The Vietnamese government is encouraging the development of the renewable energy market with many preferential legal mechanisms in accordance with a February 2020 Politburo resolution on the orientation of Vietnam’s National Energy Development Strategy to 2030 with a vision to 2045.
The guidelines of Resolution 55 call for the synchronous and rational development and diversification of various types of energy, including efficient exploitation and use of renewable and clean energies. At the same time, it also targets rational exploitation of domestic fossil energy sources, prioritizing gas-fired power development to reduce the share of coal-fired power, and importing power plant fuels.
Speaking at the Vietnam Energy Forum 2020 themed “Green Energy Development: Trend and Challenges” held recently by the Ministry of Industry and Trade (MoIT), a PVN representative said the group’s power development strategy had identified renewable energy as one of its key tasks and set relevant targets.
New company formed
On April 8, 2020, PVN issued a resolution approving the establishment of the PetroVietnam Renewable Energy Joint Stock Company (PV Power REC). The independent legal entity will help PVN promote investment in renewable energy projects; mobilize investment capital; take the initiative in production and business activities and improve its management and capital preservation capacity.
In the first stage, PVN will invest in a solar power plant project at the reservoirs of Hua Na and Dakdrink hydropower plants; install rooftop solar power systems at the Ca Mau 1, Ca Mau 2, Nhon Trach 1, Nhon Trach 2 power plants or fertilizer plants.
In later phases, PVN can cooperate with domestic and foreign investors to carry out renewable energy projects nationwide including solar, wind, biomass, geothermal and garbage power projects.
Apart from the advantage of available construction sites and grid transmission systems in areas of Ca Mau 1 & 2, Nhon Trach 1 & 2, and Vung Ang 1 power plants, PVN’s experience in construction and installation of offshore oil and gas works will help in offshore wind power projects.
However, PVN is facing challenges in developing renewable energy. According to the group’s representative, PVN’s strategy calls for developing additional gas power projects but does not address further development of hydropower, coal power, and wind power projects. Therefore, PVN’s investment in more renewable energy projects must get the nod of competent authorities, the official said.
The renewable energy development strategy calls for investment in solar power projects, biomass power plants and wind power projects, with special attention paid to developing solar power projects at hydroelectric lakes and areas where solar panels can be installed at existing power plants.
On the other hand, the plan also foresees application of reliable, safe, effective environmentally friendly technologies, focusing on waste treatment suitable to conditions in Vietnam.
“To achieve appropriate development in a new field like renewable energy, PVN needs close direction from the government, support from ministries and sectors, close coordination with localities where the projects are implemented, as well as the interest and cooperation of domestic investors and foreign partners,” said the group’s representative.