According to the city's Electricity Development master plan, which was approved by the Ministry of Industry and Trade, the city has great potential in production of renewable energy, especially for solar, wind, waste and bio-gas.

HCM City has 100 – 300 hours of sunlight per month, which can provide energy for street lighting and at least 3kWh for each household.

In addition, wind power could be developed in the coastal district of Can Gio, and waste could be burned to create electricity.

However, the renewable energy sector has not developed well, mostly because of the high investments that are needed.

Thus, many private investors have been reluctant to pour money into such projects.

The city budget also does not have enough money to fund alternative energy projects.

Currently, the city produces only 3 MW of energy from renewable sources, including the Go Cat plant, that creates electricity from waste at a capacity of 2.7 MW, and a solar energy project on Thanh An Island Commune in Can Gio District, with 100 kW.

By 2015, two other plants, Dong Thanh and Hiep Phuoc 1, will produce energy from waste.

The city's Green Energy programme has been deployed for a year, but it hasn't reached significant results as policies related to the industry have not been adjusted.

The programme has installed four solar traffic lights and 5,361 solar-heat water jugs. Also, 57 buses and 359 taxis have been using Liquified Petroleum Gas instead of petrol.

According to the programme, by 2015, the city aims to increase the capacity of renewable energy up to 1 per cent of total consumption, or 48 MW.

Another goal of the programme is energy savings. This year, the city aims to save 2 per cent of total capacity or 400 million kWh.

By Minh Chau