CHALLENGES IN IMPLEMENTING RENEWABLE ENERGY

DEVELOPMENT OF THE POWER DEVELOPMENT PLAN VIII

Hanoi – November 2023

Electricity & Renewable Energy Authority

CONTENTS

I II III
OBJECTIVES AND BLOCKAGE, SOME
ORIENTATION CHALLENGES COMMENTS
PDP VIII FOR RE
DEVELOPMENT
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CONTENTS

I II III
OBJECTIVES AND BLOCKAGE, SOME
ORIENTATION CHALLENGES COMMENTS
PDP VIII FOR RE
DEVELOPMENT
3
 OBJECTIVES AND ORIENTATION OF POWER DEVELOPMENT PLANVIII UP TO
2030
IMPLEMENTING A JUST ENERGY
ENSURE NATIONAL ENERGY TRANSITION
SECURITY • RE will reach 30.9-39.2% by 2030 (towards the
• GDP growth of 7% period 2021-2030 target of 47% in case JETP is fully and substantially
‣ Power sale 8.8%, Power production 8.7% implemented.
period 2021-2030 • Control GHG (204-254 million tons CO2 by 2030)
‣ (Sale/production 2030 will reach and about 170 million tons of CO2 if JETP is fully
505.2/567 billion kWh) and substantially implemented
‣ Pmax: reach 90,500 MW by 2030

DEVELOPMENT OF INDUSTRIAL ECOSYSTEM AND

RENEWABLE ENERGY
• Establishment of 02 Regional centers of Industry, RE service
(production, transmission, and consumption of electricity)
• Manufacturing of renewable energy equipment, construction, installation
of related services, building an ecosystem of renewable energy industry
in areas with great potential such as the North, South Central, and South
when favorable conditions exist.. 4
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 RENEWABLE ENERGY DEVELOPMENT
OBJECTIVES
Accelerate the development of renewable energy (offshore wind, solar)
Increase the proportion of renewable energy in the structure of power sources and electricity
production
REQUIREMENTS
Suitable for system integration capacity and grid transmission capacity
Reasonable electricity prices and transmission costs associated with ensuring operational safety
and overall economics of the power system
Make use the most of grid infrastructure
Develop solar power combined with battery storage when the cost is appropriate

ONSHORE WIND OFFSHORE WIND SOLAR FARM ROOFTOP SOLAR

(MW) (MW) (MW) (MW)

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CONTENTS

I II III
OBJECTIVES AND BLOCKAGE, SOME
ORIENTATION CHALLENGES COMMENTS
PDP VIII FOR RE
DEVELOPMENT
6
BLOCKAGE, CHALLENGE
FOR RE DEVELOPMENT

Strategy - Policy
Long-term, stable, consistent
Planning with the reality of renewable
Renewable energy energy development, making
resource planning is the most of and exploiting
clear, integrated and all renewable energy sources
must be long-term Attractive, attracting social
Related planning ensures resources
consistency and legality Support the development
(marine space planning, chain, localization, and cost
land use planning...) reduction
Legal framework
National technical standards
for renewable energy
development
Decision on the use of
marine space
The licensing and survey
process is clear and
transparent
Harmonized power purchase
agreement
Guaranteer the connection
to the power grid
Loan regulations
Other issues
Infrastructure is not complete
The data is not reliable enough
National marine security and
defense
Management, operation and
professional contractor for
human resource capacity
development
Power grid and logistics are not
complete
Localization of equipment is still
low
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CHALLENGES IN IMPLEMENTING ONSHORE WIND POWER PROJECTS
THE CURRENT PRICE BRACKET DOES NOT ENCOURAGE RE
01 DEVELOPMENT, IT IS DIFFICULT TO ATTRACT INVESTORS, ESPECIALLY
IN THE NORTHERN REGION

LACK OF LONG-TERM POLICY ROADMAP FOR WIND POWER

02 DEVELOPMENT. THERE IS NO MECHANISM FOR SELECTING

INVESTORS

17,894 MW BY END OF 2030

North: 2,564 MW NEWLY ADDED
2025, 3,200 MW NEWLY ADDED BY
2030 SOME OTHER DIFICULTIES:
Center: 1,390 MW NEWLY ADDED
2025, 2,900 MW NEWLY ADDED BY
03 - DIFFICULTIES IN CAPITAL MOBILIZATION
- DIFFICULTIES IN COMPENSATION AND GROUND CLEARANCE WORK
2030 - RISK OF BEING CURTAILMENT DURING OPERATION
South: 5,476 MW NEWLOY ADDED
2025, 2,364 MW NEWLY ADDED BY
2030

IF THERE ARE NO INCENTIVE MECHANISM, PREFERENTIAL ELECTRICITY PRICES...

IT IS DIFFICULT TO REACH THE GOAL OF WIND DEVELOPMENT OF ABOUT 22 GW BY 2030
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CHALLENGES IN IMPLEMENTING OFFSHORE WIND POWER PROJECTS
OFFSHORE WIND POWER NEEDS THE PARTICIPATION OF MANY
STAKEHOLDERS, STATE AGENCIES, LOCAL AUTHORIES, ENVIRONMENTAL
01 ACTIVISTS...
THERE ARE NO SPECIFIC REGULATIONS FOR OFFSHORE WIND POWER
DEVELOPMENT FROM LICENSING PROCESS TO EVALUATION
STANDARDS...
OFFSHORE WIND POWER DEVELOPMENT INVOLVES MANY LAWS

02 AND MANY UNDER-LAW DOCUMENTS; OVER 10 COMPETENT

MANAGEMENT AGENCIES AND ORGANIZATIONS. TIME TO
COMPLETE THE PROCEDURES IS ESTIMATED ABOUT 2-3 YEARS
6.000 MW BY END OF 2030
SOME OTHER DIFICULTIES:
2.500 MW IN THE NORTH
- CURRENTLY THERE IS NO MARINE SPATIAL PLANNING
500 MW IN THE CENTRAL
- SURVEY OF OFFSHORE WIND POWER PROJECTS IS BEING STOPPED
3.000 MW IN THE SOUTH
03 CONSIDERING (There are no specific regulations on documents... Approval
of measurement, monitoring...; There are no regulations on whether or not
concurrent surveys are allowed in cases of multiple proposals in the same
sea area or overlap; Approval of the time for measurement and
monitoring....
- HOW TO SELECT INVESTORS FOR OFFSHORE WINF POWER ROJECTS.

IT TAKES 7-10 YEARS TO DEVELOP AN OFFSHORE WIND POWER PROJECTS => IF THE LEGAL BASIS OF
RELEVANT REGULATIONS... IS NOT COMPLETED, THE POSSIBILITY OF ACHIEVING THE TARGET OF
DEVELOPMENT OF OFFSHORE WIND POWER IS VERY DIFFICULT; CAUSING EFFECTS ON ELECTRICITY 9
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 INVESTMENT MOBILIZATION CHALLENGES

THERE IS NO STABLE AND LONG-TERM MECHANISM/POLICY TO

01 ENCOURAGE ALL ECONOMIC SECTORS TO INVEST IN ELECTRICITY
DEVELOPMENT

DIFFICULTY IN MOBILIZING CAPITAL THROUGH ISSUING

02 DOMESTIC AND FOREIGN BONDS FOR INVESTMENT IN POWER

PROJECTS

THE COMPETITIVE ELECTRICITY MARKET IS NOT COMPLETE, NOT

03 TRANSPARENT, EFFICIENT, AND DOES NOT CREATE CONFIDENCE
FOR INVESTORS PARTICIPATING IN DEVELOPING POWER SOURCES,
ESPECIALLY RENEWABLE ENERGY

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CONTENTS

I II III
OBJECTIVES AND BLOCKAGE, SOME
ORIENTATION CHALLENGES COMMENTS
PDP VIII FOR RE
DEVELOPMENT
11
SOME COMMENTS TO ACHIEVE RE DEVELOPMENT OBJECTIVES

HAVING MECHANISM SOME LEGAL A REASONABLE, LAW ON

AND POLICY TO DOCUMENTS SHOULD LONG-TERM PRICE ELECTRICITY PRICE
ATTRACT BE CONSIDERED/ BRACKET SHOULD SHOUD BE
INVESTMENT REVIEWED AND BE CONSIDERED TO CONSIDERED
CAPITAL SOURCES AMENDED -> ENCOURAGE RE
SHOULD BE RESOLVING DEVELOPMENT
CONSIDERED PROBLEMS IN POWER
DEVELOPMENT 12
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SOME COMMENTS TO ACHIEVE RE DEVELOPMENT OBJECTIVES

STRENGTHENING RESEARCH AND A COMPREHENSIVE LEGAL FRAMEWORK OPERATING

THE CAPACITY OF CONSIDER FORMS OF AND TRANSPARENT SHOULD BE PROCEDURES, FUEL
TRANSMISSION DEVELOPMENT OF LEGAL FRAMEWORK RESEARCHED FOR RESERVE SHOULD BE
GRID, SMARTIZING SELF-CONSUMED RTS SHOULD BE THE DEVELOPMENT REVIEWED ENSURE
THE POWER GRID TO ACHIEVE 50% OF RESEARCHED AND OF BATTERY STORAGE FUELS FOR POWER
AND RESILIENT OFFICE ROOF AND 50% CONSIDERED TO (BESS) TO INCREASE SUPPLY
CAPACITY OF THE OF RESIDENTIAL PROMOTE OFFSHORE BACKUP AND
POWER GRID ROOF WIND POWER STABILIZATION OF
DEVELOPMENT THE POWER GRID

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THANK YOU!