Vietnam urged to limit coal-fired power due to rising GHGs

Vietnam urged to limit coal-fired power due to rising GHGs

Limiting coal-fired power sources and creating attractive renewable energy
policies will significantly help Vietnam lure private investment and reduce
greenhouse emissions.

Andrew Staple, director for Southeast Asia under the Economist Corporate
Network (ECN) - the Economist Group's advisory service for organisational
leaders - warned that Vietnam's existing policy to develop more coal-fired
power plants, without incentives for renewable energy development, is making
the country one of the biggest greenhouse (GHG) emitters in the Southeast
Asian region.

"The best ways for Vietnam to limit its emissions and accomplish its
international commitment to reduce its GHGs is to limit the development of
coal-fired power sources and create attractive renewable energy policies for
private investors," Staple said.

According to the Siemens-sponsored ECN report "ASEAN in a climate of change:
spotlight on sustainable energy in Malaysia, Thailand, and Vietnam",
released last week, Vietnam's emissions have been rising at a robust rate
over the last decade.

Between 2006 and 2015, Vietnam's energy-related carbon dioxide (CO2)
emissions have risen by an annual average of 10 per cent, due to rapid
growth in its economy and energy consumption.

Last year, the country emitted 166.3 million tonnes of carbon dioxide, with
total per capita emissions of 1.8 tonnes.

At the UN's Conference of the Parties in Paris last year, Vietnam committed
to reducing its GHG emissions by 8 per cent by 2030. This number could
increase to 25 per cent with international support.

Pham Thai Lai, president and CEO of Siemens Ltd Vietnam, said coal-fired
power plants are now one of the biggest GHG emitters in Vietnam.

Currently, Vietnam has 19 coal-fired power plants. The government has
announced plans to build another 14 plants of this type in the Mekong Delta
by 2030, adding a total capacity of about 18,000 megawatts to the
power-hungry south.

But the coal-fired power plants already built are creating catastrophic
environmental damage. For example, the Chinese-constructed 4,400 megawatt
Duyen Hai Thermal Power Plant has annually discharged four million tonnes of
ash, CO2, and sludge in the southern province of Tra Vinh since it began
operations two years ago.

"Vietnam should gradually stop the construction of coal-fired power plants,
as they could dramatically increase the country's GHGs and cause
environmental disasters," said Franz Gerner, senior energy economist from
the World Bank.

Vietnam's use of renewables, apart from hydropower for electricity and
traditional forms of bioenergy for domestic use, is negligible. Under its
Power Development Plan VII, coal will account for over 50 per cent of power
generation capacity by 2030 (renewables and hydro combined would account for
28 per cent by that year).

Siemens' Lai stressed that now is the time for Vietnam to create incentives
to attract renewable energy investors.

"At Siemens, we believe that the private sector has as much responsibility
as the governments do, if not more, to actively engage in efforts to reduce
GHG emissions and to help lead the transition to a low-carbon,
climate-resilient economy," he said.

Many agree with the logic of his words, even if they don't think the policy
support is there to make the necessary change. Gavin Smith, director of
Dragon Capital's Clean Development Fund and vice chair of Eurocham Vietnam,
said, "While there is a high-level commitment to renewables [in Vietnam],
there has not yet been the change in policy that would facilitate clean
energy investment.

"Furthermore, developments such as better access to the grid are needed, but
the dominance of the system by publicly-owned utilities makes it difficult
to achieve this. All in all, the reduction of risk and removal of barriers
is needed to facilitate greater private investment," he noted.

Adding to the suboptimal investment environment, Clean Energy Pipeline has
reported that Vietnam is now facing strong competition from neighbouring
nations in attracting renewable energy developers, due to lack of
incentives.

Eighty-five per cent of clean energy investment in Southeast Asia between
2010 and 2015 has been directed to Thailand (34 per cent), Indonesia (26 per
cent), and the Philippines (25 per cent). Vietnam and Malaysia have
attracted just 7 per cent each over the same period.

"Unlike Vietnam, Thailand has a good regulatory environment for renewables'
deployment. It also has a better developed investment platform for wind and
solar power than other countries in the region," said the ECN report.

According to the report, 64 per cent of the surveyed respondents said the
promotion of renewables would be the most efficient way of decarbonising
energy systems, while 40 per cent of them expected the private sector to
play a primary role in mitigating climate change.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Ref:
https://www.vietmaz.com/2016/10/vietnam-urged-to-limit-coal-fired-power-due-
to-rising-ghgs/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+
vietmaz+%28VietMaz%29

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com