the impacts of solar and wind energy on vietnam

Moreover, this review paper also includes a critical analysis about the potential of solar and wind energy on regions of Vietnam and how suitable they are in Vietnam to serves in economi

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMIC UNIVERSITY

SUBJECT: ENG100

Student name: Nguyen To Lan Huong Student code: 11231839 Class: Advanced International Business 65B Lecturer: Do Thi Kieu Lan, M.A

Ha Noi, 12/2023

The impacts of Solar and Wind energy on Vietnam

Nguyen To Lan Huong National Economics University

Abstract

Utilizing renewable energy sources is a growing trend in the world, Vienam included Although solar and wind energy are a clean and sercure energy sources that can meet Vietnam’s goal to reduce greenhouse gas emissions, there are still some negative perception of these technologies In this study, the literature is reviewed to summarize the environmental impact of solar and wind energy in Vietnam Moreover, this review paper also includes a critical analysis about the potential of solar and wind energy on regions of Vietnam and how suitable they are

in Vietnam to serves in economics purpose Its aim to increase the understading about renewable resouces and how it may serve as a tool for developers, policy and future solar and wind farms on the future

It is well acknowledge that energy is the pillar of economic development, giving industrialization and people’s daily life the power they required But every operations that included energy conversion and transmission have known to be negative to the environment For example, the chemical energy in fuel converts into mechanical energy, but also prodcues unwanted heat and sound, resulted in greenhouse effect and noise pollution Therefore, for more advantangeous and sustainable than conventional energy sources like fossil and nuclear energy, human have found the alternative option in renewable energy sources like wind and solar power

According to Energy Information Administration (EIA), Vietnam’s core energy sources are coal and hydroelectric This energy mix has been the backbone of the nation's power generation However, the dynamics are evolving, driven by Vietnam's status as a developing country facing a surge in demand due to significant economic growth, population expansion, and the rapid pace of industrialization and urbanization This escalating demand poses challenges to the existing energy infrastructure and necessitates a strategic shift towards more sustainable and diverse energy sources In addition, Vietnam is experiencing the the adverse impacts of climate change, mirroring global concerns The greenhouse effect, rising sea levels in the Mekong River, prolonged droughts, and other manifestations of climate change are tangible realities that demand urgent attention In response to these pressing environmental and developmental challenges, Vietnam is aligning itself with the global trend towards renewable energy adoption With a forward-looking perspective, Vietnam is actively embracing the renewable energy paradigm, with a particular emphasis on wind and solar energy These sources are deemed most advantageous for the nation, given its geographical characteristics and environmental considerations By steering towards renewable energy, Vietnam aims to address its energy demands while concurrently mitigating the environmental impacts associated with conventional energy sources This strategic move aligns with the global commitment to combat climate change and transition towards a more sustainable energy landscape

This literature review aims to examine and analyze the specific impacts of solar and wind energy in Vietnam by focusing on key aspects: the potential and current state of wind and solar energy in Vietnam, economic and environmental impacts,

challenges and future prospects By understanding the impacts and potential benefits of these sustainable energies, Vietnam can direct the path of expanding the use of renewable energy on its industries

Review of literature

The potential and current state of wind and solar energy in Vietnam

On the one hand, Tue Duy Nguyen and colleagues (2023) states in their research that Vietnam is strategically positioned to capitalize fully on the exploitation of renewable energy resources The geographical expanse, spanning from 8°27’ to 23°23’ North, provides Vietnam with abundant solar energy, an average of 5 kWh/m2 per day This substantial solar potential is further enhanced by

approximately 2000 hours of uninterrupted sunlight each year The availability of such solar resources has been use in various industries As mentioned in the study, solar energy has been harnessed for the traditional practice of drying agricultural products, including fruits, rice, and vegetables, under the natural radiance of the sun This not only aligns with age-old sustainable practices but also demonstrates

an ingenious approach to reducing energy consumption from conventional industrial machines The utilization of solar energy for agricultural purposes represents a synergistic harmony between traditional practices and modern energy efficiency, highlighting the multifaceted advantages that arise from Vietnam's propitious geographical location

Vietnam's participation in the 26th United Nations Climate Change Conference of the Parties (COP26) in Scotland in November 2021 brought to significant developments in the country's solar energy industry, as demonstrated by an article published in the International Trade Administration (ITA), (2022).At present, Vietnam stands at the forefront of solar power innovation within the ASEAN region, boasting an impressive total scale of 368 GW of solar power capacity The commitment to advancing solar energy was underscored by the extension of the Feed-in-tariff (FIT) from 2021 to 2023, a strategic move signaling Vietnam's enthusiasm and preparedness to further develop and enhance its solar energy infrastructure A remarkable exemplification of Vietnam's commitment to solar energy expansion is embodied by the 6000MW Dau Tieng Solar Power Complex, situated in Tay Ninh Province Notably, this complex has garnered attention as the largest solar project not only in Vietnam but also in Southeast Asia Commencing its operations, the Dau Tieng Solar Power Complex has commenced delivering power to Vietnam Electricity (EVN), symbolizing a pivotal step towards sustainable and renewable energy sources Alongside that example is Trung Nam Group.This group has undertaken the construction of one of the largest solar farms

in Southeast Asia, strategically located in the central Ninh Thuan Province The magnitude of such projects not only underscores Vietnam's commitment to renewable energy but also positions the country as a key player in driving solar energy innovation and implementation across the region As Vietnam charts a

course towards a more sustainable energy future, collaboration with foreign investors becomes paramount Recognizing the potential opportunities in renewable energy, the country is poised to engage with experienced foreign investors specializing in various facets of solar technology These include PV modules, rotors, swiveling equipment, energy storage solutions, sun-tracking technology, off-grid all-in-one solar solutions, portable water treatment solar-based units, and integrated solar energy systems for manufacturing plants

On the other hand, Nguyen Duc Luong (2015) discusses his findings about Vietnam's present state and future prospects for wind energy He also touched on the country’s advantages in geography A focal point of his research revolves around the inherent advantages present in Vietnam's geographical landscape Spanning an extensive South China Sea coastline, measuring an impressive 3260 kilometers, and being situated within the monsoon climate zone, the nation emerges as having a promising potential for harnessing wind energy The combination of these geographic attributes creates favorable conditions for the development of robust wind energy projects Despite the early stages of wind energy application and the insignificance of project policies at the time, Nguyen optimism rested on the firm belief that Vietnam's strategic decision to embrace wind energy, as outlined in The National Master Plan for Power Development for the 2011–2020 era, commonly known as Power Master Plan VII, would effectively navigate and overcome the challenges prevailing at that juncture

As stated by Intracom article (2023), an organization working for sustainable development in Vietnam, the noticeable surge in wind energy has captured their attention Through insights from the World Bank, they once again discussed the potential of producing wind power by identified Vietnam as one of Southeast Asia's top four wind-power producers They showed the figure to support their opinion about how wind power is now one of the fastest growing renewable energy sources in Vietnam As of July of 2023, Vietnam has successfully reached a total installed wind power capacity of 1000 MW, constituting approximately 4% of the country's overall installed power capacity They also commented on how wind energy in the coming period can be anticipated to be one of Vietnam’s main renewable energy with the goal to reach 12000 MW in total of installed capacity of wind power by 2023

Through four research studies and articles from Tue Duy Nguyen and colleagues, International Trade Administration (ITA), Nguyen Duc Luong and Intracom on the current situation and development possibilities of wind and solar energy These analyses not only shows Vietnam's strengths in meeting consumer demands but also underscore the advantages presented by its geographical location Focusing

into the achievements made since embarking on the renewable energy

development journey, these studies provide a nuanced understanding of the environmental and economic impacts of wind and solar energy in Vietnam

The impact of wind and solar energy on Vietnam’s economy and environment

There are numerous advantages for businesses in Vietnam when they switch to green energy, Financing and Promoting Technology (FPT) corporation (2023) revealed First, they state that it will cost less to produce renewable energy like solar and wind, which are now more affordable and easier to utilize because of technology innovation and economies of scale Second, businesses can increase their profit margins through using the "renewable energy" branding to draw in and keep overseas investors and consumers, both of whom are crucial since they are increasingly concerned about environmental issues Third, with the potential of provinces located throughout Vietnam, in particular the South Central Coast, which receives sunlight and wind for up to 300 days a year Vietnam has an early-stage solar power projects in Ninh Thuan, Binh Thuan, and Phu Yen that are yielding great results Therefore, the renewable energy sector open another factor -

it create many more job opportunities More than 17,380 new employment have been generated in the province of Ninh Thuan alone according to their study Vu Phong Energy group (2023) argued that although there are some benefits, a noticeable drawback of solar energy is the large initial outlay The relatively high starting expenses are caused by the cost of solar panels and associated equipment Although these costs are increasingly coming down due to technological

developments, the initial financial barrier still stands in the way of the broad use of solar energy The issue of affordability is more acute in areas where significant expenditures in renewable infrastructure are constrained by budgetary restrictions Another difficulty is the space needs of solar energy infrastructure, particularly for utility-scale solar power plants Large-scale installations need vast regions, which may interfere with other land uses like urban expansion or agriculture When planning and implementing sustainable energy projects, finding a balance between the growth of solar energy and the preservation of land for other uses becomes essential Promoting the equitable and sustainable integration of solar energy into the larger energy environment requires addressing these financial and geographical obstacles

Protecting the environment is one of the primary goals of creating and using renewable energy This is one of the world’s most significant challenges for the long-term sustainable growth of mankind Written by Nguyen Dao in Binh Duong

Department of Industry and Trade article (2024), she states that there are two critical benefits that renewable energy offers.s First, renewable energy serves as

an emblem of sustainability – a clean and environmentally friendly energy source.The value of renewable energy lies in its capacity to operate without emitting carbon dioxide (CO2) or other detrimental greenhouse gasses Unlike conventional energy sources reliant on fossil fuels, the utilization of renewables does not contribute to the exacerbation of the greenhouse gas effect Moreover, the distinctive feature of renewable energy is its ability to function without inducing a vacuum effect or imposing adverse consequences on the ecosystems balance The sustainability of renewable according to Nguyen was that renewable power is an infinite source without ever running out It is continuously formed from nature's natural processes, regardless of human exploitation or production While Nguyen highlights the enduring and replenishable nature of renewable energy, Intracom (2023) introduces a nuanced perspective First, they acknowledge that weather plays an essential impact, pointing to weather fluctuations as a significant factor influencing production quality the variability of wind speeds over time poses a challenge to maintaining stable production levels Similarly, sunlight affects solar energy sources Clouds, rain and nighttime hours all have a big impact on the prediction of the production output In addition to weather-related uncertainties, Intracom outlines potential drawbacks of renewable energy Noise pollution is identified as a concern, particularly in the operation of wind turbines, where the rotation and movement of blades can generate significant noise Moreover, the development and maintenance of renewable energy projects may generate waste, including non-recyclable materials and construction waste The management and disposal of such waste pose challenges in minimizing their environmental impact Furthermore, the construction of renewable energy infrastructure, such as solar and wind power installations, raises concerns about its potential negative impact on local wildlife The alteration of habitats, coupled with noise and vibrations from construction sites, may disrupt ecosystems and disturb the natural habitats of animals

In conclusion, there are two-side impacts of wind and solar power on the economy and environment not only in Vietnam but all around the world, as evidenced by the four articles discussed previously Consequently, we can list the challenges Vietnam encounters in addressing these impacts and also discuss the future prospects of wind and solar energy

Challenges and future prospects on wind and solar energy

Breu and colleagues (2019) in Mckinsey & Company claims that it will not be easy the solve Vietnam’s energy challenges Keeping low - costs energy amidst the rapidly growing demand will based on the establishment of a legal and financial framework that attracts competent renewable energy developers to the market The author suggested on ways to reduce demand and increase load, imports through connections to China and Laos, and ways to increase the role of natural gas in the energy mix It will take time for Vietnam to build an energy future that is more affordable, secure, and clean The government's assistance was very beneficial to other markets that were further along in the development of renewable power as it plays a critical role in the market through legislation or a public commitment Moreover, governments frequently assisted in accelerating investment through robust incentives and a well-organized, open project approval procedure Breu purposed Vietnam to take some actions to helped in establishing the framework for the development of renewables such as: Create a transparent and replicable project approval procedure; Give data addressing the rates for renewable alternate after June 2019; Make a thorough grid-capability assessment that includes an evaluation of prospective ideal sites for new generation assets; Encourage renewable energy programs; Having serious discussions about option to develop renewable capacity in Vietnam with potential significant private sector investors