Vietnam currently relies mostly on large hydropower and natural gas to meet its electricity needs, with the former accounting for 40% (59.8TWh) and the latter 30% (44.9 TWh) of its total power generation of 148 TWh. Both sources will recede from the total power mix in coming decades if the country Power Master Plan 7 is carried out. Coal would become a major power source for Vietnam under Power Master Plan 7, which envisages coal-fired power accounting for 47% of Vietnam energy mix by 2020 and 56% by 2030. Construction work has already started on Vinh Tan 1 (1,200MW), one of the major planned coal plants.
Five Chinese banks provided a syndicated loan of $1.4bn, accounting for 80% of the total project cost. Non-hydro renewables play a minor role in Vietnam energy mix but one that also is set to grow. The government targets an increase in electricity generated from non-hydro renewable sources from the present 3.5% to 4.5% in 2020 and 6% in 2030. Wind and biomass are the sectors identified to realize the target. The installation target for wind is 1GW by 2020 and 6.2GW by 2030 ... for biomass it is 0.5GW by 2020 and 2GW by 2030.
To incentivize those two renewable technologies, feed-in tariffs (FiT) have been introduced. Early in 2011, a FiT of $0.087 per kWh was introduced for wind energy. In 2014 the government extended FiTs to new waste-to-energy and biomass. For waste-to-energy projects using solid waste, a FiT as high as VND 2,114 per kWh ($0.1 per kWh) was offered. For biomass-fueled combined heat and power projects, the FiT provided was more modest at VND 1,220 per kWh ($0.07 per kWh). The government is considering a FiT for biogas. A preferential taxation policy offers an income tax rate of 10% for 15 years to all renewable energy technologies, compared to the statutory rate of 25%. Alternatively, project developers can enjoy tax exemption for the first four years and a 50% reduction in tax payable for nine subsequent years.
Original URL: http://global-climatescope.org/results/vn
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