Vietnam energy prospects 2017 announced

Vietnam energy prospects 2017 announced

A report on Vietnam energy prospects has been announced by the Ministry of
Industry and Trade (MOIT), in collaboration with Danish Ministry of Energy,
Utilities and Climate, providing an overview of Vietnam's opportunities and
challenges faced in developing sustainable energy.

Along with significant annual economic growth rates, Vietnam's demand for
energy also increases sharply.

The announcement of Vietnam Energy Outlook Report 2017 was hosted in Hanoi,
on September 20, by the two ministries and the Embassy of Denmark in
Vietnam.

The report is part of the outstanding collaborative results between the MOIT
and the Danish ministry, within the framework of the lower carbon transition
in energy efficiency sector in Vietnam, which is sponsored by the Danish
Government. It is expected that the report will be implemented every two
years.

It is based on updated macroeconomic growth forecasts, primary energy demand
growth and electricity demand in Vietnam. The optimal energy planning
programme set in the report is based on the Danish Balmorel model, which
helps to establish scenarios for development of the Vietnamese electricity
system, focusing on the potential for the development of renewable energy
sources. This energy planning model has been used effectively in Denmark, as
well as several countries around the world.

Speaking at the ceremony, MOIT Deputy Minister Hoang Quoc Vuong said that
with an average annual economic growth rate of 7.26% in the 2001-2010 period
and 5.91% during 2011-2015, the demand for energy in Vietnam is increasing
rapidly. In particular, the demand for electricity has continuously grown at
a high rate, averaging between 13% per annum for 2001-2010 and approximately
11% per year between 2011 and 2015.

In order to ensure energy security and preserve national energy resources,
the Government of Vietnam has implemented a range of policies towards the
sustainable development of its energy sector, focusing on the sustainable
development of renewable energy and promoting energy savings and efficient
energy use.

Deputy Minister Vuong also stressed that the report is a product of great
significance in Vietnam's direction for energy development in linking it
with economic growth, environmental protection and energy security.

Thomas Egebo, Secretary of State of the Danish Ministry of Energy, Utilities
and Climate, pointed out that sustainable growth, not just growth, remains a
challenge to Vietnam. He also stated that Denmark is willing to share its
experience with Vietnam regarding technologies and products to help the
country achieve goals of energy and sustainable growth.

According to Aisma Vitina, technical advisor from the Danish Energy Agency,
Vietnam needs to implement supportive policies in order to achieve the goals
of renewable energy development to increase the use rate of such energy
sources among primary energy consumption to approximately 31% by 2020 and
32.3% by 2030.

She suggested that Vietnam needs to form a renewable energy market, as well
as a reasonable electricity price policy, and preferential policies to
support the development and use of renewable energy, including preferential
import tax, corporate income tax, land incentives and priorities for
research related to the development and use of renewable energy resources.
In addition, it is important to ensure environmental protection,
specifically, the environmental charge for fossil fuels to build a
sustainable energy development fund.

Based on the proposed power system development scenarios, the report gives
policy recommendations for the development of electricity and low-carbon
emission energy by intensifying the use of renewable energies and promoting
energy efficiency.

It also looks into the opportunities and challenges to Vietnam's sustainable
energy development and energy security with reasonable cost and in
accordance with the development conditions of the country.

On the same day, Deputy Minister Hoang Quoc Vuong and Danish Secretary of
State Thomas Egebo signed the minutes on approval of the Vietnam-Denmark
Energy Partnership Programme for 2017-2020.

Earlier, on June 18, 2015, a Memorandum of Understanding between the two
ministries on cooperation on energy saving in renewable industries and
renewable energy was signed. After two years of collaboration, the two
ministries have achieved practical results in supporting the implementation
of energy saving and renewable energy activities in Vietnam.

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Link to Original Article:
http://english.vietnamnet.vn/fms/environment/186913/vietnam-energy-prospects
-2017-announced.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com




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