Right policy sought to attract renewable energy investors
The workshop on renewable energy development in Vietnam was organized by the General Department of Energy under the Ministry of Industry and Trade, and the UN Development Program (UNDP).
Pham Trong Thuc, director of the renewable energy office under the General Department of Energy, told the workshop that the Renewable Energy Development Strategy aims to make renewable energy account for 32.3% of total energy consumption by 2030.
The strategy is expected to enable Vietnam to reduce greenhouse gas emissions by 25% in 2030, Thuc said. Most households will have access to modern, sustainable and reliable energy services with reasonable prices in 2030.
Thuc stressed priority 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 society and develop renewable energy with reasonable prices, to gradually increase the renewable energy share in the national energy production and consumption.
“This will help ensure less dependence on fossil resources and contribute to better energy security, climate change mitigation, environmental protection and sustainable socio-economic development.”
At the workshop, the German Agency for International Cooperation (GIZ) presented a wind energy development program in Vietnam. Meanwhile, UNDP shared its latest paper titled “Greening the Power Mix: Policies for Expanding Solar Photovoltaic (PV) Electricity in Vietnam.”
The UNDP paper highlights the advantages of solar PV power and recommended measures to boost this source of energy. It said solar PV power has little negative environmental, health and livelihood impact while its production can enable remote communities and islands, small and large businesses to improve power supply and reduce their electricity bills.
UNDP suggested regulating a “Feed-in-Tariff” (FiT) of 15 U.S. cents/kWh for mainland solar PV power plants, and 19 U.S. cents/kWh for power plants on islands, over a lifetime period of 20 years.
The organization also recommended financial support for 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 Vietnam must be poised to benefit from this,” said Bakhodir Burkhanov, UNDP’s Deputy Country Director in Vietnam.
“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,” Burkhanov said.
