MARKET OVERVIEW
Vietnam is well endowed with diversified energy resources that consist of coal (in the North), natural oil and gas (in the South), hydropower and renewable energy (biomass, small hydropower, geo- thermal, biofuel, wind, solar energy, etc.). Recently, energy production has dramatically increased: annual growing rates of coal production and crude oil are 13% and 17% respectively. Electricity production increases by 15.3 % per year.
Vietnam primary energy demand is expected to rapidly increase with 9% of growing rate per year. National primary energy demand is forecasted to increase by eightfold within 25 years (2000-2025). Vietnam energy consumption per capital is 165 kgOE/year, amongst the lowest figure in the world, and is projected to 700– 800 kgOE in 2025.
In 2009, electricity consumption of industrial and construction sectors increased by 13% while residential consumption increased by 50.1% in comparison with previous year.
It is forecasted that Vietnam electricity demand will increased 3.5 – 4 times within 2010 to 2025.
In 2009, total installed capacity of Vietnam power sector was 18,481 MW, while electricity production was 89,019 GWh (increased 13.8% and 14% respectively over the previous year). Of those, hydropower and gas turbine contributed for 38% each. Coal thermal accounts for 11% only. At present, Electricity of Vietnam (EVN) owns 54% of total installation capacity.
Although energy resources in Viet Nam are relatively abundant and diverse, Viet Nam is likely to fall into shortage of domestic energy in the coming period shortly after 2015. Consequently, Viet Nam has to further look for new energy resources and import energy.
Vietnam has a plan to deregulate power market and to set up a competitive generation market step by step. From 2009-2016 is preparatory period. After 2016, the power market will be whole sale competitive market and retail competitive market will be put into operation after 2024.
Vietnam is enriched with renewable energy resources. Hydropower potential for small-scale generation is estimated at about 2,000 MW [1] that located mainly in the North and the Centre. Solar radiation levels are good in the southern and central regions. Wind energy potential for large scale generation in coastal area is estimated at about 100-200 MW [2]. Bio-energy potential is estimated at 43-46 million TOE/year, which includes fuel wood’s energy, agriculture sub-products’ energy, biogas and bio-fuel (bio-diesel and bio-ethanol). Opportunities also exist for economic production of bio-ethanol from sugar factory’s molasses and for electricity co-generation from biomass (biogases and rice husk).
Until May 2010, Vietnam has 26 CDM projects approved by EB (with total 13,818,529 tCO2 equivalent), 119 CDM projects have been approved by Vietnam DNA, and 10 projects with approved PIN and 62 CDM project under development. CDM projects provide great opportunities for Vietnam investors to develop sustainable projects, to use modern technology and to contribute to protect global environment.
OPPORTUNITIES AND POTENTIAL FOR NORWEGIAN COMPANIES
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Investments in hydropower projects (planning, construction and operation)
Equipment & technology in wind power projects
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CDM purchase
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Local production of equipment with NOR technology & know – how for VN’s market and international market
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Consultancy services for hydropower and renewable energy projects
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Management and optimization of electricity system
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Capacity building for personnel in Energy sector
[1] According to National Master Plan Study on Small Hydropower in Vietnam, PECC1, January 2005.
[2] According to “Draft National Master Plan of Power Sector, 2006-2015 with perspective to 2025, August 2005, Institute of Energy
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