Country Profile

Opportunities and Challenges

to scaling up wind power in Vietnam

Dr. Nguyen Anh Tuan

Institute of Energy

Quantum Leap in Wind Power in Asia – Structured Consultation

21 June 2010

1
The views expressed in this presentation are those of the presenter and do not necessarily represent those of the Asian Development Bank.
 Power Sector Overview
1. Population 87 million; 96% connected to the grid
2. Power Generation – 58% fossil fuel-based, 4% import, 37% Renewable Energy
3. RE Capacity: Hydro – 6,304 MW, Biomass – 150 MW, Wind –10.5 MW, Solar –1.25 MW, MSW
– 0.75 MW
4. Electricity Tariff – US cents 5.3/kWh – among world’s lowest

• Energy security and energy independence

targets: 2900 MW RE generation in 2020, 80%
energy self sufficiency by 2020, 100%
electrification by 2020
• Limited indigenous fossil fuel resources but
significant solar, geothermal, hydro and wind
resources
• Growing energy supply/demand gap, facing
critical shortages in the Southern region
• More 4,000MW new generation required per
year in period 2010-2020
 Wind Resources
Identified potential with power density of at least 500 Surface wind
distribution
W/m2 and average wind speed 6m/s at height 60 m.

Region Technical
potential (MW)
North 50
Centre 880
South 855
Total 1785

Wind application Typical Installed Start of

in VN (in 2009) power systems operation Area of installation
(kW)
Wind home system 0.1-0.2 About As of 1999 South coastal area of
1300 Danang
Wind- diesel hybrid 30 1 1999 Hai Thinh commune, Hai
system Hau district, Nam Dinh
Wind - solar hybrid 2 1 2000 Dac Ha district, Kon Tum
system
800 1 2004 Bach Long Vi island
Large wind turbine
10.5 MW 7 2009 Binh Thuan province
 RE Development Plan and Roadmap
2010 2015 2025

Target Target Target

Grid: 513 MW Grid: 1905 MW Grid : 3212MW
RE Gen. Off-grid : 10.3 MW Off-grid: 81.4 MW Off-grid: 129.3 MW

(2,7%) (3,8%) (4,1%)

% RE in
Primary Energy 1,5 3,4 8,1
Supply

Target Target
1623 KTOE 6075 KTOE
RE heat - PV: 51 - PV: 262
- Biogas: 274 - Biogas 529
- Biomass: 1.289 - Biomass: 5.266

Target Target
Meeting 1% gasoil Meeting 5% gasoil
Biofuel
demand demand
(174 ktoe) (1253 ktoe)

Access to electricity 97% 100% (by 2020)

 Institutional Framework
Decision No. 1855/QD-TTg, dated 27/12/2007
• NATIONAL ENERGY DEVELOPMENT STRATEGIES FOR VIETNAM UP TO 2020, OUTLOOK TO 2050
Strategies, Master Olan for RE development (Completed in 2009, under approval process)

NON-FISCAL INCENTIVES under

consideration
1. Renewable Portfolio Standard
(RPS)
2. Feed-In Tariff System
3. Competitive bidding

SALIENT FEATURES

1. Renewable Energy
Development Office (REDO) -
Proposition
2. RE Development Fund -
Proposition
3. Different Assistance Programs
 Wind Power Projects

Around 50 projects on pipeline (Pre-Development Contracts)

Around 10 projects completed F/S, waiting for approval and PPA
Some Projects Under Development
Designed Capacity: 30 MW 1. EVN – Thuan Binh Wind farm
REVN-BIT Wind Power Project 24 MW (50MW) Thuan Binh win farm, Binh Thuan
Commune Binh Thach - Tuy Phong – Binh Thuan Estimated Cost: US$
2. REVN (RE Vietnam Joint stock company )
Four phases (30+32+30+28 MW) Binh Thuan wind
farm
Estimated cost: 80US$ M (phase 1)
3. Thuan Phong RE development Joint Stock
70 MW phase I and 110 MW phase 2 An Phong wind
farm Project
Estomated cost: 144 US$ M (phase I); 223 US$ M
(phase II)
4. Phuong Mai Joint stock company
15 MW Phuong Mai I Wind farm Project (50MW)
Installed capacity: 20x1.5 MW
5. GGP (Germany)
(Operational: 5x1.5MW in 2009)
200 MW Phuong Mai II wind farm project
Height of hub : 85 m
6. Central wind Investment & Development company
Cost = US$ 80 M
50.4 MW Phuong Mai III wind farm
 Project Development Issues
Technical Aspects
– Resource Assessment: No reliable assessment and data; Few measurements
– Project Development Rights: First comes first served basis  Investors tend to
grasp place first, develop later.
– Grid and Transmission system (Interconnection): Connection and transmission
rights is under elaboration. Potential congestion in near future.
– Intermittent resource: No study on this issue yet
– Capacity Factor: Too high (0.35-0.45)?? Lack of reliable sources for verification
Non-technical Aspects
– Institutional/Organizational: Arrangement is in place but lack of coordination.
– Socio-cultural: Acceptance and tolerance, but risk of erosion in supporting in future
– Financing: Most difficult issue. Need innovative approaches and mechanisms
– Political: Relatively strong support, but not really committed

Principal risk
• Long term PPA
• No reliable wind measurements
References:

For more information

Dr. Nguyen Anh Tuan
Institute of Energy
6 Ton That Tung street, Hanoi, Vietnam
Email: tuannguyen.icd@gmail.com
Tel: +84-4-3852 9310
Website: www.ievn.com.vn