wind energy in Vietnam

• Assessing potential of renewable energy resources wind, solar, biomass, biogas, etc, building database on renewable energy potential in Vietnam • Conducting research on completing and

VIET NAM ACADEMY OF SCIENCE AND TECHNOLOGY

INSTITUTE OF ENERGY SCIENCE

WIND ENERGY IN VIETNAM

Kuala Lumpur, Feb 3-4, 2015

Asia Renewable Energy Workshop 2015

Nguyen Thuy Nga

GENERAL INFORMATION

Vietnam Academy of Science and Technology (VAST)

VAST, a Governmental agency, a leading scientific and technological agency of the country, plays a leading role in the national scientific and technological system, and conducts basic research on natural sciences and comprehensive and high-standard technological development and train high- standard human resources for the country VAST has over 30 research institutes, 2650 permanent staff including 223 Profs and Assoc.Profs, 714 PhD, 04 National key laboratories, 01 Centre for high performance scientific computing, many advanced scientific equipment (35 units) for measurement, analysis in the field of physics, chemistry, mechanics, etc.

IES is a national institute, leading

research organization in the field of

energy in VN, a only institute of

VAST focusing on energy and

renewable energy.

IES has 5 research center with over

110 staff including 3 Assoc.Profs, 7

PhD, energy system stimulation lab

and lad for conversation biomass to

energy Wind and solar energy

research are our main priority.

Institute of Energy Science (IES)

GENERAL INFORMATION

Some achievements of IES VAST:

• Research on system theories in energy sector, research on modelling and methodology to solve the problem of optimized development of Vietnam energy system.

• Consulting and proposing to Vietnam Government on strategy, policy and decision

on national important projects such as Phu My power center, North-South 500kV transmission line, Hoa Binh, Son La and Lai Chau hydropower plants, Ninh Thuan nuclear power plant.

• Assessing potential of renewable energy resources (wind, solar, biomass, biogas, etc), building database on renewable energy potential in Vietnam

• Conducting research on completing and transferring advanced technology of key renewable energy exploitation and consumption in Vietnam

• Deployment of many energy projects such as small hydro power plants, wind energy plants, energy audit, etc.

Geothermal Potential: > 3000 MW

NATIONAL POWER DEVELOPMENT PLANNING

2011-2020-2030

Power from renewable energy sources

Feed in tariff: Wind power - 7.8 UScents/kWh

Biomass - Landfill gas: 7.28 UScents/kWh

Solid waste: 10.05 UScents/kWh CHP plant: 5.8 UScents/kWh

Vietnam Energy and Renewable energy

Biogas

 Wind energy potential in Vietnam is significant,

surpassing the potential of neighboring countries (in

the Southeast Asia)

 World Bank’s study (2001):

• Annual wind speed: ≥ 6 m/s at 65 m above the

ground level (AGL)

• Theoretical potential: 500 GW (about 39% of total

land areas)

• Most promising areas: coastal and highland areas

of Centre and Southern parts

 EVN’s study (2007):

• Annual wind speed: ≥ 6 m/s at 60 m

• Technical potential: 1,785 MW (incl North: 50 MW,

Centre: 880 MW, and South: 855 MW)

Wind Resource Assessment (Atlas)

DEVELOPMENT OF WIND ENERGY IN VIETNAM

 MoIT and World Bank (2011)

Wind energy potential of Viet Nam at 80 m

Wind speed: > 6 m/s Area: 128,346 km 2

Capacity: 26,763 MW

 MoIT and World Bank (2013 - 2014):

updating wind atlas

(further information see at http://www.esmap.org/node/3172)

- The results of the wind energy potential are

relative difference due to the number of wind mast

is not much and these wind masts do not ensure

standards → The wind map in VN has low

accuracy and it is only used for reference

- There is no specific reliable wind energy

potential assessment on a large scale of VN

- Wind regime of VN is low The average wind

speed in the best potential areas (Ninh Thuan,

Binh Thuan prov.) only about 7 m/s at 80 m

-lower than the prevalence rated of 12-14 m/s of

wind turbines

NATIONAL POWER DEVELOPMENT PLANNING

2011-2020-2030

Power from wind energy source 1,000 MW

(2020)

6,200 MW (2030)

Support policies:

• Feed in tariff: 7.8 UScents/kWh

• RE Law is being drafted and it is expected to publish in 2016

• Making RE planning, wind power planning

• Having more national programs about scientific research, RE application

• Cooperating between WB, GIZ etc to calculate and publish support regime for

electricity selling price, which is more suitable for RE (solar, wind and biomass)

• Joining with organizations to mitigate climate change and reduce CO2

• Establishing environmental protection fund

• The wind power selling price is expected to be approved at 10.4 UScents/kWh from

2015

Legal framwork for wind development in Vietnam

At central level

At local level: The primary contacts are (1) Provical People Commitee

(2) DOIT, DPI

Phu Quy WP

but

Binh Thuan Wind Project

(capacity: 30 MW, REVN Co.)

Bac Lieu Wind Project (capacity: 16 MW, Cong Ly Co.)

Group 1 Technological & Technical

Infrastructure: Unsupported infrastructure for wind power development

Equipment: Imported from other countries

Wind data: no reliable, synchronous and unified wind data all over Vietnam, no data sharing

Technical human resources: in severe shortage, lack of university education in wind power sector

Group 2 Economic & Financial

- High investment cost, low wind power price, limited lending from financial organizations

- Lack of enabling environment

- High O&M rate

Group 3 Institutional

- Lack of guideline, law and regulations for investment procedure (regulatory framwork)

- National and provincial plans, power contract etc.

- Lack of social acceptance and support to clean energy

The biggest obstacles for the investors are:

+ Capital arrangement: Large investment capital ⇒ difficult to arrange reciprocal capital

Low or no profit ⇒ difficult to find preferential financing + Wind power price: Low wind power price

State support is low compared to other countries in the world.

Obstacles and difficulties for wind power development

Solutions to develop wind power project in Vietnam

Technical solutions

• Wind measurement

• To be continuous, at international standard, at least 1 year

• Minimise data lost due to technical failures

• Standardised equipments

• Experienced contractor to set up the tower

• Site selection

• Minimum speed at 6m/s with stable wind conditions

• Close to the connection hub, for projects of 30 – 90 MW the distance should be less than 15km

• Close to the ports and main national roads

• Avoid residential areas, important buildings

• Slope less than 10o, supportive geology and weather

Technical solutions

• Turbine selection

• Fit with Vietnam conditions: 1-2MW, especially 1.5MW  Mature

technology, available spare parts

• With gear box type due to maturity

• G7 or non-G7 manufacturers?

• Grid connection

• Close to connection hub

• Early negotiation with EVN

• Speed up land clearance

• Raise the tariff, simplify the procedure to sign power purchase contract

• Propose to MOIT and EVN to build connection line for the project

• Arrange cheap financing, support by guarantee

Regulatory solutions

Solutions to develop wind power project in Vietnam

• Investment size

• Minimum at 30MW

• Reduce to the cost and move toward localisation

• Reduce turbine cost:

• Turbine cost: up 10%  Wind cost up 5.53 %

• Vietnam low localisation, choose between G7 and non-G7

• Reduce tower cost:

• Localisation: UBI Tower, PTSC M&C, Vina Halla, CSWind,N

• Cost around 2/3 imported from EU

• Tower accounts for 15.6% fixed cost, up 10%  wind cost up 1.59%

• Grid connection

• Local connection:

• Optimal design among turbines

• Minimise the lines connected to substations

• Grid connections: actively negotiate with EVN for building the connection lines

• Grid connection cost up 10%  wind cost up 0.47 %

Economic and managerial solutions

Solutions to develop wind power project in Vietnam

• Reduce Civil work

• Optimal design for foundation

• Small and temporary roads

 increase 10%, wind cost up 1.59%

• Cut O&M

• Select turbine from credible manufacturers

• Small and efficient operation team

• Learn from foreign professional in wind farm operation

• O&M increase by 10%, wind cost up 1.35%

• Cut interest cost

• Seek cheap funding, like 3%/year for ODA, export credit (ECAs)

• Loan from international manufacturers (interest rate 4-5%)

 Interest rate increase by 10%, wind cost up 4.18%

Economic and managerial solutions

Solutions to develop wind power project in Vietnam

INTERNATIONAL COOPERATION

Status of international cooperation in wind power sector

International financial organizations: WorldBank, Asian Development Bank

(ADB), KfW (German), Dragon Capital

GIZ German: The biggest international organization to support Vietnam to

deploy some programs: building mechanism for grid-connected wind power,procedures for wind power planning, wind power development promotionprogram and consult for Vietnam wind power projects

Other countries and organizations: Japan, Spain, Denmark, RussianN

Accurate wind source assessment, measurement technique

Measures against typhoon

Prediction and measure of turbulence in complex terrain

Environment assessment

Proposing international cooperation points

INTERNATIONAL COOPERATION

Human resources buiding: Through NEF Researchers Invitation Program, graduate courses in wind energy field (MSc, PhD degree and internship)collaborative research projects

post-
Technology: to develop suitable technology, build wind turbine manufacturingplants, in order to reduce the investment cost and increase power performance

of wind turbine, turbine allocation and wind site design

Cooperate to conduct the projects: investigation and assessment of technicalpotential in Vietnam, technology for exploitation of low wind regime, reducingcost for small scale wind farm

Conducting joint research with the purpose of developing and transferring windpower technology suitable for wind regime and climate of Vietnam

Joint research in market studying and wind power technology equipmentadvertising

RECOMMENDATIONS AND SUGGESTIONS

Effective results and positive impact of participating in NEF Renewable Researcher Invitation Program

1 Outcomes:

+ Training and developing human resourses on wind energy forVietnam, namely having trained 4 researchers of IES and 1researcher of IE from 10/2012 to 3/2015

+ Improvement and promotion of cooperation between organizations

in Japan and Vietnam, such as NEF, AIST, Mie Uni., VAST

2 Recommendations:

+ Keep on training and developing human resourses for Vietnam, andexpand more the others such as solar energy, biomass energy,geothermal energy, etc

+ Keep on improving and promoting cooperation betweenorganizations in Japan and Vietnam

-RECOMMENDATIONS AND SUGGESTIONS

Support proposal to strengthen deployment and research activities in wind energy sector of IES VAST:

Modern wind measuring equipment

Theory and calculation tools in assessing wind regime, powerpotential for large areas for wind power development planning

Theory and calculation tools for calculating and designing windpower projects

Method and tool (measuring equipment and calculation software):evaluating the suitability of wind turbine types based on the windcharacteristics at the different regions and exploitation conditions ofVietnam

Making joint JCM project proposal for experimenting Japan windpower equipment

Cooperate in building wind and solar verification and consultancycenter in Vietnam

Name: Nguyen Thuy Nga, PhD

Position: Vice Director of IES VAST Email: ngthuynga@gmail.com

Tel: +84-903-22-44-48