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This p a p e r analyzes four important issues related to national renevvable energy poỉicies including strategies for energy deveỉopment, policies on ílnancial suppor[r]

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VNU Journal of Science, Earth Sciences 25 (2009) 133-142

Renewable energy policies for sustainable development in Vietnam

Luu Duc Hai*, N guyen Thi H oang Lien

C ollege o f Science, VNU

Rcceived 09 November 2009; received in revised íbrm 15 November 2009

Abstract This p a p e r analyzes four important issues related to national renevvable energy poỉicies

including strategies for energy deveỉopment, policies on ílnancial supports for renewable energy

deveỉopment, use o f taxes and fees for energy management, policies on energy consumption

Successful experiences o f renevvable energy policies o f some other countries in the world are the

basis of following suggestions: develop policies and strategies on renevvable energy development,

policies on íinancial supporl for researches on assessment o f potentiaỉ and technologies o f

rene\vable energy exploitation; issuing cnergy taxes or carbon tax, environmental fees for íossil

fuels production and consumption in o rd e r to promote investmcnt for improving renevvabỉe energy

s o u rc e s a n d consumption; increasing c n e rg y c o m m e rc ia l p ric e , e s p c c ia lly e le c tric ity p ric e , is a

Keyvvords: Rcnewable energy, energy poỉicy, sustainable deveỉopment

1 I n t r o đ u c t i o n

A c c o rd in g to Prim e M in is te r’s D ecision No

5 3 /2 0 0 4 /Q Đ -T T g o n I7'h A u g u st 2004 about

Strategic direction for sustainable developm ent

in V ictnam , s o m e ty p c s o f clean en ergy w hich

are high potential and can be vvidely uscd in

househ o ld scale such as so lar and vvind encrgy,

small hydropo\ver and biogas hav e not bcen

prop erly studied, applied and generalized; there

is a lack o f policy for en coura ging the use o f

clean and en v ironm cntal friendly energy

T h ere ío re, priority activities are: sup p o rt for

research, transfer and application o f

en v ironm ental friendly energy system s

1 Corresponding author Tel.: 84-904122770

E-mail: haiqlm @ yahoo.com

133

including n e w energy sou rces a n d renew ab le energy sources; enco u ra g e the use o f less used energy tc ch n o lo g ie s and e n e rg y sav in g program s; preferential financial sup p o rt for renew able e n e rg y developm ent O n 2 nd A ugust

2007, P rim e M iniste r m a d e a decisio n No

130 2 0 0 7 /Q Đ -T T g ab o u t fm ancial policy for investment prọịects in clean d e v e lo p m e n t program ( C D M ) including p rọịects for electricity g enerated from re n e w a b le energy sources O n 16th Ju n e 2009 W o rld B ank signed the ag re e m e n t on p roviding U S D 2 0 0 millions for increasing o f renew able e n c rg y su p p ly for national electricity n etw o rk in V ietnam

V ie tn a m h a s a b u n d an t an d diversified sources o f rc n e w a b le en ergy [1], h o w e v e r there

is only 1% o f potential renew ab lc e n e rg y has

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134 L.D Hai, N T.H Lien / V N U Ịournal o f Science, Earth Sciences 25 (2009) 133-142

been u sed for c o m m ercial electricity production

V ietnam is fa cin g several issues regarding to

d e v e lo p m e n t policy and use o f potential

re n c w a b lc e n e rg y in o rd cr to achiev e the target

o f 3 % o f c o m m e rc ia l electricity produced from

re n e w a b lc e n e rg y in 2010, 5 % in 2020 and 11%

in 2050 W h ile m a n y countrics have made

renevvablc e n e r g y usc c o m p u lso ry in their

national povvcr dev elo p m en t strategy, V ietnam

re m a in s at the pilot prọịcct stagc duc to lack o f

C a p i t a l and teclinology [21] T h is pap er íìrstly

review s renevvable cncrgy policics o f somc

o th c r c o u n trie s in the w orld and current

de v e lo p m c n t o f rcncvvablc en crgv in V ictnam

Ít th e n p ro p o scs solutions for im proving

re n e w a b le e n e r g y policy in Vietnam

2 O v c rv icw o f en erg y policics

A policy co n s is ts o f view points, solutions

a n d skills in o rd e r to achieve specific goals in

th e d e íln e d futurc A ccording to [2], policy can

bc sim ply d escribcd in Figure 1 In fact, policy

is a m acro m a n a g e m e n t tool vvhich makes

s tro n g im pacts on socio -cc o n o m ic activities

d u rin g a giv e n pcriod o f timc A p críect policy

s hould c o m p ris e all contcnts: vievvpoints,

g uidelines; m e th o d s and solutions for

im p lem en tatio n ; strategies and tactics to

achiev e goals A policy vvithout specific

solutions an d skills for rea!ization is only seen

as a d esirc o r guid e lin e T hus, it is needed to

c o n s id e r all c o m p o n e n ts o f a policy

Energy is an im p o rta n t íeature for national socio-econom ic d ev elo p m en t In d e v e lo p in g countries, in o rd cr to in c re ase 1% o f G D P , it is needed to increasc 2 % o f c o m m ercial e n e rg y consum ption T h e re fo re , dev elo p in g appropriate an d integratcd policies for encrgy

de v e ỉo p m e n t is req u ire d for achieving sustainable develo p m en t N a tio n s should determ ine goals a n d priority policies for dev elo p m cn t o f r e n c w a b le energy in acc o rd an cc vvith thc p o tential and their socio- econom ic conditions; draw up p o licies on financial supp o rt for d e v e lo p m e n t o f renevvablc

en ergy so urces, and in s o m c cascs G o v crn m cn ts need m u c h in v e stm en t in d c v c lo p in g potential

te chnologies for re n e w a b le en ergy exploitation

a n d u s e ; C a p ita l in v e s tm e n t t o b u ild

co ncenlrated rcn ew ab le e n e rg y exploitation

s ta tio n s; eíY ìcient u s c o f e c o n o m ic to o ls for

m a n ag cm e n t, d e v e lo p m c n t a n d consum ption o f renew able energy; in tro d u cin g consum ption policies a n d green m a rk e tin g for rcnew able energy p ro d u ctio n a n d use Renevvable energy policics s h o u ld be a c c o m p a n ie d b y goals and speciíìc solutions E nergy policies should be

d eíin ed for a spccific tim e in the futurc and also ílexibly a m e n d c d in acc o rd a n c e vvith national socio -ec o n o m ic d e v e lo p m e n t trends

3 R cnew able energy p olicies o f o th cr countries

T he literature o n rcnevvablc e n e rg y policies

d e m o n stra te s tliat renevvable en ergy policies o f other c o u n trie s c o n s is l o f four important them es; selection o f energy sources and

d evelopm ent goals, policics on íinancial support for e n e rg y d ev elo p m cn t, use o f

e conom ic tool in m an ag em e n t, and

co n su m p tio n policies (T a b le 1)

Fig 1 A Policy Framework

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L.D Hai, N T.H Lien / V N U Ịoum aì o f Science, Eiirth Sciences 25 (2009) 133-Ì42

T ab le I A nalysis o f renevvable energy p o licies o f o th c r co untries

135

g o a ls for rcncw abỉe

e n c rg y d cv c lo p m c n t

P olicies on íìnancial

su p p o rl for energy dcveỉopm ent

tool for m an ag e m en t policics

Ref

S w eden

U nited

K ingdom

Finland

N eth erlan d s

D enm ark

G e m a n y

Spain

re ach 15.3% o f total

e n e rg y use in 2 0 1 0

W ind, so ỉar, w ave

a n d tidal en e rg ies

w iỉỉ rcach 15% o f

rencvvablc cn erg y in

2020

a c h ie v e 19.4% o f ren ew ab le e n e rg y in 2010

e n e rg y w ill reach

9 % o f elec tricity

rc n e w a b le en erg y in

2 0 1 0

W in d energy

Investm ent subsidy

peat and biom ass at

4 0 0 0 S ek/K W

th ro u g h scien tiĩic

sources

peat and biom ass

C arbon tax for ío ssil ĩuels, tax ex em p tio n for b io -fu els

rene\vable electricity quota, ex e m p tio n o f

I n d u s t r i e s usc renevvable e n e rg y

C arbon lax fo r coal, Petroleum

Taxes for electricity |8,15| use, tax exem ption

production

to pay buy out price for clcctricity

renew able encrgy

cosls Taxes for dom estic [8] use o f elecưicity is

industriaỉ use o f

eĩectricity

[17,25]

S tate invests in vvind

elec tricity produced from w ind at price

p ro d u c ers’ price

H y d ro p o w er, biom ass,

p h o tovoltaic

energies

photovoltaic, biom ass, hydropow er cnergies will reach

3 0 % o f electricity

sources in 2 0 1 0

Lovv rate loans for wind energy prọịecls,

for household solar

energy prọịects

S tate su p p o rts for

en erg y so u rc es at the price o f 8 0 -9 0 % o f

price

7,000KWh;

en v iro n m en tal

2001

co m p e n sa te s fo r consu m p tio n

renevvable energy

taxes for Industries

en erg y so u rc e s

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136 L.D Hai, N T H Lietĩ / VN U Ịoum al o f Science, Earth Sciences 25 (2009) 133-142

Greece

Ireland

Czech Republic

United States

Braziỉ

Japan

ctíina

turbines, geothermal

energies will reach 30% o f electricity

renewable cncrgy in

2 0 1 0

wind turbines are currently reach 5%

of electricity

renewable energy

vvill reach 3-6% of USD7.6 billions to saving electricity produced prođuce electricity

from rcnewable from renevvabỉe energy in 2010 energy

Bio-fuels, solar Financial aids for Green marketing (6.27]

renewablc cncrgy renevvable cnergy

bio-fuels (ethanol ethanol production and palm oil) will programs (USD 18 atlain more than billions)

90% o f eỉectricity produced from rencwable energy

small hydropower research on eỉectricity produced energies wiỉl reach renevvable energy from renewable

renewable energy in

2 0 1 0

Wind turbines, soỉar State investment in Grants for elcctricity [".10,28]

energy, small development o f produced irom coal hydropovvcr, renewable energy gas and other

agricultural wastes and biogas vvill

electricity produced from renewable energy in 2010

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L.D Hai, N T Ỉ Ỉ Lien / V N U lo u m a ỉ o f Science, Eartỉĩ Sciences 25 (2009) 133-142 137

tu rb in es a n d b io g a s

T ax ex em p tio n for

tax ex em p tio n for

im port and expori o f

production

124]

S o u th AíVica T arg et to a c h ie v e

15% o f e le c tric ity

re n ew ab le e n e rg y in

2 0 2 0

[26]

so la r e n c rg y sy stem s

[12]

3 1 S o lu tio n s f o r d e v e ỉo p m e n t o f renew able

e n e rg y

A c c o r d in g to T a b le 1, d e p e n d in g o n its

potential renevvable e n e rg y a n d developm ent

degree, eac h country d e c id e s its priority

renevvable energy a ltc rn a tiv e s vvith the

proportion o f rcnew ab le e n e r g y in the total

national energy p ro d u ctio n increasing over

time C o untries o f lo\v d e v e lo p m e n t degree

often ch o o s e small in v e stm en t sources, less

com plicated technologics, p ro d u ctio n price is

equivalent to the price o f fossil en ergy such as

small hydropow er, so lar ra d ia n t heat (w ater

boiled by solar heat, s to v c s a n d driers used

solar light), bio-encrgy, b io g a s and vegetable

oil Countries vvhich h a v e h ig h degree o f

e co n o m ic and technological d e v e lo p m e n t often

choose high investm ent p rọ ịec ts, com plicated

e q u ip m en ts such as w in d tu rb in e s , photovoltaic,

bio-fuels (ethano), m e th a n o l), geothermal

electricity, tidal electricity o r o cean w ave

electricity

3.2 F in a n cia l su p p o rt p o lic y

In o rd e r to d ev e lo p rcnevvable energy,

especially com m ercial e lectricity produced

f r o m re n e \v a b le e n e r g y , s e v c r a l p o lic y s o l u tio n s

have been studied and applicd: State funds for

s c ie n tiíìc a n d te c h n ic a l re s e a rc h e s o n renevvable energy; lo\v rate loans for projects o f renew ab le energy sourccs d evelopm ent; ex e m p tio n or reduce o f taxes for investors o f renevvable energy proịccts; subsidy for buying com m ercial electricity w ith h ig h price (8 5 -9 0 % o f p rice for con su m p tio n electricity) applied for p rojects o f electricity g eneration from renew able energy; subsidy o r fm ancial supporl for prọịects o f local renevvable e n e rg y exploitation a n d use Financial supp o rt for renew able energy

d ev elo p m en t so lu tio n s have been used in

d iíĩe re n t co u n tries w ith different econom ic

d ev elo p m en t d egrees Hovvever, in developed countries such as U nited K ingdom a n d Japan, State supports have been provided through investm ents for scientiíìc and technological institutions instead o f direct supports for investors In so m e cases, in o rd er to pro m o te a speciíìc renew ab le energy, State focuses on scientific researche s as well as supp o rts for private investm ent such as: vvind en ergy in

D en m ark and S pain, ethanol program in Brazil, biom ass en ergy d e v e lo p m e n t program in C zech

R epublic or re n e w a b le energy dev elo p m en t program in C hina

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138 L.D Hai, N T.H Lien / V N U Ịournaỉ o f Science, Earth Sciences 25 (2009) 133-142

3.3 U se o f eco n o n tic ío o l

E co n o m ic tool has been seen as a powerful

m a n a g e m e n t solution in the m arket econom y

U se o f e c o n o m ic tool in d e v e lo p m e n t o f

renevvable c n e r g y has not b ecom e popular in

differe nt co u n tries vvith different econom ic

d e v e lo p m c n t d egrees T h e re are 3 main

eco n o m ic lools including: taxes (carbon tax,

fossil fucls tax, in c o m e tax); q u o ta o f electricity

p ro d u ced from rcncw ab lc en ergy (U K , Japan);

íìnancial aids for c o m m crcial elcctricitv or

e n e rg y p ro d u c e đ from renew able sources

(C h in a , US) T h e funclion o f these econom ic

tools is to a d ju st the advantage o f price o f

c o m m ercial e n e rg y produced from íòssil fuels

in com parison to o n es produccd from rene\vable

energy

3.4 P o licies f o r co n su m ers

Policics for renew ab le e n e rg y ’s consum ers

includc 3 groups in o rd er to reduce com m ercial

clcctricity use: ap p ly hig h e r taxes for domestic

electricity co n s u m p tio n than industrial

electricity co n s u m p tio n ; policies on energy

sav in g and c o m m c rc ia l electricity saving in

particular; grcen m arketing for com m ercial

electricity p ro d u ctio n and consum ption T he

e íĩic ie n c y o f thcse policies d ep en d s on

c o m m u n it y ’s cd u cational level a n d a\vareness

o f en v iro n m c n ta l protcction as vvell as

electricity co n s u m p tio n pcr capita

4 K e c o m m c n d a t i o n s f o r r e n e w a b l e e n e rg y

po licies t o w a r d s s u s t a i n a b l e d e v e l o p m e n t in

V i e t n a m

A cco rd in g to the goals for sustainable

d e v e lo p m e n t m c n tio n e d in Q Đ 153/2004/QĐ -

T T g , potcntial rcncvvable en ergy o f Vietnam

[1], actual d c v e lo p m c n t o f ren ew ab le energy in

V ietnam in rccent years, and lessons and

e x p e rie n c e s lc a m t from othcr countries; several

re c o m m e n d a tio n s for rencw ab le en ergy policies for V ie tn a m h a v e b e e n m adc as follows:

S tr a te g ie s f o r ren e\va b le en erg y

d e v e ỉo p m e n t: DifTer from som e o th c r A SL A N

cou n tries, V ie tn a n ì h a s divcrsified potential fossiI fu els (c o a l, lignite, peat, Petroleum, gas

a n d n u c le a r c n c rg y ) V ictnam is o n the w ay to

b uild a m a rk e t c c o n o m y , thus the selling price

o f c o m m e rc ia l e n c rg y is d ecided by the

G o v e rn m e n t T h e r e ío r c , it is difficult for rencvvable e n e r g y to c o m p c te vvith the price o f fossil fuels, c s p e c i a ll y the selling price o f

e lectricity g e n e ra tc d from hydro p o w er plants If the G o v e r n m e n t d o e s not dcvelop policies and strategics s u p p o r tin g for investm ent in

p ro d u clio n , c o n tro l selling price o f commercial

e lectricity an d e n e r g y pro d u ced from fossil

f u e ls a n d h y d ro p o v v e r, ii is dilTicult for

r e n e w a b le e n e rg y prqịects to bc efficiently

p crfo rm c d in V ic tn a m Hence, it is impossiblc

to a c h ie v e th e g o a l s o f 3 % o f rcnew able energy

in 2 0 1 0 (e x c lu d c large a n d m cdium hydropow er

m o re than 3 0 M W ) a n d 5 % in 2020

O n the o th e r hand, V ietnam has diversiíied

p otential r e n e w a b l c energy a n d selection o f

p rio rity renevvable e n e rg y for development

s hould be c o n s id e r c d bascd on available

te c h n o lo g ie s a n d production costs Besides

sm all hydropovver, s o la r radiation, bicmass

e n e rg y g e n e ra te d from agricultural and

d o m e s tic w a s tc s (biogas, agricultural by-

p roducts), o th e r e n e rg y sou rces have high

in v e stm en t rate a n d production costs and do not attract private a n d íbreign investors Types and

d e v c lo p m e n t d ir e c tio n s ọ f rọnevvable energy

s o u rc e s in V ie tn a m h a v c em erged as follovs:

- P otential c a p a c it y o f small h y d r o p o v e r in

V ie tn a m is a b o u t 2 ,0 0 0 M W and currently

ex p lo ited a b o u t 30 0 M W M ountainous areas in the N o r lh , Central part and T a y N g u y e i arc

s u itablc for d e v e l o p m c n t o f sm all and cheap

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L D Hai, N T H Lien / V N U Ịournal o f Science, Earth Sciences 25 (2009) 133-142 139

hydrc)'power thanks to s u b s id y for clcan

develo p m en t If d e v e lo p m e n t o f small

hydropcnver is coupled w ith vvater reservcs, the

en v ironm ental econom ic b e n e fits o f th o s e small

hyđro»power proịccts will be increased

- S olar cncrgy is potential in the s o u th o f

the C e n tra l part and T ay N g u y e n a n d it can be

d c v e lo p e d by building s o la r e lectricity plants

based on the principle o f c o n v e rs io n o f solar

e n e r g y to com m crcial e le c tric ity in the areas

w h ic h are not su itable for agro-forcstry

d ev elo p m en t In o th e r a rea s, s o la r e n e rg y is

preferred to be used for c q u ip m e n ts collecting

solar radiant heat (hol w a te r ta n k u scd solar

energ y ; e q u ip m en ts uscd s o la r e n e rg y to dry

acricultural, íorcstry a n d íìsh e ry Products)

- W ind cncrgy is p o tcntial in the Central

part, Coastal zo nes and isla n d s but th e re is a

lack o f inform ation ab o u t the vvind intensity at

the h e ig h t suitablc for installation o f vvind

turbines F urtherm ore, in v e s tm e n t c x p c n s c s and

production costs o f vvincl e lectricity are h ig h in

com parison to the c u rre n t p rice systcm ,

th e re ío re w ind turbines c a n o n ly be installcd for

test electricity g en eration In the futurc,

investigation and p la n n in g for w in d electricity

prọịects in the potential are a s a s vvell as transfer

o f vvind electricity te c h n o lo g ic a l from

d evelo p ed countries are n ece ssary At the

m om ent, there are s o m e w in d electricity

stations at industrial scale h a v e been b u ilt in

Phu Q u o c island, Ly Son island a n d B inh Dinh

province

B iom ass e n e rg y g e n e ra te d from

agricultural vvastes can b e c o n v e r te d to solid

fuels for dom estic use a n d h e a t in th e plains and

midland areas o f V ie tn a m In th e rural areas,

biogas technology c a n b e vvidely d e v e lo p c d to

provide dom estic fuels for ía rm e rs , hovvever

íurther stuđies on e lectricity g e n e ra tio n from

large biogas stations sh o u ld b e carricd out

(agricultural, íishcry a n d fo re s try farm s; or

w aste trcatm ent system o f papcr-m ills, sugar- mills and landíills) C urrently, “ Biogas for anim al husban d ry 2 0 0 7 -2 0 1 1 ” program is carrying o u t with th e goals for production capacity o f rcncvvable en ergy o f 2.800 TJ/year

M oreover, thcre a re several spontaneous researches on electricity g eneration from biogas hav e been carried o u t in Da N a n g a n d Tien

G ia n g provinces

- Ethanol bio-fuel has been develo p cd and produced from m a n io c starch, w a s tc s o f sugar- mills and so m e o th e r agricultural by-products (potato, c o m , peas) Novvadays, V ie tn a m has 3 bio-ethanol factories w ith production capacity

o f 320 million liters per ycar A m o n g them ,

D ong X anh jo in t stock co m p a n y has production capacity o f 120 m illion liters p c r ycar H ow ever, bio-fuel dev elo p m en t in V ie tn a m is limitcd due

to productive agricultural land h a s been narrovvccl by urbanization, industrialization and clim ate changc P roduction o f vcgctab lc oil from coconut, palm, Jatro p h a an d o th c r plants is also lim ited d u c to a v ailab le land for grovving these plants is not plentiful and c o n strain t by other land use d e m a n d s inclu d in g use for the above p rọịects o f renew ab le energy

- G eotherm al en ergy has not been considcrably studied A t the m o m e n t, there are only 5 sites for high te m p e ra tu re hot w ater have been found vvhich a r e suitable for building 40-

5 0 M W geotherm al plants O th e r hot vvater sites have lovv and norm al te m p e ra lu re vvhich are only suitable for m edical trea tm e n t o r d ry in g o f agricultural Products A research o n assessin g potential geotherm al and efficient use o f

s e o th e r m a l fo r s o c io -c c o n o m ic d e v e lo p m e n t is highly required S everal hot vvater sites have been exploited an d u sed for bathing, m edical trea tm e n t or algae-culture

- O th er renevvable en ergy s o u rc e s su ch as ocean vvave and tidal energy, e n e rg y created by the interaction b e tw e e n salt vvater and

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140 L.D Hai, N T.H Lien / VNU Ịoum aỉ o f Science, Earth Sciences 25 (2009) 133-142

freshwater, o r ocean heat hav e not been

assessed and there is a lack o f speciíic

technology for these sources Hovvever, these

sources could not becom e an econom ic valuable

com m ercial energy because investm ent costs

m ay bc too high

F in a n c ia l su p p o rt p o ỉic ie s f o r renexvable

e n e rg y sources: State financial aids for

developm cnt o f rcncvvablc e n e rg y sources in

V ietnam should be focused on scientific

researches and tc chnologies for assessing

potential and cxploitation m ethods; investment

for rencvvable en ergy exploitation projects The

National Energy Efficiency P rogram (N E E P )

for the period 2006-2015 is im plem enting On

20,h N o v cm b cr 2007, V ictn am ese G overnm ent

issued D ecision No 177/2007/Q Đ -T T g about

project o f bio-luels d e v e lo p m e n t to 2015 and

Vision to 2025 O b jectives o f this project

includc developm ent o f b io-fuels production

and w idely use o f bio-fucls in o rd c r to partially

replace traditional fossil fuels; dev elo p m en t o f

planned material areas; trying to achieve

250,000 tons o f ethanol a n d vegetable oil

produced in 2015 (m ix for 5 m illion tons o f E5,

B5) w hich supplies 1% o f the total national

dcm and o f gasoline; striving for reaching

advanced technologies o f bio-fuel production

and achieving 1.8 million tons o f eth an o l and

vegetable oil in 2025 vvhich can p rovide 5% o f

the total national d e m an d o f gasoline N E E P

and D ecision N O 177/2007/Q Đ -T T G are

p roviding e lĩicien t financial supports for

ren ew ab le en ergy projects H ow ever, there is no

íìnancial support for rcscarches o n potential

sources and exploitation te chnologies for

rcnevvable energy

U se o f ta xes a n d fe es f o r ren ew a b le en erg y

d evelo p m en t: Rcnevvablc energies, cspecially

com m ercial elcctricity energy often need higher

investm ent ratc and production cost thạn vvhich

o f electricity produccd from fossil fuels (coal, Petroleum, gas) Therefore, if there is no preferential policy on ta x e s and fees, electricity produced from rcnevvablc en ergy vvill not be

a b le to c o m p e t e w ith c le c t r i c i t y p r o d u c e d fro m

íossil fuels an d hydropovver Issuing ta x e s for electricity pro d u ced fro m fossil fuels and hydropoxver and integrating en v ironm ental fces

in c o m m ercial electricity p ric c are necessary for investm ent in clcctricity g enera tion from rene\vablc energy At th e m o m e n t, V ictnam has

no cnvironm cntal a n d e n e rg y tax for íossil fuels exploitation and use T a x íb r cxploitation o f fossil fucls is low (1 -1 0 % ), transportation fee

in te g r a tc d in P e tr o le u m p r i c e is a p p r o x im a te ly

3% o f selling price, en v iro n m e n ta l fees for exploitation o f fossil fuels arc guesstim ated based on the q u an tity o f exploited resourccs

T h e s e issu e s a re c o n s tr a in ts for in v e s tm e n t and use o f renew ab le energy R ecently, National

A ssem bly is co nsidering th e draft o f Resources

T ax Lavv Ít is e x p e c te d that o n c e this Lavv

b ec o m e s effective, it vvill help to promote efficiency exploitation an d use o f non- renevvable energy w hich in tum vvill promote

d ev elo p m cn t o f rcn ew ab lc cnergy

P o licies o n e n e r g y c o n su m p tio n : According

to N E E P , the targct for th e pcriod 2006-2010 is

to sav in g 3 -5 % o f e n c rg y consu m p tio n , and 5- 8% for the pcriod 2 0 1 1 -2 0 1 5 Hovvever this program is facing several difficulties such as: lack o f e n e rg y ta x e s o r c a rb o n tax; lovv encrgy price, especially elcctricity price is lovver than

m arket price; low d e v c lo p c d technologies: low

e fficiency in e n e rg y u s e o f e q u ip n en ts; insufficient C apital for te c h n o lo g y innovition

T h e s e o b v io u sly limit th e d em a n d for energy efficiency and conscrv-atioii serviccs R cdtce in

g o v e rn m e n t’s subsidies f o r electricity pricí can

be considercd as a policy to iníluence eaergy consum ption

Trang 9

L.D Hai, N T H Lien / VN U Ịournal o f Science, Earth Sciences 25 (2009) 133-142 14!

5 C o m c lu s io n s a n d r e c o m m e n d a t ỉ o n s

A lth o u g h V ietnam h a s a b u n d an t and

d iv e rs iíie d sources o f renew ab le energy such as

solar energy, vvind encrgy and small

hydropovver, these sources hav ẽ not been

e íĩìc ie n tly exploited and used T h e National

E n erg y E fficiency P rogram ( N E E P ) is targeted

to p ro d u c e 3% o f com m ercial electricity from

rcnevvable encrgy by 2010, 5% by 2020 and

11% by 2050 T h e s e targcts seem difficult to be

a c h iev ed i f V ietnam ese G o v ern m en t d o es not

d e v e to p appropriate policies on renevvable

energy

F o l l o w i n g r e c o m m e n d a t i o n s h a v e b e e n

d r a v m o u t f r o m th e a b o v e a n a l y s i s :

1 G o vernm ent s hould d e v elo p policies and

strategies for renevvable e n e rg y dev elo p m en t in

vvhich deciding priority energy to be invested in

each period is required

2 Besides policies on íinancial supports for

co m m ercial renevvable energy prqịects, it is

needed to develop policies on íìnancial supports

for researches o n potentĩal an d technologies for

renevvable energy exploitation

3 G o v ern m en t has to issue en ergy taxes or

carbon ta x as vvell as charge environm ental fees

for fossil fuels production an d consum ption in

o rd er to prom ote investm ent for and use o f

renevvable energy

4 A d ju stin g en ergy price, especially

electricity price a n d reducing g o v e m m e n t’s

subsidies for electricity p rice is a solution for

saving a n d efficient use o f energy, as vvell as

w idely exploitation a n d use o f renew able

energy in V ietnam

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