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WIND POWER DEVELOPMENT IN VIETNAM

General Directorate of Energy. WIND POWER DEVELOPMENT IN VIETNAM. Mr. Pham Trong Thuc Director of New and Renewable Energy Department Hanoi, 19 November, 2012. General Directorate of Energy. CONTENTS . Wind power potential Current development situation Wind energy measurement

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WIND POWER DEVELOPMENT IN VIETNAM

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  1. General Directorate of Energy WIND POWER DEVELOPMENT IN VIETNAM Mr. Pham Trong Thuc Director of New and Renewable Energy Department Hanoi, 19 November, 2012

  2. General Directorate of Energy CONTENTS • Wind power potential • Current development situation • Wind energy measurement • Incentive mechanism for wind power projects • Action plan

  3. Wind power potential Wind energy (WB Atlas 2011) - Potential Technical potential of wind energy (EVN)

  4. Wind power projects development

  5. Wind measurement • Wind power measurement for planning • Wind measurement at height of 60m and > 60m: 62-65 stations • Northern regions: 12 stations • Southern regions: 50-55 stations • + EVN: 12 stations in10 provinces • + MoIT/WB: 5 stations in 4 provinces(incl.Phu Quoc Island) ) • + MoIT/GIZ: 10 stations • + Developers: 22 stations • + Others: about 13-15 stations • Measurement time: on average12 months • Average wind speed: • Northern regions: < 7m/s, except. Bach Long Vi and Quang Tri • Southern regions: <7.5m/s, except Phu Quy Island

  6. Incentive mechanism for Wind power Target for exploitation of RE sources to 2030 under Decision 1208/2011/QĐ-TTg issued 21 July 2011 In 2020: RE account for 5.6% of total installed capacity: 1000MW for wind, 500MW for biomass and 2700 MW for other RE technologies In 2030: RE account for 9.4% of total installed capacity: 6200MW for wind; 2000MW for biomass and 5600MW for other RE technologies

  7. Incentive mechanism for Wind power • 1. The Decision No.37/2011/QĐ-TTg dated June 29, 2011 on the Mechanism supporting development of wind power projects in Vietnam: • > Wind power development and planning • > Mechanism supporting development of wind power projects: • Power purchasing obligation: requiring EVN to purchase all of electricity generated from RE resources based on standardized power purchase agreement using • Support electricity price to grid-connected wind power projects: • 7,8 US$/kWh (VAT excluded; adjustment to the VND/US$ exchange rate) 2. The Decision No.130/2007/QĐ-TTg dated August 02, 2007 on some financial mechanisms and policies of investment project following Clean Development Mechanism (CDM). The products of CDM projects will be subsidized by the Vietnam Environemt Protection Fund. 3. The Decree No. 75/2011/NĐ-CP dated August 8, 2011 issued by the Goverment on investment credit: Wind power development and investment projects on the list to get investment credit incentives of the State.

  8. Incentive mechanism for Wind power 4. MoIT Circular no. 32/2012/TT-BCT dated 12 November 2012 on Wind power projects development and Standard Power Purchase Agreement for Wind power Other tools: • - Import tax: Exemption for goods which can not yet be produced locally • - Corporation income tax: • > Tax rate: 10% for duration of 15 years, possible extension to 30 years • > Tax exemption for first 4 years, 50% tax reduction for next 9 years • - Accelerated depreciation duration: 1.5 time quicker than the normal. • - Land use levy and fee: free • - Environment protection fee: free

  9. Action Plan for Wind development • Wind Measurement Program: 2010 – 2014 with 25 stations. • Master Plan for Wind power development to 2020: approved and issued 2013 • MoIT Circular on Wind planning: issued Nov. 2012. • Study on wind power projects intergration to the grid.

  10. Thank you!

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