wind Energy Project
Project goal:
Establishment of a legal framework and improvement of technical
capacities for grid - connected wind power development in
Viet Nam
 Project proposal for cooperation received from MoIT
 Project is financed by the German Federal Ministry for
the Environment and Nuclear Safety (BMU)
 Project phase: 2009 - 2011
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GTZ Wind Energy Project
Legal Framework Conditions
Main Focus: Finding suitable instruments to support wind power
development

First Step: Study tour for policy making stakeholders to Germany in
November 2008

Further steps to be taken:
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




Tender procedure for study “Identifying legal frameworks for supporting wind
energy development in Vietnam.”
Design of support mechanism
Financing mechanism
Implementation…
Workshops with ministries, other donors, private sector, public
Support Instruments
Classification of energy policy instruments
Direct
Investment
focussed
Price-driven
Quantity-driven
Investment
subsidies
Tendering system
Tax incentives
Feed-in tariffs
Regulatory
Generation
based
Voluntary
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Generation
based
Tendering system
Environmental taxes
Tax incentives
Rate-based incentives
Investment
focussed
Indirect
Quota
obligation (RPS)
based on TGCs
Shareholder Programs
Contribution Programs
Green tariffs
Voluntary agreements
Important regulations for wind development in Germany - as
included in Renewable Energy Sources Act (EEG)
 Fixed feed-in tariff over period of 20 years – investor security
 Tariffs adapted to technology and site quality (in the case of wind)\
 Obligation/Priority purchase, transmission and distribution of RES electricity
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Effectiveness and efficiency of support
Support instruments have to be
effective for increasing the penetration of RES-E and
• efficient with respect to minimising the resulting public costs over time.
•
Public costs or transfer cost for consumer / society
(due to the promotion of RES-E) …
… are typically paid by the electricity consumer  producer
… do not consider any indirect costs / benefits or externalities
2000MWh/year
Example: Feed-in
tariff
for a wind power plant
(1 MW, 2000 MWh/year)
Feed-in tariff = 90 €/MWh
Market price conventional electricity = 60 €/MWh
premium:
30€/MWh
FIT:
90€/MWh
Financial premium = 90 – 60 = 30 €/MWh
Yearly transfer cost = Premium * Generation =
= 30*2000 = 60 k€/year
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pcon:
60€/MWh
Yearly
transfer cost:
60,000€/year
Past experience with promotion
schemes in the EU
"This report presents an updated review of the performance of support
schemes using the same indicators presented in the 2005 report. It finds
that, as in 2005, well-adapted feed in tariff regimes are generally the most
efficient and effective support schemes for promoting renewable
electricity."
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Redistribution of Costs of the EEG for a kWh (18,6 ct)
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Ranges of feed-in tariffs paid for electricity
from new built plants in 2007
Type of resource used
Range of feed-in tariffs
(ct/kWh)
Hydro power
3.58 – 9.67
Biomass
8.03 – 20.99
Geothermal
7.16 – 15.00
Wind power
5,17 -
Photovoltaics
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9,10
37,96 – 54,21
Wind Power in Germany
Development of feed-in tariffs for Wind power in Germany
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Renewable Energy Promotion Policies
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Renewable Energy Promotion Policies
Development of Wind Energy
Wind Power Capacity, Top 10 Countries, 2006
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Development of Wind Energy
Wind Power, Existing World Capacity, 1995-2007
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Development of Renewable Energy
REN 21
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Contribution of renewable energy sources
to Germany's energy supply
35
30
German Government
Targets 25% - 30%1)
1998
2000
2006
2007
2002
2004
2020
German Government Targets
[%]
25
20
182)
141)
14.2
15
8.5
10
6.7
4.8
5
6.9
6.6
2.1
3.5
3.1
0.2
0
Share of RE in Total Prim ary Share of RE in Total Gross
3)
Energy Consum ption
Electricity Consum ption
Share of RE in Total Final
Energy Consum ption for
Heat
1)
The Integrated Energy and Climate P ro gramme o f the German Go vernment, 12.05.2007;
2)
Share of RE in Fuel
Consum ption for Road
Traffic
Share of RE in Total Final
Energy Consum ption
(electricity, heat, fuels)
Directive o f the Euo pean P arlament and o f the Co uncil o n the pro mo tio n o f the use o f energy fro m renewable so urces, 12.03.2008;
Fo r calculating the share o f primary energy co nsumptio n (P EC), the (o fficial) physical energy co ntent metho d has been used. A cc. to the substitutio n metho d: 9.1%
RE - renewable energies, So urce: B M U acco rding to Wo rking Gro up o n Renewable Energies / Statistics (A GEE-Stat); Versio n: M arch 2008; all figures pro visio nal
3)
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Total CO2 avoidance through the use of
renewable energy sources
CO 2 avoidance million t
140
120
total electricity
share EEG electricity
100
total heat
total biofuels
approx.
114
approx.
98
85
75
80
60
41
44
52
54
61
65
44
57
2006
2007
40
20
0
1998
1999
2000
2001
2002
2003
2004
Version: March 2008; all figures provisional
Source: BMU according to Working Group on Renew able Energies / Statistics (AGEE-Stat)
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2005
Total Turnover with renewable energy sources
in Germany in 2007
Total: approx. € 24.6 bn
Biomass:
EUR 9,871 m
(40.1%)
Solar energy2:
EUR 7,255 m
(29.5%)
Wind energy:
EUR 5,699 m
(23.1%)
1
Geothermal
Hydropower:
EUR 1,200 m (4.9%)
Large plants an heat pumps
Photovoltaics and solar thermal energy
Version: March 2008; all figures provisional
Source: Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW)
2
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energy1:
EUR 601 m
(2.4%)
Employees in the German renewable energy sector
2004, 2006 and 2007
84,300
82,100
Wind energy
63,900
96,100
95,400
Biomass
56,800
50,700
Solar energy
25,100
200,000
4,500
4,200
1,800
Geothermal energy
100,000
10,000
160,500
employees
235,600
employees
249,300
employees
0
4,300
4,300
3,400
0
Increase:
approx. 55 %
300,000
9,400
9,400
9,500
Hydropower
Public / Non-profit
Sector Jobs
nützige Mittel
40,200
2004
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2006
90,000
2007
100,000 110,000
Source: BMU Projekt "Kurz- und langfristige Ausw irkungen des Ausbaus der erneuerbaren Energien auf den deutschen Arbeitsmarkt", interim report
March 2008
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Thank you for your attention!
[email protected]
Mobile: 0906218568
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