wind energy in Vietnam

VIET NAM ACADEMY OF SCIENCE AND TECHNOLOGY INSTITUTE OF ENERGY SCIENCE Asia Renewable Energy Workshop 2015 WIND ENERGY IN VIETNAM Kuala Lumpur, Feb 3-4, 2015 Nguyen Thuy Nga CONTENT General information Energy and renewable energy status, trends, policy of Vietnam Development of wind energy in Vietnam International cooperation Recommendations GENERAL INFORMATION Vietnam Academy of Science and Technology (VAST) VAST, a Governmental agency, a leading scientific and technological agency of the country, plays a leading role in the national scientific and technological system, and conducts basic research on natural sciences and comprehensive and high-standard technological development and train highstandard human resources for the country VAST has over 30 research institutes, 2650 permanent staff including 223 Profs and Assoc.Profs, 714 PhD, 04 National key laboratories, 01 Centre for high performance scientific computing, many advanced scientific equipment (35 units) for measurement, analysis in the field of physics, chemistry, mechanics, etc Institute of Energy Science (IES) IES is a national institute, leading research organization in the field of energy in VN, a only institute of VAST focusing on energy and renewable energy IES has research center with over 110 staff including Assoc.Profs, PhD, energy system stimulation lab and lad for conversation biomass to energy Wind and solar energy research are our main priority GENERAL INFORMATION Some achievements of IES VAST: • Research on system theories in energy sector, research on modelling and methodology to solve the problem of optimized development of Vietnam energy system • Consulting and proposing to Vietnam Government on strategy, policy and decision on national important projects such as Phu My power center, North-South 500kV transmission line, Hoa Binh, Son La and Lai Chau hydropower plants, Ninh Thuan nuclear power plant • Assessing potential of renewable energy resources (wind, solar, biomass, biogas, etc), building database on renewable energy potential in Vietnam • Conducting research on completing and transferring advanced technology of key renewable energy exploitation and consumption in Vietnam • Deployment of many energy projects such as small hydro power plants, wind energy plants, energy audit, etc Vietnam Energy and Renewable energy Solar energy Potential: 4÷5 kWh/m2/day Biomass Potential: >800 MW Small Hydropower: (4000 MW Geothermal Potential: > 3000 MW NATIONAL POWER DEVELOPMENT PLANNING 2011-2020-2030 Power from renewable energy sources Feed in tariff: Wind power - 7.8 UScents/kWh Biomass - Landfill gas: 7.28 UScents/kWh Solid waste: 10.05 UScents/kWh CHP plant: 5.8 UScents/kWh Seite Vietnam Renewable Energy Capacity (MW) 2.4 0.5 53.5 Small hydro Biomass Wind 150 Solid waste Solar Biogas 600 Seite DEVELOPMENT OF WIND ENERGY IN VIETNAM Wind Resource Assessment (Atlas) Wind energy potential in Vietnam is significant, surpassing the potential of neighboring countries (in the Southeast Asia) World Bank’s study (2001): • Annual wind speed: ≥ m/s at 65 m above the ground level (AGL) • Theoretical potential: 500 GW (about 39% of total land areas) • Most promising areas: coastal and highland areas of Centre and Southern parts EVN’s study (2007): • Annual wind speed: ≥ m/s at 60 m • Technical potential: 1,785 MW (incl North: 50 MW, Centre: 880 MW, and South: 855 MW) Seite MoIT and World Bank (2011) Wind energy potential of Viet Nam at 80 m Wind speed: > m/s Capacity: 26,763 MW Area: 128,346 km2 MoIT and World Bank (2013 - 2014): updating wind atlas (further information see at http://www.esmap.org/node/3172) - The results of the wind energy potential are relative difference due to the number of wind mast is not much and these wind masts not ensure standards → The wind map in VN has low accuracy and it is only used for reference - There is no specific reliable wind energy potential assessment on a large scale of VN - Wind regime of VN is low The average wind speed in the best potential areas (Ninh Thuan, Binh Thuan prov.) only about m/s at 80 m lower than the prevalence rated of 12-14 m/s of wind turbines Seite NATIONAL POWER DEVELOPMENT PLANNING 2011-2020-2030 Power from wind energy source 1,000 MW (2020) 6,200 MW (2030) Support policies: • Feed in tariff: 7.8 UScents/kWh • RE Law is being drafted and it is expected to publish in 2016 • Making RE planning, wind power planning • Having more national programs about scientific research, RE application • Cooperating between WB, GIZ etc to calculate and publish support regime for electricity selling price, which is more suitable for RE (solar, wind and biomass) • Joining with organizations to mitigate climate change and reduce CO2 • Establishing environmental protection fund • The wind power selling price is expected to be approved at 10.4 UScents/kWh from 2015 Seite Legal framwork for wind development in Vietnam At central level At local level: The primary contacts are (1) Provical People Commitee (2) DOIT, DPI Seite 10 77 wind power projects registered at 18 provinces with total capacity of 7,234 MW under different development stages (according to PECC3 and GIZ) Seite 11 but Binh Thuan Wind Project (capacity: 30 MW, REVN Co.) Bac Lieu Wind Project (capacity: 16 MW, Cong Ly Co.) Phu Quy WP Seite 12 Seite 13 Obstacles and difficulties for wind power development Group Technological & Technical Infrastructure: Unsupported infrastructure for wind power development Equipment: Imported from other countries Wind data: no reliable, synchronous and unified wind data all over Vietnam, no data sharing Technical human resources: in severe shortage, lack of university education in wind power sector Group Economic & Financial - High investment cost, low wind power price, limited lending from financial organizations - Lack of enabling environment - High O&M rate Group Institutional - Lack of guideline, law and regulations for investment procedure (regulatory framwork) - National and provincial plans, power contract etc - Lack of social acceptance and support to clean energy The biggest obstacles for the investors are: + Capital arrangement: Large investment capital ⇒ difficult to arrange reciprocal capital + Wind power price: Low or no profit ⇒ difficult to find preferential financing Low wind power price State support is low compared to other countries in the world Seite 14 Solutions to develop wind power project in Vietnam Technical solutions • • • • • Wind measurement To be continuous, at international standard, at least year Minimise data lost due to technical failures Standardised equipments Experienced contractor to set up the tower • Site selection • Minimum speed at 6m/s with stable wind conditions • Close to the connection hub, for projects of 30 – 90 MW the distance should be less than 15km • Close to the ports and main national roads • Avoid residential areas, important buildings • Slope less than 10o, supportive geology and weather Seite 15 Solutions to develop wind power project in Vietnam Technical solutions • • Turbine selection • Fit with Vietnam conditions: 1-2MW, especially 1.5MW technology, available spare parts • With gear box type due to maturity • G7 or non-G7 manufacturers? Grid connection • Close to connection hub • Early negotiation with EVN Mature Regulatory solutions • • • • Speed up land clearance Raise the tariff, simplify the procedure to sign power purchase contract Propose to MOIT and EVN to build connection line for the project Arrange cheap financing, support by guarantee Seite 16 Solutions to develop wind power project in Vietnam Economic and managerial solutions • • • Investment size • Minimum at 30MW Reduce to the cost and move toward localisation • Reduce turbine cost: • Turbine cost: up 10% Wind cost up 5.53 % • Vietnam low localisation, choose between G7 and non-G7 • Reduce tower cost: • Localisation: UBI Tower, PTSC M&C, Vina Halla, CSWind, • Cost around 2/3 imported from EU • Tower accounts for 15.6% fixed cost, up 10% wind cost up 1.59% Grid connection • Local connection: • Optimal design among turbines • Minimise the lines connected to substations • Grid connections: actively negotiate with EVN for building the connection lines • Grid connection cost up 10% wind cost up 0.47 % Seite 17 Solutions to develop wind power project in Vietnam Economic and managerial solutions • • Reduce Civil work • Optimal design for foundation • Small and temporary roads increase 10%, wind cost up 1.59% • Cut O&M • Select turbine from credible manufacturers • Small and efficient operation team • Learn from foreign professional in wind farm operation • O&M increase by 10%, wind cost up 1.35% Cut interest cost • Seek cheap funding, like 3%/year for ODA, export credit (ECAs) • Loan from international manufacturers (interest rate 4-5%) Interest rate increase by 10%, wind cost up 4.18% Seite 18 INTERNATIONAL COOPERATION Status of international cooperation in wind power sector International financial organizations: WorldBank, Asian Development Bank (ADB), KfW (German), Dragon Capital GIZ German: The biggest international organization to support Vietnam to deploy some programs: building mechanism for grid-connected wind power, procedures for wind power planning, wind power development promotion program and consult for Vietnam wind power projects Other countries and organizations: Japan, Spain, Denmark, Russian Proposing international cooperation points Accurate wind source assessment, measurement technique Measures against typhoon Prediction and measure of turbulence in complex terrain Environment assessment INTERNATIONAL COOPERATION Human resources buiding: Through NEF Researchers Invitation Program, postgraduate courses in wind energy field (MSc, PhD degree and internship) collaborative research projects Technology: to develop suitable technology, build wind turbine manufacturing plants, in order to reduce the investment cost and increase power performance of wind turbine, turbine allocation and wind site design Cooperate to conduct the projects: investigation and assessment of technical potential in Vietnam, technology for exploitation of low wind regime, reducing cost for small scale wind farm Conducting joint research with the purpose of developing and transferring wind power technology suitable for wind regime and climate of Vietnam Joint research in market studying and wind power technology equipment advertising RECOMMENDATIONS AND SUGGESTIONS Effective results and positive impact of participating in NEF Renewable Researcher Invitation Program Outcomes: + Training and developing human resourses on wind energy for Vietnam, namely having trained researchers of IES and researcher of IE from 10/2012 to 3/2015 + Improvement and promotion of cooperation between organizations in Japan and Vietnam, such as NEF, AIST, Mie Uni., VAST Recommendations: + Keep on training and developing human resourses for Vietnam, and expand more the others such as solar energy, biomass energy, geothermal energy, etc + Keep on improving and promoting organizations in Japan and Vietnam cooperation between Suggestions: Promotion establishing important network and cooperative relationship between organizations, companies in Japan and Vietnam to look for and expand business opportunities each other - RECOMMENDATIONS AND SUGGESTIONS Support proposal to strengthen deployment and research activities in wind energy sector of IES VAST: Modern wind measuring equipment Theory and calculation tools in assessing wind regime, power potential for large areas for wind power development planning Theory and calculation tools for calculating and designing wind power projects Method and tool (measuring equipment and calculation software): evaluating the suitability of wind turbine types based on the wind characteristics at the different regions and exploitation conditions of Vietnam Making joint JCM project proposal for experimenting Japan wind power equipment Cooperate in building wind and solar verification and consultancy center in Vietnam Name: Nguyen Thuy Nga, PhD Position: Vice Director of IES VAST Email: ngthuynga@gmail.com Tel: +84-903-22-44-48 [...]... activities in wind energy sector of IES VAST: Modern wind measuring equipment Theory and calculation tools in assessing wind regime, power potential for large areas for wind power development planning Theory and calculation tools for calculating and designing wind power projects Method and tool (measuring equipment and calculation software): evaluating the suitability of wind turbine types based on the wind. .. the projects: investigation and assessment of technical potential in Vietnam, technology for exploitation of low wind regime, reducing cost for small scale wind farm Conducting joint research with the purpose of developing and transferring wind power technology suitable for wind regime and climate of Vietnam Joint research in market studying and wind power technology equipment advertising RECOMMENDATIONS... assessment INTERNATIONAL COOPERATION Human resources buiding: Through NEF Researchers Invitation Program, postgraduate courses in wind energy field (MSc, PhD degree and internship) collaborative research projects Technology: to develop suitable technology, build wind turbine manufacturing plants, in order to reduce the investment cost and increase power performance of wind turbine, turbine allocation and wind. .. grid-connected wind power, procedures for wind power planning, wind power development promotion program and consult for Vietnam wind power projects Other countries and organizations: Japan, Spain, Denmark, Russian Proposing international cooperation points Accurate wind source assessment, measurement technique Measures against typhoon Prediction and measure of turbulence in complex terrain Environment... Infrastructure: Unsupported infrastructure for wind power development Equipment: Imported from other countries Wind data: no reliable, synchronous and unified wind data all over Vietnam, no data sharing Technical human resources: in severe shortage, lack of university education in wind power sector Group 2 Economic & Financial - High investment cost, low wind power price, limited lending from financial organizations... participating in NEF Renewable Researcher Invitation Program 1 Outcomes: + Training and developing human resourses on wind energy for Vietnam, namely having trained 4 researchers of IES and 1 researcher of IE from 10/2012 to 3/2015 + Improvement and promotion of cooperation between organizations in Japan and Vietnam, such as NEF, AIST, Mie Uni., VAST 2 Recommendations: + Keep on training and developing human... international manufacturers (interest rate 4-5%) Interest rate increase by 10%, wind cost up 4.18% Seite 18 INTERNATIONAL COOPERATION Status of international cooperation in wind power sector International financial organizations: WorldBank, Asian Development Bank (ADB), KfW (German), Dragon Capital GIZ German: The biggest international organization to support Vietnam to deploy some programs: building... capital + Wind power price: Low or no profit ⇒ difficult to find preferential financing Low wind power price State support is low compared to other countries in the world Seite 14 Solutions to develop wind power project in Vietnam Technical solutions • • • • • Wind measurement To be continuous, at international standard, at least 1 year Minimise data lost due to technical failures Standardised equipments... cheap financing, support by guarantee Seite 16 Solutions to develop wind power project in Vietnam Economic and managerial solutions • • • Investment size • Minimum at 30MW Reduce to the cost and move toward localisation • Reduce turbine cost: • Turbine cost: up 10% Wind cost up 5.53 % • Vietnam low localisation, choose between G7 and non-G7 • Reduce tower cost: • Localisation: UBI Tower, PTSC M&C, Vina... project in Vietnam Economic and managerial solutions • • Reduce Civil work • Optimal design for foundation • Small and temporary roads increase 10%, wind cost up 1.59% • Cut O&M • Select turbine from credible manufacturers • Small and efficient operation team • Learn from foreign professional in wind farm operation • O&M increase by 10%, wind cost up 1.35% Cut interest cost • Seek cheap funding, like