Strong boon needed to boost renewable energy

26/10/2011

The general chair of the World Council for Renewable Energy has suggested that the Government have policies that reward producers of electricity from wind and other natural resources, and encourage making the most of resources available in the country.

Peter Droege highlighted the importance of such policies when talking with reporters after the opening session of the Conference and Exhibition on European Green Business Solutions (GreenBiz 2011) in HCMC on Thursday morning. Deputy Prime Minister Nguyen Thien Nhan addressed this session via live videolink from Hanoi.

In his message, Nhan said Vietnam was facing many challenges related to environment protection and urban management due to the impact of climate change as well as fast modernization and urbanization. Nhan also urged proper strategies for sustainable development.

The Deputy PM said that Vietnam was in a perfect location to utilize the sun and wind as sources for renewable energy generation because of its long coast and much sunshine in this tropical country. He was optimistic that coastal cities and provinces could be green in the sense that 50% of energy consumption in those localities would be the renewable one.

Droege agreed that Vietnam had conditions to become green, referring to enormous amounts of wastes from rice production and other agricultural crops as well as rich sources of water and wind power. But Droege urged economic frameworks in place to reward those who invest in renewable energy and guarantee that they would be able to have income from this area.

Actually, there are policies and incentives to encourage more investment in renewable energy in Vietnam but investors said they were not attractive enough. For instance, Decision 37/2011/QD-TTg, signed by Prime Minister Nguyen Tan Dung and effective from August, sets the delivery wind power price at VND1,614/kWh, or 7.8 U.S. cents for one kWh, a rate much lower than around 18 cents in Thailand.

Investors questioned much about the economic viability of the low wind power price though the incentives in the decision comprised of tariff exemptions for the materials and semi-finished products that are not yet produced in Vietnam and imported for wind power projects as well as corporate income tax and land rent reductions and exemption.

Droege said that businesses and investors were the drivers of change, innovation and contributed economic benefits to employees, but they should be supported by the Government.

“They need to have a government framework for them to operate efficiently and effectively and without hindrance,” Droege stressed. He said the technologies with fossil fuel and nuclear would not be for the future due to their limited supply and risks and Vietnam and other countries had the opportunity to overcome these traditional sources to move to renewable energy.

Droege told the Daily at the event that Vietnam needed to rely on and make full use of its resources rather than spend money on imports including coal. The country should consider the advantage of future green technologies.

“Future technologies are very much competitive as you can see that there are so many companies, big and small, involve in this market,” Droege said. Modern technologies will help Vietnam maintain its environment without pollution, radiation and water deterioration.

Tran Tuan Anh, Deputy Minister of Industry and Trade, acknowledged that renewable energy made up a very small part of total energy supply in Vietnam. However, he said Vietnam should not be slow in moving toward sustainable development and environmental protection.

Around 70 companies are showcasing European green business solutions at the two-day GreenBiz 2011. Foreign and local experts will discuss climate change and energy supply, green manufacturing and building, and the possibility for Vietnam to go green in the closing day of the event.

EuroCham is organizing the GreenBiz in partnership with the Ministry of Industry and Trade, the Vietnam Chamber of Commerce and Industry (VCCI) and the Investment and Trade Promotion Centre in HCMC.

By LM

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