Support for the development of renewable energy

Project description

Title: Support for the development of renewable energy in Viet Nam
Commissioned by: German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)
Country: Socialist Republic of Viet Nam
Lead executing agency: Ministry of Industry and Trade (MoIT)
Overall term: 2012 to 2015

Viet Nam. Pig residue resource © GIZ

Context

With its dynamic economic growth, Viet Nam’s energy demand will triple by the year 2020. Some 64% of the country’s power needs are currently provided for using fossil energy sources. As a result, experts expect a fourfold increase in CO2 emissions from electricity generation in the coming years.

Viet Nam offers great potential for the use of renewable energy sources, and it is the professed aim of the Vietnamese Government to encourage greater exploitation of these sources to meet the future demand for electricity while combating climate change. Until now, ineffectual measures and a lack of incentives have impeded the expansion of renewable energies.

Encouraged by the promising results of a project to promote wind power, GIZ is now supporting a Vietnamese-German cooperation project for the further development of renewable energy in Viet Nam. The project is part of the International Climate Initiative of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB).

Objective

Viet Nam’s greenhouse gas reduction strategy benefits from an improved regulatory framework for renewable energy, and from the increased professional and organisational capacities of key institutions.

Approach

The main focus of the project is the development of grid-connected bioenergy in Viet Nam. It advises the Ministry of Industry and Trade (MoIT) on the design of incentive mechanisms to encourage grid-connected power generated with biomass, biogas and solid waste. The aim is to stimulate interest among investors, project developers and governmental and non-governmental bodies in the construction of bioenergy power plants.

The project also supports capacity development for relevant stakeholders in the field of bioenergy. With regional and international training events, exchange formats and consultation missions, it aims to consolidate knowledge while creating a platform for international dialogue.

Thirdly, the project promotes the development of national and provincial organisations and agencies dedicated to the advancement of renewable energy in Viet Nam. This will be complemented by the launch of an improved planning and authorisation procedure for proposed power plants, which will increase planning dependability and contribute to the further introduction of renewable energy in line with market conditions.

Results achieved so far

Following the completion of three studies looking at supportive mechanisms for grid-connected bioenergy power projects, two support mechanisms for grid-connected biomass and waste-to-energy power projects in Viet Nam were recently issued by the Prime Minister.

Fact-finding trips to Thailand, Germany and Denmark were arranged for delegations of policymakers. These proved highly beneficial, increasing the participants’ understanding of policy mechanisms and institutional structures in other countries. Those who took part in the trips now feel more confident in planning support mechanisms and are more aware of the importance of thoughtful policy design.

Viet Nam. Rice residue resource © GIZ

The results of a capacity needs assessment in the grid-connected bioenergy sector in Viet Nam have been presented to relevant stakeholders. The insights gained through the study now help the project and the whole sector in planning and implementing effective human and institutional capacity development measures. Since then, two training courses have been held for a broad group of stakeholders, looking at ‘grid-connected applications and finance of bioenergy plants for Viet Nam’. The participants were able to share ideas and benefit from one another’s experiences, while discussing a wide range of issues, from the roles of government and the private sector, to the significance of education.