Viet Nam’s renewable energy has tremendous potential. Right national policies and incentives would enable and encourage large investments to fully maximize and deliver on the promise and co-benefits of renewable energy.
This was agreed by participants in a workshop on renewable energy development in Viet Nam, organized by the General Department of Energy under the Ministry of Industry and Trade, and the UN Development Program (UNDP).
During the workshop, Mr Pham Trong Thuc, Director of Renewable Energy Department under the General Department of Energy, presented the Renewable Energy Development Strategy, which aims to achieve 32.3 percent of the renewable energy share in total primary energy consumption by 2030 and to enable Viet Nam reduce greenhouse gas emission (as co-benefit) by 25 percent in 2030. Most of households will have access to modern, sustainable and reliable energy services with reasonable prices in 2030.
According to Mr Thuc, focus will be given to proven technologies in the renewable energy fields, including hydropower, wind, solar, biomass and biogas.
“The strategy aims to encourage and mobilize all resources from the society and develop renewable energy with reasonable prices, to gradually increase the renewable energy share in the national energy production and consumption,” said Mr Thuc. “This will help ensure less dependence on fossil sources and contribute to better energy security, climate change mitigation, environmental protection and sustainable socio-economic development”.
On this occasion, the German Agency for International Cooperation (GIZ) presented a wind energy development program in Viet Nam and UNDP shared its latest paper: “Greening the Power Mix: Policies for Expanding Solar Photovoltaic (PV) Electricity in Viet Nam”.
The UNDP paper highlights the advantages of solar PV power and recommended measures to boost this energy. It argues that solar PV power has very few negative environmental, health and livelihood impacts while its production can enable remote communities and islands, small and large businesses to improve power supply and reduce their electricity bills.
UNDP suggested to regulate a “Feed-in-Tariff” (FiT) of 15 USD cents/ kWh for mainland solar PV power plants, and 19 USD cents/ kWh for power plants on islands, over a lifetime period of 20 years. The organization also recommended financially support on-grid and off-grid solar PV systems in remote areas and islands as well as incentives to reduce investment costs of solar PV power plants, “rooftop” and community solar PV systems.
“Globally, the technical and financial aspects of renewable energy are changing positively and fast, and Viet Nam must be poised to benefit from this,” said Mr Bakhodir Burkhanov, UNDP Deputy Country Director in Viet Nam. “It needs policies and concrete guidelines to encourage adopting electric transport, bio-gas digesters and solar photovoltaic rooftop installations such as the one on the Green One UN House, which reduce our electricity bills while protecting the environment”.
Mr Burkhanov strongly welcomed the Renewable Energy Development Strategy, and said that UNDP stood ready, with other development partners, to support a clear roadmap for its implementation.