Context
Viet Nam is one of the fastest growing economies in Asia. This rapid growth has gone hand in hand with increasing demand for electricity, which is set to triple by the year 2030 under the National Power Development Master Plan. Currently, this growth in demand is to be satisfied primarily through energy production based on coal. Use of renewable energy must be increased and energy efficiency enhanced if growth is to be both environmentally sustainable and socially responsible. These targets have been laid out in Viet Nam’s Green Growth Strategy.
To date, stakeholders in Viet Nam have not recognised renewable energies as a viable alternative to conventional energy sources. In addition, project developers, investors, donors and public decision-makers lack the expertise and experience to develop renewable energy. In the energy efficiency sector, although several support programmes have been implemented, there are insufficient data and a systematic overview of savings potential is lacking.
Adding to these challenges, Viet Nam is also particularly vulnerable to the effects of climate change. Greater use of renewable energy and increases in energy efficiency help minimise greenhouse gas emissions and can therefore contribute to achieving climate targets.
Objective
Viet Nam possesses the legal basis and the expertise necessary to develop renewable energy and promote energy efficiency.
Approach
In the area of renewable energy, the 4E project is supporting the Vietnamese Ministry of Industry and Trade in planning the development of biomass and solar energy. This includes conducting economic and technical studies to address the potential and application of biomass and solar energy in Viet Nam. Further, the Ministry is receiving advice on improving the legal framework for renewable energy through expert studies and training measures. Other training programmes promote expertise among stakeholders in the private sector, including banks, investors and industry representatives.
In the area of energy efficiency, the 4E project is assisting in setting up an evaluation system for energy audits to identify savings potential in Viet Nam’s industrial sector. This entails reviewing existing energy audits and regulations and highlighting potential for improvement. In addition, the project is advising the Ministry on new instruments for promoting energy efficiency within industry. To enhance expertise on efficient energy use, workshops are being held to train stakeholders from public institutions and the private sector.
Results
The 4E project has supported the Vietnamese Government in planning future electricity generation on the basis of biomass and solar energy. Viet Nam’s National Power Development Master Plan VII, which was revised in March 2016, provides for a higher share of biomass energy within future electricity production compared with the previous plan. Electricity production based on biomass is to increase to 12 terawatt-hours by 2030. In addition, targets for increasing solar energy have been formulated for the first time in the plan, which aims to achieve 18.8 terawatt-hours of installed capacity by 2030