(VEN) - Vietnam is said to have great potential to develop renewable energy resources such as wind power, hydropower and solar energy. If it develops these renewable energy resources effectively, Vietnam can ensure national energy security, utilize natural resources, protect the environment and obtain sustainable economic growth.
More than 10 years ago, domestic and foreign scientists and investors began to be interested in developing renewable energy resources. A number of renewable energy development projects have been designed and developed. However, good results have been gained only in developing biogas, hydropower and solar power. Nguyen Duc Cuong, the director of the Center for Renewable Energy and Clean Development Mechanism under the Institute of Energy, said that Vietnam has great potential to develop renewable energy resources such as solar energy, wind power and biomass. The average hours of sunlight in Vietnam are 2,000-2,500 hours per year, which are equal to nearly 44 million tonnes of oil equivalent (TOE); Vietnam can obtain 500-1,400 kWh of wind power per every sq.m and 43-46 million TOE from firewood and agricultural wastes every year.
However, Vietnam remains weak in utilizing renewable energy resources. In 2007 renewable power accounted for only 1.8 percent of the total electricity output of the country, renewable heat and bio-energy were almost not available on the market. The utilization of hydropower, solar energy and wind power resources is still incommensurate with the real potential. Almost nothing has been done to develop geothermal energy resources or bio-fuels such as bio-petrol and bio-diesel oil by making use of cassava, maize, cooking oil, tra/basa fish fat and some varieties of oily trees.
To promote the development of renewable energy resources, along with developing human resources and the technology market, putting in place appropriate policies related to investment support and price, Vietnam must have an authority responsible for managing the development of renewable energy resources. In addition, it must establish a fund to provide financial assistance to individuals/organizations that are involved in developing renewable energy resources. Vietnam must build a mechanism to support investment in developing the technology market. Specifically, the import of renewable energy equipment must be tax-free. A wind power and biomass energy database system must be developed. The Government must have appropriate policies to encourage individuals and organizations to take part in renewable energy development. Vietnam's projections are to have renewable energy accounting for three percent of the total supply of energy by 2015, five percent by 2020 and eight percent by 2025. The renewable electricity output is expected to reach seven billion kWh by 2020 and 20 billion kWh by 2025.
In early July 2010 the International Finance Corporation (IFC), a member of the World Bank Group, and SN Power, a leading company of Norway in the energy industry, announced a joint agreement to help Vietnam carry out renewable energy projects to meet the growing demand for electricity in the country. Under this agreement, via IFC InfraVentures, an investment fund to support the initial stage of infrastructure projects, IFC and SN Power will jointly make a strategy, a policy and set investment criteria to meet the growing demand for energy in Vietnam. The two sides will seek opportunities to invest in power plants that are operational as well as new electricity projects in order to make a list of investment projects in the field of renewable energy development in Vietnam. IFC observed that the Vietnamese economy has grown rapidly since Vietnam began to implement the doi moi (renovation) policy. However, power supply in Vietnam remains insufficient to meet the growing demand of a developing economy. Vietnam is suffering a serious shortage of electricity and this will hinder future growth of the Vietnamese economy. Therefore, it is urgently necessary for Vietnam to seek new, stable power supply sources./.
By My An
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