Vietnam seeks investors for clean energy development

09:12 | 27/04/2018 Industry

(VEN) - Renewable energy development in the world is going strong and Vietnam is a prime candidate to join this trend.

vietnam seeks investors for clean energy development

Flourishing projects

Phuong Hoang Kim, director of the Electricity and Renewable Energy Department under the Ministry of Industry and Trade, said the government has adopted policies to develop renewable energy and reduce dependence on fossil fuels.

According to the Vietnamese government’s targets, solar power production shall increase to 850MW in 2020 and 4,000MW in 2025, while electricity generated from wind sources shall increase to 800MW in 2020 and 2,000MW in 2025.

Specifically, the government has issued a mechanism to buy electricity directly from renewable energy plants. For example, wind power is being sold at 7.8 cents per kWh, biomass energy at 5.8 cents and solar power at 9.35 cents.

Vietnam has five wind power plants with a capacity of 190MW. An additional wind power capacity of 4,900MW is in the planning. Regarding solar power, there are 170 production projects with total capacity of 12,000MW, and 44 new projects are in the planning.

“Vietnam is promoting strong development of renewable energy. Domestic investors have seen the attractiveness and are looking for investment in this field,” Phuong Hoang Kim said.

Dang Van Thanh, chairman of the Thanh Thanh Cong Group (TTC), said renewable energy is a current trend of development internationally, given the threat of climate change and pollution. TTC has a long-term plan for renewable energy, aiming to bring its overall capacity from solar power plants to 1,000MW. In the first quarter of 2018, TTC started solar power projects in Thua Thien Hue Province with a capacity of 35MW; Gia Lai with a capacity of 49MW; and Tay Ninh Province with a capacity of 48MW.

“Together with strategic partners such as the International Finance Corporation (IFC) and the Armstrong Southeast Asia Clean Energy Fund, TTC is confident of implementing a plan to invest in clean energy,” Dang Van Thanh said.

Tapping potential

According to the Ministry of Industry and Trade, Vietnam’s national energy development strategy up to 2020, with a vision to 2050, sets out the goal of supplying sufficiently high quality energy for socioeconomic development. Specifically, the country aims to produce and import 100-110 million tonnes of oil equivalent (TOEs) of primary energy by 2020 and 310-320 million TOEs by 2050.

To achieve the goal, one of the priority measures is to promote the development of renewable energy, including small- and medium-sized hydropower, wind energy, solar power, biomass, biogas and bio-fuel projects.

Programs, mechanisms, policies and legal documents will be developed to accelerate the development of renewable energy sources. The Ministry of Industry and Trade will make appropriate adjustments to encourage domestic and foreign investors to participate in renewable energy development.

Many countries in the world have urgently implemented strategies and policies to develop clean energy with a long-term vision. Vietnam is a prime candidate to join this trend as the country has more than 3,000km of coastline and being near the equator has a large volume of radiation from the sun - a very important factor for enterprises interested in producing solar energy. These are the two opportunities for the country to develop its renewable energy from the wind and the sun.

Vietnam has received solar energy investment proposals for over 15,000MW in the provinces of Ninh Thuan, Binh Thuan, Dak Lak, and Tay Ninh. The development of renewable energy in Vietnam is indispensable, contributing to ensuring energy security and reducing dependence on fossil fuels.

Quynh Nga