The large changes in Energy Development Strategy in Vietnam

Mr. Bakhodir Burkhanov, Vice Director of UNDP in Hanoi considered, the Renewable Energy Development Strategy in Vietnam is encouraging but power generation still depends on coal, a major cause of the greenhouse gas emissions.

Mr. Pham Trong Thuc, Director of Renewable Energy Department, General Department of Energy (MOIT) said, the Renewable Energy Development Strategy aims to mobilize all resources to develop renewable energy sources , reducing  dependence on fossil fuels (strongly reducing import coal and oil respectively by 40 million tons and 3,7 million tons to 2030, and 150 million tons and 10.5 million tons to 2050), helping to reduce greenhouse gas emissions by 5% to 2020; 25% to 2030 and 45% to 2050.

A number of specific targets remarkable in REDS:

- The rate of households using solar energy (heat) equipment from 4,5% in 2015 to 12% in 2020; 26% in 2030 and 50% in 2050.

- Biogas use scale from 4 million m3 in 2015 to 8 million m3 in 2020; 60 million m3 in 2030 and 100 million m3 in 2050.

- The rate of households using high-efficiency stoves will be 30% in 2020; 60% in 2025 and about 100% in 2030

- The rate of biological fuel for vehicle demand from 5% in 2020 to 13% in 2030 and 25% in 2050

- The rate of power generation from renewable energy will be 7% in 2020 and 10% in 2030

- The localization rate of renewable energy equipment reaches 30% by 2020; 60% by 2030 and the country should export the renewable energy equipment by 2050

For finalizing these targets, REDS proposes a number of specific measures:

- Found a Sustainable Renewable Energy Fund using finance sources from state budged, environmental fees for fossil fuels and others

- Build electricity tariffs for renewable energy projects connected to the national power system on the basic of investment guarantee and  subsidy mechanisms  from the Sustainable Renewable Energy Fund for isolated power renewable energy projects

- Apply Renewable Portfolio Standard (RPS) status for the power generation companies with capacity over 1000MW (excluding BOT projects) to have a rate of renewable energy electricity not lower than: 3% by 2020; 10% by 2030 and 20% by 2050. The distribution companies must buy electricity from RE projects with the rate of not lower than: 3% by 2020; 10% by 2030 and 20% by 2050.

- Apply the compensate payment mechanism (Net Metering) for customers purchasing electricity from the National Power System to develop power RE projects.

- Apply the preferential policies on taxes, land and  environment

- Form and develop domestic renewable energy equipment market

In brief, the Renewable Energy Development Strategy reflects low carbon development commitment and Intended Nationally Determined Contributions (INDCs) of Vietnam for United Nations Framework Convention on Climate Change (UNFCCC). The REDS also supports Vietnam to carry out Paris Agreement on Climate Change 175 nations over the world have signed.

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