Vietnam explores possibilities in renewable energy

Vietnam has created development strategies to fully exploit the potential of renewable energy.


According to HCM city power development plan 2011-2015 approved by the Ministry of Industry and Trade, by 2015, there will be two more power plants using energy produced from waste sources with a total capacity of 40 MW. The Department of Industry and Trade is studying to build a plant producing electricity from organic waste in three markets of Binh Dien, Thu Duc, Hoc Mon.

Preliminary statistics have shown that each day, a large wholesale market emits about 50 tons of garbage, 95% of which is organic waste, suitable for the incubation to collect gas for generating power. Investment capital for a power-from-waste project in each market is estimated to be about USD 3-4 million. If these projects succeed, they shall not only provide power to the city but also helps wholesale markets save garbage collection cost--each market has to spend an average of VND 300 million per month on garbage collection.

Department of Industry and Trade has also been collecting data on wind energy resources in Can Gio District to assess the viability of wind power in coastal areas of HCM city. As planned, Can Gio coastal areas such as Thanh An commune, Can Thanh town, Ly Nhon commune have favorable conditions for the development of renewable energy sources such as wind power, solar power.

The World Bank has estimated that Vietnam could develop wind power on approximately 80% of the total area of the country (equivalent to 102 MW). Each year, Vietnam has about 2000 to 2500 hours of sunshine with the average radiation intensity of about 4.5 kWh/m2/day, equivalent to 43.9 million tons of oil equivalent per year. Data of Swedish Centec Vietnam Center show that investment reprots are being made on fourteen grid-connected wind power projects and seven projects are setting up construction plans. Solar cell systems have also been present in 38 provinces.

According to Dr. Hoang Tien Dung, Director of the Institute of Energy - Ministry of Industry and Trade, Vietnam has various renewable energy sources with great potential but they have not been fully evaluated; it is necessary to investigate and supplement data, then proceed to planning and zoning these types of energy for rational investment and exploitation.


Although the State has issued a number of mechanisms, policies and orientations for the development of renewable energy but in short term, there are many difficulties in developing renewable energy. There have been no available financial resources to support the users of heat, electricity produced from renewable energy, such as solar cell, solar water heater, and biomass; no support mechanisms for off-grid power produced from renewable energy; lack of investment in the assessment of potential and construction of database and lack of long-term funding for the program.

Currently, the production cost of renewable energy has been lower than before but is still very high. For example, the production cost of one kilowatt of solar power is up to 18 cents, while coal power price, gas power price is only 5.1 to 5.2 cents per KWh. Therefore, to exploit the potential of renewable energy, there should be price support mechanisms.