IFC looks at investing up to $20m in Canadian Solar for its Vietnam foray

International Finance Corporation, the private lending arm of the World Bank, is partnering a Singapore-based private equity firm to invest in Gia Lai Electricity JSC (GEC), one of Vietnam’s largest private-sector independent small hydroelectric power producers.

IFC together with a private equity fund based in Singapore proposes to invest up to 36% equity stake in GEC, according to its investment disclosure. The investment is meant to support GEC’s renewableenergy development plans in Vietnam.

The quantum of investment as also the name of the PE investor were undisclosed.

GEC is 87% controlled by Thanh Thanh Cong Group (TTC), a Vietnamese conglomerate founded by Mr Dang Van Thanh in 1979. TTC is Vietnam’s largest private sugar manufacturer. It also has 79 MW biomass power plant portfolio owned by its various sugar business units. 

Mr. Thanh was also the founder and chairman for 20 years of Sacombank, one of the largest commercial banks in Vietnam

TTC has identified its next growth opportunity in renewable energy, and set a medium-term strategy to grow GEC into a leading renewable energy business in Vietnam. GEC is thus also considering wind and solar projects in addition to hydel power plants, the filing said. 

Founded in 1989, GEC  owns and operates 15 existing hydro power projects totaling 84 MW in installed capacity. Majority of its portfolio comprises small hydro power projects (HPPs), ranging from 0.3MW to 16MW.

GEC’s business model consists of the development and acquisition of small HPPs, wind and solarprojects. While GEC’s ownership varies from project to project, it assumes an active role in design, construction, and operation depending on the project stage.

GEC is located in Gia Lai province, in the Central Highlands of Vietnam. Many of GEC’s existing small hydro power projects are located in the same province. GEC also has several projects located in different provinces of Vietnam, mainly in the central area of Vietnam.

IFC has been quite active in investing, both debt and equity, in Vietnam as also the East Asian region. Some of its recent proposed investments include a $20-million commitment in Canadian Solar for its Vietnam foray and an acquisition financing loan for Golden Towers in the telecom space.

Source: dealstreetasia

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IFC, Singapore PE firm may invest in Vietnamese renewable energy firm GEC

International Finance Corporation, the private lending arm of the World Bank, is partnering a Singapore-based private equity firm to invest in Gia Lai Electricity JSC (GEC), one of Vietnam’s largest private-sector independent small hydroelectric power producers.

IFC together with a private equity fund based in Singapore proposes to invest up to 36% equity stake in GEC, according to its investment disclosure. The investment is meant to support GEC’s renewableenergy development plans in Vietnam.

The quantum of investment as also the name of the PE investor were undisclosed. 

GEC is 87% controlled by Thanh Thanh Cong Group (TTC), a Vietnamese conglomerate founded by Mr Dang Van Thanh in 1979. TTC is Vietnam’s largest private sugar manufacturer. It also has 79 MW biomass power plant portfolio owned by its various sugar business units. 

Mr. Thanh was also the founder and chairman for 20 years of Sacombank, one of the largest commercial banks in Vietnam.

TTC has identified its next growth opportunity in renewable energy, and set a medium-term strategy to grow GEC into a leading renewable energy business in Vietnam. GEC is thus also considering wind and solar projects in addition to hydel power plants, the filing said. 

Founded in 1989, GEC  owns and operates 15 existing hydro power projects totaling 84 MW in installed capacity. Majority of its portfolio comprises small hydro power projects (HPPs), ranging from 0.3MW to 16MW. 

GEC’s business model consists of the development and acquisition of small HPPs, wind and solarprojects. While GEC’s ow

GEC is located in Gia Lai province, in the Central Highlands of Vietnam. Many of GEC’s existing small hydro power projects are located in the same province. GEC also has several projects located in different provinces of Vietnam, mainly in the central area of Vietnam. 

IFC has been quite active in investing, both debt and equity, in Vietnam as also the East Asian region. Some of its recent proposed investments include a $20-million commitment in Canadian Solar for its Vietnam foray and an acquisition financing loan for Golden Towers in the telecom space.

Source: dealstreetasia

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Canada energy firm eyes $150m solar power plant in Vietnam

Canadian company CMX Renewable Energy Inc has sought a license to build a 150-megawatt solar powerplant in the central province of Ninh Thuan at an estimated cost of $150 million, newswire Thanhniennews.com reported.

SolarEnergy Power Future in Vietnam

CMX is the latest foreign investor to have expressed interest in setting up a solar energyproduction unit in Vietnam after the government said that it is drafting policies to encourage private investment in the sector. 

According to one of the plans being considered by the government, state company  Electricity of Vietnam and other electricity distributors will be obliged to buy all the output from solar power plants in 10-20 years, the government’s website reported.

The country’s first solar power plant is expected to start functioning next year. It is a 19.2-megawatt plant being built in the central province of Quang Ngai by Vietnamese investor Thien Tan Group at an estimated VND862 billion ($36.12 million).

 Last year South Korea’s SolarPark Korea sought to build a 300-megawatt plant in another central province, Ha Tinh, at $650 million.

 Another Korean investor, Hanwha, also reportedly plans to invest $200 million in developing a 100-200-megawatt plant in Thua Thien-Hue.

 Source: dealstreetasia

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Foreign firm to produce solar cells in Vietnam

HCMC – JA Solar Hong Kong Investment, a major manufacturer of high-performance solar power products, will develop a solar cell production project worth over US$1 billion in the northern province of Bac Giang.

According to Saigon-Bac Giang Industrial Park Corporation (SBG), the investor of Quang Chau Industrial Park (IP), the Hong Kong firm has inked an in-principal deal with SBG to lease 88 hectares of land at the IP to build a solar cell plant. With the land lease, the Vietnamese firm can earn over VND1 trillion.

JA Solar, which currently has eight production plants worldwide, regards its investment in Vietnam as a breakthrough in the low-cost supply chain and a typical investment in the field of solar cell production, said SBG, a subsidiary of Kinh Bac City Development Holding Corporation.

Nguyen Van Linh, chairman of Bac Giang Province, said at the signing ceremony last week that the province would facilitate JA Solar in terms of legal and customs procedures, human resources and infrastructure so that it could put into operation its project soon.

Once licensed, the project of JA Solar will become the 16th investment at 600-hectare Quang Chau IP. It is also expected to generate jobs for more than 3,000 people.

Source: E.thegioisaigontimes 

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Vietnam utility cuts power purchases from China

Vietnam Electricity refrained from buying electricity from China last month following a surge in domestic output.

Solar Energy Power Future in Vietnam

Vietnam’s electricity output during the first eight months of this year has increased by 11.2 percent to 117.1 billion kilowatt hours (kWh), including 1.2 billion kWh imported from China, said the country’s utility group EVN said Saturday.

Hydropower plants which in the first eight months of 2016 generated 32.7 percent of Vietnam's electricity, often face shutdowns during the dry season, causing nationwide outages. Meanwhile, coal has taken over hydro power as the leading source of electricity in the country as it has generated 38.03 percent of the total output so so far this year. 

In response to fast growing demand for power, Vietnam is building more coal-fired thermal plants and buying electricity from neighboring China.

However, EVN said last month it stopped buying power from China for the second month in a row.

The state-run group which started buying electricity from Chinese power plants in the border province of Yunnan in 2004, expects it will not have to import more power from the neighboring country in four consecutive months.

EVN plans to import about 950 million kWh from China to meet the domestic power needs in 2016, down 44 percent from 2015.

EVN said Vietnam's power output is expected to reach 183 billion kWh this year.

The average energy consumption in Vietnam grew 13 percent from 2006-2010, and by about 11 percent from 2011-2015, said Le Tuan Phong, deputy head of the General Directorate of Energy, adding that the country is on the path towards powering itself by 2030.

The country’s power production is expected to grow at an annual rate of 14 percent between 2015 and 2030.

Vietnam is also restructuring its power sector by breaking up its retail power monopoly EVN to develop a competitive retail power market by 2030.

And it is aiming to generate enough energy to power almost every home by 2020 and increase residential solar power usage to 50 percent of households nationwide by 2050.

Source: E.vnexpress

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Investors await solar power price regulations

HCMC – Many investors have been ready to take part in the solar power industry but they are still waiting for specific regulations from the Government to set prices.

“We have prepared US$30 million, bought a land lot in Binh Thuan Province and obtained a license for a 24MW solar power project. All we are waiting for is specific rules on solar power prices before starting construction,” Diep Bao Canh, general director of Red Sun Solar Energy JSC, said at a seminar on solar power development in southern Vietnam on November 23.

Other companies are also looking for government regulations on prices. According to a draft, relevant agencies have suggested a solar power price of 11.2 to 13.2 U.S. cents per kWh, which is attractive enough for investors to join the renewable energy sector, Canh added.

Huynh Kim Tuoc, director of the HCMC Energy Conservation Center, said the sector has seen positive signs with investors such as Thanh Thanh Cong, Song Hong Group, Hoa Sen Group and foreign firms from Thailand and Germany. They have plans to develop projects from 30 to 100MW each.

However, investors still face difficulties due to the lack of policies on planning and pricing as well as land use procedures. The challenges are expected to last three or five more years.

To overcome these challenges, investors are advised to invest in solar powerprojects replacing power sources at industrial zones, factories and restaurants which are customers of the Vietnam Electricity Group (EVN). The solution is more effective than investing in a solar farm, Tuoc said.

Speaking to the Daily at the seminar, Gavin Smith, director of Dragon Capital’s Clean Development fund, said the fund management firm has plans to invest US$15 million in 14 solar power projects with pre-feasibility studies already done. The projects, which belong to a solar power development program in the south, are expected to go up in HCMC, Dong Nai, Long An and Binh Duong provinces with the combined capacity of 18 million kWh a year.

Despite huge potential, investors in Vietnam still face some disadvantages, especially low power prices, Smith said.

Among ASEAN countries, Vietnam has yet to keep up with Thailand and the Philippines, which are attractive to investors thanks to solar power prices at 16 U.S. cents per kWh. Indonesia, Malaysia and Bangladesh have also offered high electricity prices, he said.

Vietnam has strong potential for solar power development but solar energy is still little used.

Soure: english.thesaigontimes

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Foreign investors lay eyes on Vietnam’s renewable energy sector

Vietnam has opened up to foreign investors in a bid to meet the rising demand for power.

The World Bank’s International Finance Corporation (IFC) and the Singapore-based renewable energy private equity fund Armstrong S.E. Clean Energy Fund have formed a partnership to invest in Gia Lai Electricity JSC (GEC).

IFC has acquired a 16 percent stake in the Ho ChiMinh City-based power company while Armstrong has taken a 20 percent share.

The move by IFC and Armstrong could spur further foreign interest in the country’s renewable energy sector.

Hydropower is the world’s largest source of renewable energy and accounts for one-fifth of the world’s electricity, according to statistics from IFC.

“As shareholders, IFC and Armstrong will not only support the company in expanding its core business in hydropower, but also help GEC become a leading company in Vietnam’s renewable energy sector,” said chief executive Le An Khang.

“Their investment is a vote of confidence in Vietnam’s hydropower sector potential and should help attract more international investors,” he continued.

Vietnam’s electricity consumption has grown twice as fast as the country’s economic growth rate in recent years. The country’s power output is expected to grow at an annual rate of 14 percent between 2015 and 2030.

Source: Bao Vnexpress

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Vietnam's revised energy plan might not be as green as it seems

Last March, Vietnam upped its planned share of renewable energy for 2030 to 10 percent, from the initial 4.5 percent. However, in the next 15 years, Vietnam also plans to increase its reliance on coal fired power, the most carbon intensive electricity source.

*Vietnam relies mostly on hydropower to produce electricity. Therefore, renewable energy in this article refers only to solar power, wind power and biomass energy.

As part of the Power Development Master Plan VII released in July 2011, the country will give priority to developing renewable energy sources. The rate of renewable power is planned to account for 4.5 percent by 2020 and six percent in 2030. However, the revised Power Development Master Plan VII released in March 2016 has adjusted those rates up.

Wind power, solar energy and biomass power contribute insignificantly to total electricity produced.

On the other hand, by 2030, the government plans to rely on coal-based plants to produce electricity, making coal fired power the dominant power source. The rate of renewable energy will only account for 10.7 percent of the country's power supplies.

Details in the Power Development Master Plan VII show that as of 2030, there will be 83 coal-based plants, but only 10 renewable plants. According to the Guardian, World Bank President Jim Yong Kim has warned that plans to build more coal-fired power plants in Asia would be a “disaster for the planet”. “If Vietnam goes forward with 40GW of coal, if the entire region implements the coal-based plans right now, I think we are finished,” he added.

 Source: Bao Vnexpress

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GE begins $1.5 billion wind power push in Vietnam

The company wants to tap the market with huge power demand for economic growth.

The multinational conglomerate General Electric is teaming up with a partner to construct large-scale wind power plants in Vietnam with a total investment of $1.5 billion.

The company recently signed a partnership deal with the Ireland-based Mainstream Renewable Power Ltd. to develop 1,000 megawatts of wind power capacity for the national grid, according to the Wall Street Journal.

GE will be responsible for partially providing technology for the projects, considered part of its efforts to push further into fast-growing markets. Construction is expected to begin in 2018.

“Vietnam is going to be a huge importer of energy as the economy grows. There is huge demand for power and they can balance the equation with renewable energy,” Mainstream Renewable CEO Andy Kinsella was quoted as saying.

Vietnam's fast-growing economy is in need of more electricity.

Founded in 2008, the Dublin-based Mainstream Renewable Power Ltd. is a major independent power supplier to developing economies like South Africa and Chile.

This will be among the largest clean energy power projects in Vietnam funded by foreign investors.

Various media reports suggest that investors in general are reluctant to develop wind power projects because prices in Vietnam are not high enough to cover the investment.

In Vietnam, state-owned Electricity of Vietnam, which controls the national grid, reportedly pays 7.8 cents or VND1,731 per kilowatt-hour for wind power, much lower than the rates in China, Japan and the Philippines.

The Vietnamese government has set a target of increasing its power output from about 200 billion kWh in 2015 up to over 330 billion kWh by 2020.

Last month, German firm Terra Wood proposed a solar energy project worth $400 million in the central province of Quang Ngai.

Two months ago, Singapore's The Blue Circle was licensed to build a $60 million wind power project in Ninh Thuan, also in the central region.

Source: Bao Vnexpress 

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German firm jumps on Vietnam's renewable energy bandwagon

Terra Wood is proposing a $400 mln wind and solar energy project.

German green energy firm Terra Wood has revealed plans to invest $400 million in a wind and solar electricity project in Vietnam, contributing to an active week of renewable energy deals made by foreign investors.

The energy company has submitted an investment plan to build the project in Vietnam’s south central province of Quang Ngai, and on-site inspections started on August 3, according to the local People's Committee website.

Terra Wood's is the third renewable energy deal proposed to Vietnam in a week following a hydropower project run by the World Bank’s International Finance Corporation and Armstrong S.E. Clean Energy Fund and The Blue Circle’s wind energy project in Ninh Thuan Province.

Chairman of Quang Ngai People's Committee Tran Ngoc Cang welcomed the project and said the province will help facilitate the German investor's project. Cang also gave permission for Terra Wood to conduct research and surveys for the wind and solar electricity plants in Quang Ngai.The German-owned energy company will develop two electricity power plants, one wind and one solar, which will cover a total of 600 hectares with an output of 300 megawatts and total investment of $400 million.

Quang Ngai has immense potential for the development of wind and solar electricity, especially in the districts of Mo Duc and Duc Pho and the famous Ly Son Island. A number of foreign investors are also looking at electricity and renewable energy exploitation in Quang Ngai.

Beside Quang Ngai, foreign-invested solar and wind energy projects have been registered across the country, but only a few have been put into operation due to low electricity prices.

Terra Wood is an international group of consultancy, engineering and project development companies dedicated to green energy projects. Within the network, Terra Wood Vietnam is the country representative of Germany's ProfEC GmbH, which specializes in turnkey wind, biomass, biogas, wind, solar and Clean Development Mechanism (CDM) projects.

Reference Resource: Bao Vnexpress

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Changes needed for Development on Wind Energy in Vietnam

For economic sustainable development combined with environmental protection, the Government of Vietnam has made significant steps  in the  formulation of policies on renewable energy  development, which take  advantages  of  favorable  conditions  for the  production of  wind energy.

Many policies  have been  initiated  to  support  wind  power  project,  including  power  price assistance  from central  budget;  assistance to grid  and off-grid  connected wind power projects...focusing on wind power electricity development target to achievethe total wind power capacity from  the  current  negligible  level  to  around  800  MW  by  2020  and around  6,000 MW  by  2030, raising the rate of electricity from wind power accounted for 0.8% in 2020 to 2.1% in 2030.

Some financial policies for investment projects under the Clean Development Mechanism (price supporting mechanism) are issued. Moreover, the   Government   published   independent mechanisms to support  wind power projects on electricity price for grid-connected wind power projects, power purchase agreements for wind power projects.

 Nonetheless, there  are  difficulties  in  the  development  of  wind  power projects  in Vietnam  that should not be ignored. The first thing is difficulty of legal framework. The system of legislation, mechanisms and policies for wind power development are not synchronized.  New project must be  granted  by  the  Ministry  of  Industry  and  Trade  to  establish  the  supplementary  planning procedures  prior  to  implementation.    Power  purchase  agreement  with  EVN  will  be  required  as the initial condition to obtain investment permission.

Moving  toward  the  future  of  clean  energy  in  Vietnam,  the  Government  should  focus  on implementation of preferential treatment to wind energy projects to increase the competitiveness of this renewable energy. In addition, the Government should also collaborate with investors, and industry  experts  to  continue  to  research  the  wind  power potential  in  Vietnam, further  attract investment  and  assistance  from  domestic  and  international  organizations  for  the  wind  power projects.  Further, it is in the meantime required to have synchronized policies, legislations with the establishment of government authority to execute wind power planning and management to remove unreasonable barriers.

The  increase  in  purchasing  price  from  EVN  will  be  attracting  more  investment.   It  has  been discussed  on  the  increase  of  buying  price  from  7,8  US  cent/kWh  however  the  timeline  for  the increase has not yet been finalized.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Vietnam opens first energy-saving glass plant in Southeast Asia

The plant reflects Vietnam's views on environmentally-friendly building materials.

Vietnam's first modern production line for energy-saving glass was put into operation on July 25 in the southern province of Binh Duong.

According to construction experts, most of the world’ skyscrapers are designed with energy-efficient glass, and Vietnam has started to follow the trend.

In addition to the aesthetic advantage, buildings covered in this type of glass are able to reduce electricity bills by preventing heat or cold air from escaping through windows. The glass also blocks 99 percent of ultraviolet rays that pose a threat to human health.

Demand for energy-saving glass in Vietnam is on the rise now the real estate market is showing signs of a recovery. However, the country now depends entirely on external suppliers, so glass made here has great potential on the local market, said Nguyen Quang Phuc, deputy head of the Vietnam Association for Building Materials.

Work on the first energy-saving glass plant in Vietnam as well as Southeast Asia kicked off in October 2015 with total investment of VND524 trillion ($23.5 billion). Technology and facilities for the plant were imported from Von Ardenne Company, a German manufacturer with around 90 years of experience in construction materials.

State-owned Viglacera Cooperation, the plant's owner, widened its portfolio of modern building materials by introducing the first antibacterial sanitary ware in March this year.

Reference Source: Bao VNexpress

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Potential of Vietnam’s Renewable Energy

Vietnam territory is located in the tropical climate zone with over 3,200 km long coastline. Therefore, there is great potential for renewable energy development. The available renewable energy sources in Vietnam are: solar energy, wind energy, biological energy, hydropower and energy from the sea.

Vietnam has great potential for hydroelectric power, with total theoretical capacity of about 35 GW, the technical potential is about 26 GW, annually it can produce more than 100 GWh; in which the small hydropower (the installed machine capacity <30 MW) has the potential to produce about 15-20 GWh of electricity.

Until 2013, the total number of projects have been put into operation is 268 projects, with a total installed machine capacity of 14,240.5 MW. As planned, until 2017, there will be 473 projects will be put into operation with a total installed machine capacity of 21,229.3 MW. In addition, according to the Electricity Corporation of Vietnam, the potential of small hydropower has installed machine capacity of about 4,000 MW.

In a report of the World Bank in 2001, the wind energy potential of Vietnam is estimated at 512 GW, much higher compared to other countries such as Thailand, Laos and Cambodia.

Vietnam has great potential for solar energy, particularly in the Central and South of the country, with the average intensity of solar radiation of about 5 kWh/m2. The total theoretical potential of solar energy in Vietnam is estimated at 43.9 billion TOE (TOE – tons of oil equivalent).

With the advantage of being an agricultural country, Vietnam has a large and diverse biomass sources, including wood, firewood, rice husk, rice straw, sugarcane bagasse and other kind of agricultural residues. Annually, Vietnam is estimated to have over 60 million tons of biomass from agricultural waste. The biomass energy sources mentioned above can be used to produce bio-fuel (ethanol), fuel pellet, biogas and various other products.

Vietnam livestock industry is now quite developed, released to the environment annually a large amount of livestock waste in the form of solid and liquid.

According to the statistic data from national environmental status by 2014, the amount of solid waste from livestock in 2013 in Vietnam includes: 18.5 million tons from raising cows, 13.8 million tons from raising buffalo, 18.9 million tons from raising pig, 22.6 million tons from raising poultry. Part of livestock waste in rural area of Vietnam provides raw material for more than half a million active biogas in three regions of the country.

With a population of nearly 90 million people, the annually amount of domestic waste generated due to activities of the population is very huge. Domestic waste after being collected and classified can be recycled, reused and recovered energy from waste incineration or landfills.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Vietnam's 4th wind power plant starts generation

The country plans to have 800 megawatts of wind power by 2020, but pricing remains an issue..

Binh Thuan Wind Power Company said the Phu Lac plant has 12 turbines with a combined output of 24 megawatts, local media reported.

The project costs more than VND1 trillion ($48 million), including a $37 million grant from German government development bank KfW.

Vietnam is operating three other wind power plants including two in Binh Thuan and another in the Mekong Delta’s Bac Lieu Province.

The country now depends on thermal and hydropower for almost all of its electricity demand, while wind power has only contributed 0.3 percent, according to a report this week from state-owned utility Electricity of Vietnam.

Thermal power plants make up more than half of the total generation, and among them, coal-fired plants account for 34 percent.

The country has been taking steps to develop cleaner and more sustainable energy sources. It plans to have 800 MW of wind power by 2020, compared to 140 MW as of March this year, according to a post on the government's website.

Investors have committed to more than 45 wind powerprojects to generate more than 4,800 MW in total, but most of them are still on paper. Binh Thuan alone has 16.

Various media reports suggest that investors in general are reluctant to develop wind power projects because prices in Vietnam are not high enough to cover the costs.

In Vietnam, state-owned Electricity of Vietnam, which controls the national grid, reportedly pays 7.8 U.S. cents or VND1,731 per kilowatt-hour for wind power, much lower than the rates in China, Japan and the Philippines.

Binh Thuan Province's Wind Power Association has requested the government to raise prices to 12 cents in 2017.

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Vietnam to focus more on wind energy to power growth

Renewable energy sources remain largely untapped across the country.

Vietnam plans to increase the amount renewable energy contributes to national power consumption to at least 7 percent by 2020 -- up from the previous target of 4.5 percent.

The revision to the plan reflects the fact that Vietnam is increasingly turning to renewable sources, as stated in the National Action Plan on Green Growth 2014–2020, including wind power, solar energy, tidal energy, geothermal energy, biofuel and universal energy to combat climate change.

Vietnam, which relies heavily on coal and hydropower electricity, is seeking to boost renewable energy production, particularly wind and solar energy, to more than 10.7 percent by 2030, up from the previously planned 6 percent.

The country has set a target of producing around 6,000 mega watts (MW) of wind power by 2030, equivalent to 2.1 percent of total electricity generation.

Deputy Trade Minister Hoang Quoc Vuong said the country currently has three wind farms with a combined capacity of just 150 MW, implying that there is much more room for wind power in the country’s energy mix, the Saigon Times reported.

Earlier this month, Vietnam signed a $2.2 billion deal with an Irish energy firm to build and operate three more wind farms with a total capacity of 940 MW.

Under the deal, an 800MW wind farm, worth about $2 billion, will be developed in the Mekong Delta province of Soc Trang, with the first phase set to be completed in 2018. The other two wind farms in Binh Thuan Province, with an investment of $200 million, will also see the first phase completed in late 2018.

“Wind power now accounts for about 4 percent of total global energy consumption," said Steve Sawyer, secretary general of the Global Wind Energy Council, highlighting the need to shift towards renewable sources to reduce greenhouse gas. "It is expected to increase to 6-8 percent by 2020, 18-20 percent by 2030 and a fifth of total consumption by 2050.”

The country’s electricity demand is expected to continue to grow 13 percent annually in the next four years due to its fast-expanding economy, which has grown above 5 percent on average per year since 1999 and is forecast to reach 6.5-7 percent in the next four years.

Vietnam is trying to generate enough energy for economic growth and for the millions of people who still lack access to electricity while gradually shifting towards clean and low-carbon energy, said Tran Dinh Thien, director of the Vietnam Economic Institute.

To meet increasing power demands, Vietnam projects its output will need to increase to 330–362 billion kWh in 2020, and to 695–834 billion kWh in 2030.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

Reference resource:    E.vnexpress.net

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