On The Horizon - Renewable Energy in Asia: Vietnam

Explore:  Asia Renewable Energy

1. What are the driving factors for increasing renewable energy production in Vietnam?

As with many other countries, an important factor in Vietnam driving the increased use of renewable energy is a heightened sense of environmental issues. Another important factor is the steady power-demand growth rate over the years, especially during the dry season when power generation capacity is not enough to supply demand. Economics, too, is important. While Vietnam is a net exporter of crude oil, it is a net importer of petroleum products. Vietnam has current supplies of offshore gas, but Vietnamese fields are limited. The balance between exporting crude and importing refined product will begin to change in the next few years, so Vietnam will become a net oil importer. Coal as a fuel is a major source of pollution, and its use is widespread. While at the moment Vietnam is a net exporter of coal, it is forecasted that Vietnam will be a coal importer from 2015 onward.

Underlying all of this is the fact that there is limited government financing available for construction of traditional power generation plants. The power monopoly, Electricity of Vietnam (EVN) (a state owed enterprise), is on the way to being un-bundled with a new separate structure of generation, transmission, and distribution functions. The Electricity Regulatory Authority under the Ministry of Industry and Trade (MOIT) exercises control over electric power pricing. The current power price regulation is still low so that only hydropower generation is viable. Potential foreign power generators who are interested in investing in wind energy or solar energy still need to wait for a possible feed-in tariff to be accepted by Vietnam’s government.

The hope is that many new forms of renewable energy, including wind, biomass, and hydro power, can be developed more freely outside of the EVN monopoly and by using sources of private financing. However, even if these new forms of energy were developed, power pricing would remain a major barrier, especially due to high production costs related to harvesting renewable energy sources.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© MERITAS - Law Firms Worldwide | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.