page 1 implemented by up-scaling of wind power in vietnam ahk business trip “wind power in...
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Page 1
Implemented by
Up-Scaling of Wind Power in Vietnam
AHK Business Trip “Wind Power in Vietnam”Ho Chi Minh City, 23 November 2015
Peter Cattelaens
Project ManagerGIZ/MOIT Up-Scaling of Wind Power in Viet Nam
Hanoi, Viet Nam
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Implemented by
Agenda
• Vietnam Energy Market Overview
• Wind Energy in Vietnam
• GIZ support in Wind Power in Vietnam
23/11/2015
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Implemented by
Electricity Production: Development and Outlook
23/11/2015
-
20,000,000,000
40,000,000,000
60,000,000,000
80,000,000,000
100,000,000,000
120,000,000,000
140,000,000,000
Electricity production from oil sourcesElectricity production from natural gas sourcesElectricity production from coal sourcesElectricity production from hydroelectric sourcesElectricity production from renewable sources, excluding hydroelectric
Generation according draft revised PDP VII
2020: 258.8-278.9 TWh
2030: 515.7-632.1 TWh
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Implemented by
Electricity Production and Generation Capacity 2014
Source: EVN (2015), IOE (2015)
23/11/2015
Hydro-power ; 37.62%
Coal fired; 25.86%Diezel; 0.07%
Open Gas; 0.04%
CCGT; 30.89%
Small Hydro; 3.40%Wind Power; 0.04% Other; 0.49%
Import; 1.59%
Hydro-power; 40.04%
Coal fired; 28.94%
Gas; 21.89%
Oil; 2.68%Diezel; 0.21%
Small Hydro; 5.63%Wind Power; 0.15%
Bio-Energy; 0.45%
2014: 145.5 TWh 2014: 34 GW
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Implemented by
Source: GDE (2015)
Power Development Plan Draft Revised PDP VII
23/11/2015
Hydro**; 29.1%
Coal thermal; 47.3%
Gas/Oil; 14.8%
RE*; 6.5% Import; 2.4%
Hydro**; 17.9%
Coal ther-mal; 50.4%
Gas/Oil; 17.1%
RE*; 10.2%
Nuclear; 3.0% Import; 1.3%
Hydro**; 39.9%
Coal ther-mal; 28.5%
Gas/Oil; 24.5%
RE*; 5.0%Import; 2.1%
* including SHP**including storage hydropower
2020: 61 GW
2030: 116 GW
Installed Capacity
2014:34 GW
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Implemented by
Political targets / Feed-in tariff
23/11/2015
Duration of PPA: 20 Years
Political targets: • 1 GW in 2020• 6.2 GW in 2030
Decision 37/2011/QD-TTg (29.06.2011)
Feed-in-Tariff for Wind Power:
Tariff: 7,8 USCents/kWh
Currently under revision
6.8 USCents/kWh power purchase EVN
1.0 USCents/kWh Vietnam Environmental Protection Fund
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Implemented by
Additional incentives
23/11/2015
Additional Incentive Mechanisms for RE
Import tax•Varying levels of import tax, depending on type of imported goods•Exemption on goods forming fixed assets, which cannot be produced locally
Waiving of land use/lease fees•Land is provided for free or lease fee is reduced as part of the licensing agreement
Corporate income Tax•Years 1-4: tax exemption•Years 5-13: 50% tax reduction
Higher depreciation rate•For equipment of renewable energy power plants a 1.5 higher depreciation rate can be applied
Improved conditions for Public private partnership (PPP)
Project development
Operation and electricity production
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Implemented by
Status Quo
23/11/2015
52 MW in operation• Tuy Phong/Binh Thuan wind farm
30 MW (20 x 1.5 MW)• Bac Lieu wind farm (expansion ongoing)
16 MW (10 x 1.6 MW)• Phu Quy hybrid systems
6 MW (3 x 2 MW)
Under developmentVarying information (reliability?)
IoE (2014)• 52 projects in planning• cumulated rated power of 4,252 MW• Feasibility questionable
24 MW under construction (Phu Lac)
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Implemented by
GIZ/MOIT Support on Wind Power (2014-2018)
23/11/2015
Action Area 1:
Legal and Regulatory Frameworks
Policy advice
Feed-in tariff
Regulation, licensing
Strategic advice (local value creation)
Systems analysis
Technical standards, guidelines, e.g. ESIAs
Update wind data quality
…
Action Area 2:
Capacity Development
Capacity Needs Assessment
Support to local banks
Support to local project developers
Support to wind power association
Vocational training for wind
Short-term training courses
…
Action Area 3:
Technology Cooperation
Market information
Investment Guidelines
Support to private sector partnerships
Vietnamese German research cooperation
…
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Implemented by
GIZ/MOIT Wind Power Investment Guidelines
23/11/2015
Phase APreliminary development
Phase BDevelopment
Phase CImplementation
Phase DOperation and maintenance
Phase EDecommissioning
Site selection Pre FS
Decision on investment/ Investment Certificate
FS phase
Technical design
Agreements
Land lease
Construction permit
Detailed design
Land clearance
Financing Construction
Commissioning/ Testing
Generation License
Operation License
Site identification
Is the site already included in WPDP?
Check site availability
No
Site exclusivity
Temporary land lease
Request for investments of the project
Investment certificate
Foreign investor
Decision on investment
Yes
Phase APreliminary development
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Wrap-up
23/11/2015
Opportunities
Sustained growth in electricity demand
Good resource, ambitious policy targets for windPDP VII: 1GW/2020; 6,2 GW 20130
Power sector reform: competitive market by 2025
Increasing necessity for private sector finance
(Lack of) domestic wind industry
New investment law further eases foreign investment
Barriers
Unclear political and regulatory environment
Electricity off-taker risk(no state guarantee on PPA)
Low feed-in tariff (to be adjusted soon?)
(Lack of) domestic wind industry
Limited capacities
Access and quality of data
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Implemented by
Thank you for your attention
Peter Cattelaens
Project Manager
GIZ/MOIT Up-Scaling of Wind Power in Viet Nam
Hanoi, Viet Nam