Báo cáo " CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENTS (CDM-PDD) FOR PILOT GRID-CONNECTED RICE HUSK-FUELLED BIO-POWER DEVELOPMENT PROJECTS IN MEKONG DELTA, VIETNAM " docx

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENTS (CDM-PDD) FOR PILOT GRID-CONNECTED RICE HUSK-FUELLED BIO-POWER DEVELOPMENT PROJECTS IN MEKONG DELTA, VIETNAM Nguyen Van Song ABSTRACT The research is designed for developing the pilot small-scale clean development mechanism bundled project activities in Vietnam electricity/ energy sector Its overall purpose is to assess the potential of rice husk - fuelled bio-power development projects in Mekong delta Based on estimating the electricity potential of a bundle of rice huskfuelled bio-power development projects in Mekong delta with the capacity of 11 MW per project, assessing their CO2 emission reductions (CERs) and CER credits, calculating and comparing their financial indices (NPV, B/C, IRR) in two cases - W/O and W CDM, the research expects to recommend policies to use for bio-power generation the unused rice husk that is dumped and discharged from local paddy milling centers into rivers and canals, as well as, to put forward a safe and environmentally friendly solution to minimize thoroughly the current serious pollution of rivers and canals in Mekong delta with this increasing unused rice husk quantity Key words: Rice-huck, power plants, CO2 emission reductions, Clean Development Mechanis., INTRODUCTION Vietnam has an impressive economic growth rate, and success in transforming from command economy to market economy, especially in transforming and developing its agricultural sector The importance of the agricultural sector in Vietnam is profound, with a major impact on employment, GDP and export A continuing agricultural development generally and a rapid paddy production growth particularly are very necessary Vietnam is divided into socio- economic regions Between these regions are large differences in economic development generally and agricultural development particularly The Mekong Delta is the most important agricultural region amongst these regions in the country While the Mekong delta occupied only 21% of national population and 12% of total area of the country, its cereals planted area and cereals production generally, and its paddy planted area and paddy production particularly, occupied up to 46% and 52% of the whole country ones (Source: Vietnam Statistical Yearbook 2005) The intensive paddy farming and rapid growth of rice production in Mekong delta leads to dumping and discharging a large amount of rice husk from local dense milling center network The end-uses of rice husk discharged from milling centers are fuelling brickkilns, porcelain furnaces and rural household cooking (not to be considerable - under 20% of total), open air burning for fertilizing the planted areas (not to be considerable under 20% of total), and dumping (to be uncontrollable- over 70%) (See the following Vietnam’s and Mekong delta’s Rice Husk Potential and Availability Flowchart, and the Statistical Yearbook 2005) Because almost all of paddy milling centers in Mekong delta are located on the banks of canals and two major rivers - Tien river and Hau river in order to take advantage of local dense water transport network, unused rice husk dumped by milling centers is discharged into the Mekong delta's dense canal system, that provoke the serious pollution of local canals and rivers with increasing dumped rice husk amount With Mekong delta's dumped rice husk quantity amounting to 1,400,000 tons per year, the uncontrollable dumping of unused rice husk discharged from dense milling center network into canals and rivers provokes serious negative environmental impact to have to be resolved Amongst three rice husk disposal modes - open air burning of rice husk for fertilizing the planted areas, uncontrollable dumping of unused rice husk into rivers and canals, and rice husk-fuelled bio-power generation, the last one is selected as the most economically feasible and environmentally friendly solution in the context of Government and local priorities given to renewable electricity generation technologies and rural electrification in Mekong delta Pham Khanh Toan, Nguyen Van Hanh and Nguyen Duc Cuong (Institute of Energy) have elaborated in 2005 the quantitative study on the Feasibility of Using the Solar Energy, Mini-hydro power and Biomass Energy in Vietnam The study provided a comprehensive overview on three main types of renewable energy in Vietnam – Solar, Mini-hydro power and Biomass energy, in that, the using rice husk and bagasse to fuel the bioelectricity generation is first considered in details on not only the qualitative but also the quantitative basis (Chapter 2-2.4 and Chapter 4-4.2) The preliminary data and analysis of the study on the rice husk potential in Mekong Delta (South-Vietnam) are very useful for preparing the CDM-PDD of 11 MW rice husk-fuelled biopower plant and policy recommendations for using the rich rice husk potential of provinces in Mekong Delta[2] Randall Spalding –Fecher in 2002 has edited the CDM guidebook-a resource for CDM project design developers in Southern Africa The book directed at smaller scale local partners in Clean Development Mechanism projects to empower them to put forward project ideas, particularly ideas with a development focus The book bridged the gap between general introduction to CDM and more technical manuals on project design and greenhouse gas assessment On monitoring and verification, it summarizes monitoring protocols and does provide a comprehensive overview of how to get a design and report on a small-scale CDM projects[4,5] Robert T.Watson, Marufu C Zinyowera and Richard H Moss in 1996 have provided an overview and analysis of technologies and measures to limit and reduce greenhouse gas (GHG) emissions and to enhance GHG sinks under the UNFCCC Their paper focuses on technologies and measures for the Annex I countries, while noting information as appropriate for use by non-Annex I countries The paper includes discussions and recommendations on technologies and measures that can be adopted in three main energy and end-use sectors (commercial/ residential/ institutional buildings, transportation and industry) as well as in sectors of energy supply, agriculture, forestry and waste management in not only the Annex I but also the non-Annex I countries[6] The study of Thipwimon Chungsangunsit, Shabbir H Gheewala and Suthum Patumsawad in 2004 shows that the emissions of SO2 and NOX are lesser in case of coal and oil-fired power generation, but higher than for natural gas The emission of CO2 from combustion of rice husk are considered zero since they not contribute to global warming CO and dust emissions are slightly higher than conventional power production pointing to need for improving the combustion efficiency of the rice husk power plant Overall, the study indicates that rice husk is a viable feedstock for electricity production and performs better than fossil fuels (especially coal and oil) from the point of view of environmental emissions[7] Y Hofman 2004 conducted on study on a small scale project design document biomass Rajasthan The project involves the implementation of a biomass-based power generation plant using direct combustion boiler technology The installed capacity of the plant is 7.8 MWel The fuel used is primarily mustard crop residue, which is abundantly available in the vicinity of the site The electricity generated will be sold primarily to the state grid with the balance sold to third parties (large industrial customers) The generated electricity will replace a mixture of coal and gas-based power generation The total amount of CERs to be delivered is expected to be 313,743 The implementation of the project will also lead to additional income and employment in the region (approximately 150,000 man days of work per year1) [8] Objectives: The principal goal of the research is to assess the CDM potential of rice husk - fuelled bio - power development projects and to recommend a regional strategy to develop a bundle of rice husk - fuelled bio-power development projects of 11 MW installed capacity per project for minimizing the uncontrollable dumping of unused rice husk discharged from local dense paddy milling centers to rivers and canals in Mekong delta RESEARCH METHODS 2.1 Data collection the rice husk availability on the basis of estimating the rice husk potential of milling centers located alongside Tien Giang river in Mekong delta • the capability to transport in most economic manner (water way) the rice husk needed by not only the considered pilot rice husk-fuelled bio-power plant but also the future similar ones planned at Mekong delta; • the current local rice husk using and pricing Interviewing the relevant companies and stakeholders: • the willingness to participate in the pilot Project of current local milling centers in capacity of Project developers • the willingness to sell the stored rice husk, the rice husk selling capability and the acceptable rice husk pricing level of current rice milling centers • the steady rice husk availability and procurement for bioelectricity generation in provinces of Mekong delta (South - Vietnam) 2.2 Calculation of GHG emissions by sources 2.2.1 Project emissions: CO2 from on - and off-site transportation CO2 from start-up/auxiliary fuel use a) Biomass electricity generation Heat value of rice Annual CH4 = husk used by released Project (tCO2e/yr) (TJ/yr) × Methane emission factor × GWP of CH4 for rice husk combustion (tCH4/TJ) b) Transportation of biomass Distance Total rice husk = traveled consumed by project (km/yr) (t/yr) Emission factor (tCO2e/km) CO2 CH4 = emissio ÷ emission n factor factor (tCO2/k (tCH4/km) m) Truck ữ capacity (t) GWP of ì CH4 (tCO2e/tC H4 ) (tCO2e/tCH4) Return trip distance × to supply site (km) N2O + emission factor × (tN2O/km) Annual emission = Emission factor × Distance traveled (tCO2e/yr) (tCO2e/km) (Km/yr) c) Start-up/auxiliary fuel use GWP of N2O (tCO2e/tN2O) • For residual oil: CO2 emission C emission = factor factor (tC/TJ) (tCO2/TJ) • (tCO2e/TJ) Mass conversion × factor (tCO2/tC) For CH4 and N2O CO2 = emission factor Emission factor Fraction of C × oxidized – (tCO2/TJ) CH4 + emission factor (tCH4/TJ) × GWP of CH4 (tCO2e /tCH4) CO2 + emission factor + (tCO2/TJ) • For fuel consumption in energy equivalent Fuel oil (FO) Net calorific Fuel consumption in = × value of FO consumption energy equivalent (TJ/yr) (L/yr) (TJ/103t) N2O emissi on factor (tN2O/ TJ) × GWP of N2 O (tCO2e/ tN2O) Density of ì FO (t/L) ã Annual Emission = Emission factor × Fuel consumption in energy (tCO2e/yr) (tCO2e/TJ) (TJ/yr) d) Describe the formulae used to estimate anthropogenic emissions by sources of greenhouse gas in the baseline using the baseline methodology for the applicable project category in appendix B of M & P: E (ton CO2/yr) = ∑jEj (ton CO2/yr) (1) Where: Ej = CO2 emissions per year of the generation mode j, calculated as: Ej (ton CO2/yr) = PGj (MWh/yr) x EFj (ton C/TJ) x OFj x CF/TEj (%) (2) Where: PGj = electricity generation of power plant j; EFj = emission capacity of the fuel-fired power plant j; OFj = oxidation factor CF = unit conversion factor: 44/12 (C – CO2) x 0.36 (TJ – MWh); TEj = thermal efficiency of the electric generation mode j Weighted average emission (E), representing the emission intensity, is given by: (E) (ton CO2/MWh) = E(ton CO2/yr)/PG (MWh/yr) (3) Where: E is given by equation (1); PG (MWh/yr) = ∑j PGj (MWh/yr) The emission intensity coefficient, (E)baseline, is thus obtained as: (E)baseline (ton CO2/MWh) = {(E)operating margin (ton CO2/MWh) +{(E)build margin / (ton CO2/MWh)}/2 (4) Finally, baseline emissions are given by: Ebaseline (ton CO2/MWh) = (E)baseline (ton CO2/MWh) x CG (MWh/yr) (5) 2.2.2 Estimating the anthropogenic emissions by GHG sources of baseline a) Grid electricity generation CO2 Grid fuel emission = consumption × from grid (tCO2) (103t) CO2 emission factor (tCO2/MWh) = Net calorific value C Fraction Mass × emission × of C × conversion factor oxidized factor (TJ/103t) (tC/TJ) Sum of all CO2 emission from grid (tCO2) CO2 emission displaced by Project (tCO2/yr) = (tCO2e/yr) Carbon = released in total (tC/yr) Carbon released as × CH in openair (%) (tCO2/tC) Grid Electricity generated (MWh) ÷ Electricity exported by Project (MWh/yr) b) Open air burning for biomass disposal Carbon Rice husk use as fuel by the bio= released power plant (tC/yr) (t biomass/yr) Annual CH4 released – CO2 emission × factor (tCO2/MWh) Carbon fraction of × biomass (tC/t biomass) Mass × conversion factor (tCH4/tC) c) Baseline emissions summary CO2 emission from grid CH4 emission from open air + electricity burning of rice husk (tCO2/yr) (tCO2e/yr) × GWP of CH4 (tCO2e/tCH4) = Total baseline emissions (tCO2e/yr) 2.2.3 Difference between 2.2.1 and 2.2.2 representing the emission reductions of project activity Emission Emission Emission Emission from from Emission from from open air fuel oil Emission from grid biomass transportation – = + burning – – use for reduction electricity fuelled of rice husk for rice the generation electricity for the husk Project generation Project disposal (start-up) 2.2.4 Emission reductions of Project activity Total baseline emissions – Total Project emissions = Emission reductions (tCO2/yr) (tCO2e/yr) (tCO2e/yr) 2.3 Benefit cost analysis • Total cost including: Ct = Ct inv + Ct O & M + Ct fuel (RH) Ct inv = investment cost Ct O & M = operation and maintenance cost Ct fuel (RH) = fuel rice husk cost (including rice husk transport and storage costs) • Total benefit including: Bt= Bte + BtCER + Bash Bte = Benefit given by rice husk electricity sale = peWt; BtCER = Benefit given by CER sale = pCO2CER; Bt ask = Benefit given by rice husk ash sale = pashWt; Pe = rice husk electricity sale price; pCO2 = CER sale price; pash = rice husk ash sale price; Wt = rice husk electricity sale to EVN grid in year "t"; RESULTS AND DUSCUSIONS 3.1 ASSESSMENT OF THE CO2 EMISSION REDUCTIONS (CERs) AND CER CREDITS DETERMINED BY DIFFERENT ASSUMED CO2 PRICES Assessment of the CO2 emission reductions (CERs) and CER credits determined by different assumed CO2 prices is realized for a bundle of five similar pilot grid connected rice husk-fuelled bio-power development projects × 11 MW installed capacity As presented in previous part 3, these five identified and recommended power projects are similar regarding their size and employed technology And although they are originally presented as a single CDM project, this comprises five similar rice husk power projects with the installed capacity of 11 MW per project The assessment of their CERs and CER credits will be carried out only for an individual rice husk power project then its assessed CER and CER credit will be multiplied with to make the CER and CER credit of the whole CDM project 3.2 IRR, NPV, B/C) OF THE RICE HUSK-FUELED BIO-POWER PROJECTS IN TWO CASES: WITHOUT CDM AND WITH CDM Calculation and comparison of IRR, NPV and B/C in two cases - W/O CDM and W CDM are carried out with four major input parameters (Table 1) namely: o Unit investment costs of proposed rice husk power project, namely 1,350; 1,570; and 1,700 US$/Kw ; o Electricity sale prices of proposed rice husk power project, namely 0.04; 0.05; 0.06; and 0.07 US$/KWh; o CO2 sale prices of proposed rice husk power project namely O (W/O CDM); ( W CDM); (W CDM); and 15 (W CDM) US$/ton of CO2e o Rice husk ash price of proposed rice husk power project to be assumed as at constant pricing level of US$ 0.02/t of ash Calculation and comparing of IRR, NPV and B/C ratios are carried out for cases: with maximal running day number(332 days/year)(as above), and average running day number(200 days/year)(realistic case) based on realistic input parameters,namely1350 and 1579US$/KW;0.04,0.045 and0.05US$/KWh;0,3,9 and15US$/TCO2 RECOMMENDATION OF POLICES ON THE DEVELOPMENT OF REGION-WIDE USE OF RICE HUSK FOR BIO-ELECTRICITY GENERATION IN MEKONG DELTA 4.1 Context Consideration of current serious pollution of Mekong delta's rivers and canals with unused rice husk dumped and discharged from local paddy milling centers shown great region-wide environmental threat to the health of local communities and their livelihood, especially their traditional aquaculture and pisciculture This region-wide environmental threat will be rapidly increasing with following context: • Increasing paddy production and rice export is the most important long term economic development orientation of Mekong delta, that lead to rapidly increase the local rice husk generation • Basic change in traditional rice husk end-uses of local communities from using the rice husk fuel to using the commercial energy types for rural household cooking, fuelling their brick-kilns, pottery and porcelain furnaces, food processing etc., that leads to rapidly reduce the local rice husk consumption and increase the local unused rice husk dumping • Without a region-wide cooperation in looking for an environmentally friendly and effective solution to thoroughly minimize the pollution of Mekong delta's rivers and canals with unused rice husk dumped and discharged by paddy milling centers From the year 2004, the seeking for a thorough solution to minimize the increasing pollution of rivers and canals with rice husk discharged from paddy milling centers in Mekong delta became an urgent task faced by local authorities, administrators, agriculture and energy development planners Safe and environmentally friendly disposal of 3.7 millions tons of rice husk per year with over 70% of that (2.5 millions tons per year) to be dumped is one of major problems of Mekong delta's sustainable development In this context, the development of a bundle of rice husk-fuelled bio-power projects with an installed capacity of × 11 MW has been selected as the most thorough and sustainable solution to solve this problem 4.2 Recommendations of Polices to Develop the Region-wide Use of Rice Husk for Bio-Electricity Generation in Mekong Delta 6.2.1 View points and Overall Orientations • Increasing pollution of Mekong delta's rivers and canals with unused rice husk dumped by local milling centers should be considered as a great region-wide environmental threat to all of 13 provinces in this region • Rice husk-fuelled bio-electricity generation should be considered as the most effective and environmentally sustainable solution to thoroughly minimize the current increasing pollution of local rivers and canals with unused rice husk to be dumped and discharged into their water flows • Region-wide development of rice husk-fuelled bio-electricity generation should be planned with a bundle of rice husk power projects • Siting rice husk power projects in the whole Mekong delta plays the role of decisive importance Locations of these projects should be selected on the basis of satisfying following siting criteria: convenient places for waterways (local rivers, canals) based rice husk collection and transport, places having dense local paddy milling center network within a radius of 30 km maximally, places to bear intensive pollution of rivers and canals with rice husk dumping Based on above viewpoints, the research recommends to develop in Mekong delta a bundle of five (5) similar pilot rice husk-fuelled bio-power projects having a total installed capacity of × 11 MW at five locations, namely: AN HOA (An Giang province), THOI HOA (limitrophe area of provinces - An Giang, Dong Thap and Can Tho), THOI LAI (Can Tho province), CAI LAY (Tien Giang province) and TAN AN (Long An province) Besides these five locations, a reserved location in TAN CHAU (limitrophe area of provinces - An Giang and Dong Thap, and the Kingdom of Cambodia) is selected for the future development of paddy milling center network as well as, of rice husk power centers (See the Vietnam Rice Husk and Rice Husk Electricity Potential and Availability Flowchart, and Mekong delta's map) 4.2.2 Technological Identification, Orientation and Selection • Technology to be employed Rice husk burning in the grate boiler and/or the suspension-fired boilers is designed to burn ground rice husk in grate and/or suspension with ability to produce high quality ash product, which will be suitable as a substitute ingredient for local cement • Maturity of employed technology It is a state-of-the-art technology in Vietnam that will be first transferred to Vietnamese energy/electricity experts 10 4.2.3 Contribution of the bundle of similar pilot rice husk-fuelled biopower development projects of × 11 MW installed capacity to the sustainable development in Mekong delta • Potential of rice husk fuel represents particularly rich renewable energy source for the Mekong delta that will be first thoroughly used for sustainable energy development, especially for local rural electrification in this region • In capacity of one of most important biomass renewable sources in Mekong delta, the projects will provide electricity through rice husk power production without relying on fossil fuel combustion and are placed at the top of the list of promising CDM project areas for Vietnam generally, and for Mekong delta particularly • Technology to be employed will eliminate the environmental issues of unused rice husk and ash disposal, while at the same time reduce GHG emissions from cement manufacturing 4.2.4 Orientations to select the suitable mode of rice husk disposal in Mekong delta • Following modes of rice husk disposal are identified and investigated for Mekong delta: o Fuelling; o Open air burning; o Dumping and discharging into local rivers and canals (over 70%), and provoking the pollution of their water flows with dumped rice husk; • Criteria of selecting the suitable mode of unused rice husk disposal and of seeking for an appropriate solution to minimize the pollution of rivers and canals with unused rice husk discharged from paddy milling centers in Mekong delta o Thoroughness of selected solution o Environmental sustainability of selected solution o Economic-financial feasibility of selected solution The rice husk-fuelled bio-power development is selected as the most appropriate solution for Mekong delta because this solution could satisfy all of above criteria 4.2.5 Economic-financial policies recommended for the region-wide development of rice husk-fuelled bio-power projects in Mekong delta • Inter- provincial investment co-operation is very necessary for the development of rice husk power projects in Mekong delta; • Granting subsidy for small renewable (rice husk) power producers (grid-connected or off-grid) from central and local governments was a major policy of the government and this policy should be concretized by detailed decrees for the case of rice husk power plants in Mekong delta 11 • Prices of electricity generated by rice husk power plants and sold to EVN through national power grids should be considered by the government and EVN with the concession of electricity pricing to small renewable (rice husk) power producers, so that EVN could agree to purchase the rice husk electricity with the electricity pricing level from US$ 0.045 to US$ 0.050 per KWh 4.2.6 Policies recommended for training and technology transfer • Staff training and technology transfer of the state-of-the-art rice husk combustion and rice husk power generation technology are the most important way for providing the necessary knowledge and experiences for project designing, operation and management; • Training on job-specific subjects and on-the-job training should be considered as the important supplementary training items for the staff • CDM-PDD Version 03 used for rice husk-fuelled bio-power projects should be an indispensable part of training program for Vietnamese energy/electricity planners and managers CONCLUSION Rice was always Vietnam's most important agricultural product, with Vietnam being one of largest rice exporters in the world From 2000 to 2004, the Vietnam's average yearly paddy production was about 34 million tons a year, with a general increase of about 2.5% per year Great agricultural achievement of Vietnam resulted from the contribution of all of eight (8) socio-economic regions in the country, first of all, of the Mekong delta Indeed, Mekong delta is the richest alluvial plain with an extensive and dense network of rivers and irrigation canals While, Mekong delta's rice husk supply is stably increasing, there is low demand for rice husk in this region About 30% of Mekong delta's rice husk (over million tons per year) is used as fuel by brick kilns, pottery/porcelain furnaces, food processing, rural household cooking etc., currently over 70% of Mekong delta's rice husk (2.4 ÷ 2.6 million tons per year) is unused ,dumped and discharged into local rivers and canals Increasing pollution of Mekong delta's rivers and canals with unused rice husk discharged from extensive and dense network of paddy milling centers became an environmental danger to the health and livelihood (aquaculture and pisciculture) of Mekong delta population Seeking for a safe and environmentally friendly solution to thoroughly minimize this environmental danger is an urgent task faced by Mekong delta's provincial people's committees, agriculture, industry and energy development planners, policy makers and managers The research has established the Vietnam's and Mekong delta's Rice Husk and Rice Husk Electricity Potential and Availability Flowchart Based on this flowchart the research has shown that: • In total calculated rice husk potential of the whole country of over million tons in year 2004, the calculated rice husk potential of only Mekong delta amounted to over 3.7 million tons and occupied a share of over 50% of total And 7/13 Mekong delta's provinces are identified as rice husk procurement areas of rice husk power projects 12 with their calculated rice husk potential of 2.374 million tons in year 2004; and 60% of this potential (1.420 million tons) are unused rice husk • Potential of the rice husk-fuelled bio-power development projects is estimated with the planned rice husk potential procurement and availability of 1.420 million ton from local paddy milling centers for proposed rice husk power plants • Research recommends to develop a bundle of five (05) similar rice husk power projects of × 11 MW installed capacity, namely AN HOA (An Giang province), THOI HOA (neigboring area of Mekong delta's provinces - An Giang, Dong Thap, Can Tho), THOI LAI (Can Tho province), CAI LAY (Tien Giang province) and TAN AN (Long An province) The above bundle of five similar rice husk-fuelled bio-power projects is categorized as the Renewable energy project: Grid-connected rice husk electricity generation, therefore, their CO2 emission reductions (CERs) and CER credits determined for the period 2006 - 2025 by different assumed CO2 prices have been assessed for proposed rice husk power projects with following results: During the plant life of 20 years (2006 - 2025), the average annual CER of a proposed rice husk power project will be of 26,700 ton of CO2e with TOU=4,800 hours/yr( or 200 operating days per year), and its average annual CER credits by CO2 prices of US$ and 15 per ton of CO2e will be from 240 to 400 thousand US$ respectively For the whole bundle of five (5) similar rice husk power projects of × 11 MW installed capacity, these figures will be of 5x26,700= 133,500 tons of CO2e per year; and 1,2002000 thousand US$ per year, respectively Conclusions drawn from calculations and comparisons of IRR, NPV and B/C in two cases- W/O and W CDM are following: • Amongst three major input parameters - rice husk electricity sale price, unit rice husk power investment cost and CER credit, while two first parameters play the predominant role, the last parameter - CER credits plays a limited positive role • Rapid increase in CO2 pricing level, however, plays a inconsiderable positive role in increasing the values of IRR, NPV and B/C ratio of proposed rice husk power projects Based on above analysis, the research recommends necessary policies on the development of region-wide use of unused rice husk for bio-electricity generation in Mekong delta, namely: • To select the development of region-wide use of unused rice husk for bio-electricity generation in Mekong delta as the most important mode of safe and environmentally friendly rice husk disposal for this region • To consider the region-wide rice husk electricity development as an indispensable part of a medium-term rural electrification program for the period 2006 - 2020 in Mekong delta 13 • Necessary financial priorities should be given to developing the rice husk electricity generation in Mekong delta, such as: o Applying the inter- provincial co-operation for the investment in rice husk electricity development for Mekong delta; o Applying the concession of taxing and electricity sale pricing to the rice husk power projects: Research recommends the full tax exemption for these projects and the acceptable sale prices of rice husk electricity to EVN should be from US$ 0.045 to US$ 0.05 per KWh up wards • To select the state-of-the-art technology for rice husk power generation with the grate boilers and/or suspension-fired boilers to be designed to burn ground rice husk in grate and/or suspension • To consider the staff training and technology transfer of these state-of-the-art technologies of rice husk combustion and rice husk power generation as the most important way for providing related knowledge and experiences, including for training on job-specific subjects, on-the-job training and CDM-PDD for rice huskfuelled bio-power projects Finally, the general conclusion drawn from the research is that the development of a bundle of five similar grid connected rice husk-fuelled bio-power projects of × 11 MW capacity at five locations AN HOA, THOI HOA, THOI LAI, CAI LAY and TAN AN in Mekong delta is a safe and environmentally friendly rice husk disposal mode, which could contribute to thoroughly minimize the dumping and discharging a great unused rice husk quantity amounting to 1.4 million tons per year (40% of calculated rice husk potential amounting to 3.7 million tons per year of Mekong delta) from local paddy milling centers into the rivers and canals of this regions Besides the contribution to regional sustainable development through renewable (rice husk) electricity generation, these 05 rice husk power projects have a part in developing the CDM for electricity sector of the region with their CERs of 5x26,700=133,500 tons of CO2e per year 14 Reference: CC & CDM EEPSEA Course, 2003 CDM-FDD Modalities & Procedures-Version 01 Decision 17/CP (FCCC/CP/2001/13/Add.2); Annex 6- Appendix B of the simplified modalities and procedures for small scale CDM project activities (of annex II to decision 21/CP.8FCCC/CP/2002/7/Add 3) Institute of Energy - EVN -MOI, 2005 The Vietnam Power Development Master Plan for the Period of 2005 -2015 with perspective up to 2025 Institute of Energy - EVN - MOI, 2005 Quantitative Feasibility Study for Using the Solar Energy, Mini-hydropower and Biomass Energy in Vietnam Mitsubishi Securities-Clean Energy Finance Committee, 2003 A.T Biopower-Rice Husk Power Project Randall Spalding - Fecher, 2003 Climate Change: a Whirlwind Tour CC & CDM EEPSEA Course 22 - 25 November 2003 Randall Spalding - Fecher, 2002 The CDM guidebook - A resource for clean development mechanism project developers in Southern Africa Robert T Watson-Marufu C Zinyowere-Ricahrd H Moss, 1996 Technologies, Policies and Measures for Mitigating Climate Change Thipwimon Chungsangunsit, Shabbir H Gheewala and Suthum Patusawad, 2004 Environmental Assessment of Electricity Production from Rice Husk: A Case Study in Thailand Y Hofman and et al 2004 Small scale project design document of Rajasthan biomass fuelled power project Kalpataruhttp://cdm.unfccc.int/UserManagement/FileStore/FS_342041932 Institute of Energy - EVN -MOI, 2000 Economic - Financial Analysis of the Vietnam Electric Power Development Master Plan - Hanoi, Vietnam Munasinghe, M and J Watford, 1982 Electricity Pricing: Theory and Case Study, World Bank and Johns Hopkins University Press, Baltimore, USA People's Committee of Mekong delta's provinces (DOI, DOARD, DONRE), 2006 - List of local private and state-owned paddy milling centers of Mekong delta's provinces (name of millers locations, contact information paddy milling out put, technical specifications of equipments etc.) Vietnam General Statistics Office, 2005 - Vietnam Statistical Yearbook 2005 - Statistical Publishing House Hanoi, 2005 15 Table Benefit cost analysis of the rice husk-rueled bio-power projects W/ & W/O CDM Unit Electricity investment sale price cost (US$/KWh) (US$/KW) 0.040 1350 0.045 0.050 0.040 1570 0.045 0.050 NPV (US$ 1000) By CO2 prices (US$/tCO2) of: IRR (%) By CO2 prices (US$/tCO2) of: (W/O CDM) (W CDM) (W CDM) 15 (W CDM)