ON LOW CARBON DEVELOPMENT AND NATIONALLY …

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THE SECOND CAPACITY BUILDING WORKSHOP ON LOW CARBON DEVELOPMENT AND NATIONALLY APPROPRIATE MITIGATION ACTIONS PROCEEDINGS ORGANIZED BY DEPARTMENT OF METEOROLOGY, HYDROLOGY AND CLIMATE CHANGE, MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT OF VIET NAM IN COOPERATION WITH UNITED NATIONS ENVIRONMENT PROGRAMME’S RISOE CENTRE IN DENMARK 16-18 December 2013, Hai Phong City, Viet Nam

Transcript of ON LOW CARBON DEVELOPMENT AND NATIONALLY …

THE SECOND CAPACITY BUILDING WORKSHOP

ON LOW CARBON DEVELOPMENT AND NATIONALLY APPROPRIATE MITIGATION ACTIONS

PROCEEDINGS

ORGANIZED BY DEPARTMENT OF METEOROLOGY, HYDROLOGY AND CLIMATE CHANGE, MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT OF VIET NAM

IN COOPERATION WITH UNITED NATIONS ENVIRONMENT PROGRAMME’S RISOE CENTRE IN DENMARK

16-18 December 2013, Hai Phong City, Viet Nam

Table of contents

ABBREVIATIONS ................................................................................................... i

PREFACE ................................................................................................................. ii

PHOTOS FROM THE WORKSHOP ..................................................................... iv

ORGANIZATION OF THE WORKSHOP ............................................................. ix

PART I. REPORT OF THE WORKSHOP

Attendance ............................................................................................................. 2

Workshop Chairs.................................................................................................... 2

Key contents ........................................................................................................... 3

PART II. PRESENTATIONS AT THE WORKSHOP

I. Opening session ...............................................................................................16

II. LCDS Component ...........................................................................................18

2.1. Current status and development plan of RE in Viet Nam ........................18

2.2. Alternative Policy Scenarios for RE development in Viet Nam ..............21

2.3. A review of LCDS for RE development in Viet Nam ..............................26

III. Development of Wind Power NAMA in Viet Nam ......................................31

3.1. General introduction on the development of Wind Power NAMA ..........31

3.2. Baseline and Policy Scenario Development for Wind Power NAMA .....32

3.3. Barriers for the implementation of Wind Power NAMA in Viet Nam ....35

3.4. Towards 100% RE in Denmark in 2020 – the role of wind energy .........36

3.4. Future activities of Wind Power NAMA in Viet Nam .............................38

IV. Development of Biogas NAMA in Viet Nam ...............................................40

4.1. Overview of Biogas NAMA: Difficulties, Challenges and Solutions ......40

4.2. Baseline and scenario policy development for the Biogas NAMA ..........42

4.3. Biogas NAMA: Barriers and Measures for effective implementation in

Viet Nam ..........................................................................................................45

4.3. NAMA for promoting use of Biogas ........................................................46

4.4. Action plan for Biogas NAMA in Viet Nam ............................................47

Updated work plan for FIRM in Viet Nam & further capacity building

arrangements by URC & UNEP ..........................................................................49

ANNEXES

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ABBREVIATIONS APS Alternative Policy Scenario

BAU Business as usual

BOD Biochemical Oxygen Demand

COD Chemical Oxygen Demand

DMHCC Department of Meteorology, Hydrology and Climate Change

FIRM Facilitating Implementation and Readiness for Mitigation

GHG Greenhouse Gas

IMHEN Institute of Meteorology, Hydrology and Environment

LCDS Low Carbon Development Strategy

LEAP Long- range Energy Alternatives Planning System

MARD Ministry of Agriculture and Rural Development

MOIT Ministry of Industry and Trade

MONRE Ministry of Natural Resources and Environment

MRV Measurement, Reporting and Verification

NAMAs Nationally Appropriate Mitigation Actions

NGOs Non-Government Organizations

RE Renewable energy

UNEP United Nations Environment Programme

UNFCCC United Nations Framework Convention on Climate Change

URC UNEP Risoe Centre

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PREFACE

The world needs to reduce its GHG emissions in order to address the climate change

issues. Parties to the United Nations Framework Convention on Climate Change (UNFCCC)

have agreed to keep the average global temperature rise below 2oC compared to pre-industrial

levels. To achieve the 2oC goal, all countries shall prepare Low Carbon Development

Strategies (LCDS) which become an overarching framework to design and implement

Nationally Appropriate Mitigation Actions (NAMAs) reflecting the UNFCCC‟s Common but

Differentiated Responsibilities principle of all countries. It exists the necessary relations

among national plans, LCDS and NAMAs. NAMAs are voluntary actions taken by

developing countries to reduce GHG emissions to levels below those of “Business as Usual

(BAU)”. Developing countries are encouraged to develop and implement LCDS and NAMAs

in the context of sustainable development priorities, supported and enabled by technology,

financing and capacity building in a measurable, reportable and verifiable manner. In order to

facilitate the provision of support to prepare and implement NAMAs, the Cancun Agreements

set up a registry to record NAMAs seeking international support and facilitate matching of

finance, technology and capacity building support for these actions. NAMA is considered as a

central instrument to be used by developing countries to structure and promote their potential

emission reductions.

One of the major objectives of the National Target Program to Respond to Climate

Change, National Strategy on Climate Change and National Strategy on Green Growth of

Viet Nam is to take opportunities to reduce GHG emissions, develop low carbon economy. In

Viet Nam, low carbon economy and green growth have been considered as principles in

achieving sustainable development and GHG emission reductions become a mandatory index

in the socio-economic development.

Under the “Facilitating Implementation and Readiness for Mitigation (FIRM)” Project

funded by the Government of Denmark and technically supported by UNEP Risoe Centre

(URC), the Department of Meteorology, Hydrology and Climate Change (DMHCC), Ministry

of Natural Resources and Environment (MONRE) of Viet Nam has, in close collaboration

with URC, organized the Second Capacity Building Workshop on Low Carbon Development

and NAMAs in Hai Phong city, Viet Nam from 16 to 18 December 2013.

The Workshop constructively focused on discussing legal documents, policies and

measures to develop Wind Power and Biogas NAMAs as well as LCDS under the above-

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mentioned Project. Hence, the Workshop has helped participants to enhance understanding of

low carbon development as well as analytical, methodological approaches to NAMAs

development and Measurement, Reporting and Verification (MRV) systems and provided a

valuable opportunity for participants to share useful information and exchange experiences for

developing LCDS, formulating Wind Power and Biogas NAMAs in Viet Nam and also

overcoming the barriers in the implementation of NAMAs.

Finally, I would like to take this opportunity to express my sincere thanks to experts

from URC for their generous support and to all participants of the workshop for their active

and constructive contribution to the successful Workshop.

Nguyen Khac Hieu

Deputy Director General

Department of Meteorology, Hydrology and Climate Change

Ministry of Natural Resources and Environment, Viet Nam

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PHOTOS FROM THE WORKSHOP 1- Opening session

Mr. Hoang Manh Hoa, Director, Division of GHG

Emission Monitoring and Low Carbon Economy,

DMHCC, MONRE, introduces Workshop‟s agenda

Mr. Nguyen Khac Hieu, Deputy Director General,

DMHCC, MONRE, gives the welcome speech

Dr. Sudhir Sharma, Representative of UNEP Risoe

Centre in Denmark, delivers the opening statement Participants at Workshop

2-Presentations at Workshop 2.1- Low Carbon Development Strategy Component

Dr. Bui Huy Phung, Viet Nam Academy of Science

and Technology, presents the current status and

development plan of RE in Viet Nam

Mr. Nguyen Minh Bao, Institute of Energy, Ministry

of Industry and Trade, makes a presentation on APS

for RE development in Viet Nam

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Dr. Karen Holm Olsen makes a presentation on Technical guidance related to review of LCDS for RE

development in Viet Nam

2.2-Development of Wind Power NAMA in Viet Nam

Mr. Vuong Xuan Hoa, IMHEN, MONRE makes

presentations

Mr. Nguyen Minh Bao presents the Baseline and

Policy Scenario Development For Wind Power

NAMA

Mrs. Dao Minh Trang, IMHEN, MONRE makes a

presentation

Mr. Jakob Jespersen, Danish Energy Agency, delivers

a presentation on Towards one hundred percent RE in

Denmark in 2050 – the role of wind power

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2.3-Development of Biogas NAMA in Viet Nam

Mr. Nguyen Mong Cuong, Director, Research Center for Climate Change and Sustainable Development, makes

presentations

Mr. Nguyen Duc Thinh, Vice Director, Center for Rural Communities Research and Development, makes

presentations

Dr. Sudhir Sharma makes a presentation on NAMA for

promoting use of Biogas

Dr. Karen Holm Olsen presents Updated work plan for

FIRM in Viet Nam & further capacity building

arrangements by URC & UNEP

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3- Discussion at Workshop

Technical meeting at Workshop

Dr. Karen Holm Olsen gives some comments Dr. Sudhir Sharma opens a discussion

Mr. Nguyen Thang Long, Bac Lieu Wind Power Plant,

makes some questions Mr. Nguyen Minh Bao answers some questions

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Dr. Bui Huy Phung provides some information Mr. Nguyen Quang Huy, Industrial Safety Techniques and

Environment Agency, MOIT, makes some comments

Mr. Hoang Manh Hoa delivers some information

Mr. Mai Van Trinh, Deputy Director General, Institute of

Agricultural Environment, Ministry of Agriculture and Rural

Development, contributes some ideas

Mrs. Dagmar Dwebe, Sector Leader Renewable Energy,

SNV Viet Nam, gives some comments Mr. Nguyen Khac Hieu concludes the Workshop

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ORGANIZATION OF THE WORKSHOP

Objective of the Workshop

The objective of the Workshop was to discuss and have consultations from relevant

agencies related to:

- Development of the BAU and APS scenarios for RE in period from 2020 to 2030

contributing to develop LCDS in Viet Nam;

- The proposed Wind Power and Biogas NAMAs in Viet Nam;

- Upcoming activities under the cooperation with UNEP Risoe Centre in Denmark.

Date of Workshop

From 16 to 18 December 2013

Venue

Training and Service Supply Center – Base II,

No. 1, Ly Thanh Tong Street, Zone 1, Do Son, Hai Phong City, Viet Nam.

Organizers

- Department of Meteorology, Hydrology and Climate change (DMHCC), Ministry of

Natural Resources and Environment (MONRE).

- UNEP Risoe Centre in Denmark.

PART I. REPORT OF THE WORKSHOP

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Second Capacity Building Workshop on

Low Carbon Development (LCD)

and Nationally Appropriate Mitigation Actions (NAMAs)

From 16 to 18 December 2013, Hai Phong City, Viet Nam

REPORT OF THE WORKSHOP

1. Under the FIRM Project, the Second Capacity Building Workshop on LCD

and NAMAs was jointly organized by Department of Meteorology,

Hydrology and Climate Change (DMHCC), Ministry of Natural Resources

and Environment (MONRE) of Viet Nam and Risoe Centre of the United

Nations Environment Programme (UNEP).

Attendance

2. Attending the Workshop, there were heads, representatives and experts of

relevant Departments and Institutes from MONRE and other related

Ministries such as Ministry of Industry and Trade (MOIT), Ministry of

Agriculture and Rural Development (MARD), Viet Nam Academy of

Science and Technology, etc. In addition, several representatives and

experts from non-governmental organizations in Viet Nam were also

invited. For the international side, there were the representatives, experts

from Risoe Centre of the United Nations Environment Programme

(UNEP), Danish Energy Agency and SNV Netherlands Development

Organisation (see Annex 2).

Workshop Chairs

3. The Workshop was chaired by Mr. Nguyen Khac Hieu, Deputy Director

General of DMHCC, MONRE, Viet Nam and Dr. Karen Holm Olsen,

Senior Researcher and Dr. Sudhir Sharma, Senior Adviser, URC in

Denmark. Mr. Hoang Manh Hoa, Director, Division of GHG Emission

Monitoring and Low Carbon Economy, DMHCC, MONRE, serverd as the

secretary.

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Key contents

I. Opening session

4. Mr. Hoang Manh Hoa introduced all the delegates and attendants as well as

workshop agenda. At the session, Mr. Nguyen Khac Hieu, on behalf of

DHMCC, delivered a speech to open the workshop and welcome all

national and international participants. He had a brief introduction of FIRM

project in Viet Nam, objectives and the importance of the workshop,

namely “Second Capacity Building Workshop on Low Carbon

Development and Nationally Appropriate Mitigation Actions (NAMAs)”.

5. Dr. Karen Holm Olsen, on behalf of URC, briefly introduced URC‟s

organisational structure and functions as well as delivered sincere thanks to

all delegates attending the workshop. She did expect that all outcomes

generated from the workshop will have a great contribution to the success

of FIRM project in Viet Nam.

6. Mr. Sudhir Sharma, one of the most experienced experts working for URC,

would like to show his gratefulness to participate in the workshop. He does

hope that the great efforts of DMHCC as implementing agency to

undertake the project activities in Viet Nam with good collaboration among

stakeholders to ensure the success of FIRM project as well as other

cooperation between Viet Nam and UNEP in the coming period.

7. As scheduled, the Workshop mainly focused on 3 parts: (1) Low Carbon

Development Strategy (LCDS); (2) Development of Wind Power NAMA;

(3) Development of Biogas NAMA.

II. Low Carbon Development Strategy Component

8. It is necessary to assess the current situation and propose a plan to develop

power sources to enable Viet Nam to achieve Low Carbon Development

Strategy (LCDs), especially focused on RE.

9. The report was presented by Dr. Bui Huy Phung, Chairman of Scientific

Council, Viet Nam Academy of Science and Technology. The report gave

an overview on the current status of using RE in Viet Nam and aslo

determined that the RE in Viet Nam is potential and diversed but has not

yet been assessed, investigated in a completed and comprehensive maner

due to the lack of relevant information and activity data to assess the

feasibility.

10. Viet Nam has somehow taken some advantage of the potential RE since

there has not been any proper mechanism and incentive policies to attract

the participation of private enterprises to invest in RE which has therefore

not been as developed as expected. E.g. the subsidy from government to

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develop 1kw power is US cent 7.8 while investing for 1kw power is about

US cent 10.

11. Following the presentation on current status and potential of RE

development, a brief introduction on RE development plan of Viet Nam in

the near future was also cunducted by the expert in accordance to the

Power Master Plan No VII. Renewable energy generating resources are of

wind power, small hydro power plants, and biomass power. There have

been 48 wind power projects registered to develop 5000 MW, however,

only 4 projects have been undertaken in the first round. In order to develop

wind power with the capacity accounting for 6-10% of the total national

commercial primary energy, Viet Nam is required a total investment budget

of around USD 7-15 billion by 2020 visioning to 2030.

12. To ensure the integration of all policies to develop national energy

resources properly and stably, Mr. Nguyen Minh Bao, Energy Institute,

Ministry of Industry and Trade, presented an APS responding to the

development of RE; Business As Usual (BAU) and APS aiming at

increasing RE ratio up to 5% over the total amount of primary commercial

energy in Viet Nam by 2020.

13. Participants concerned and discussed about GHG emission reduction target

enacted in the Plan of GHG emission management; management of carbon

trading activities to the world market in which the energy sector (incl.

transportation sector) was targeted to reduce the GHG emission of 8% by

2020 comparing to those of base year 2005. As the result, the GHG

Inventory 2005 estimated emission of energy sector including

transportation was of about 101.564 thousand tons CO2e meaning that by

2020 the GHG emission from energy sector would be about 8.125 thousand

tons CO2e as clarified by Mr. Hieu based on the BAU scenario.

14. While developing BAU and APS scenarios, the expert team has studied and

updated existing policies, however, these policies will be immediately

updated if there is any changes occured. According to a recent report, coal

has become the main source to generate power in Viet Nam. As foreseen, it

is essential to invest and develop RE in order to achieve towards the green

economic and sustainable development. Indeed, the APS scenario proposes

the increasing rate up to 5% over the total amount of used energy in Viet

Nam by 2020 which is indicated to be achievable.

15. With the purpose of supporting Vietnamese stakeholders and agencies in

developing LCDS in term of developing renewable anergy within FIRM

project, Dr. Karen Holm Olsen presented technical guideline to develop

LCDS in Viet Nam. Her speech showed the current situation and ambition

to reduce GHGs emission to assure that the global temperature is not

increasing over 2oC by the end of this century. Her presentation also briefly

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mentioned an overview of policy mechanism related to the development of

RE in Viet Nam as well as suggestions to develop LCDS and APS in Viet

Nam. Her presentation was ended with the introduction of a guideline to

develop LCDS released recently.

After presentations of energy experts and technical guideline given by

representative from URC, the workshop takes into account the

following approaches:

16. The role of RE in Viet Nam: It is said that RE has been strongly taken into

concern, however, hydropower is mainly focused. Other renewable

energies have been emerged such as wind power with minor share. It is

considered as a big challenge to the development of RE in Viet Nam since

the hydor power has been almost prioritised while others have been not

taken advantages due to the lack of incentive policy, technical and financial

supports.

17. Clarification of proposal basis and development of BAU and APS: The

bases to develop BAU was taken into account by all delegates since it is

regarded as the basis to assess whether proposed BAU would match the

reality or not. The assessment enabled to develop APS accurately that

matched the existing condition to boost the feasibility of the APS.

However, wonders were raised by delegates as the definition of BAU is not

clearly difined in Viet Nam.

18. Roles and impacts of existing policies and stakeholders upon BAU and APS

scenarios proposed: All delegates agreed on the facts that the Government

of Viet Nam and related ministries, departments have issued plans on

orientation for RE development, however, these are general plans under

which specific guidelines and incentive policies need elaborating.

Otherwise, this caused the difficulty in undertaking and implementing these

plans in reality.

19. The selection of base year and inputs to develop BAU scenario were also

taken into account by all delegates since there has not been a similarity

among policies to choose base year that leads to the difficulty in assessing

and calculating. According to Dr. Karen Holm Olsen, there has not been

any policies to oblige countries to use a particular base year for BAU

scenario over the world, neverthelesss, the transparence and patency need

the most concerns.

20. How to clarify the role of supplementary policies for APS scenario

developed within the context of Viet Nam: has there been any improvement

within supplementary policies compared to existing policies. This issue

was considered as a difficulty while BAU scenario has not been completed.

All delegates aggreed to continue to study on this issue and complete in the

coming time.

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III. Develop Wind Power NAMA

21. On behalf of the Wind Power NAMA project expert team, Mr. Vuong

Xuan Hoa, Climate Change Research Centre, IMHEN, MONRE presented

the overall concept of Wind Power NAMA in Viet Nam. This presentation

introduced the steps for developing a NAMA based on the current status of

development of wind power as well as its related legal documents which

would be the legal base for the proposed Wind Power NAMA in Viet Nam.

22. Mr. Nguyen Minh Bao, energy expert from Institute of Energy, Ministry of

Industry and Trade (MOIT) delivered a presentation on baseline and policy

scenario development for Wind Power NAMA because to meet the

requirement for developing NAMA, the host countries must develop the

baseline scenario for it. His presentation focussed on the methodology and

input data and how to calculate and develop the baseline and policy

scenario of Wind Power NAMA in Viet Nam.

- The developed NAMA baseline scenario (BAU) was based on the

wind power development plan under the Power Master Plan No VII

without the implementation of Wind Power NAMA.

- The NAMA scenario development was based on the potential

assessment of wind power in Viet Nam as well as the National

Targets in the development of wind power under the condition that

it would have additional supporting policies.

- He highlighted that the difference between baseline scenario and

NAMA scenarios would show the reduction of fossil fuels as well

as the GHG emissions.

- The emission factors used for developing the BAU of the NAMA

was the default emssion factor provided by IPCC. The GHG

emissions from various sources were estimated by using the Tier 1

and 2 methodologies of IPCC.

- According to the stastistic data, most of electricity was produced by

the coal thermal power plants. Therefore, he assumed that the

electricity from Wind Power NAMA would contribute to reduce

the use of coal. It was estimated that up to 2030, 50 mil. tons CO2e

would be reduced by applying the Wind Power NAMA.

23. Beside the advantages of social economy benefits that the Wind Power

NAMA can bring, there are some concerns about difficulties and barriers

which Viet Nam may have to face during the implementation of the

proposed NAMA such as policies, regulations, institutions, markets,

financial investment, human resources, etc. Therefore, the “Barriers for the

Implementation of Wind Power NAMA in Viet Nam” presented by Mr.

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Vuong Xuan Hoa aimed to analyse and identify the implementing barriers

as well as partially propose some measures for coping those barriers.

- Viet Nam is appraised to be a high potential country for developing

wind power. However, the development of wind power still are

very slow due to many barriers.

- Those proposed measures initially helped participants at the

Workshop to have more orientations for wind power development,

but they should be added more details and clearly clarified the

financial support and technology tranfer issues.

24. Mr. Jakob Jespersen, representative of Danish Energy Agency shared the

experience in planning, investing and developing wind power in order to

have the green economy in Denmark where the development of wind

power and wind turbines has historically been known for long time.

- The first wind power plant was contructed in Denmark from 1970s

by NGOs. From 1980s, Denmark Government issued many policies

to encourage the wind power development, especially to stablised

the price of 15 US cent/kWh for a limited period (the first 10 years

of wind power plant) and commercialised afterwards. Recently, the

price is reduced to about 10 US cent/kWh.

- At present, Denmark has focused on self-sufficient with energy,

and become electricity exporter due to having good management

as well as suitable policies on oil, gas, coal, large scale wind

energy and implementing successful energy savings and energy

efficiency programs. Because of those long-term development

strategies under high consensus of the Parliament members, the

investors have the peace of mind to develop and implement RE

projects. The cost-effective subsidy schemes and energy taxes on

fossil fuels make RE more competitive and accurate the

development of RE in Denmark.

- The Government of Denmark set the target to have approximately

50% of electricity consumption to be supplied by wind power and

reduce GHG emissions about 34% in 2020. There will be no coal

thermal power plant in Denmark by 2030. By 2035, completely use

RE for electricity and heating demands. By 2050, completedly use

RE in all sectors included transportation.

- Denmark is using “one stop shop” model in the registration process

for wind power projects. Danish Energy Agency is the coordinating

authority to receive, assess and approve the wind power projects in

Denmark as well as develop subsidy schemes for the registered

projects. This agency also gradually takes part in developing high

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capacity wind turbines up to 50MW a long with replacement of the

higher capacity turbines.

25. For developing and implementing the proposed Wind Power NAMA, the

Project expert team developed the expected action plan for the proposed

NAMA. On behalf of the Project expert team, Mrs. Dao Minh Trang,

IMHEN, briefly introduced the plan to develop and implement the

proposed Wind Power NAMA in Viet Nam.

- The plan is divided into 3 phases as follows:

+ Phase (1) is to prepare and scope for the proposed NAMA. This

phase is expected to be completed by end of August 2014.

+ Phase (2) is to apply supporting policies and measures for a pilot

project in Viet Nam. This phase is expected to begin in August

2014 and be finished in December 2016.

+ Phase (3) is the full development of the NAMA program in

whole country. The period for this phase is expected from

January 2017 to December 2020.

- DMHCC will be the coordinator to cooperate with related focal

agencies to implement all activities under the proposed NAMA in

the country.

Discussions on this content were focused on some following issues:

26. For the issues related on the additional policies to encourage the

involvement of the private sector in the development of wind power in Viet

Nam on the basis of Power Master Plan No VII: Participants form private

sector expected to involve in the implementation process of NAMA and

hoped that there would be some policies to encourage the involvement of

private sector in this process. The Workshop admitted and appreciated the

role of the private sector, especially in wide deployment phase of NAMA.

Their involvement will be consider to add in the suitable implementing

phase of NAMA.

27. Measures for accelerating the deployment of Wind Power NAMA in order

to avoid the slow progress of such other normal wind power project in Viet

Nam: Participants agreed that it would have been the current situation in

Viet Nam and this proposed NAMA would be expected to meliorate that

situation.

28. For the Wind Power NAMA’s Action plan: UNEP experts propose that the

action plan for Wind Power NAMA was quite clear; however, it should be

added more details and provided some indicators for assessing or expected

outcome(s) for each activities. On be half of those experts team were

incharge to develop Action Plan for Wind Power NAMA, Mr. Vuong Xuan

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Hoa explained that they would acquire and consider to add those contents

to the revising Action Plan.

29. About methodology, input for developing Wind Power NAMA in Viet Nam:

After discussion, the Workshop agreed that the basis of input for estimation

and development the baseline scenario as well as NAMA shoud be based

on the latest policies, plans issued by the highest levels to ensure the

orthodoxy and update of the data.

30. For emission factor for developing the baseline of the proposed Wind

Power NAMA: some participants concerned that the emission factors used

in the development of proposed Wind Power NAMA and the grid emission

factor of country which was published in 2011 were not the same. This

would cause deviations in calculations for the baseline scenario. After

discussion, participants agreed that the emission factor to calculate the

baseline and develop BAU for Wind Power NAMA would be the default

factor from IPCC for estimating the years after 2011, for the period before

2011, the factors would be the emission factors of the grid which was

announced by MONRE;

31. The development of baseline scenario for Wind Power NAMA was spent

quite long time for discussion. After discussion, the Workshop agreed that

in the coming time, the project‟s expert team would continue to research

and update the baseline for the proposed NAMA according to the latest

documents issued for all types of energy sources such as renewable, coal,

nuclear, etc;

32. The role of additional policies for incentives, financial support, technology

tranfer, etc in the proposed scenario for Wind Power NAMA in Viet Nam:

In the coming time, the Project‟s Wind Power NAMA team will consider to

supplement these information to express the addition of the proposed

policy;

33. Lack of human and technology resources: Some participants said that lack

of human resources for the operation of wind power technology is fairly

comprehensive and recommended to develop a roadmap to strengthen

human resources to acquire and operate that technology. Some others said

that some high technical parts still could not be produced in Viet Nam;

therefore, the operating costs would be greatly increased because of the

importation cost for replacing, repairing equipment.

34. Discussions related to the lessons learned in wind power development

policies in Denmark and the ability to apply this experience to the current

context of Viet Nam: Participants were impressed with the successes in

developing RE in general and wind power in particular. The Workshop

acknowledged that the “One stop shop” model in Denmark have been

operated very effective. However, this model can not be feasible to form in

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the short term because the coordination mechanism between relevant

ministries is still not yet strong enough in Viet Nam. The issues related to

the development of offshore wind power project was a very good

suggestion for Viet Nam. However, some participants wondered about the

technical issues in contruction and safety operation of offshore wind power

turbines. Especially, Viet Nam has to face a lot of strong storms each year.

IV. Development of Biogas NAMA

35. Similar procedures of Wind Power NAMA, the development of Biogas

NAMA on the pig farms was registered by Viet Nam under FIRM project

with the selected scale of farms varying from 150 to 3000 heads. The first

draft Biogas NAMA proposal have been prepared based on the given

template by UNEP, a national Biogas NAMA expert team led by Mr

Nguyen Mong Cuong, Research Center for Climate Change and

Sustainable Development and Center for Community and Rural

Development presented the overview of proposed NAMA including its

challenges and solutions and of pig husbandry sector in Viet Nam, its

productivity increment in accordance to the national report. The pig herd

increased from 20 million heads in 2000 to 27.4 million heads in 2010

(increase 37%) and is estimated to reach 35 million heads in 2020. Big pig

farms are normally distributed in the two main areas of Red River Delta

and Southeast. Meat production of pig occupies the largest proportion

comparing to poultry and other animals. The report revealed the neccesity

to solve the environmental issues of the pig husbandry farms and potentials

for development of biogas energy as RE source from the livestock

residuum. Policies and opportunities related to pig husbandry and

environment protection were refered such as National Strategy on

Livestock Development to 2020 (Desision No. 10/2008/QĐ-TTg); Policy

on RE Development (Power Master Plan No. 7 at Decision No. 1208/QD-

TTg dated 21/7/2011); etc. Those are the important pre-conditions for

developing Biogas NAMA on pig husbandry in Viet Nam with the

objective to minimise environment pollution and reduce GHG emission in

the concentrated husbandry areas by promoting in-situ electricity

generation, sustainable livestock and national electricity grid connection, if

possibile.

36. Mr Nguyen Duc Thinh, an biogas expert from Center for Rural

Communities Research and Development reported the baseline and policy

scenarios of Biogas NAMA based on the current policies such as Master

Power Plan No. 7, National Strategy on Climate Change, National Strategy

on Green Growth, National Strategy on Livestock Development to 2020.

Apart from the available policies, Viet Nam does not have the national

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technical regulations on conditions for biosecurity of pig farms,

management of biogas generator, incentive mechanisms to promote the

usage of biogas to generate electricity to facilitate the development Biogas

NAMA. The experts pointed out the difficulties, barriers and challenges in

developing and applying the biogas electricity generation technology at big

scale husbandry farms as more specific policies, regulations are needed

especially market for biogas electricity. The certification of technology and

quality of biogas generators have not yet been clear because the biogas

electricity generation is new in Viet Nam, capacity of experts is limited,

cooperation among related agencies and financial ability of farm owners

for investment biogas energy are still weak, awareness on NAMA and

GHG emission reduction has not yet been popularly understood, etc. Upon

the above mentioned difficulties and barriers, some solutions were also

proposed helping to direct the biogas electricty generation development and

overcome barriers step by step to complete the first Biogas NAMA

proposal in Viet Nam.

37. A series of acitivities in the proposed Action Plan to complete and

implement Biogas NAMA were identified and benchmarked by Mr Nguyen

Đuc Thinh, actions are (1) completing and submitting overal draft of

Biogas NAMA, (2) researching, designing and proposing for policy

propulgating on connecting biogas electricity to the national grid under

NAMA mechanism; (3) establishing an investment foundation to attract

financial sources for biogas energy generating from pig farms; (4)

surveying, assessing and proposing appropiate biogas generating

technologies to the context of Viet Nam, (5) strengthening state

management, formulation of national organisational system & capacity

building for implementing Biogas NAMA, (6) awareness raising and

capacity building for pig-farms owners and other related agencies on

management and operation of biogas generation system, (7) building

demonstration models on biogas electricity generation and (8) developing a

full Biogas NAMA. A time frame to conduct and complete those solutions

were also determined.

38. The baseline development of Biogas NAMA was based on the existing

data. The emission was calculated for the average farm of 3000 heads with

methane GHG emission of 2040 tons CO2e/year for manuring and 328 tons

CO2e/year by using biogas for electricity generation. It was forecasted that

by 2020 there will likely be 4000 farms implementing NAMA, the total

methan GHG emission will be of 9.47 million tons CO2e/year.

39. After the presentations of the national experts on Biogas NAMA, Dr.

Sudhir Sharma presented some technical guidances on Biogas NAMA

focusing on issues (1) whether the existing system of open pond disposal

on land meets the environmental regulations for disposal of waste in the

12

water bodies or not, (2) what is the environmental regulation requirement

for BOD and COD for disposal of waste in water bodies and (3) if the

anaerobic treatment based system results in waste treatment that meets the

regulatory requirements for BOD and COD. He emphasised that NAMA

would cover only large farms to address the issue of use of biogas since

government strategy is to use biogas energy as an electricity generation

source connecting to national grid which is possible only on big sized-

farms because the small pig farms can only use the generated biogas

electricity for self consumption.

40. In regard to development of baseline for NAMA, it is necessary to consider

the use of biogas by farms for heating, cooking, pumping water, etc and

safety requirements may need to flare of certain amount of gas. For barriers

analysis, It was advised to have more detailed and deeper explainations on

what are the regulations and specifications of waste treatment to meet

required standards for disposal of waste in water bodies and what are the

gaps, what are existing regulations and specifications of uplinking small

RE projects to the grid, some experiences on policies and regulations in

other countries to identify the required steps, gaps including existing

avenues for accessing finance by pig farm owners and the costs of getting

loans, analysis of present markets for small electricity generator sets and

their terms of sales as well as after sales service availability for the

electricity generators, analysis of the present system for quality control,

testing and approval of electricity generation equipments for sale.

41. Identified some hints that help to strengthen the activities such as

identification of key actors in the successful implementation process for

information and consultation on NAMA, e.g., EVN (MOIT), some of the

local communities, pig farm owners thus the roles and responsibilities of

key actors should be clearly indicated. Based on analysis of grid connection

of small RE projects, identification of elements on regulations required

consultation with EVN, it may not need a full specification, but key

elements along with EVN for development and implementation of NAMA

including MRV plan. The cooperation will help shorten the adoption of

regulations in the system. For financial investment models using of biogas

generation system based on the assessment of the viabilities and

identification of supports are necessary for cost calculation. This is required

to develop the financial estimates for implementing NAMA and also

identify various sources of funds. It was also advised to consult with banks

and other avenues for loans arrangement, identification of key issues in

extending loans, such as risk, viability of projects assessment, etc. to find

out the possible ways of loan provision.

With the supports of experts from URC, participants concentrated to

discuss the following issues:

13

42. The scale proposed by national expert in the report for Biogas NAMA

development on pig farm which has 150 to 3000 heads is inappropriated to

deal with the environmental issues thus two types of scale could be more

suitable (1) medium and small farms, (2) big farm. For medium and small

farms, generated electricity can be used for on-the site consumption and

other scale is for national grid connection.

43. Biogas technology application, quality control of biogas generators

including standard regulations, market for biogas electricy generation, etc

were of much care by participants and openly discussed. It was estimated

that the electricity generated from biogas tanks will be redundant thus a

solution for this needs forming in order not to waste the energy source.

Therefore, a cooperative system can be established to use up the generated

electricity from small scaled farm and this solution is mostly supported by

participants, only whose farms produce more than 1MWh will be

considered for connecting to national grid. Some advised that the

connection to grid should be postponed till related policies have been laid

out including investment mechanisms, management and gid connecting

regulations with roadmap to reduce the use of engergy from fossil sources.

44. Issues related to treatment of biogas residuum, waste and water outlet

system, sustainability of technology, technology change and even the

anaerobic input sources for biogas operation to produce enough electricity

for the grid, role of private sector and NGOs were also discussed in the

workshop but no end-up was made yet.

45. In sum-up of the Biogas NAMA development, it was stated that two scales

of pig farms will be applied for Biogas NAMA proposal, the LEAP

software will be used to run the baseline and scenario for Biogas NAMA

based on the available data input. Biogas generated electricity will

temperarily be used for on-site consumption of farms, households or local

community. The connection with national grid will be considered later

since the effectiveness on economic aspect of biogas for grid connection

has not been clearly analysed. Baseline development of Biogas NAMA

needs more explainations for a proposed NAMA including its

implementation plan, measures on policy, financial sources and

technologies, roles and responsibility of related agencies.

V. Update Action Plan of the FIRM Project

46. A detailed and updated workplan to September 2014 of the FIRM project

was presented by Dr. Karen Holm Olsen. The two proposed NAMAs will

be key focus of Viet Nam in the coming time, a teleconference will be

organised in the end of January 2014 to review the progress of two NAMA

proposals and preparation for FIRM regional workshop to be held in

Cophenhagen, Denmark in March 2014. For MRV development plan, the

14

expert teams on NAMA will additionally includes the participation of

EVN, Biogas Office in Viet Nam, Livestock Production Department of

Ministry of Agricultural and Rural Development.

47. URC found no objection to use FIRM budget for nominating some more

related members NAMA working group of Viet Nam to participate to the

above mentioned regional workshop to report case study in Viet Nam under

FIRM project activities.

VI. Conclusions

Mr Nguyen Khac Hieu, based on the presentations, discussions and advices

of participants, concluded the results of workshop and assigned some

follow-ups bellows:

48. It was requested that expert teams of the two NAMAs collaborate to

complete the Wind Power and Biogas NAMAs illustrating clearly the

objectives, expected outcomes, methodologies, time frame, implementation

arrangements, financial measures for both short-term and long term

operations, responsibility of related agencies, especially MOIT and

MONRE.

49. A technical meeting will be organised by DMHCC to review the progress

and other related issues soon after the experts have updated add-in and

completed to prepare for regional FIRM workshop.

50. It is scheduled to organize a teleconference with URC expert in January

2014 to discuss (1) detailed work plan of FIRM to September 2014 (2)

project extension and (3) project third installment.

51. The Workshop was closed at 12:30 p.m on 18 December 2013.

PART II.

PRESENTATIONS AT THE WORKSHOP

16

I. Opening session

Welcome!

2nd Capacity Building Workshop:

„Low Carbon Development and

Nationally Appropriate Mitigation

Actions‟

Do Son, Hai Phong, Vietnam 16-18 December 2013

Objectives and overview of workshop

Objectives of the workshop:

• To understand the work so far by country team on LCDS

and NAMAs and discuss challenges and solutions

• Hear the plans for further work and provide technical

guidance on; baselines for LCDS and NAMA scenarios,

barrier and solution analysis, operational arrangements

Overview:

• Low Carbon Development strategy

• Wind NAMA

• Biogas NAMA

Who are the UNEP Risø Centre?

UNEP Risø Centre – Energy, Climate and Sustainable Development

International research team of

over 45 economists and

scientists.

Based on agreement between

Risø, UNEP and Danida.

Located at Roskilde,

Denmark since 1990.

Mandate is to support and

promote UNEP activities in

the areas of energy and

climate change, with a

special emphasis on

developing countries.

Part of DTU Management Engineering

URC Structure

UNEP and UNEP Risø NAMA related activities

Projects & Technical Support

Institutional Capacity Building & Partnerships

Analytical work & Publications

Facilitating Implementation and readiness for Mitigation (FIRM)

NAMA Development for the Building sector in Asia

Low Carbon Mobility Plan for three cities in India

Green Facility – Ghana and Maldives

Technology Needs Assessment (TNA)

Regional Gateway for Technology Transfer and Climate Change Action (REGATTA).

Regional NAMAs studies and NAMAs Prioritisation Framework for Philippines

National and Sectoral LCDS - Baselines

NAMA Academy

Individual Coaching for NAMAs to partner countries

GG/LCD training in the Emirates

NAMA Partnership & LEDS GP

Africa & LA Carbon Forums

Energy Efficiency Hub

Institutional challenges for NAMAs

Financial engineering

Understanding NAMAs

SD impacts of NAMAs

MRV of NAMAs

NAMA Handbook

NAMA Guidebook for Enlighten

More information:www.uneprisoe.org

www.namapipeline.orgwww.lowcarbondev-

support.orgwww.tech-action.orgwww.ggemirates.net

17

Guidance for

NAMA Design

UNFCCC with UNEP Risø

and UNDP released

publication at COP-19,

Warsaw.

Find the publication

here: http://unfccc.int/files/cooperation_supp

ort/nama/application/pdf/guidance_for_

nama_design_(2013)_final.pdf

Or here:

http://www.uneprisoe.org/Newsbase/N

yhed?id=8F3EA191-FF13-40BA-92E7-

43DB13C6F7E3

COP19 – Warsaw

UNEP Risø is leading the WG on SD

The NAMA partnership

NAMA PARTNERSHIP WEBSITEhttp://www.namapartnership.org/

NAMA WIKI WEBSITEhttp://namapartnership.wikispaces.com/

Thanks!

18

II. LCDS Component

2.1. Current status and development plan of RE in Viet Nam

WORKSHOP

ENHANCE BUILDING DEVELOPMENT FRAMEWORK CAPACITY ON LOW-CARBON AND NATIONALLY APPROPRIATE MITIGATION

ACTIONS

Hai Phong 16-18/12/2013

CURRENT STATUS AND DEVELOPMENT PLAN OF

RENEWABLE ENERGY IN VIET NAM

Ph.D Bùi Huy Phùng-VEA

CONTENTS

I. PREAMBLE

II. CURRENT STATUS OF RENEWABLE ENERGY

EXPLOITATION AND USAGE IN VIETNAM

III. PLAN ON RENEWABLE ENERGY USAGE OUTLOOK

IV. CONCLUSIONS

I. PREAMBLE

Renewable energy is a valuable nationalresource, the development and usage of this resourceare the implement diversification the energy supplysource, lower the dependence on fossil fuels.

The use of renewable energy is the use ofnational resource source to provide energyeffectively for the economy and reduce importenergies, contribute to enhance energy security,reduce green house gases emission, implement greendevelopment.

II. CURRENT STATUS OF RENEWABLE ENERGY

EXPLOITATION AND USAGE IN VIETNAM

1. Summary of exploit potential and capacity of renewable energy

sources in Viet Nam.

Type of

sourcePotential

Exploit, produce

capacity (MW)Areas/usage targets

1. Small

hydropo-

wer > 4.000 MW

+ Techical: >4.000

+ Economic: 2.200

+ Need finance

supports for more

exploitation.

Mountain Areas: North East; North

West, North Central; South Central;

Western Highlands. For electric-grid

connection and mini electric-grid

2. Wind

power> 30.000 MW

+ Economy: Not

profitable at current

selling prices . Need

supports

+ Central, Western Highlands, islands

+ Coastal areas and other places that

has terrain wind

3. Solar

power 4-5

kWh/m2/day

> 15 MW for outside-

grid areas.

+ Need support for

development.

+ Solar thermal: All residents areas

+ Solar power: Outside-grid residents

areas

2. Summary of potential exploitation and capacity of renewable energy

sources in Viet Nam(cont‟)

Type of

sourcesPotential

Exploit, produce capacity

(MW)Areas/Usage target

4. Bio mass

+Firewood

+Agricultural

residues

600-700 MW

+ Husk: 197 - 225

+ Bagasse: 221 - 276

Households, small handicrafts in

provinces

Husk: Mekong river plain areas

Bagasse: Sugar processing areas

5. Bio

+Biogas

+Biofuel

> 570 triệu m3 58+ Country side households

+ Farms, processing areas

Unconfirmed 1mil. T/n+ Transportation

+ Electric producing

6. Geothermal

< 400 MW

+ Not economical with

current prices. Need

support

Central, North West areas

7. Tide > 100 MW Unconfirmed Coastal areas

8. Biological

waste

350 MW222

Urban areas

COMMENTS

The renewable energy potential in Viet Nam is diversity

and abundance but hasn‟t got fully assessed, surveyed, lacks of

information to assessment the potential, the usage part is still

small compare with the potential. Power planning VII has

orienated that the main renewable energy producing sources

will be wind power, small hydropower and biomass, which is

justifiable.

3. Current renewable energy usage situation

1) Small hydropower, has been exploited 50% economical potential, TCS around 1000MW, the other sources are at rural, unfavorable areas, have high exploit costs. Further more, the small hydropower potentail is descending due to watershed forest areas are being shrinked, climate changes, annual precipitation is lessened, drought in many areas make the future potential of this source will not so much; This is a long “story”!

2) Windpower, with the current price of 6.5 m/s windspeed and the frequency of wind with speed more than 6 m/s from 20 - 25% above are assessment around 9 USc/kWh (depending on technology). So that

the Power Planning VII orienated that windpower will has high proportion of renewable energy sources in the peroids of 2011, 2020 and 2030 is based. To present there are windpower projects are being established and implemted; With total capacity of 52MW.

3. Current renewable enegry usage situation (cont‟)

The building hyrdoplants movements have caused heavy concequences. Picture:

Hydropower plant dam IA KREL 2-Đuc Co district, Gia Lai province, broken at

6-2013, destroyed many people’s crops. Photographer: Cao Nguyen

19

3. Current renewable enegry usage situation (cont)

Bac Liêu windpower connected 10x1.6MW,25-6-2013

3. Current renewable enegry usage situation (cont‟)

3) Solar Energy.

- The main energy produce in Viet Nam is from solar batteries source installed at countrysides, moutainious, rurals, and sea islands areas. The solar batteries system were present at 38 provinces, city in the country. However, the present investment norm is high driving high price of solar energy price comparing with the people‟s income (over 20USc/kWh). Total capaicity around 3MW.

- Using solarthermal, solar water heater has been able to competive with those who use electric, gas; which is most developed at the sourthen provinces.

3. Current renewable enegry usage situation (cont‟)

The solar using project at Thuong Trach district, Bo Trach,

Quang Binh. Capacity of 11kWp, cost 160.000USD, funded by

Sues Foundation

3. Current renewable enegry usage situation (cont‟)

4) Biofuels

On 20 Nov 2007, the Prime Minister officially approved “ Biofuel Development Plan to 2015, with vision to 2025”, in which proposed the goal to 2010, to produce 100.000 tons of E5 gasoline per year and 50.000 tons of B5 per year, ensure 0.4% of the nation‟s fuels needs and to 2025, will have those two products output sastify 5% national market needs. The proposal also shows 6 important solutions to develop bio-energy and establish the market to step by step bring this industry intergation with the world.

3. Current renewable enegry usage situation (cont‟)

Summary of the building projects on ethanol fuels factories at Viet Nam

Factory Capacity Investor Progress

Đai Loc factory,

Quang Nam

100

millions

litres/years

Đồng Xanh company Put into operation at 2/4/2011

Cu-Dut factory,

Đac Nong

50 millions

litres/year

Dai Viet company Was put into operation

Tam Nong factory,

Phú Thọ

100

millions

litres/year

PVB company,

belongs to PV Oil

Begin operated at 9/2009. 80%

complete in account for 1/2012

Dung Quat factory 100

millions

litres/year

Petrosetco NMLD

Binh Son of

Petrovietnam

Produced the first batch at 3/2/2012

Binh Phuoc factory 100

millions

litres/year

Join venture of

ITOCHU Japan and

PV Oilq

Begin operated at 20/3/2010

Being examined before test

operation at 2/2012

Xuan Loc factory 60 millions

litres/year

Tung Lam limited

liability company

Operated at 2010

3. Current renewable enegry usage situation (cont‟)

Dong Xanh ethanol production factory -Quang Ngai

3. Current renewable enegry usage situation (cont‟)

5) About biomass usage

In case of power generating from biomass energy, some typical project in Viet Nam are themorelectric generators technology using husks and basage. In particular, themorelectric generators using bagasse equipment at sugar factories with total capacity is of around 150 MW; Electric generating using husk at Can Tho city and An Giang province are started developing.

6) About geothermal energy: Sept 2012, Quang Tri province has licensed the investment to build the first geothermal energyplant project at Đakrong with capacity of 25MW, the exploitation of new energy source in the near future.

3. Current renewable energy usage situation (cont‟)

Power plant using bagasse-biomass

20

3. Current renewable energy usage situation (cont‟)

Summary of renewable energy usage for electric generating to 2012

No Type of sources Capacity (MW)

1 Small Hydropower 1.000

2 Windpower 52

3 Solarpower 3

4 Biomass 152

5 Domestic waste 8

Total 1.215

3. Current renewable energy usage situation(cont‟)

Comments

- The development of renewable energy usage overall is still slow,

- Lack development planning, encourage policy,

- The development of renewable energy project still by State agencies play a major role from organize to investment fund (including investment fund managed by Govt),

- The role of private sector participate in renewable energy project is improved, private sector„s investment has played an important role rencently (still not consider the main) in the development such as small hydropower, windpower, biofuels; it is based to believed that with the mechanisms, policies, suitable prices, will be able to attacts more investement from private sectors from both national and international onwards to diversify the development of renewable energy investment.

III. PLAN ON RENEWABLE ENERGY USAGE OUTLOOK1) Expected development of renewable energy as Master Plan VII (base plan)

Categories Units 2010 2020 2030

Total electric power

demands

Capacity

Power

MW

mil kWh

24.000

100

75.000

330

146.800

695

Total renewable

energy

Capacity

Power

%HT

MW

%HT

mil kWh

4

960

2

2

5.6

4.200

4.5

16.5

9.4

13.724

6.0

41.7

There in:

- Windpower Capacity

Power

MW

%HT

52

-

1000

0,7

6.200

2,4

- Biomass Capacity

Power

MW

%HT

150 500

0.6

2.000

1.1

- Other source MW 900 2.700 5.600

Reduce CO2 potential 103 tons 1.200 8.910 25.020

2) Assessment of develop renewable energy investment expected by Master Plan VII

Categories Units 2020 2030

Windpower

-Capacity

-Investment

-Required land area

MW

Mil.USD

Ha

1.000

2.200

5.000

6.200/5.000

9.000

31.000

Biomass

-Capacity

-Investment

MW

Mil.USD

500

650

2.000/1.500

1.650

Other source

-Capacity

-Investment

MW

Mil.USD

2.700

4.050

5.600/2.900

4.350

Total investment Mil.USD 6.900 15.000

3) Estimates plan with renewable energy proportion of 6%; 10% total

required at 2020 and 2030

Categories Unit 2020 2030

Total required E (correction plan) bil KWh 235 460

Estimates Renewable Energy

A- With Renewable Energy proportion as

QHĐVII and Green Growth Strategy

- Power(E) % total

bil Kwh

4.5

10.5

6.0

27.6

- Capacity(P) % total

MW

5.6

4.000

9.4

9.800

- Total investment mil USD 7.200 13.720

3) Estimates plan with renewable energy proportion of 6%; 10% total

required at 2020 and 2030

Category Unít 2020 2030

B- Forecast with better renewable

energy proportion

- Power E %

Bil KWh

6

14.1

10

46.0

- Capacity P % 5.600 15.000

- Total investment Mil USD 10.000 21.000

- Reduce CO2

emission 103 tons 8.460 27.000

Comments

According to the numbers of Master Plan VII, 2020 require total renewable energy capacity 4200MW, power of 16.5 billion kWh, required investment of 6.9 billions USD, reduce emission capacity 8.9 mil tons CO2; 2030 respectively is 13.720MW; 41.7 billions kWh; 15 billions USD; 25 mil tons CO2. This plan is calculated with high equipment capacity usage hours, 3900h/n for 2020 and 3040h/n for 2030.

In case of higher renewable energy proportion, 6% at 2020; 10% at 2030 but lower Master Plan VII, by 2020 require total renewable energy capacity of 5600 MW, power 14.1 billions kWh, investment of 10 billions USD, Reduce ability of 8.46 million tons CO2; 2030 respectively is 15.000 MW; 46 billions kWh; 21 billions USD; 27 million tons CO2. This plan adjust with lower renewable energy usage hours, 2500h/y at 2020 and 3000h/y at 2030.

IV. Conclusions and proposals

Our tradition energy sources are getting declined due to the limited stocks while the needs are getting increased more and more and the consumption of minerals energy sources is causing severly enviromental pollution. Viet Nam has great potential of renewable energy to develop and use renewable energy to reduce coal, oil, gas and to reduce GHG emission as well. Therefore, Vietnam needs to develop legal frameworks, institutions, capacity building to promote investments in development of RE,

In the current national and international circumstances, it is strongly advised the government, MOIT, MONRE to develop RE scenario more advanced than Master Plan VII, National Strategy for Green Growth. The RE scenario to be developed should ensure the production of RE of 6% - 10% of the total national energy corresponding to 2020-2030 and can be more afterwards.

21

2.2. Alternative Policy Scenarios for RE development in Viet Nam

The Second Capacity Building Workshop on

“Low Carbon Development and Nationally Appropriate Mitigation Actions”

Alternative Policy Scenarios

For Renewable Energy Development in Viet Nam

By Nguyen Minh Bao

Institute of Energy

16-18 December 2013, Do Son, Hai Phong, Viet Nam

ContentsContents

•• IntroductionIntroduction

•• Methodology and Data Methodology and Data

•• Results of Energy OutlookResults of Energy Outlook--BAUBAU

•• APS Scenarios for RE Development APS Scenarios for RE Development

Assumptions for APS ScenariosAssumptions for APS Scenarios

Results of Energy OutlookResults of Energy Outlook--APS APS vs. BAUvs. BAU

•• Key FindingsKey Findings

•• Climate change is one of the most complex problems that seriousClimate change is one of the most complex problems that seriously ly

threats to the global issues.threats to the global issues.

•• Vietnam is considered one of countries most vulnerable to climatVietnam is considered one of countries most vulnerable to climate e

change.change.

•• Continuing the Continuing the TNA project sponsored by UNEP to identify the priority TNA project sponsored by UNEP to identify the priority

technology needs and the adaptive and mitigation technologies, Vtechnology needs and the adaptive and mitigation technologies, Viet Nam iet Nam

was selected for implementing FIRM project. was selected for implementing FIRM project.

•• This study is one of three main components of FIRM project, FIRM project, aiming to

develop a national low carbon development framework and indentify the

NAMA priorities

IntroductionIntroduction

•• The objective of this study is to develop APS Scenario for RE tThe objective of this study is to develop APS Scenario for RE to achieve o achieve

the target of 5 percentage of RE in total primary commercial supthe target of 5 percentage of RE in total primary commercial supply by 2020. ply by 2020.

•• FirstlyFirstly, a BAU scenario was developed for outlining future energy

consumption with assumption of no any change on energy policies.

•• An APS was also designed based on:

Accessible potential of all types of RE

National targets for RE development with assuming that additional

policies would be developed or likely to be under consideration.

• The difference between the BAU and APS represents the additional RE

consumption and potential fossil energy savings as well as potential GHG

reduction.

Methodology and Data Methodology

•• LEAP model, LEAP model, an accounting system was used to develop energy balance

tables based on final energy consumption and energy input/output in the

transformation sector.

•• Final energy demand forecasting was estimated for each sector such as

industry, transport, agriculture, commercial and residential sectors.

•• Final energy demand for the sectors (except residential sector) is

forecasted using energy demand equations by energy and sector and future

macroeconomic assumptions.

• Residential energy demand was estimated by using the bottom-up method

that energy demand was broken down in to sub-sector, end-uses etc.

• Primary energy requirements were estimated based on the future choice

for technologies, programs and available energy supply in the future.

Methodology and Data Methodology

Data were taken from the following souces: Data were taken from the following souces:

•• Energy Balances for Non-OECD Countries compiled by the International

Energy Agency (IEA) with the historical energy data available for using the

econometric approach.

•• Statistics Year Book of Viet Nam and World Development Indicators

published by the World Bank.

• Other data such as population and population growth rates were obtained

from Statistics Year Book.

• Where official data were not available, estimates were obtained from other

sources or Institute of Energy (IE).

Methodology and Data Data

•• GDP assumptions* GDP assumptions*

6.96% per year from 2011 to 20156.96% per year from 2011 to 2015

7.0% per year from 2016 to 20207.0% per year from 2016 to 2020

7.22% per year from 2021 to 20307.22% per year from 2021 to 2030

6.8% per year from 2030 to 2035 6.8% per year from 2030 to 2035

20102010 20152015 20202020 20302030

IndustryIndustry 42.42%42.42% 41.00%41.00% 42.01%42.01% 41.41%41.41%

AgricultureAgriculture 16.43%16.43% 17.10%17.10% 15.00%15.00% 10.10%10.10%

•• Share of GDP* Share of GDP*

* National Power Master Plan (2010* National Power Master Plan (2010--2030)2030)

Methodology and Data

•• Population assumptions (Mill. persons)*: Population assumptions (Mill. persons)*:

•• Urbanization Rate *Urbanization Rate *

2010: 30.5%2010: 30.5%

2015: 33.6%2015: 33.6%

2025: 40.7%2025: 40.7%

2035: 48.2%2035: 48.2%

* Source: * Source: General Statistics Office, 2011- Viet Nam Population Forecasts 2009-2049

20102010 20152015 20202020 20252025 20302030 20352035

86.9386.93 91.58391.583 96.17996.179 100.129100.129 103.117103.117 105.388105.388

Methodology and Data

22

Methodology and Data

* Changes in Technology

- Base year 2010 thermal efficiencies by fuel type (coal, gas, and oil) were

derived from Energy Balance Tables.

- Thermal efficiencies by fuel (coal, gas, and oil) in the Viet Nam were

projected based on the forecasting future power plant technologies in USDOE‟s

Annual Energy Outlook, 2008.

* Renewable Energy Technologies

Installed electricity generating capacity from renewable energy is

assumed based on:

- Current status of policies and RE application

- RE potential and planning to develop RE technologies

In BAU, it assumed that RE would reach to 4300 MW in 2030 with small

hydro contributing 4000 MW wind 200 MW, and biomass 100 MW.

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Final Energy Demand by Sector, BAU Unit: MTOE

19901990 20102010 20152015 20202020 20302030

Annual Average Annual Average

Growth Rate (%)Growth Rate (%)

19901990--

20102010

20102010--

20302030

ResidentialResidential 9.59.5 10.810.8 12.112.1 14.014.0 20.220.2 0.60.6 3.23.2

IndustryIndustry 4.54.5 17.517.5 23.423.4 31.931.9 54.554.5 7.07.0 5.85.8

TransportationTransportation 1.41.4 11.111.1 15.215.2 20.620.6 34.134.1 10.910.9 5.75.7

AgricultureAgriculture 0.20.2 0.60.6 0.80.8 1.01.0 1.21.2 4.64.6 3.63.6

CommercialCommercial 0.30.3 1.81.8 2.62.6 3.83.8 7.87.8 8.68.6 7.77.7

Total Total 16.016.0 41.841.8 54.154.1 71.271.2 117.8117.8 4.94.9 5.35.3

Results of Energy OutlookResults of Energy Outlook--BAUBAUFinal Energy Demand by Sector, BAU

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Share of Final Energy Demand by Sector, BAU Unit: %

20102010 20202020 20302030

ResidentialResidential 25.825.8 19.619.6 17.217.2

IndustryIndustry 41.941.9 44.844.8 46.346.3

TransportationTransportation 26.726.7 28.928.9 28.928.9

AgricultureAgriculture 1.51.5 1.41.4 1.11.1

CommercialCommercial 4.24.2 5.35.3 6.66.6

TotalTotal 100100 100100 100100

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Final Energy Demand by Fuel, BAU Unit: MTOE

19901990 20102010 20152015 20202020 20302030

Annual Average Annual Average

Growth Rate Growth Rate (%)(%)

19901990--

2010201020102010--

20302030

Solid Fuels (Coal)Solid Fuels (Coal) 1.31.3 9.99.9 12.612.6 16.416.4 24.124.1 10.610.6 4.64.6

OilOil 2.42.4 15.315.3 20.920.9 28.028.0 46.846.8 9.89.8 5.75.7

Natural gasNatural gas 0.00.0 0.50.5 0.80.8 1.31.3 2.72.7 -- 8.98.9

ElectricityElectricity 0.50.5 7.57.5 12.712.7 20.120.1 42.342.3 14.114.1 9.19.1

BiomassBiomass 11.811.8 8.68.6 6.96.9 5.25.2 1.21.2 --1.61.6 --9.39.3

RenewableRenewable 0.00.0 0.020.02 0.10.1 0.40.4 0.70.7 -- 19.619.6

TotalTotal 16.016.0 41.841.8 54.154.1 71.271.2 117.8117.8 4.94.9 5.35.3

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Final Energy Demand by Fuel, BAU

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Share of Final Energy Demand by Fuel, BAU

Unit: %

19901990 20102010 20302030

Solid Fuels (Coal)Solid Fuels (Coal) 8.38.3 23.723.7 20.520.5

OilOil 14.714.7 36.736.7 39.739.7

Natural gasNatural gas 0.00.0 1.21.2 2.32.3

ElectricityElectricity 3.33.3 17.917.9 35.935.9

BiomassBiomass 73.773.7 20.520.5 1.01.0

RenewablesRenewables 0.00.0 0.040.04 0.60.6

TotalTotal 100100 100100 100100

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Power Generation Output, BAU

Unit: Bill. kWh

19901990 20102010 20302030AAGRAAGR

2010/19902010/1990

AAGRAAGR

2030/20102030/2010

CoalCoal 2.02.0 17.017.0 302.1302.1 11.311.3 15.515.5

OilOil 1.31.3 4.64.6 0.30.3 6.46.4 --12.912.9

Natural gasNatural gas 0.00.0 43.143.1 81.081.0 55.955.9 3.23.2

NuclearNuclear 0.00.0 0.00.0 58.558.5 -- --

HydroHydro 5.45.4 25.925.9 64.764.7 8.28.2 4.74.7

RenewablesRenewables 0.00.0 1.81.8 12.912.9 -- 10.210.2

TotalTotal 8.78.7 92.392.3 519.3519.3 12.512.5 9.09.0

23

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Power Generation Output, BAU (Bill. kWh)

Results of Energy Outlook-BAU

Share of Power Generation Output, BAU

Unit: %

19901990 20102010 20302030

CoalCoal 23.123.1 18.418.4 58.258.2

OilOil 15.015.0 4.94.9 0.10.1

Natural GasNatural Gas 0.10.1 46.646.6 15.615.6

NuclearNuclear 0.00.0 0.00.0 11.311.3

HydroHydro 61.861.8 28.028.0 12.512.5

RenewablesRenewables 0.00.0 2.02.0 2.52.5

TotalTotal 100100 100100 100100

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Primary Energy Supply, BAU

Unit: MTOE

Primary Energy Supply, BAU

Unit: MTOE

19901990 20102010 20152015 20202020 20302030

AAGR (%)AAGR (%)

19901990--

20102010

20102010--

20302030

Solid Fuels (Solid Fuels (Coal)Coal) 2.22.2 14.614.6 27.827.8 44.344.3 91.891.8 9.99.9 9.69.6

OilOil 2.72.7 17.717.7 21.221.2 29.129.1 48.748.7 9.89.8 5.25.2

Natural gasNatural gas 0.00.0 8.48.4 8.48.4 12.312.3 18.118.1 48.748.7 3.93.9

NuclearNuclear 0.00.0 0.00.0 0.00.0 1.21.2 15.215.2 -- --

HydroHydro 0.50.5 2.22.2 3.83.8 4.94.9 5.65.6 8.28.2 4.74.7

BiomassBiomass 11.611.6 8.68.6 7.07.0 5.25.2 1.31.3 --1.51.5 --9.09.0

RenewablesRenewables 0.00.0 0.30.3 1.01.0 1.61.6 2.52.5 -- 11.011.0

Imported electricityImported electricity 0.00.0 0.40.4 0.60.6 0.90.9 1.41.4 -- 6.46.4

TotalTotal 17.017.0 52.252.2 69.869.8 99.399.3 184.5184.5 5.85.8 6.56.5

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Primary Energy Supply, BAU

Unit: MTOE

Share of Primary Energy Supply, BAU

Unit: %

19901990 20102010 20302030

Solid Fuels (Coal)Solid Fuels (Coal) 13.113.1 27.927.9 49.849.8

OilOil 16.116.1 33.933.9 26.426.4

Natural gasNatural gas 0.00.0 16.116.1 9.89.8

NuclearNuclear 0.00.0 0.00.0 8.38.3

HydroHydro 2.72.7 4.34.3 3.03.0

BiomassBiomass 68.168.1 16.516.5 0.70.7

RenewablesRenewables 0.00.0 0.60.6 1.31.3

Imported Imported

electricityelectricity0.00.0 0.70.7 0.70.7

Total Total 100100 100100 100100

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Primary Energy Supply, BAU

Unit: MTOE

GHG Emissions, BAU

Unit: Million Tonnes of CO2e

20102010 20152015 20202020 20252025 20302030AAGRAAGR

20102010--3030

1. Energy Industry1. Energy Industry 50.350.3 86.986.9 148.7148.7 212.8212.8 323.7323.7 9.8%9.8%

Electricity GenerationElectricity Generation 38.638.6 74.374.3 129.6129.6 189.1189.1 294.7294.7 10.7%10.7%

Gas Production Gas Production 0.70.7 0.70.7 0.90.9 0.80.8 0.60.6 --0.8%0.8%

Crude oil productionCrude oil production 5.35.3 3.43.4 5.75.7 5.65.6 5.55.5 0.3%0.3%

Coal ProductionCoal Production 5.65.6 8.58.5 12.512.5 17.317.3 22.922.9 7.3%7.3%

2.Energy Consumption2.Energy Consumption 91.491.4 120.6120.6 158.9158.9 200.3200.3 252.7252.7 5.2%5.2%

ResidentialResidential 11.411.4 13.913.9 16.516.5 18.818.8 20.920.9 3.1%3.1%

IndustryIndustry 40.240.2 52.552.5 69.869.8 87.987.9 110.9110.9 5.2%5.2%

TransportTransport 33.533.5 45.345.3 60.760.7 77.777.7 99.799.7 5.6%5.6%

AgricultureAgriculture 1.61.6 2.22.2 2.52.5 2.92.9 3.23.2 3.4%3.4%

CommercialCommercial 4.84.8 6.76.7 9.49.4 1313 1818 6.9%6.9%

Total (1+2)Total (1+2) 141.7141.7 207.4207.4 307.7307.7 413.2413.2 576.4576.4 7.3%7.3%

Results of Energy OutlookResults of Energy Outlook--BAUBAU

Energy Indicators of BAU

20102010 20202020 20302030

GDP (billions of 1994 USD)GDP (billions of 1994 USD) 62.862.8 123.4123.4 247.7247.7

Population (millions of people)Population (millions of people) 86.986.9 96.296.2 103.1103.1

GDP per capita (thousands of 1994 USD/person)GDP per capita (thousands of 1994 USD/person) 0.7 0.7 1.3 1.3 2.4 2.4

Primary energy consumption per capita (toe/person)Primary energy consumption per capita (toe/person) 0.60 0.60 1.03 1.03 1.79 1.79

Primary energy consumption per unit of GDP (toe/million Primary energy consumption per unit of GDP (toe/million

1994 USD)1994 USD)832 832 805 805 745 745

COCO22 emissions per unit of GDP (temissions per unit of GDP (t--COCO22/million 1994 USD)/million 1994 USD) 2,257 2,257 2,493 2,493 2,327 2,327

COCO22 emissions per unit of primary energy consumption emissions per unit of primary energy consumption

(t(t--C/toe)C/toe)2.71 2.71 3.10 3.10 3.12 3.12

APS Scenarios for RE Development

Assumptions for APS Scenarios

This section focuses on development of APS for RE to achieve theThis section focuses on development of APS for RE to achieve the target target

5% of RE in total primary commercial supply by 2020 based on the5% of RE in total primary commercial supply by 2020 based on the

existing planning and programs with assumptions that additional existing planning and programs with assumptions that additional policies policies

would be developed. would be developed.

Small hydro power plants substitute for coal thermal power plants

Installed Capacity of SHP (MW)Installed Capacity of SHP (MW)

ScenariosScenarios 2012*2012* 20152015 20252025

BAUBAU 1,269.4 1,269.4 2,600 2,600 4,000 4,000

APSAPS 1,269.4 1,269.4 2,950 2,950 5,600 5,600

* Source: Statistic Data until Sep. 2012, General Department of Energy, MOIT

APS Scenarios for RE Development

Assumptions for APS Scenarios

Biomass power plants substitute for coal thermal power plants

Installed Capacity of Biomass PP (MW)Installed Capacity of Biomass PP (MW)

ScenariosScenarios 20102010 20152015 20302030

BAUBAU 4040 60 60 100 100

APS APS 4040 500* 500* 2000* 2000*

40MW in 2010 to 60 MW in 2020 and 100 MW in 2030.

* Source: Decision No. 1208/2011/QD-TTg, 2011 on approval of the National Power

Development Plan for the 2011- 2020 period with a vision to 2030.

24

APS Scenarios for RE Development

Assumptions for APS Scenarios

Wind powerWind power plants substitute for coal thermal power plants

40MW in 2010 to 60 MW in 2020 and 100 MW in 2030.

* World Bank (2001) Wind Energy Resource Atlas of Southeast Asia. ** Decision No. 1208/2011/QD-TTg, 2011 on approval of the National PDP VII.

• The total potential of wind energy in Vietnam is estimated to be as high as

26,700MW (at speeds over 6m/s)*.

• There have been 48 projects on wind power development registered (until May

2011) with the total registered capacity of 5,000 MW.

• Assumption:

Installed Capacity of WPP (MW)Installed Capacity of WPP (MW)

ScenariosScenarios 20112011 20152015 20302030

BAUBAU 3030 100 100 200 200

APS APS 3030 1000** 1000** 6200** 6200**

APS Scenarios for RE Development

Assumptions for APS Scenarios

Biogas EnergyBiogas Energy

40MW in 2010 to 60 MW in 2020 and 100 MW in 2030.

• Biogas stoves substitute for coal stoves:

By 2030, the share of HH using biogas stoves will increase to 12.0% from 2.0% (in BAU) in rural areas.

Each household used biogas consumes 0.16 TOE per year, while old coal stoves consumes around 0.4 TOE per year.

• Biogas stoves substitute for LPG stoves:

By 2030, the share of HH using biogas stoves will increase to 12.0% from 2.0% (in BAU) in rural areas.

Each household used biogas consumes 0.16 TOE per year, while LPGstoves consumes 0.143 TOE per year.

APS Scenarios for RE Development

Assumptions for APS Scenarios

Biogas EnergyBiogas Energy

40MW in 2010 to 60 MW in 2020 and 100 MW in 2030.

• Biogas power plants substitute for coal thermal power plants

Installed Capacity of Biogas PP (MW)Installed Capacity of Biogas PP (MW)

ScenariosScenarios 20102010 20152015 20302030

BAUBAU 00 0 0 0 0

APS APS 00 30 30 60 60

APS Scenarios for RE Development

Assumptions for APS Scenarios

Solar water heaters substitute for electric water heatersSolar water heaters substitute for electric water heaters

40MW in 2010 to 60 MW in 2020 and 100 MW in 2030.

By 2030, it assumes that the share of HH used SWH will increase By 2030, it assumes that the share of HH used SWH will increase to 70% in to 70% in

urban and 40% in rural areas (from 10% and 3% in BAU) to replaceurban and 40% in rural areas (from 10% and 3% in BAU) to replace to to

electricity heaters. electricity heaters.

BioBio--ethanol fuel substitutes for gasoline in transportationethanol fuel substitutes for gasoline in transportation

Amount of ethanol substituted for gasoline Amount of ethanol substituted for gasoline

(KTOE)(KTOE)

ScenariosScenarios 20102010 20152015 20302030

BAUBAU 0.100.10 300 300 600 600

APS APS 0.100.10 556* 556* 1150* 1150*

* Source: Based on the project for bio-energy development up to 2015 with a

vision to 2025

APS Scenarios for RE Development

20102010 20152015 20202020 20252025 20302030

BiomassBiomass 00 00 00 00 00

ElectricityElectricity 00 --28.128.1 --108.6108.6 --257.6257.6 --511.1511.1

Natural GasNatural Gas 00 00 00 00 00

Oil ProductsOil Products 00 --137.2137.2 --340.1340.1 --538.4538.4 --736.3736.3

RenewablesRenewables 00 228.9228.9 580.4580.4 998.4998.4 1519.71519.7

Solid fuels (Coal) Solid fuels (Coal) 00 --150.5150.5 --291.1291.1 --415.3415.3 --516516

TotalTotal 00 --8787 --159.4159.4 --213.0213.0 --243.7243.7

Results of Energy Outlook-APS vs. BAU

Final Energy Demand by Fuels, APS vs. BAU

Final Energy Demand by Fuels, APS vs. BAU

Unit: KTOE

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

Final Energy Demand by Fuels, APS vs. BAU

Final Energy Demand by Fuels, APS vs. BAU

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

20102010 20152015 20202020 20252025 20302030

Solid FuelsSolid Fuels 00 --802.3802.3 --1970.21970.2 --3950.43950.4 --5981.65981.6

OilOil 00 --111.5111.5 --265.1265.1 --485.9485.9 --773.1773.1

Natural GasNatural Gas 00 28.628.6 34.834.8 --71.571.5 --109.1109.1

NuclearNuclear 00 0.00.0 4.44.4 --41.341.3 --128.6128.6

HydropowerHydropower 00 14.514.5 18.518.5 --29.429.4 --46.946.9

BiomassBiomass 00 156.3156.3 398.9398.9 1083.21083.2 1848.41848.4

RenewablesRenewables 00 1484.31484.3 3421.03421.0 5651.85651.8 7907.47907.4

Electricity (Imported)Electricity (Imported) 00 1.51.5 4.04.0 6.46.4 --42.342.3

TotalTotal 00 771.4771.4 1646.31646.3 2162.92162.9 2674.22674.2

Primary Energy Demand by Fuels, APS vs. BAU

Unit: KTOE

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

Power Generation Input by Fuel-Energy Types APS vs. BAU

Unit: KTOE

Power Generation Input by Fuel-Energy Types APS vs. BAU

Unit: KTOE

20102010 20152015 20202020 20252025 20302030

CoalCoal --651.8651.8 --1,679.11,679.1 --3,535.13,535.1 --5,465.65,465.6

In which: In which: -- Anthracite Anthracite 00 --538.1538.1 --1,400.71,400.7 --2,328.62,328.6 --3,165.43,165.4

-- Import CoalImport Coal 00 --113.7113.7 --278.4278.4 --1,206.51,206.5 --2,300.22,300.2

Oil Oil 00 0.00.0 0.00.0 0.00.0 --72.772.7

Natural GasNatural Gas 00 25.525.5 34.834.8 --71.571.5 --109.1109.1

NuclearNuclear 00 0.00.0 4.44.4 --41.341.3 --128.6128.6

HydroHydro 00 14.514.5 18.518.5 --29.429.4 --46.946.9

Small HydroSmall Hydro 00 90.890.8 238.6238.6 389.5389.5 406.4406.4

Wind Wind 00 42.642.6 108.8108.8 425.9425.9 778.4778.4

BiomassBiomass 00 156.3156.3 398.9398.9 1,083.21,083.2 1,848.41,848.4

Biogas Biogas 00 10.810.8 36.236.2 55.655.6 77.977.9

TotalTotal 00 --311.2311.2 --838.8838.8 --1,723.11,723.1 --2,711.92,711.9

25

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

Evaluation of the Share of Renewable Energy

The basic principles for calculating the share of RE in total primary commercial

energy sources are based on the outputs of yearly energy balance tables

determined as follows:

* Primary commercial energy sources include crude oil, oil products imported,

coal exploited and imported, natural gas exploited and imported, nuclear fuel,

electricity imported (and not including fuel-energy exported).

* Primary RE sources include small hydro, wind, solar, animal waste for

producing biogas, cassava for producing ethanol and biomass fuels for power

generation (not including biomass for residential cooking).

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

Primary Energy Supply by Energy Types in APS Up to 2030

Unit: KTOE

Primary Energy Supply by Energy Types in APS Up to 2030

Unit: KTOE

20102010 20152015 20202020 20252025 20302030

CoalCoal 14591.814591.8 27036.727036.7 42282.642282.6 57018.957018.9 85813.985813.9

OilOil 17674.117674.1 21101.821101.8 28869.528869.5 36910.736910.7 47866.847866.8

Natural GasNatural Gas 8423.88423.8 8405.98405.9 12291.812291.8 16511.216511.2 17941.817941.8

NuclearNuclear 0.00.0 0.00.0 1171.61171.6 7184.87184.8 15100.615100.6

HydroHydro 2224.12224.1 3784.63784.6 4871.54871.5 5112.55112.5 5512.75512.7

BiomassBiomass 8607.08607.0 7140.97140.9 5612.15612.1 4394.14394.1 3168.83168.8

In which: for power generationIn which: for power generation 40.040.0 205.3205.3 453.1453.1 1157.71157.7 1946.61946.6

Animal WastesAnimal Wastes 162.6162.6 1403.51403.5 2870.32870.3 4318.34318.3 5782.35782.3

Cassava Cassava 0.20.2 276.9276.9 846.2846.2 1307.71307.7 1769.21769.2

Small HydroSmall Hydro 144.8144.8 744.3744.3 1033.01033.0 1383.11383.1 1453.41453.4

SolarSolar 0.50.5 33.733.7 126.9126.9 298.4298.4 589.8589.8

WindWind 0.00.0 50.350.3 120.8120.8 444.6444.6 804.6804.6

Electricity Imported Electricity Imported 390.2390.2 624.9624.9 854.4854.4 1082.81082.8 1311.21311.2

TotalTotal 52219.152219.1 70604.070604.0 100951.0100951.0 135967.2135967.2 187115.0187115.0

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

20102010 20152015 20202020 20252025 20302030

Total Primary Total Primary

EnergyEnergy52219.152219.1 70604.070604.0 100951.0100951.0 135967.2135967.2 187115.0187115.0

Total Primary Total Primary

Commercial EnergyCommercial Energy41079.941079.9 57169.357169.3 85469.985469.9 118708.4118708.4 168034.3168034.3

Total Primary Total Primary

Renewable EnergyRenewable Energy348.1348.1 2714.02714.0 5450.35450.3 8909.88909.8 12345.912345.9

Share of Share of

RE/TPCERE/TPCE0.8%0.8% 4.7%4.7% 6.4%6.4% 7.5%7.5% 7.4%7.4%

Primary Energy Supply by Energy Types in APS Up to 2030

Unit: KTOE

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

20102010 20152015 20202020 20252025 20302030

Biomass for power generationBiomass for power generation 0.10%0.10% 0.36%0.36% 0.53%0.53% 0.98%0.98% 1.16%1.16%

Cassava for ethanol productionCassava for ethanol production 0.00%0.00% 0.48%0.48% 0.99%0.99% 1.10%1.10% 1.05%1.05%

Animal Wastes for biogas Animal Wastes for biogas 0.40%0.40% 2.45%2.45% 3.36%3.36% 3.64%3.64% 3.44%3.44%

Small HydroSmall Hydro 0.35%0.35% 1.30%1.30% 1.21%1.21% 1.17%1.17% 0.86%0.86%

SolarSolar 0.00%0.00% 0.06%0.06% 0.15%0.15% 0.25%0.25% 0.35%0.35%

WindWind 0.00%0.00% 0.09%0.09% 0.14%0.14% 0.37%0.37% 0.48%0.48%

TotalTotal 0.85%0.85% 4.75%4.75% 6.38%6.38% 7.51%7.51% 7.35%7.35%

The Share of Renewable Energy by Types of Technology

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

GHG Reduction Potential

Unit: Million Tones CO2e

20102010 20152015 20202020 20252025 20302030AAGRAAGR

20102010--20302030

APSAPS 141.7141.7 203.7203.7 298.6298.6 395.3395.3 549.5549.5 7.0%7.0%

BAUBAU 141.7141.7 207.4207.4 307.7307.7 413.2413.2 576.4576.4 7.3%7.3%

ReductionReduction 00 --3.73.7 --9.19.1 --17.917.9 --26.926.9 --0.3%0.3%

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

GHG Reduction Potential

0

100

200

300

400

500

600

700

BAU APS BAU APS

2010 2020 2030

Mil

lio

n T

on

s o

f C

O2

Eq

uiv

ale

nt

-26.9 Mt-CO2, -4.7%

-9.1 Mt-CO2, -2.9%

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

GHG Reduction Potential in Power Generation

Unit: Million Tones CO2e

20102010 20152015 20202020 20252025 20302030AAGR AAGR

20102010--20302030

APSAPS 38.638.6 71.771.7 123123 174.9174.9 272.6272.6 10.3%10.3%

BAUBAU 38.638.6 74.374.3 129.6129.6 189.1189.1 294.7294.7 10.7%10.7%

Reduction Reduction 00 -- 2.62.6 -- 6.66.6 -- 14.214.2 -- 22.122.1 -- 0.4%0.4%

APS Scenarios for RE Development

Results of Energy Outlook-APS vs. BAU

GHG Reduction Potential in Power Generation

26

2.3. A review of LCDS for RE development in Viet Nam

Key FindingsKey Findings

* Energy demand in Viet Nam is expected to continue to grow at a* Energy demand in Viet Nam is expected to continue to grow at a

significant rate. RE sources potential could contribute significsignificant rate. RE sources potential could contribute significantly to antly to

meeting higher demand in a sustainable manner. meeting higher demand in a sustainable manner.

* Electricity demand is increasing with highest annual growth ra* Electricity demand is increasing with highest annual growth rate of 9.1 te of 9.1

percent in BAU and is projected to decline to 9.0 percent in APSpercent in BAU and is projected to decline to 9.0 percent in APS. This . This

decline seems to be modest due to SWH applied in residential secdecline seems to be modest due to SWH applied in residential sector only. tor only.

* Coal thermal power plants will be the major power generation i* Coal thermal power plants will be the major power generation in Viet n Viet

Nam in coming years. This area presents the largest energy conseNam in coming years. This area presents the largest energy conservation rvation

as well as the GHG mitigation potential in Viet Nam. as well as the GHG mitigation potential in Viet Nam.

* The share of primary RE in total primary commercial energy inc* The share of primary RE in total primary commercial energy increases reases

from insignificant share of 0.8 percent in 2010 to 6.4 percent ifrom insignificant share of 0.8 percent in 2010 to 6.4 percent in 2020 and n 2020 and

7.4 percent in 2030, indicating that Viet Nam could be achieve t7.4 percent in 2030, indicating that Viet Nam could be achieve the goal of he goal of

5.0 percent of RE in total primary commercial energy by 2020.5.0 percent of RE in total primary commercial energy by 2020.

Thank you very muchThank you very much

Technical guidance: A review of LCDS

for RE development in Vietnam

By Karen Holm Olsen, Senior Researcher

[email protected]

Second Capacity Building Workshop on LCD and NAMAs

Da Son, Hai Phong, Vietnam, 16-18 December 2013

Outline:

• Objectives

• The global mitigation

challenge

• Existing policies in Vietnam

• Methodologies for

BAU/baseline scenarios

• The BAU/APS scenario for

5% RE in energy primary

supply

• Policy recommendations

Objectives

Objectives of the review

• To understand the work so far on development of

a LCDS for RE development in Vietnam

• Provide technical guidance on key issues:

o Establishment of baseline for BAU and

LCD/APS scenarios

o Policy recommendations

The global mitigation challenge

The mitigation challenge according to IPCC

Without action - global CO2

emissions will grow

between 40 and 110%

between 2000 and 2030

To stay below 2 degrees

global average warming

and avoid major damages:

• global CO2 emissions

should start declining by

2015 and

• be reduced with 50-85%

below 2000 level by 2050

27

Emission reductions required for stabilising climate

with fair distribution of effort

Impacts of 2° C warming – worse than expected

Expected sea level rise

Source: IPCC AR5 WG1 SPM. Figure SPM.9, 2013

Existing policies in Vietnam

Overview of energy and climate policy targets

Year Type of target Title of policy decision Target

2007 Energy National Energy Development

Strategy

Renewable energy share of total primary commercial energy supply in

2020 is 5%, by 2015 it is 8% and by 2050 it is 11%

2011 Energy -

power supply

National Power Development

Plan (PDP VII)

Renewable energy share of power generation is 4.5 % in 2020 and 6% in

2030

Wind power: 0.7% of total power generation by 2020 and 2.4 % by 2030.

This translates to 1,000 MW of installed capacity in 2020 and 6,200 MW

by 2030

2011 Climate

change

National Strategy on Climate

Change

(Decision 2139/QD-TTg)

Reduce GHG emissions to protect the Earth‟s climate – reference is

made to existing energy and industry policy targets

2012 Mitigation National Green Growth

Strategy

(Decision 1393/QD-TTg)

Reduce GHG emissions from energy activities by 10-20% compared to

BAU in 2020 + 10% with international support and by 20-30% in 2030 +

10% with support.

2012 Mitigation Project for GHG management:

Management of Carbon Credit

Business Activities to the

World Market

(Decision 1775/QD-TTg)

Implement a number of sector specific GHG reduction targets:

Energy and transport: Reduce GHG emissions by 8% compared to 2005

Agriculture: Reduce GHG emissions by 20% compared to 2005

Forestry and land use: Increase the absorption of GHG by 20%

compared to 2005

Waste: Reduce GHG emissions by 5% compared to 2005

Observations

(In-)consistency across policies:o The emission reduction targets for Green Growth and

GHG management are of a different kind: BAU vs.

2005 as baseline

o It makes a big difference in terms of mitigation

ambition, which target is used

o The base year approach gives the most certainty in

accounting for GHG reductions, which is needed for

trading in the world market

Methodologies for BAU/baseline setting

28

Aim of the publication

1. Provide overview of current pract ices

2. Show differences and com monalit ies in

countr ies‟ approaches to baseline set t ing

3. Explain mot ivat ion of choices made

4. Highlight good examples and lessons learnt

5. I nspire other developing countr ies

6. Discuss significant capacity gaps

7. I nform discussions on guidelines

What is a baseline?

• Baseline scenario: A scenario that

describes future greenhouse-gas em ission

levels in the absence of future, addit ional

m it igat ion efforts and policies.

• Often used interchangeably with “business

as usual”

• An est im at ion of the future, not a

predict ion

Different types of reduction pledges under UNFCCC

Themes covered in the publication

Definition of the baseline

• I s the baseline a business-as-usual?

• Two defining points: inclusion of policies

and whether or not the baseline will be

updated.

Inclusion of policies

• Emissions t rajector ies are (hopefully! ) great ly

affected by policy implementat ion

• Three quest ions for considering effects of

policy measures in baselines:

• Whether to include exist ing policies or no

policies at all (and if none, how to “ext ract ”

effects of exist ing measures)

• Which measures to include as part of the

baseline?

• How to model the impact of those

measures?

Examples from the publication

• South Afr ica: essent ially two baselines, with and

without exist ing measures

• Mexico and Brazil: no exist ing policies but

assessment of technology t rends

• I ndonesia : screening process to assess impact on

em issions of exist ing policies

Conclusion

• Policy circumstances vary by country and good

pract ice is to be t ransparent on the method used

29

Updating/revising the baseline

• Whether or not and when to update the baseline as new data becom e available

• Trigger values for when assum pt ions have been wrong could be used, or a defined year interval (e.g. update every 2 years)

• Mexico has made legal provisions to update on a ” regular basis” . South Afr ica will not update.

Key driver assumptions

• Several key drivers

• GDP, st ructure of the economy, populat ion,

energy pr ices, technological developm ent …

• GDP is the m ost im portant key driver

• Often GDP forecats are defined for other

purposes...

Key questions to consider

• What is the definit ion of the baseline?

• How will exist ing and future policies be

handled?

• Will it be updated regular ly?

• Will key driver assum pt ions have to be

defined by governm ental targets?

• Good pract ice: To do sensit ivity analyses

Transparency and credibility

• Nat ional and internat ional credibilit y regarding the baseline

are acknowledged as key concerns.

• Nat ionally, credibilit y ensures credible nat ional policy

planning

• I nternat ionally, credibilit y ensures acknowledgem ent for

m it igat ion pledge and efforts.

• The global nature of clim ate change m eans that the bet ter

governm ents understand the posit ions of other

governm ents, the m ore likely cooperat ive act ion becom es.

Key examples of good practice

• Clear definit ion and purpose

• Policies

• Revisions/ updates

• Key drivers (GDP etc.)

• Uncertainty

The LCD scenario for RE development

Energy Balance 2010 BAU

Primary Energy Supply Power Generation Demand by Fuel Demand by Sector

Mtoe MtoeConversion Effieciency TWh Mtoe Mtoe

Coal 14.60 4.70 0.31 17.00 Coal 9.90

Oil 17.70 2.40 0.16 4.60 Oil 15.30 Residential 10.80

Natural Gas 8.40 7.90 0.47 43.10 Natural Gas 0.50 Industry 17.50

Hydropower 2.20 2.20 1.01 25.90 Hydropower 0.00 Transport 11.10

Biomass 8.60 0.00 0.00 0.00 Biomass 8.60 Agriculture 0.60

Renewable 0.30 0.30 0.50 1.80 Renewable 0.02 Commercial 1.80

Electricity Import 0.40 0.00 0.00 0.00 Electricity 7.50 Total 41.80

Total 52.20 17.50 2.45 92.40 Total 41.82

1 Mtoe = 11.63 TWh

92.4 TWh = 7.94 Mtoe

Source: Alternative Policy Scenarios for Renewable Energy Development of Vietnam (first draft), December 2013

Review of the LCDS – the energy balance

BAU/APS scenarios by 2030

Demand by fuel Primary energy supply

Mtoe Mtoe

APS BAU APS BAU

Coal 23.60 24.10 Coal 85.8 91.8

Oil 46.00 46.80 Oil 47.9 48.7

Natural Gas 2.70 2.70 Natural Gas 17.9 18.1

Electricty 41.80 42.70 Nuclear 15.1 15.2

Biomass 1.20 1.20 Hydropower 5.5 5.6

Renewable 2.20 0.70 Biomass 3.2 1.3

Total 117.50 118.20 Renewable 10.4 2.5

Imported electricty 1.3 1.4

Total 187.1 184.6

30

CO2 emission reductions

Source: Figure 3.3 in Alternative Policy Scenarios for Renewable Energy Development of Vietnam (first draft), December 2013

Alternative Policy Scenario

• Small hydro power: 4,000 MW in 2030; BAU 2,600 MW

• Biomass power plant: 2,000 MW in 2030; BAU of 100

MW

• Wind power plants: 6,200 MW of installed capacity in

2030; BAU 200 MW

• Biogas energy: a) cooking: 12% of households in rural

areas use biogas in 2030; BAU 2%. b) power generation:

60 MW in 2030; BAU 0 MW

• Solar water heaters: 70% in urban areas and 40% in

rural areas by 2030; BAU 10% in urban areas and 3% in

rural areas

• Bio-fuels for transport: 1,800 ktoe in 2030; BAU 600ktoe

Policy recommendations

The LCDS for RE development

• The LCDS study uses the 2007 target as the aim of the APS scenario:

„RE share of total primary commercial energy is 5% by 2020‟

• Ideally, actions and policies already planned should be part of the

baseline (Source: the UNFCCC Handbook on NAMAs, 2013)

• Good practice for BAU scenarios considers whether or not to include

existing policies in the baseline

• What are the considerations behind choosing an 2007 energy policy

target as the aim of the LCDS in 2013?

From the Stern Review of the economics of

climate change, 2006

Climate change is the greatest market failure ever seen

Postponing emission reductions is very costly, it implies:

Greater impacts and adaptation costs

Locking in high-carbon infrastructure (such as power-plants

expected to last 40-50 years) and delaying ‟clean‟ technology

More drastic cuts in emissions later on

Putting an appropriate long-term price on carbon is the first element of

policy – either through tax, trading (cap and trade) or regulation

Technology transfer needs more than a carbon price – policies and

international cooperation is necessary, e.g. R&D

Scaling-up carbon finance to developing countries can support a

transition to low-carbon development

Ideas to enhance the LCDS for RE development

• Vietnam has an emission reduction target for energy and transport:

8% GHG reductions by 2020 compared to 2005 (Decision 1775/QD-

TTg)

• For policy coherence compare what does the 8% GHG reduction

target translate into expressed as „deviation from BAU‟?

• An alternative to BAU baselines is to evaluate a NAMA in terms of its

contribution to a national or sectoral ER target

• To strengthen the LCDS analyse what are the technical options to

achieve the 8% GHG emission reduction target?

Opportunities to attract climate finance

• By choosing an existing energy policy as the aim of the LCDS study it

will be difficult to attract international support. Actions are unlikely to

be considered additional, nor transformational and the mitigation

ambition (3% by 2020) falls short of what IPCC recommends to stay

below 2 degrees of warming

• NAMAs following the LCDS can be recorded in the UNFCCC Registry

as domestic action, for international recognition

• To attract climate finance in support LCDS and NAMAs, the Green

Climate Fund is mandated to support NAMAs for transformational

change to low carbon and sustainable development

31

III. Development of Wind Power NAMA in Viet Nam

3.1. General introduction on the development of Wind Power NAMA

NAMA potential of Vietnam

By Vuong Xuan HoaInstitute of Meteorology, Hydrology and EnvironmentMinistry of Natural Resources and EnvironmentClimate Change Research CenterVietnam

General introduction on the development of Wind Power NAMA

The Second Capacity Building Workshop on “Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Content

1. Basic information;

2. Overview of NAMA;

3. Scope and Objectives.

1. Basic information

• Title of NAMA: Program for Support Wind Power Development in Vietnam;

• NAMA Implementation coordinating entity:Department of Meteorology Hydrology and Climate Change;

• Name of person(s)/organization responsible for developing the NAMA proposal: Vietnam Institute of Meteorology, Hydrology and Environment;

• Sector/Subsector: Energy/Wind Power

• Greenhouse Gas covered by the Action: CO2

(1) Collection of Info on relevant policies and strategies

Collect and analyze relevant policy documents of development, climate change and related sector

(2) Collection data for BAU in the sector

Collect data for calculating BAU emission

(3) Quantification GHG emissions of BAU

Quantify GHG emissions based on (2) data, and a) Identify the calculation formulas b) Calculate respective emission in BAUc) Aggregate respective emissions

(4) Examination and selection of NAMAs options

Select possible NAMAs options and technologies based on (1) policies and mitigation strategies and additional consideration.

(5) Quantification GHG emission reduction by NAMAs

Quantify GHG emissions with (4)NAMAs assumptionsa) Set the calculation formulasb) Calculationc) Aggregate potential with reduction by NAMAs

Steps for NAMAs Design

Supporting Policies and

incentives survey

Examination MRV methods

2. Overview of the NAMA

2.1 Brief Description of the objectives of the proposed NAMA:

• The current situation:– Energy demand by 2030: 4 times– Electricity demand: 10% per year– CDM?– Environmental impacts from hydropower– Wind power potential: 500,000 MW (WB, IEA)– 2010: 48 projects: 1 IO (31 MW)

• The situation after NAMA implementation:– 48 wind power projects in operation (IO)– 0.7% (1000 MW) and 2.4% (6,200 MW) of total electricity

production by 2020 and 2030

2. Overview of the NAMA (cont’)

2.1 Brief Description of the objectives of the proposed NAMA (cont’):

• Measures which would be implemented under the NAMA: specifically supporting policies and mechanisms

• The sources of emissions that will be addressed by the proposed NAMA: CO2

• How the proposed NAMA reduces GHG emissions: develop wind power instead of thermal power plants

Elements of a paradigm shift for transformational change

Source: NAMA Facility, 2013

Thanks!

32

2. Overview of the NAMA (cont’)

2.2 Relevance to the national sustainable development plan(s) or national strategies and/or to the sectoralmitigation goals:

• Decision No. 1775/QD-TTg: 8% reduction of GHG emissions compared to 2005 in energy sector;

• National Strategy for Green Growth: reduce GHG emissions in the energy sector by 10% -15% by 2020 in comparison to 2010 level;

• Power Master plan VII: Wind power share: 0.7% in 2020, and 2.4% in 2030

3. Scope and Objectives

3.1 The current situation in wind energy sector:

• Wind energy production: 48 wind power projects, 4876 MWunder different stages of implementation (GIZ/MOIT, 2012);

• Wind energy master plan: Binh Thuan (1.000 MW by 2015 and3.700 MW by 2020); Ninh Thuan (90 MW by 2015 and 220 MW in 2020)

• Relevant policies and strategies: – National Energy Development Strategy to 2020, vision to 2050;

– Power Master Plan for the period 2011-2020, vision to 2030 (Power Master Plan 7);

– Draft of Renewable Energy Development Plan and Strategy to 2015, vision to 2025.

3. Scope and Objectives (cont’)

3.2 Description of scope and objectives of the NAMA:• Objectives:

– Overall goal of this NAMA: mitigate GHG emissions from the energy sector in Vietnam through supporting the development of wind energy and to contribute to sustainable development in Vietnam;

– Specific objectives: • Improvement of incentives for the development of wind energy in Vietnam;• The diversion of renewable energy development from hydro power to wind power;• The increase of share of wind power in total electricity production.

• Scope: – NAMA type: policies and measures;– Physical boundary: Vietnam;– Energy streams: wind power;– Eligible technologies: Family-scale wind turbines, Hybrid system wind turbine –

diesel generator, Hybrid system wind turbine – solar panel, wind turbines for large islands, grid-connected wind turbines.

3. Scope and Objectives (cont’)

3.2 Description of scope and objectives of the NAMA (cont’):

• Phases:

– Phase 1 : Preparation and Scoping (July 2013 - August 2014);

– Phase 2 : Apply supporting measures for one Pilot Project in Vietnam (September 2014 – December 2016);

– Phase 3 : Full Deployment of the NAMA programme (January 2017 -December 2020).

Thank you for your attention!!!

3.2. Baseline and Policy Scenario Development for Wind Power NAMA

The Second Capacity Building Workshop on

“Low Carbon Development and Nationally Appropriate Mitigation Actions”

Baseline and Policy Scenario Development

for Wind Power NAMA

By Nguyen Minh Bao

Institute of Energy

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Contents

• Introduction

• Methodology and Data

• Baseline Scenario Development for Wind Power

NAMA

• Wind Power NAMA Scenario Development

• Conclusion

33

Introduction

- Viet Nam is endowed with renewable energy sources such as

biomass energy, small hydropower, solar energy, wind power and

geothermal energy.

- Although Viet Nam has the opportunity for renewable energy

development, the share of renewable electricity accounted for only

around 2% in total power generation in 2010 due to existing barriers.

- Wind Power NAMA project focuses on implementing the activities to

remove the barriers in order to create a new wind power market in Viet

Nam.

- Baseline Scenario Development is major work for Wind NAMA

activities.

- This presentation will introduce the methodology on setting up the

Baseline Scenario and estimate GHG reduction through Wind Power

NAMA project implementation.

• The objective of this study is to develop Baseline Scenario for

estimation of GHG reduction through implementing Wind NAMA project.

• Firstly, a Baseline (or BAU) scenario was developed for outlining future

power generation with assumption without Wind Power NAMA project.

• An Wind Power NAMA Scenario was also designed based on wind

energy potential and national targets for wind energy development with

assuming that additional policies would be developed.

• The difference between the BAU and Wind Power NAMA Scenario

represents the potential fossil energy savings as well as potential GHG

reduction in power generation.

Methodology and Data Methodology

• LEAP model, an accounting system was used for electricity demand

projection and energy input/output in the power generation.

• Firstly, final electricity demand forecasting was estimated for each sector

such as industry, transport, agriculture, commercial and residential sectors

based on the historical trends on energy consumption, social and economic

drivers.

• Then, energy input/output in the power generation are projected based on

electricity demand and future choice for technologies, programs and

available energy supply in the future.

• Baseline GHG emissions in power generation are calculated based on

fuel-energy inputs and emission factors.

Methodology and Data Methodology

•• Energy Balances for Non-OECD Countries compiled by the International

Energy Agency (IEA) with the historical energy data available for using the

econometric approach.

•• GDPGDP and population were obtained from Statistics Year Book.

• Base year 2010 thermal efficiencies by fuel type (coal, gas, and oil) were

derived from Energy Balance Tables.

• Thermal efficiencies by fuel (coal, gas, and oil) in the Viet Nam were

projected based on the forecasting future power plant technologies in

USDOE‟s Annual Energy Outlook, 2008.

• Installed capacities of renewable technologies are assumed based on RE

application, existing policies, potential and planning for RE development.

Methodology and Data Data

Methodology and DataMethodology and Data* Emission Factors* Emission Factors

All the IPCC default emission factors with Tier 1&2 are available in LEAP

model. In this calculation, IPCC Tier 2 default emission factors with more

details on technology levels are prioritized in selection for emission

calculations.

Fuel typesFuel types Carbon dioxideCarbon dioxide

((tC/TJ)tC/TJ)Nitrous OxideNitrous Oxide

(kgC/TJ) (kgC/TJ) Methane Methane

(kgC/TC)(kgC/TC)

Anthracite coalAnthracite coal 26.826.8 1.41.4 1.01.0

Bituminous coal Bituminous coal 25.825.8 1.61.6 0.70.7

Natural gas Natural gas 15.315.3 0.10.1 0.10.1

Fuel oilFuel oil 21.121.1 0.30.3 0.90.9

Diesel oil*Diesel oil* 20.220.2 0.60.6 3.03.0

Biomass*Biomass* 4.04.0 30.030.0

Tier 2 IPCC default emission factors

* Tier 1 * Tier 1 IPCC default emission factorsIPCC default emission factors

Power Generation Output, BAU

Unit: Bill. kWh

19901990 20102010 20302030AAGRAAGR

2010/19902010/1990

AAGRAAGR

2030/20102030/2010

CoalCoal 2.02.0 17.017.0 302.1302.1 11.311.3 15.515.5

OilOil 1.31.3 4.64.6 0.30.3 6.46.4 --12.912.9

Natural gasNatural gas 0.00.0 43.143.1 81.081.0 55.955.9 3.23.2

NuclearNuclear 0.00.0 0.00.0 58.558.5 -- --

HydroHydro 5.45.4 25.925.9 64.764.7 8.28.2 4.74.7

RenewablesRenewables 0.00.0 1.81.8 12.912.9 -- 10.210.2

TotalTotal 8.78.7 92.392.3 519.3519.3 12.512.5 9.09.0

Baseline Scenario Development

Power Generation input, BAU

Unit: KTOE

20102010 20152015 20202020 20252025 20302030AAGRAAGR

2030/20102030/2010

CoalCoal 4179.44179.4 14581.914581.9 27048.727048.7 40075.640075.6 66542.966542.9 14.8%14.8%

OilOil 1282.31282.3 00 00 00 77.377.3 --13.1%13.1%

Natural gasNatural gas 7498.67498.6 6658.16658.1 9143.99143.9 1251212512 12922.212922.2 2.8%2.8%

NuclearNuclear 00 00 1167.21167.2 7226.17226.1 15229.215229.2 --

HydroHydro 2224.12224.1 3770.13770.1 4853.14853.1 5141.85141.8 5559.65559.6 4.7%4.7%

RenewableRenewable 184.8184.8 710.2710.2 860.6860.6 1086.71086.7 1171.41171.4 9.7%9.7%

TotalTotal 15369.115369.1 25720.225720.2 43073.543073.5 66042.266042.2 101502.5101502.5

Baseline Scenario Development

GHG emissions in power generation, BAU

Unit: Million Tonnes of CO2e

20102010 20152015 20202020 20252025 20302030AAGRAAGR

20102010--20302030

CoalCoal 16.9 58.6 108.0 159.6 264.0 14.7%

OilOil 4.1 0.0 0.0 0.0 0.2 -13.1%

Natural gasNatural gas 17.7 15.7 21.6 29.5 30.5 2.8%

Total Total 38.6 74.2 129.6 189.1 294.7 10.7%

Baseline Scenario Development

34

Share of GHG emissions in power generation, BAU

Unit: %

20102010 20152015 20202020 20252025 20302030

CoalCoal 43.8% 79.0% 83.3% 84.4% 89.6%

OilOil 10.6% 0.0% 0.0% 0.0% 0.1%

Natural gasNatural gas 45.9% 21.2% 16.7% 15.6% 10.3%

Total Total 100% 100% 100% 100% 100%

Baseline Scenario Development

Assumptions for NAMA Scenarios

Wind power plants substitute for coal thermal power plants

This section focuses on development of Wind Power NAMA to achieve the targets

of 1000MW of installed power by 2020 and then 6200 MW of installed power by

2030 with assumptions that additional policies would be developed.

• Bases for Wind Power NAMA development:

The total potential of wind energy in Vietnam is estimated to be as high as

26.700MW (at speeds over 6m/s)*.

There have been 48 projects on wind power development registered (until

May 2011) with the total registered capacity of 5000 MW.

Wind power is one of prioritized areas of Government’s policies for power

development.

Wind Power NAMA Scenario Development

* Source: World Bank (2001) Wind Energy Resource Atlas of Southeast Asia.

Assumptions for NAMA Scenarios

Wind Power NAMA Scenario Development

* Source: Decision No. 1208/2011/QD-TTg, 2011 on approval of the National PDP VII.

Installed Capacity of WPP (MW)

Scenarios 2011 2015 2030

BAU 30 100 200

APS 30 1000* 6200*

Wind power plants substitute for coal thermal power plants

Wind power has power factor of 0.25, compared with factor of 0.8 of

coal power plants.

Then, capacity of 1000 MW, and 6200 MW of wind power are equivalent to

312.5 MW, and 1937.5 MW of coal thermal power

Wind Power NAMA Scenario Development

Benefits in terms of development of Wind Power NAMA

1) Social benefits

- Serve the societal and economic needs in areas that are far away from the grids,

isolate islands.

- Reduce costs associated with air pollution such as both healthcare and

environmental costs.

2) Economic benefits

- Create more jobs and enhancing quality of life in the communities where projects are located.

- Pay a significant property taxes and state taxes.

- Reduce fossil fuels especially imported fuels that lead to reduce a dependence on international market and ensure energy security.

3) Environmental benefits

- Reduce GHG emissions and other air pollutants.

- Produce little waste and require no mining or drilling to obtain its fuel supply.

Wind Power NAMA Scenario Development

Coal fuel and GHG emissions reductions (Wind Power NAMA vs. BAU)

2010 2015 2020 2025 2030

BAU 0 0 0 0 0

Coal reduction (KTOE) 0 -112.7 -282.7 -1.097.6 -2.011.4

GHG reduction (Thousand

tone CO2.e)0 -440 -1.102 -4.280 -7.843.2

GHG reduction (Cumulative

thousand tone CO2.e)0 -887.2 -5.071.8 -19.981.9 -51.720.3

Estimation of GHG emission reductions

GHG emission reductions were calculated based on fuel inputs and

emission factors of fuels consumed in power generation.

Wind Power NAMA GHG Reduction Potential

Wind Power NAMA Scenario Development

Wind Power NAMA Scenario Development

Transformational impact of NAMA

• On environmental aspect

Make a significant contribution to climate change mitigation.

Reduce local air pollution, which help drive improvements in local air pollution.

• On aspect of energy security

Reduce dependence on imported coal as well as the effects of price and supply volatility from outside.

• On aspect of sustainable development

Help government move towards low-carbon development while contributing to achieving national development priorities.

Create a new opportunity for job and income improvement

Provide more opportunities for larger-scale reductions than the scale of project.

Thank you very muchThank you very much

35

3.3. Barriers for the implementation of Wind Power NAMA in Viet Nam

NAMA potential of Vietnam

By Vuong Xuan HoaInstitute of Meteorology, Hydrology and EnvironmentMinistry of Natural Resources and EnvironmentClimate Change Research CenterVietnam

Barriers for the Implementation of Wind Power NAMA in Vietnam

The Second Capacity Building Workshop on “Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Content

1. Analysis of barriers;

2. Identification of possible options;

3. Proposed measures.

1. Analysis of barriers

• Market barriers:

– Wind energy price: 1.614 VND/ kWh (7.8 US cent/kWh); FIT 1.0 US cents/kWh;

– Lack of reliable information on wind power capacity;

• Economic and Financial barriers:

– High price of input materials;

– High up-front cost (1800 – 2000 US$/kW);

– Difficulties to assess financial sources.

1. Analysis of barriers (cont’)

• Technical barriers:

– Lack of human resources in wind energy sector;

– Less-developed infrastructure;

– The dependence on imported technologies.

• Legal, regulatory, institutional barriers:

– Lack of wind energy development planning ;

– Lack of collaboration between stakeholders;

– Lack of specifically supporting policies and incentives.

2. Identification of possible options

• Market barriers: – Increase wind energy price: 10 – 11 US cent/kWh;

– Increase FIT 3 – 4 US cent/kWh (VEPF + consumers);

– Conduct detail analysis for wind power capacity in all potential areas.

• Economic and Financial barriers :– Low-interest loans from mitigation funds (up to 85% of

investment cost, term loan 20 years, loan renewal 5 years, interest rate 3 – 5%);

– Government guarantee.

2. Identification of possible options (cont’)

• Technical barriers:

– Develop education system for human resources in wind energy sector;

– Encourage the development of wind power technologies domestically;

• Legal, regulatory, institutional barriers:

– Support for the development of wind energy planning;

– Build capacity for the collaboration between stakeholders;

– Legal framework supporting the development of wind energy.

3. Proposed measures for the NAMA

• MOIT:

– Developing supporting specific mechanisms and legal framework;

• The Wind Power NAMA:

– Propose a low-interest loan mechanism for wind power projects in Vietnam from mitigation funds;

– Propose a mechanism for government guarantee;

Thank you for your attention!!!

36

3.4. Towards 100% RE in Denmark in 2020 – the role of wind energy

Tow ards 1 0 0 % RE in Denm ark in

2 0 5 0

By Jakob Jespersen

Danish Energy Agency

– the role of wind energy

16-18 December 2013, Do Son, Hai Phong, Viet Nam

The Second Capacity Building W orkshop on

“Low Carbon Development and Nat ionally Appropriate Mit igat ion Act ions”

Energy Policy Decoupling Economic

Growth and Consumpt ion

-25%7 0

8 0

9 0

1 00

1 10

1 20

1 30

1 40

1 50

-1%

+38%

GDP - fixed pr ices

Gross Energy Consum ption

GHG em issions

Danish Wind Energy t im eline 1970-2000

1970s

• War in Middle East causes oil prices to t r iple. (1 st oil

cr isis) . Denm ark‟s energy consum pt ion 90% oil- im port .

• Danish people vote against Nuclear power

• First elect r icity producing wind turbines by Danish NGOs

1980s

• Elect r icity and oil taxes and subsidies for energy savings

and sustainable energy.

• I ndependent power producers on renewable energy are

secured a price of 15 UScents/ kWh for elect r icit y ( for a

lim ited period) – causing farm ers to set up wind

turbines, and private wind turbine cooperat ives arise.

• Denm ark becom e the leading wind turbine indust ry

• First large scale nat ional Windturbine plan of 100 MW

Danish Wind energy t im eline (2)

1990s

• Focus on reducing CO2 em issions, CO2 taxes int roduced

• 1995 European liberalized elect r icit y m arket .

• Danish elect r icit y com panies divide into regulated

t ransm ission com pany and com m ercial product ion

com panies.

• Plan for 200 MW new wind turbines (900 MW in 2005)

• First plan for Wind turbines at sea, 750 MW.

• IPP Renewable energy tariff lowered to 10 UScents/ kWh

• Danish energy technology export has t r ipled.

2000-

• Self-sufficient with energy, and elect r icit y exporter due

to oil, gas, coal, large scale wind energy and successful

energy savings and energy efficiency program s.

W ind Pow er: Capacity and

Share of Dom est ic Dem and

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1990 '95 '00 '05 '11

M W

0%

5%

10%

15%

20%

25%

30%

Wind Power offshore capacity, M W

Wind power onshore capacity, M W

Wind power's share of domestic electricity supply, %

Centralisat ion to decent ralisat ion

Key Policies to Prom ote A New Energy Model Histor ic perspect ive

Long term strategies based on broad polit ical agreements in the

Parliament prevent stop-go policies = Confidence building

m easures for businesses and investors

A suitable legislat ive and local planning fram ew ork , which

supports the local init iat ive and creates predictabilit y

Cost - effect ive subsidy schem es with evaluat ion on a regular

basis, avoiding over-subsidising (of favourable elect r icit y pr ices

and investment grants in start -up phase)

Energy taxes on fossil fuels makes RE more compet it ive and

use of fossil fuels more energy efficient

Dialogue with sector stakeholders ensuring ambit ious and realist ic

targets, as well as well funct ioning regulat ion

I n short : A combinat ion of an effect ive state and the m arket !

The Danish Government ‟s Vision for the

Future Energy Mix in Denmark

2 0 3 0 : No coal in Danish power

plants

2 0 3 5 : Elect r icity and heat ing

100% from RE

2 0 5 0 : 100%

RE in all

sectors

( including

t ransport ) .

37

The short - term : Policy Targets for 2020

Agreed by 95% of Parliament members in March 2012

W ind Pow er: How to reach 5 0 % of electr icity by 2 0 2 0

From 4 ,5 0 0 MW in 2 0 1 3 to

6 ,5 0 0 MW in 2 0 2 0 by adding:

500 MW wind turbines near

the coast

500 MW onshore wind

turbines (1,800 MW replace

1,300 MW old turbines)

1,000 MW offshore wind

turbines

Com prehensive st rategy for

Sm art Grids

One stop shopThe Danish Energy Agency is the coordinat ing authorit y

Environm ental

Im pact Assesm ent

Detailed project

const ruct ion

New Offshore Wind Projects in

Denmark

Horns Rev 3: 400 MW

Kriegers Flak: 600 MW

Tender for 450 MW near shore wind farms

50 MW turbines for research and development

Coping with variable generation(Western Denmark as a historic extreme)

I ntegrat ion of wind power

Strong interconnectors

A well functioning

international market for

electricity

Flexible electricity

consumption

PJ

Cooperat ion on elect r icit y

exchange in the four

Scandinavian count ries

Denm ark, Sweden, Norway

and Finland started m ore

than 100 years ago

Today cooperat ion has

evolved into one single

internat ional elect r icit y

m arket where elect r icity is

t raded independent of

nat ional borders.

The Nordic Elect r icity System

Generation 2010: 367 TWh

38

Subsidy Schemes

• Onshore

• 0,25 dkk/kWh + market price (22.000 full load hours)

• Grid connection socialized

• Large-scale offshore

• Public tender 0,50 dkk/kWh, 0,63 dkk/kWh, 1,05 dkk/kWh (50 GWh/MW)

• TSO to construct offshore platform and connection to grid

• Near Shore / Small-scale offshore

• Was: 0,25 dkk/kWh + market price (22.000 full load hours)

• Now: Tender procedure

• Responsible for offshore grid. Grid company responsible from shore.

Grid connect ion2 models for connect ing offshore farms:

For farms being tendered by State the TSO is obliged to connect at

farm offshore to t ransm ission gr id onshore

High voltage cable & offshore t ransformer plat form

Costs are covered through the t ransmission tar iff by all customers

Necessary reinforcements of onshore t ransmission gr id is

accounted for separate

I nvestor to receive paym ent even w hen cable is out of

operat ion

For other projects the gr id company is obliged to connect at shore

I nvestor is responsible for cabling offshore

Grid company‟s costs are t ransferred to the nat ional system

operator as a public service obligat ion and also by all customers

Other I nit iat ives to Reach the RE Goals

Elect r icity and biomass in Transport Subsidies for recharging stat ions (EV) and

infrastructure (hydro and gas)

10% biofuels by 2020

New st rategy for plug- in hybrids etc. by 2013

Bet ter framework condit ions for Biogas Bet ter and new funding schem es

I ncreased capital installat ion subsidies

More renewable energy in I ndust ry I ncrease of RE in process

Promote more industrial CHP

TRANSPORT

BI OGAS

I NDUSTRY

De- linking Economic Growth, GHG and

Energy Consumpt ion: 2010-2020

60

80

100

120

140

160

GDP, fixed prices GHG emission, adjusted Gross energy consumption, adjusted

New Energy Agreement (March 2012)

Econom ic forecast

I m pact on energy consum pt ion

and GHG- em ission

www.ens.dk and www.ens/lctu.dk

Energy Statistic

- download data

Energy Data

- print theme mapsFacts and figures- Find the data you need

Policy toolkits

- Find information and

recommendations on

RE and EE policies

3.4. Future activities of Wind Power NAMA in Viet Nam

NAMA potential of Vietnam

By Vuong Xuan HoaInstitute of Meteorology, Hydrology and EnvironmentMinistry of Natural Resources and EnvironmentClimate Change Research CenterVietnam

Future activities of Wind Power NAMA in Vietnam

The Second Capacity Building Workshop on “Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Future activities

– Activity 1.7. Plan for MRV System Measurement, Reporting, and Verification (MRV):

• Measurement: either by monitoring, for example, the amount of fuels that have been saved through NAMA, or calculation using the available data;

• Reporting: a result of climate change mitigation impact that has been measured in the form of ton of CO2e per year (t-CO2e/year) reduced by NAMA, is compiled and reported.

• Verification: the result obtained through measurement is checked and confirmed whether all the information and data contained in a report is accurate and correct. It is advised not to establish a new monitoring system for the proposed NAMA, but to use the existing monitoring and reporting system available for CDM projects.

39

Future activities (cont’)

– Activity 1.8. Identification of Institutions and Responsibilities:The NAMA coordinator should clearly define the roles of all actors involved in the NAMA conception phase, including:

• Involved entities;

• Roles and responsibilities of involved entities;

• Definition of expertise required (technical or institutional).

– Activity 1.9. Stakeholder Engagement:• Stakeholder engagement should play a decisive role throughout the

process of wind NAMA development.

• Stakeholders would be more strongly involved in the early stages of preparing a NAMA when crucial issues require the stakeholders´attention.

• Stakeholders should be kept informed when the NAMA is being implemented.

Future activities (cont’)

– Activity 1.10. Identifying support options:• Develop a mechanism for applying low-interest loans from mitigation

funds;

• Develop a mechanism for apply government guarantee;

– Activity 1.11. Involvement of Donors NAMA finance from:

• Public domestic sources

• International donors.

– Activity 1.12. Finalization of the Wind NAMA concept note:

• The wind NAMA concept should be finalized and approved before submitting to the UNFCCC.

Future activities (cont’)

• Phase 2: Apply supporting policies and measures for a pilot project in Vietnam (August 2014 -

December 2016):– Phase 2 will consist of two components, including (i)

capacity building for local partners, and (ii) the implementation of a pilot project in Vietnam.

– An application for low-interest loan to mitigation funds would be made for the selected project.

– A propose for a government guarantee would be made for the selected project.

Future activities (cont’)

• Phase 3: Full development of the NAMA program (January 2017 – December 2020):

Phase 3 will consist in the full implementation of the NAMA throughout cities in Vietnam. In phase 3, the role of state renewable energy agencies in the project will be enhanced so as to apply supporting policies and measures for wind energy in the whole country. On this stage, the MOIT will play a vital role in the project, with the technical assistance from DMHCC and UNEP, which will be involved in the Consultation Board to MOIT. By the end of phase 3, the project is expected to lead to a significant reduction of GHG emissions from energy sector in order to achieve the target of reducing GHG emissions by 8% from energy and transportation by 2020, in line with Decision No. 1775/QD-Ttg.

– Applications for low-interest loan to mitigation funds would be made for approved wind power projects.

– Propose for government guarantee would be made for approved wind power projects.

3. Work plan (cont’)

• Phase 1 – Preparation and Scoping (August 2013 – August 2014) (cont’):

Activity 2014

Jan Feb Mar Apr May Jun

e

July Aug

7. Plan for MRV system

8. Institutions and

responsibility

9. Stakeholder engagement

10. Identifying support

options

11. Involving donors

12. Finalizing the wind

NAMA concept

3. Work plan (cont’)

• Phase 2 –Implementation of a pilot project in Vietnam (September 2014 - December 2016):

Output Activities Coordinat

or

Key stakeholders Year 1 Year 2

Output:

implementation

of wind power

pilot project

Activities 1.1: Review on the investment report,

investment project and the electricity development

planning of the city/province

DMHCC,

MOIT

Department of Industry and

Trade, the provincial

People’s Committee and

EVN

x

Activities 1.2: Select the location DMHCC,

MOIT

Department of Industry and

Trade, the provincial

People’s Committee

x

Activities 1.3: Select the approved wind power

projects which are suitable to the objective of

NAMA proposal (capacity, location)

DMHCC,

MOIT

The People’s Committee,

the Department of Planning

and Investment, and the

Department of Industry and

Trade

x

Activities 1.4: Apply a low-interest loan and

government guarantee to assist the construction of

the selected project

DMHCC,

MOIT

The project owner,

Mitigation funds, The

People’s Committee,

Ministry of Finance

x x

Thank you for your attention!!!

40

IV. Development of Biogas NAMA in Viet Nam

4.1. Overview of Biogas NAMA: Difficulties, Challenges and Solutions

OVERVIEW OF BIOGAS NAMADifficulties, Challenges and Solutions

By Nguyen Mong Cuong

Research Center for Climate change & Sustainable Development CCSD

The Second Capacity Building Workshop on “Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Contents

1. Overview of (pig) husbandry in Viet Nam

2. Related policies/opportunity.

3. Develop Biogas NAMA at pig farms.

4.Overview of establish Biogas NAMA.

5.Difficulties, challenges and solutions

Total herds of pig increased from 20 million heads in 2000 to 27.4 million heads in 2010

(increased 37% compare to 2000). According to plans, expected to have 35 million heads in2020

Source: Statistical Yearbook 2010

1. Overview of (pig) husbandry in Viet NAM

Total meat production in 2010 3.03 million tons, increased 114% compared to 2000.

Source: Statistical Yearbook 2010

Productivity increases relatively fastAlthough number of pig heads only increase average 3.6%/year

but pig productivity increase 11.4%/year.

Pork meat production compared with poultry and other meats: Beef, buffalo,

goats…. Pork meat has the biggest proportion.

Source: Statistical Yearbook 2010

Density of Pig in ecological zones: head/km2. Northern Delta and Southeast regions has the highest density.

8

Husbandry forms & sizes: Household size small, dispersed farm house scale still has a big proportion

81.4% the pigs are raised in farm houses.

Has average scale of 20.7

pigs each (BUS, 2009)

Source: Department of Livestock,2010

41

9

Farm size: Farm husbandry develops fast but not sustainable. Pork meats

production from farms is of 45%, by households is of 55%

18.6% of the pigs are raisedin 8.500 farms, Average:600 heads/farm

Source: Department of Livestock 2010

Development trends of pigs husbandry in Viet Nam 10 years from now

3 Increments:• Increased herd size in each farms,• Increased production qualities,• Increased profit for farmers.

3 Reduction:• Reduce sickness,• Reduce pollution,• Reduce harmful supplements

(antibiotics, weight-gain chemicals…).

Source: Department of Livestock, 2010

11

Potential for technology development“Biogas” recycle livestock waste:

Livestock waste: ~ 15 tons of pigs waste/yearcausing environment pollution

12

Livestock waste from pig raising

areas discharge into drainages,

ponds and lakes…polluting the

environment, increasing green

house gas emissions

Phát thảiCO2, CH4, …

CO2, CH4, …emission

~Around 0.8 million tons CH4 /year

discharged into the air

13

2. Related policy/opportunities.

• Some related regulatory framwork has been completed

• Livestock Development Strategy to 2020 (Decision No 10/2008/QĐ-TTg)

targeted to increase number of pigs 35 million heads by 2020 , 37% are of

husbandry farms which must have environmental treatment facilities,

• Government of Vietnam has approved Renewable Energy Development

policy (Master Plan No 7- at Decision No. 1208/QD-TTg dated 21/7/2011)

with priority to develop renewable energy for electricity generation, to

increase 4.5% of total energy production in 2020 and 6% in 2030.

• National Strategy on Climate Change (at Decision No. 2139/QĐ-TTg dated

5 Dec 2011), also mentioned“...management and treatment of livestock

wastes to develop and use biogas as fuel”.

• National Strategy on Green Growth (Decision No. 1393/QĐ-TTg/25/9/2012),

stated that “ ...Popularize treatment technology and re-use agriculture

waste, making livestock food, mushroom cultivation, biogas...and reduce

green house gas emission”.

3. Development of Biogas NAMA at pig farms

• Program name: Biogas for in place electric generating for pig farms.

• Program goals:(i) Reduce environment pollution at concentrated husbandry

areas. Reduce green house gas by using biogas to generate electricity on-site;

(ii) Support the development of stable and profitable concentrated husbandry. The program only intends to implement at pig farm areas. For household raising areas, a biogas CPA under CDM project has been registered for implementation (VVeb:CDM.UNFCCC.int) .

Development of Biogas NAMA at pig farms (cont)

Program implementing

pig farms waste

processing by the

anaerobic method,

methane gas produced in

the anaerobic process

will be used for on-site

power regeneration.

Diagram of waste treatment - Electric generating system.

Development of Biogas NAMA at pig farms (cont)

Macro benefits• Clean technology application both in wastewater

management and renewable energy will be proved and able to be replicated in livestock sector nationwide,

• Enhance self-powered capacity with renewable energy resource and reduce import of energy resource,

• Protection of global environment by capturing green house gas, especially methane, and reduce emissions from energy sources,

• A new financial mechanism in waste management and renewable energy through development of NAMAs willstimulate the sustainable development of husbandry.

• Limit the needs of national newly built power plants.

42

Development of Biogas NAMA at pig farms (cont)

Micro benefits

• Control the water waste polluting the underground water source,

• Reduce emissions/water waste into local water sources,

• Developing a healthier and safer workplaces with improvement on air quality and control the flammable combustion methane,

• Significantly reduce foul smells from farm to local communities,

• Enhance farms’ self-powered capacity,

• Improve viability of rural enterprises, provide works for locals in agricultural area, and

• Provide renewable energy supply on-site to be more active comparing to depending to current electrical-grid.

4. Overview on building Biogas NAMA1. What has been done by expert team:

+ Collect information related to development of biogas NAMA,

+ Two field surveys to pig farms at Bac Giang and Bac Ninh,

+ Calculate to develop the baseline projecting the reduction of green house gas when implementing NAMA,

+ Group discussion and developing the first report.

2. Main content of NAMA

(i) Review and recommend development of policies, regulations, guidance...for the sustainable development of NAMA;

(ii) Technologies applied to address the environmental i and reduce GHG emission ssues;

(iii) Finance sources to support NAMA development;

(iv) Improve capacity and awareness.

5.Difficulties, challenges and sollutions

1. Subjective:

Limited capacities of experts in project development.

The cooperation between stakeholders is still weak

and limited.

2. Objective:

+ No incentive policies on using biogas for electricity

regenerating, include credit, electrical-grid

connecting with incentive prices, attract investment

from private sector....

+ Financial capacity of farm owners is limited. Lack

of investment, and not able to assess the preferential

credits. No financial support mechanism.

5. Difficulties, challenges and solutions (cont’)

+ Tarpaulin cover technology/biogas tanks are still not developed due to traditional customs. Techonologyused for power regeneration is new. On the other hand current related equipments/machineries are scattered/small, no quality control and management mechanisms,

+ The awareness on using biogas technology to electric generating and reduce greenhouse gas is rather limited. No demonstration models have been developed,

+ Lack of research related to biogas of livestock wastes for electric generating.

5. Difficulties, challenges and solutions (cont’)

Recommendations

1. Sharing experience on project development, developing inter-

sectors cooperation: Agricultural, Industrial and Environment

in Biogas NAMA development.

2. Develop 1-2 demonstration models on electric generating

biogas for pig farm.

3. Carry out researches on using livestock wastes for electric

generating.

4. Review and recommend policies to support Biogas for

electric generating. Including financial policies.

5. Promote the propaganda to improve the awareness of related

parties on NAMA. Including farm owners and private

investors.

Thank and hoping to receive feedback from you

4.2. Baseline and scenario policy development for the Biogas NAMA

Baseline and scenario policy

development

for the Biogas NAMA

By Nguyen Duc Thinh

Center for Rural Communities Research and Development

The Second Capacity Building Workshop on “Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Contents

1.Some existing policies related

Biogas NAMA.

2. Policy scenario development.

3. Baseline emissions.

4. Conclusion and recommendation

43

1. Some existing policies related Biogas NAMA

• Government of Vietnam approved Power Master Plan IIV –No.1208/QD-TTg dated 21 July 2011 with relating the development of renewable energy, It will be increasing to 4.5% in 2020, 6% to 2030 of the total electric production,

• National Strategy on Climate Change (QĐ: 2139/QĐ-TTg dated 5 Dec 2011), the issue “... manage and treat wastes from husbandry activities, develop and use biogas as fuels..” has been described,

• National Strategy for Green Growth (1393/QĐ-TTg dated 25Sept 2012), in which the Strategy proposed: …Widely disseminating the technology of treatment and reuse of by-products and wastes in agricultural production to produce animal feed, mushroom growing, biogas …. and reduce greenhouse gas emission,

• National Strategy on Livestock Development till 2020 (No.10/2008/QĐ-TTg ), in which the Strategy proposed it target: The pig population increasing to 35 millions in 2020, 37% of which feeding in Farm level, all Farm should have treating manure waste works in his farm.

National Technical Standards

+Cattle, pig and poultry farms - Hygiene inspection and evaluation procedure: QCVN 01-79/ 2011/BNNPTNT. Determined steps for the Hygiene inspection and evaluation procedure to husbandry farm.

+National technical regulation conditions for bio-security of pig farms: QCVN 01-14/2010/BNNPTNT.This National Technical Regulation provided the compelling conditions for bio-security, waste processing, ground water, soil ...on piggery farm.

Review

Existing policies

1. Environment protection and encouraging GHG emission reductions.

2. Target for the development of renewable energy sources for electricity production.

3. Regulations on the compelling conditions of treating animal waste in piggery farm.

4. And, the orientation to encourage manage and treat wastes from husbandry activities, develop and use biogas as fuels.

2. Policy scenario development

Remaining

i/“National technical regulation conditions for bio-security of pig farms “

The standards for bio-security is determined for animal waste included only Coli & Salmonella bacterium , Hg, Arsel in waste wastes, no standards for emission gasses (CH4, CO2, …).

2. Policy scenario development (cont’)

(ii) Lack of policies for encouraging the use biogas for electricity generation yes such as:

• Providing credit/financial support for developing biogas for electricity generation,

• Connection to the national grid for electricity production from biogas (renewable energy),

• Incentive tax of imported electricity generator/ other equipment/ spare part...,

• Attracting the investment to electricity production from biogas from Private sector,

Baseline situation: It has not a development plan, target for biogas electricity generation,

2. Policy scenario development (cont’)

• (iii) There is no policy, regulation to appraise the quality of biogas generator /equipment.

2. Policy scenario development (cont’)

Solving problems

1. Developing finance policy/ provide credit/ financial support, It’s proposal:

- Incentive credit: 60-80% total incremental investment (Biogas for electricity generation).

- Grant support from international resources: 20%

2. Develop/Create investment fund.

2. Policy scenario development (cont’)

3. Develop policies on connection to the

national electricity grid/ buy-sell electricity

with incentive price to implement NAMA,

4. Addition the standards for emission

gasses such as CH4…from pig farm,

5. Carry out some interdisciplinary studies

(Environment, Finance, Industry,

Agriculture) on the development of above

mentioned policy.

44

3. Baseline emissionsData

1.Based on National Strategy on Livestock Development, 27 millions pig in 2010 to 35 millions in 2020 with 37% feeding in farm condition. The increasing of population in each farm.

2. Assuming that the size of each pig farm is about 2000-5000 head with average 3000 head. There are 4000 pig farms in 2020. They involve in biogas NAMA.

3. Baseline emissions (cont’)

The condition:1. Pig farm should have anaerobic lagoons use to collect

wastewater. And, The streams obtained after manure treatment are not discharged into natural water resources,

2. The annual average temperature of baseline site higher than 5 C,

3. The retention time in the anaerobic treatment system is greater than 1 month, and in the case of anaerobic lagoons, their depths are at least 1 m,

4. Ensure that all biogas produced by the digester is used for electricity generation,

5. The final sludge is handled aerobically to avoid methane emissions,

6. The storage time of the manure after removal from the animal barns do not exceed 1 days before being fed into the anaerobic digester,

3. Baseline emissions (cont’)

-Baseline scenario is the existing anaerobic lagoon of the host farm, where animal manure is left to decay anaerobically and methane is emitted to the atmosphere in year Y (BEy) – No NAMA

-Baseline is the kWh produced by the renewable generating unit multiplied by an emission factor in year Y ( CO2e/kWh)- BEye.

BE = BEy + BEye

BE is Baseline in year Y

3. Baseline emissions (cont’)

• Methodology used for estimating methan emission from anaerobic lagoon: IPCC-2006 Guidelines (Tier 2-Manure management-AFOLU) and UNFCCC/AMS-III.D.

• Methodology used for estimating CO2 emission from electricity generation : UNFCCC/AMS-I.D. In this case EF for national electricity grid provided by DNA Vietnam.

3. Baseline emissions (cont’)

• Assuming: The scale of pig farm, with an average of 2000 – 5000

heads/farm with average of 3000 heads. There are 4000 pig farms

in 2020 with population of 12 million pigs. Number of farm is

increasing as below figure. According to the calculation, methan

GHG emission for each farm is 2.040 CO2 equivalent.

3. Baseline emissions (cont’)

Assuming that a farm will have 2500-3000 units, it will be enough methane for a 100kW generator to operate 14h/day. Estimated produced electricity is about 1440 kWh/day, 526 MWh/year. With emission factor of grid (EF = 0,6244 tons of CO2/ MWh, provided by Vietnam DNA in May/2013), produced electricity of one farm is equal to 328 tons of emitted CO2.

Baseline emission estimated for one farm( one unit: 3000 pig ) are 2.040 tonnes CO2 e/year for manure management and 328 tonnes CO2 e/ year for biogas electricity generation. With the assumption of 4000 farms (2020) involves in NAMA program, the total baseline emission is 9.47 million tonnes CO2 e/ year (2020)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2013 2014 2015 2016 2017 2018 2019 2020

Gg

CO

2

NAM

Phat thai DUONG CO SO

PT metan

PT Phat dien

Duong co so

4. Conclusions and recommendations

1. Developing finance policy/ provide credit/ financial support and policies on the connection to the national electricity grid/ buy-sell electricity with incentive price are priorities for Biogas NAMA.

2.Improving the establishing baseline and mitigation emissions scenarios by survey (or studies): Biogas potential, electricity consumption in pig farm…

Thank you for your comments

45

4.3. Biogas NAMA: Barriers and Measures for effective implementation in Viet Nam

Center for Rural Communities Research & Devvelopment

Center for Climate Change and Sustainable Development

(CCRD & CCSD)

Biogas NAMA

Barriers and Measures

for effective implementation in Vietnam

The Second Capacity Building Workshop on “Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Content

I. Barriers in implementing NAMA in

Vietnam

II. Proposal on measures for achieving

NAMA Objectives

1.1. Barriers on Policies:

There’re no policies on the use biogas to generate electricity including:+ Policies/Mechanisms for connecting electric generated from biogas to the national grid;

+ Policies on purchase-selling of biogas -electricity;

+ Preferential credited policies on producing electric by biogas.

There’s no management mechanism for market & quality of Biogas generator.

I. Barriers for implementing Biogas NAMA

in Vietnam

I. Barriers (cont’)

1.2. Barriers on Finance

Big investment for Biogas-generator technology is

beyond the capacity of pig farm owners.

Financial capacity of the Government in

management of infrastructure investment for

connecting bio-electric to national grid.

1.3. Barriers on technology

Bio-generator technology using biogas is a new one

in Vietnam.

Most of the current bio-generator systems have

low quality or self-produced/ by reusing old

generators.

Need high skills for effective

operation/management of bio-generator systems.

The electricity sources provided by bio-generator

systems are small and scattered.

I. Barriers (cont’)

1.4. Barriers on capacities:

* State management capacity:

No system of the state organization to manage,

implement and Monitor,

No experiences in management & implementation

* Capacity of pig farms:

No capacity in operation/management Bio-electricity

systems from biogas sources.

Limited capital investment.

I. Barriers (cont’)

1.5 Barriers on awareness:

Most of pig farm owners/investors/local

authorities do not have enough information and

knowledge on bio-generating using biogas,

GHG emission reduction, NAMAs, …

No good models for demonstration “Seeing is

Believing” to attract pig farm owners/potential

investors.

I. Barriers (cont’)

2.1. Measures on Policies:

Developing policies to encourage using biogas for

generating electricity at pig farms (Supporting the

construction of infrastructure, financial/credit,

Exemption/feed-in tariffs,...)

Developing mechanisms/policies on connecting bio-

electricity to the national grid;

Developing mechanisms/policies on purchase/selling

bio-electricity using biogas as renewable energy.

II. Proposed measures

46

2.2. Financial measures:

Attract/encourage national & international

organizations for providing grants/preferential loans.

Establish a National Investment Fund for attracting

different financial sources for promoting

infrastructure systems on implementation &

management;

To encourage investors from private sector with

incentively relevant policies.

II. Proposed measures (cont’)

2.3. Technology measures:

Carry out researches/assessment the current

technologies and markets of bio- generators using

biogas to recommend appropriate technology(s) for

Vietnam,

Establish a standard system for quality control (QC)

of bio-generators using biogas in Vietnam,

Encourage and support research agencies/ scientists,

investors ... in producing overall bio-generating

systems using biogas, to assure quality of bio-

generators in Vietnam.

II. Proposed measures(cont’)

2.4. Measures on increasing Capacity &

awareness:

Institutional arrangement for management and

implementation at levels.

Promoting propaganda and awareness raising on

(NAMA, RE, GHG..) for relevant stakeholders

(Govt agencies, farm owners, private sector,

NGOs, communities...);

Building capacity on operation/management of

bio-generator systems using biogas for pig farms;

Establish models for demonstration and

replication.

II. Proposed measures(cont’)

Thank You

For your attention !

4.3. NAMA for promoting use of Biogas

NAMA for promoting use of Biogas

By Dr. Sudhir Sharma, Senior Advisor, Climate Change

Second Capacity Building Workshop on LCD and NAMAs

Do Son, Hai Phong, Vietnam, 16 – 18 December 2013

Basic questions

• The starting point for NAMA is that present environmental regulation requires establishment of anaerobic treatment facility resulting in development of methane emissions. This raises following questions– Does the existing system of open pond disposal on land

meet the environmental regulation for disposal of waste in the water bodies?

– what is the environmental regulation requirement for BOD and COD for disposal of waste in water bodies?

– Does the anaerobic treatment based system result in waste treatment that meets the regulatory requirement for BOD and COD.

Scope of NAMA

• NAMA would cover only large farms to address the issue of use of biogas– because the small household farms already use the

biogas generated for self consumption (heat and cooking?)

– government strategy to use biogas energy as electricity generation resource, which is possible only on big size farms

• But how can the outcomes of the NAMA implementation achieve the larger goal of biogas generation and use in all animal waste based systems of all scales.

Scope of NAMA

• To generate electricity from the biogas for supply to grid

• Is not possible to look at other options– electricity generation for creating mini-grids where

grid coverage has not reached– use of biogas as heating and cooking energy source– bottling of biogas– model where private person buys biogas from farm

and produces electricity.

• Are there any technical or other challenges in using these options?

47

Baseline

• Important to consider the use of biogas in the baseline for example,

– farms could use it for there own heat use,

– safety requirements might require flaring of certain amount of gas

Further analysis on Barriers

• what are the regulations and specifications on the treatment of waste to meet required standards for disposal of waste in water bodies and what are the gaps.

• what are existing regulations and specifications of uplinkingsmall RE projects to the grid and what are the gaps. review of similar policies and regulations in other countries to identify the required steps.

• what is the existing avenues for accessing finance by the pig farms and the costs of getting loans.

• analysis of present markets for small electricity generator sets and their terms of sales. As well as after sales service availability for the electricity generators.

• analysis of the present system for quality control and testing as well as approval of equipment for sale of electricity generators.

Work to strengthen activities for NAMA (March – June)

• Identification of key actors in the successful implementation for informing and consulting them on NAMA, e.g, EVN (MOIT), some of the local communities, for pig farmers.

• Based on analysis of grid connectivity of small RE projects identify the elements of regulation required in consultation with EVN. It is not to develop the full specification, but to identify the key elements along with EVN, which could be further developed in the first year of NAMA implementation. This will help shorten the adoption of regulation in the system.

• Financial analysis of models for use of biogas based to assess the viability and identify the support needed for meeting the cost. This is required to develop the financial estimates for implementing NAMA and also identifying various sources of funds.

• Consultations with banks and other avenues for loans to pig farmers for identifying key issues in extending loans, such as risk, viability of projects assessment, etc. to identify the possible ways of providing loans.

Other elements of NAMA• Financial plan for NAMA implementation

– estimate the cost of implementing the different steps, including a support mechanism for farms to be covered in the NAMA.

– discussions with relevant stakholders to develop the different sources of finance – Vietnam government, banks, and what is needed from donors

• MRV plan• Implementation plan and partners for implementation – with clear

roles– MONRE and its clear role– MOIT, Directorate of Energy, and EVN– Ministry of Finance, Banks and other financial institutions– local committees for handling the funds for providing support.– Ministry or institution responsible for implementing and enforcing

standards for equipments.– Importer/Manufactures associations– Farmers association– Technical institutes/civil society organization

4.4. Action plan for Biogas NAMA in Viet Nam

ACTION PLAN

for Biogas NAMA in Vietnam

By Nguyen Duc Thinh

Center for Rural Communities Research & Development (CCRD)

Research Center for Climate change & Sustainable Development (CCSD)

The Second Capacity Building Workshop on

“Low Carbon Development and Nationally Appropriate Mitigation Actions”

16-18 December 2013, Do Son, Hai Phong, Viet Nam

Activities

Acticity 1.1: Completing & Submiting Overall Draft of the NAMA on Biogas, consists of:

To determine Scope, Barriers and measures

To design develpment Scenarios

To determine mitigation reduction

To determine stakeholders & responsibilities

To design solutions on finance

To design plans on Survey - Reporting & Approval

Acticity 1.2: Research/Design & Propose for

propulgating Policy on Connecting bio-

electric to The National Grid for NAMA on

Biogas

Desk & Field study on actual policies,

Demand & Capacity of the Stakeholders on

NAMA on Biogas.

Propose relevant policies

Activities (continue...)

Acticity 1.3:

Establishment of an Investment Foundation

for attracting financial sources for Bio-

generating in pig-farms

Acticity 1.4:

Survey/Assessment and Proposal on

Bio-generating Technology using

biogas, appropiate to the context of

Vietnam

Activities (continue...)

48

Acticity 1.5 Strenthening state management,

formulation of national organisational system

& capacity building on implementing NAMA on

Biogas

Building the System of Organsations (based on

existing power management organisations) for

Managing Grid by connecting electric using biogas;

Capacity building on management at all levels

Acticity 1.6 Raising awareness and Capacity

building for Pig-farms on Management

/Operation of Bio-generators using biogas

Activities (continue...)

Activities (continue...)

Acticity 1.7

Propagation, Dissemination of Informations

(NAMA, Renewable energy, GHG,...) for different

Stakeholders (Goverment bodies, Private sector,

NGOs, Farm owners, Communities...)

Acticity 1.8

Building demonstration/Pilot models with

Support Mechanism & Policy

Acticity 1.9

Development of full Program on NAMA on Biogas

Time frame

Nte Activities Time

1 Completing & Submiting Overall Draft of the

NAMA on Biogas

9/ 2014

2 Research/Design & Propose for Policy on

Connecting bio-electric to The National Grid

(Ecouraging Purchase/Selling) for NAMA on

Biogas

2014-2015

3 Establishment of Investment Foundation for

attracting financial sources for Bio-generating

in pig-farms

2015

4 Survey/Assessment and Proposal on Bio-

generating Technology (Bio-Generators) using

biogas, appropiate to the context of Vietnam

2014-2015

Time frame (cont.)Nte Activities Time

5 Strenthening state management, formulation of

national organisational system & capacity

building on implementing NAMA on Biogas

2015

6 Raising awareness and Capacity for Pig-frams

on Management/Operation of Bio-generators

using biogas.

2015

7 Propagation, Dissemination of Informations

(NAMA, Renewable energy, GHG,...) for different

Stakeholders (Goverment bodies, Private sector,

NGOs, Farm owners, Communities...)

2015

8 Building demonstration /Pilot models with

Support Mechanism & Policy

2015

9 Development of full Program of NAMA on Biogas from 2016

Thank you

for your attention

49

Updated work plan for FIRM in Viet Nam & further capacity building arrangements by URC & UNEP

Updated work plan for FIRM in Vietnam

& further capacity building arrangements

by URC & UNEP

By Karen Holm Olsen, Senior Researcher

[email protected]

Second Capacity Building Workshop on LCD and NAMAs

Do Son, Hai Phong, Vietnam, 16-18 December 2013

Outline:

• The FIRM project - objectives and results

• A status of progress and outstanding

issues

• Updated work plan – TBD

• Further CB arrangements from URC and

UNEP

FIRM – objectives & results

Project background

Project aim: To support international efforts to reduce

GHG emissions

Project duration: 31 May 2012 - 31 October 2014

Expected results: - three components

1) Low carbon development strategy: Increase the share of

RE in the national total commercial energy supply to 5% in

2020

2) Two NAMA proposals developed – Wind and Biogas

3) Share project experiences and outcomes

A status of progress and outstanding issues

NAMA implementation plan - Wind

Source: FIRM project NAMA proposal, Vietnam integrated program of wind power generation, (first draft), 2013

NAMA implementation plan - Biogas

Source: FIRM project NAMA proposal, Vietnam and NAMA on Biogas for onsite power generation for Medium/Large pig farms, (first draft), 2013

TT Detailed activities to implement the solution of reduce greenhouse gas emission in NAMA

1. Intervention activity to remove financial barrier of finance and grid connection:

Activity 1.1 - Establish financial policy and electric grid connection policy to develop NAMA

Activity 1.2 - Develop/build investment funds attract finance from different source for electric generating using biogas from farms to implement NAMA

2. Intervention activity to remove technology barrier:

Activity 2.1 - Study/Evaluate, Select electric generating using biogas technology for the development of NAMA

3. Intervention activity to remove awareness and capacity barrier in implement NAMA

Activity 3.1 - Improve State management on quality management, building NAMA implementing organizational system

Activity 3.2 - Improve awareness and capacity of pig farms on management/operation of electric generating using biogas system.

Activity 3.3 - Popularize knowledge (NAMA, renewable energy, greenhouse gas…) to stakeholders (the State, farms, private sector, NGO, community….)

Activity 3.4 - Build demonstrate model for expand

50

Updated work plan - TBD

Draft overview – details TBD

Activities

1 2 3 4 5 6 7 8 9 10

A Component A: Develop alternative

scenarios for increasing the share of

renewable energy in national total

commercial primary energy to 5% by 2020

A1 Literature review and analysis

A2 Scenario Development for use of

renewable energy options to reduce GHG

emissions

A3 National workshop

A4 Make plan to achieve 5% renewable

energy share in total national commercial

primary energy 

B Component B: Develop two NAMAs:

promote the use of wind energy for

energy generation; and facilitate biogas

capture for energy use  

B1 STEP 1. Review related policies/plans in

for defined Scope of the NAMA

B2 STEP 2. Set reference scenarios

B3 STEP 3. Defining the Mitigation Measures

B4 STEP 4. Prepare implementation plan for

the two NAMAs

B5 National workshop for dissemination

B6 STEP 5. Develop MRV Framework

B7 STEP 6. Identify possible financial

resources for implementing NAMA plans

C Component C: Sharing the project

experiences

Regional workshop in Copenhagen

Organise the National Final Workshop

2014

Further capacity building arrangements

FIRM Regional Interaction workshop

Objectives:

To facilitate sharing of experiences among FIRM countries and

provide training on specific sections of the NAMA template and LCDS

proposals

Venue and tentative dates:

Copenhagen, Denmark, 19 - 21 February 2014

Participants:

FIRM coordinators of participating countries +1 person per

country

Capacity building – topics

• Sharing of NAMA proposals developed in

the FIRM countries – countries to present

• Training on sections of the NAMA template

• Baselines for NAMAs

• MRV framework for NAMAs

• Financing of NAMAs

• Institutional arrangements

Thanks!

ANNEXES

52

ANNEX 1.

Workshop Agenda

Date / time Contents Speakers

16 Dec

Opening session and background

8:30-8:45 Introduction objectives of the Workshop Mr. Hoang Manh Hoa,

DMHCC, MONRE

8:45-8:55 Opening remark Mr. Nguyen Khac Hieu, DDG,

DMHCC, MONRE

8:55-9:15 Welcoming remark Dr.Sudhir Sharma & Dr. Karen

Holm Olsen from URC

9:15-9:30 Introduction by participants All participants

LOW CARBON DEVELOPMENT

STRATEGY

9:30-10:00 Current status and development plan of

renewable energy in Viet Nam

Dr. Bui Huy Phung, Chairman,

Scientific Council, Viet Nam

Academy of Science and

Technology

10:00-10:20 Coffee break

10:20-11:00 Alternative Policy Scenarios For

Renewable Energy Development in Viet

Nam

Mr. Nguyen Minh Bao, Institute

of Energy, Ministry of Industry

and Trade

11:00-11:45 Q&A

Discussion

12:00-14:00 Lunch break

14:00-14:30 Technical guidance: A review of LCDS for

RE development in Viet Nam

Dr. Karen Holm Olsen, URC

14:30-15:00 Q&A

Discussion

15:00-15:20 Coffee break

WIND POWER NAMA

Session: Overview

15:20-15:50 General introduction on the development of

Wind Power NAMA

Mr. Vuong Xuan Hoa, Institute

of Meteorology Hydrology and

Environment (IMHEN),

MONRE

Session: Baseline

15:50-16:30 Baseline and Policy Scenario Development

For Wind Power NAMA

Mr. Nguyen Minh Bao, Institute

of Energy, Ministry of Industry

and Trade

16:30-17:30 Q&A

Discussion

17:30-17:40 Closing of Day 1 DMHCC, MONRE

17 Dec WIND POWER NAMA

8:30-9:00 Recap of Day 1 DHMCC, MONRE

Session: Barrier and implementation

9:00-9:30 Barriers for the Implementation of Wind Mr. Vuong Xuan Hoa, IMHEN,

53

Power NAMA in Viet Nam MONRE

9:30-10:10 Discussion

Q&A

10:10-10:30 Coffee break

Session: Barrier and implementation

10:30-11:00 Towards 100% RE in Denmark by 2050 –

the role of wind power development

Mr. Jakob Jespersen, Danish

Energy Agency

11:00-11:45 Discussion

Q&A

12:00-14:00 Lunch break

Session: NAMA Action Plan

14:00-14:40 Action Plan and Future Activities of Wind

Power NAMA in Viet Nam

Mr. Dao Minh Trang, IMHEN,

MONRE

14:40-15:15 Discussion

Q&A

15:15-15:30 Coffee break

BIOGAS NAMA

Session: Overview

15:30-16:00 Overview of Biogas NAMA - Difficulties,

Challenges and Solutions

Mr. Nguyen Mong Cuong,

Research Center for Climate

change & Sustainable

Development (CCSD)

16:00-16:30 Discussion

Q&A

Session: Baseline

16:30-17:00 Baseline and policy scenario development

for the Biogas NAMA

Mr. Nguyen Mong Cuong,

CCSD

17:00-17:30 Discussion

Q&A

17:30-17:45 Closing of Day 2

18 Dec BIOGAS NAMA

8:30-9:00 Recap of Day 2 DMHCC, MONRE

Session: Barrier and Implementation

9:00-9:30 Biogas NAMA: Barriers and Measures

for effective implementation in Viet Nam

Mr. Nguyen Duc Thinh, Centre

for Rural Communities Research

& Development (CCRD)

9:30-10:00 NAMA for promoting use of Biogas Dr. Sudhir Sharma, URC

10:00-10:15 Coffee break

Session: NAMA Action Plan Chair: Mr. Nguyen Khac

Hieu, DDG, DMHCC

10:15-10:45 Action plan for Biogas NAMA in Viet Nam Mr. Nguyen Duc Thinh, CCRD

10:45-11:15 Discussion

Q&A

11:15-11:30 Updated work plan for FIRM in Viet Nam

and further capacity building arrangements

by URC & UNEP

- DMHCC

- URC: Dr. Karen Holm Olsen

11:30 Closing - DMHCC

- URC

54

Annex 2.

List of Participants

1. Nguyen Khac Hieu Deputy Director General,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

2. Karen Holm Olsen Senior Researcher,

UNEP Risoe Centre of Energy, Climate and

Sustainable Development

3. Sudhir Sharma Senior Adviser,

UNEP Risoe Centre of Energy, Climate and

Sustainable Development

4. Jakob Jespersen Official,

Danish Energy Agency

5. Mai Van Trinh Deputy Director General,

Institute of Agricultural Environment, Ministry of

Agriculture and Rural Development

6. Hoang Manh Hoa Director,

Division of GHG Emission Monitoring and Low

Carbon Economy, Department of Meteorology,

Hydrology and Climate Change, Ministry of

Natural Resources and Environment

7. Nguyen Quang Huy Official,

Industrial Safety Techniques and Environment

Agency, Ministry of Industry and Trade

8. Trinh Duy Anh Official,

Low Carbon Agriculture Support Project, Ministry

of Agriculture and Rural Development

9. Tran Huu Buu Deputy General Secretary,

Industry and Environment Association of Viet Nam

10. Do Manh Hung Official,

SP-RCC Office

11. Bui Huy Phung Chairman of Scientific Council,

Viet Nam Academy of Science and Technology

12. Tran Duc Official,

EVN Finance Company

13. Nguyen Manh Tuong Official,

Institute of Strategy and Policy Natural Resources

and Environment, Ministry of Natural Resources and

Environment

55

14. Dao Tuan Linh Official,

International Cooperation Department, Ministry of

Natural Resources and Environment

15. Dagmar Zwebe Sector Leader Renewable Energy,

SNV Viet Nam

16. Nguyen Mong Cuong Director,

Research Center for Climate Change and Sustainable

Development

17. Pham Van Thanh Director,

Center for Rural Communities Research and

Development

18. Nguyen Duc Thinh Vice Director,

Center for Rural Communities Research and

Development

19. Nguyen Thang Long Manager Assistant,

Bac Lieu Wind Power Plant

20. Vuong Xuan Hoa Official,

Climate change Research Centre, Institute of

Hydrology, Meteorology and Environment, Ministry

of Natural Resources and Environment

21. Dao Minh Trang Official,

Climate change Research Centre, Institute of

Hydrology, Meteorology and Environment, Ministry

of Natural Resources and Environment

22. Le Minh Trang Official,

Climate change Research Centre, Institute of

Hydrology, Meteorology and Environment, Ministry

of Natural Resources and Environment

23. Quach Tat Quang Director,

Ozone Layer Protection Centre, Ministry of Natural

Resources and Environment

24. Nguyen Phu Khanh Official,

Ozone Layer Protection Centre, Ministry of Natural

Resources and Environment

25. Nguyen Khanh Toan Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

26. Nguyen Phuong Nam Official,

Center of technology to respond to climate change,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

56

27. Le Thu Trang Official,

Center of technology to respond to climate change,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

28. Dao Thi Hien Official,

Viet Nam Energy and Environment Consultancy

Joint-Stock Company

29. Nguyen Quang Anh Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

30. Nguyen Van Anh Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

31. Nguyen Trong Hung Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

32. Pham Minh Khoa Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

33. Tran Ha Ninh Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

34. Tran Thi Bich Ngoc Official,

Department of Meteorology, Hydrology and Climate

Change, Ministry of Natural Resources and

Environment

The Facilitating Implementation and Readiness for Mitigation (FIRM) Project

THE SECOND CAPACITY BUILDING WORKSHOP

ON LOW CARBON DEVELOPMENT AND NATIONALLY APPROPRIATE MITIGATION ACTIONS

For more information please contact: Department of Meteorology, Hydrology and Climate Change Ministry of Natural Resources and Environment of Viet Nam

No. 10 Ton That Thuyet Str, Cau Giay District, Ha Noi, Viet Nam

Tel: 84-4-37759384 - Fax: 84-4-37759382 Email: [email protected]; [email protected]