This document discusses green growth strategies and renewable energy development in Vietnam. It provides the following key points:
1. Green Growth is a key part of Vietnam's sustainable development strategy through 2020 to promote efficient and sustainable economic growth.
2. The government has established support mechanisms and action plans to strengthen the framework for Green Growth, but high costs remain a barrier.
3. Recommendations are provided to further promote renewable energy through policies like tax incentives for solar energy, allowing decentralized energy supply, setting feasible feed-in tariffs, and providing clear power purchase agreements.
4. Energy efficiency, sustainable buildings, and public-private partnerships are also discussed as important areas for green growth that could provide environmental and
Policy Paper (advanced draft) with Recommendations to Government on Renewable...Dr. Joshua Zake
An advanced draft of a policy brief with key issues and recommendations for consideration by the Ministry of Energy and Mineral Development during the process of review of the Renewable Energy Policy for Uganda. The paper was presented during the Regional Policy Dialogue on Sustainable and Renewable Energy- Mid-Albertine Graben Districts held at MIIKA Eco Resort Hotel, Hoima, 20th -21st November 2017. The dialogue was organized by Kibaale District Civil Society Organizations Network (KCSON) in collaboration with WWF-UCO and financial support from NORAD. It was attended by key stakeholders from the Northern-Albertine Graben, the Mid-Albertine Graben and the Southern-Albertine Graben regions.
Helen Hoka Osiolo, The Kenya Institute for Public Policy Research and Analysis
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Edwin Nateminya, Integral Advisory
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Policy Paper (advanced draft) with Recommendations to Government on Renewable...Dr. Joshua Zake
An advanced draft of a policy brief with key issues and recommendations for consideration by the Ministry of Energy and Mineral Development during the process of review of the Renewable Energy Policy for Uganda. The paper was presented during the Regional Policy Dialogue on Sustainable and Renewable Energy- Mid-Albertine Graben Districts held at MIIKA Eco Resort Hotel, Hoima, 20th -21st November 2017. The dialogue was organized by Kibaale District Civil Society Organizations Network (KCSON) in collaboration with WWF-UCO and financial support from NORAD. It was attended by key stakeholders from the Northern-Albertine Graben, the Mid-Albertine Graben and the Southern-Albertine Graben regions.
Helen Hoka Osiolo, The Kenya Institute for Public Policy Research and Analysis
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Edwin Nateminya, Integral Advisory
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Guy Doyle, Mott MacDonald
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Lucy Stevens, Practical Action
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Simon Bawakyillenuo, Institute of Statistical, Social and Economic Research
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Barry Rawn, Brunel University
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Bhutan - Utility Scale Solar Power AssessmentVikas Lakhani
Preliminary Assessment of Utility Scale Solar Power in Bhutan, including screening of potential regions for economically and technically viable Solar Projects
(see updated version of this presentation:
https://www.slideshare.net/sustenergy/energy-efficiency-funds-in-europe-updated)
The Energy Efficiency First Principle is a key pillar of the European Green Deal. A prerequisite for its widespread application is to secure financing for energy efficiency investments.
This presentation discusses the contribution of Energy Efficiency Funds to the financing of energy efficiency in Europe. The analysis is based on the MURE database on energy efficiency policies. As an example, the German Energy Efficiency Fund is described in more detail.
This is the 17th webinar in the Odyssee-Mure on Energy Efficiency Academy.
Recordings are available on: https://youtu.be/KIewOQCgQWQ
Auctions for energy efficiency and the experience of renewablesLeonardo ENERGY
Auctions are an emerging market-based policy instrument to promote energy efficiency that has started to gain traction in the EU and worldwide. This presentation provides an overview and comparison of several energy efficiency auctions and derives conclusions on the effects of design elements based on auction theory and on experiences of renewable energy auctions. We include examples from energy efficiency auctions in Brazil, Canada, Germany, Portugal, Switzerland, Taiwan, UK, and US.
A recording of this presentation can be viewed at:
https://youtu.be/aC0h4cXI9Ug
Guy Doyle, Mott MacDonald
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Lucy Stevens, Practical Action
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Simon Bawakyillenuo, Institute of Statistical, Social and Economic Research
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Barry Rawn, Brunel University
Presentation given at “Unlocking Investment in Africa’s Renewables: What are the Binding Constraints?” event, organised by the Institute of Development Studies and held on 19 January 2017 at the Wellcome Collection, London. For more information, please visit http://www.ids.ac.uk/events/unlocking-investment-in-africa-s-renewables-what-are-the-binding-constraints.
Bhutan - Utility Scale Solar Power AssessmentVikas Lakhani
Preliminary Assessment of Utility Scale Solar Power in Bhutan, including screening of potential regions for economically and technically viable Solar Projects
(see updated version of this presentation:
https://www.slideshare.net/sustenergy/energy-efficiency-funds-in-europe-updated)
The Energy Efficiency First Principle is a key pillar of the European Green Deal. A prerequisite for its widespread application is to secure financing for energy efficiency investments.
This presentation discusses the contribution of Energy Efficiency Funds to the financing of energy efficiency in Europe. The analysis is based on the MURE database on energy efficiency policies. As an example, the German Energy Efficiency Fund is described in more detail.
This is the 17th webinar in the Odyssee-Mure on Energy Efficiency Academy.
Recordings are available on: https://youtu.be/KIewOQCgQWQ
Auctions for energy efficiency and the experience of renewablesLeonardo ENERGY
Auctions are an emerging market-based policy instrument to promote energy efficiency that has started to gain traction in the EU and worldwide. This presentation provides an overview and comparison of several energy efficiency auctions and derives conclusions on the effects of design elements based on auction theory and on experiences of renewable energy auctions. We include examples from energy efficiency auctions in Brazil, Canada, Germany, Portugal, Switzerland, Taiwan, UK, and US.
A recording of this presentation can be viewed at:
https://youtu.be/aC0h4cXI9Ug
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...Dr. Oliver Massmann
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AND THE CPTPP CONTRIBUTE TO BANKABILITY OF ENERGY PROJECTS – WHAT YOU MUST KNOW:
Vietnam - Wind Power - Moving towards completion - With the newly-proposed w...Dr. Oliver Massmann
Vietnam - Wind Power - Moving towards completion - With the newly-proposed wind FiT in dispute, the government should extend support to developers to ensure project realization.
The renewable energy sector offers enormous potential in terms of growth perspectives, jobs and domestic value creation, yet policies and legal frameworks, financial risk instruments and are still lagging behind. The MENA region offers high potential for Solar Energy that could supply up to 45% of the world’s clean energy with MENA solar investments expected to reach one USD trillion over the next decade. This presentation highlights market driven approaches towards investments frameworks in clean energy.
FIN COMMUNITY, IEA RETD workshop in London, 26th August 2015IEA_RETD
IEA-RETD Report: Cost and financing aspects of community renewable energy projects (FIN-COMMUNITY)
Gregory Vaughan-Morris, Ricardo-AEA
The key barriers faced by community energy projects are generally well understood, however, there is much less information available about the actual cost and financing implications of these projects. The FIN-COMMUNITY project seeks to identify, document and assess the cost and financial impacts faced by community-owned renewable energy projects compared to commercial renewable energy projects.
Implementing Net Metering in the Developing WorldRuchir Punjabi
Distributed Energy (www.de.energy) is a platform to match investors with renewable energy projects. We are always looking for ways to promote renewable energy growth in developing countries. This Powerpoint was prepared as a case study to promote the implementation of net metering in a particular country and examines its feasibility as an enabling policy and to what extent it is designed to foster private investment in renewable energy and broaden the nation’s energy mix. The case study examines and provides evidence to support the implementation of net metering and puts forward a convincing case from an economic, social and environmental standpoint. Country-specific references further indicate how net metering has helped respective countries achieve their energy targets and facilitated a transition towards clean energy.
A roadmap for energy efficiency financing in the Philippines, Yoshiko de VillaOECD Environment
2nd OECD-DOE Clean Energy Finance and Investment Consultation Workshop: Unlocking finance and investment for clean energy in the Philippines, 24-25 November 2022, Bohol, Philippines
Vietnam – Infrastructure and Waste Treatment Sector – Current Issues and Solu...Dr. Oliver Massmann
Vietnam – Infrastructure and Waste Treatment Sector – Current Issues and Solutions for Investment and Outlook on the Major Trade Deals CPTPP, EUVNFTA and the EU Vietnam Investment Protection Agreement (IPA)
VIETNAM — Anwalt in Vietnam Dr. Oliver Massmann Corporate Sustainability Due ...Dr. Oliver Massmann
VIETNAM — Anwalt in Vietnam Dr. Oliver Massmann Corporate Sustainability Due Diligence Directive (CSDDD oder das EU-Lieferkettengesetz): Umfassende Analyse und Ausblick auf die Auswirkungen auf Unternehmen in Vietnam
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...Dr. Oliver Massmann
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chain Law): A Comprehensive Analysis and Review of its Implications on Vietnam-based Companies
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Legal Alert - Vietnam - First draft Decree on mechanisms and policies to encourage the development of rooftop solar power systems for self-consumption purpose
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...Dr. Oliver Massmann
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chain Law): A Comprehensive Analysis and Review of its Implications on Vietnam-based Companies
Anwalt in Vietnam Dr. Oliver Massmann Corporate Sustainability Due Diligence ...Dr. Oliver Massmann
Anwalt in Vietnam Dr. Oliver Massmann Corporate Sustainability Due Diligence Directive (CSDDD oder das EU-Lieferkettengesetz): Umfassende Analyse und Ausblick auf die Auswirkungen auf Unternehmen in Vietnam
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...Dr. Oliver Massmann
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ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
1. Green Growth
By : Oliver Massmann
Relevant Ministries: Ministry of Industry and Trade (MOIT), Ministry of Planning and
Investment (MPI), Ministry of Finance (MOF), Ministry of Natural Resources and Environment
(MONRE)
Overview
Green Growth is a key pillar of Vietnam’s sustainable development strategy for 2011 – 2020 and
aims to ensure efficient and sustainable economic growth.
In 2014 we have witnessed further strengthening of the framework for Green Growth. On central
government level, support mechanisms and action plans have been promulgated and roles and
activities of government agencies have been defined.
As active participant in the development of the Green Growth Strategy, we acknowledge the
cost to implement this strategy are huge. The Government’s Green Growth Action Plan alone
requires up to 30 billion USD until 2050[1]. With the proper incentives and regulatory
framework, European investors can finance and build projects that use reliable European
technologies and expertise, including renewable energy, waste and water management and in the
construction sector.
However, at present European investors observe barriers when implementing projects. A key
barrier is the lack of guidelines for investors on obtaining incentives specified in the promotional
policies of the government. For example, how specific tax incentives or feed-in-tariffs can be
applied for and obtained. In many cases the government is already working on detailed guidance.
For those cases, we recommend to provide more updates about the progress or timeline for
publication of those documents.
Development of Renewable Energy
Relevant Ministries: Ministry of Industry and Trade (MOIT), Ministry of Planning and
Investment (MPI), Ministry of Finance (MOF)
Issue description
In 2014 we have seen the approval[2] of support mechanisms for waste-to-energy and biomass
power. Both documents contain an encouraging set of measures to promote investment in power
generation from these resources. We are also pleased to learn that the Ministry of Industry and
Trade (MOIT) is reviewing the feed-in tariff for wind power and expects to issue the new feed-in
tariff this year[3].
Additional legislation passed this year, including a steady progress towards a competitive power
market[4], further strengthens the framework for development of renewable energy. Good
2. examples of public-private cooperation has also gained more traction, such as the solar water
heater promotion program that is implemented by Electricity of Vietnam (EVN) in cooperation
with private manufacturers of the same[5].
Potential gains/concerns for Vietnam
Vietnam is in the position of having excellent potential for development of renewable energy
generation, but at the same time one of the lowest power prices in the region[6].
Country Power price
(U S cents/kWh)
Year
Australia 22 - 46.56 2013
China 7.5 -10.7 2013
Viet Nam 7.0 2013
Germany 31.41 2012
India 8 .0 - 12.0 2012
Indonesia 8.75 2012
Japan 20 - 24 2012
Malaysia 7.09 - 14.76 2012
Philippines 30.46 2012
Table 1 – comparison of power prices of selected countries (UNDP, 2014).
We acknowledge that the retail power price has been adjusted upwards in recent years. Within
this context, we can make specific recommendations that will allow comprehensive growth of
application of renewable energy in Vietnam, that do not always require raising the price of
electricity to consumers.
Specific recommendations for the development of Renewable Energy in Vietnam
1. Implementing solar based energy solution, such as solar water heaters and solar panels
allows commercial building owners and industrial users to save more than 60%[7]. However, the
high investment cost have so far held back substantial adoption of these technologies.
A robust support mechanism, in particular tax incentives during purchase or operation of solar
energy solutions is expected to greatly benefit the sector. One suggested tax incentive is to allow
the full cost of solar power and thermal installations to be claimed against taxable profits in the
year of installation of the power equipment.
Capital investment costs are currently claimed against taxes by way of depreciation over the
lifetime of the asset, on a schedule determined by the government depending on the asset type,
typically 20 years for solar power equipment. Accelerating the tax benefit to the first year of
operation would provide corporate power users with an incentive to switch to own generation of
power, reducing the pressure on the grid system and helping balance energy demand against
available supply.
This would also further increase the attractiveness of Vietnam to manufacturing and service
industries and remove one of the significant risks identified by foreign investors, being the
reliability of future energy supply and the potential for significant increases in unit power costs
3. from the grid supply. This could be further extended to other clean tech and renewable energy
investments.
2. Allowing and regulating decentralized energy supply, such as the ability of energy
producers to sell directly to off-takers[8] or concepts such as Energy Service Companies
(ESCOs) are additional measures that can support development of renewable energy to locations
where it is most needed. ESCO models may also help to avoid environmental impacts, e.g.
locally available biomass resources for energy generation. Regulation to protect ESCOs,
including the risk of non-payment by off-taker and ownership of ESCO’s equipment installed in
the facilities of the end-user can help to attract more investment in these models.
3. A Feasible Wind Power Feed-In-Tariff
4. Having the highest potential for wind power in the region, Vietnam has received much
attention from international investors and many projects have been registered. However, project
implementation is hampered by the current feed-in tariff of 7.8 USD cents/kWh. As a result,
most wind power developers fail to secure financing, because the current tariff is not bankable.
In our view, a feed-in tariff of at least 10.4 US cents/kWh is required to reach the target of 1000
MW of wind power by 2020 set forth in Master Plan VII[9].
5. Clear and fair Standard Power Purchase Agreements
Project developers need more guidance to apply the incentives specified in the wind, biomass
and waste-to-energy support mechanisms to their projects. In particular, project developers are
unsure about the process of securing feed-in-tariffs and off-take agreements, which are essential
for the feasibility and funding of the projects. We recommend that the Ministry of Industry and
Trade promptly issues clear and fair standard power purchase agreements for biomass and
waste-to-energy projects stipulated in Decisions No. 31 and No. 24[10], so that currently
pending projects can proceed.
6. Project Finance for Green Field Renewable Energy Projects
It is currently challenging for developers to finance renewable energy projects. Financing is
often provided by a small number of lenders that have limited resources and apply rigorous
applicability criteria. The cost of such finance and the perceived risk in the off-take agreement
with EVN is a significant barrier to the development of new investment in the power generation
sector, notably biomass, waste-to-energy and wind projects.
The government can play a critical role by facilitating or creating project finance specialist
lenders in Vietnam that have the following capabilities:
- Mandated to only finance green-field renewable energy projects that generate power by
utilizing wind, biomass, biogas, waste to energy and geothermal resources.
- Able to lend in VND or United States Dollars.
- Interest Rates that are below market interest rates for similar high risk finance in
developing countries.
4. - Partial Risk Sharing with a major multinational donor, which would allow the lending
institution to accept the risk level in project finance where they may have little practical
experience (first loss to the donor of 20% of risk for example).
- Loan Repayment is guaranteed by the Ministry of Finance should EVN fail to meet its
obligations under the power purchase agreement.
7. Pre-Packaged Renewable Energy Auctions – Wind Power
Considering the historic growth in operating wind farms in it unlikely that the target of 1000
MW of wind power by 2020 will be met, despite the efforts of MOIT, GIZ, Provincial
Committees, EVN and other agencies. Our recommendation is to develop pre-packaged wind
sites, which could be offered to qualified bidders. The same practice has yielded great results in
other Asian countries and sparked the development of geothermal projects in Indonesia.
A pre-packaged wind project consists of the following prerequisites:
- Business Investment License and appropriate land lease or ownership documentation for
the project area
- Wind Data for a minimum of 1 year duration and on the project site at a professional
international quality standard
- Initial Assessment of the land affected with an estimate of land clearance and
compensation costs and timescale to completion from the PPC
- Grid Impact Study in the regional and project specific level
- Provisions for transmission line to the appropriate grid junction point (e.g. transmission
line completed or preliminary design completed).
To ensure efficiency of construction and operation are maximized and provide the best value
power generation to EVN from the available renewable resources, qualified bidders should meet
a minimum level of financial, technical and management capabilities. In addition, bids could be
based on the Power Purchase Agreement Price and lowest costs bids from pre-qualified bidders
would be given strong preference.
Energy Efficiency
Issue description:
Energy Efficiency has a vital role to play in the context of energy security and environmental
sustainability. Lighting accounts for 19% of all electricity consumed globally and this ratio is
even higher in Vietnam, where up to 25% of electricity used for lighting. It is estimated that 80%
of buildings use out-of-date lighting technology. In addition, almost current public lighting
systems in Vietnam are conventional and inefficient. Energy-efficiency with new innovative and
sustainable lighting solutions can significantly reduce environmental impact and contribute to
energy savings in cost.
5. However, there is a slow adoption of new innovative technology due to a lack of energy
management policies and preferential tariffs, inefficient public investment, etc. The current issue
of new lighting technology, LED importation has difficulty in high and improper taxation, which
prevents consumers from using these sustainable lighting solutions.
Institute of Strategy and Policy on Natural Resources and Environment under the Ministry of
Natural Resources and Environment in collaboration with Vietnam Journalists Association co-
organized a writing contest on "phase-out of incandescent light bulbs". Currently in Vietnam,
incandescent light bulbs are common used in households, especially in rural areas. There have
been a number of recommendations for governments to encourage consumers to choose more
energy-efficient products with new technology such as LED.
Potential gains/concerns for Vietnam:
Energy efficient lighting is an opportunity for Vietnam and will equally benefit its population as
well as its future competitiveness. Driving the switch to sustainable lighting solutions such as
LED lighting technology can result in significant savings in cost and can bring new life to many
local identities.
LED technology, which is very different from traditional hot cathode lamps, can bring Vietnam
many benefits in terms of its eco-friendliness: Semi-conductor based-source of light, Energy
Saving, and Green-without mercury and lead.
In 2013, Vietnam consumed 127,84 billion KWh (EVN). Lighting accounts for 25% in the
electricity consumption in Vietnam (UNDP) as 31.96 billion KWh. LED could help to save up to
50% of the energy consumption (15.98 billion KWh). Following the 2008 emission factor used
to calculate CO2 per kWh electricity consumption which is as 0,5764 tCO2/MWh, it could be
saved 9,210,872 metric tons Cos emission.
The current LED importation has difficulty in taxation with tax rate 25% (form E with HS code:
8539.31.90). In consultation of other countries like Thailand, the Philippines & Indonesia, LED
lamps have been imported with tax rate 0% (form E with HS code: 8543. 70.90). This will
prevent Vietnamese consumers from approaching this sustainable lighting solutions and from
accelerating the country’s green growth agenda.
Recommendations/guide for implementation:
With the concern about the prevalence of low quality electrical products that do not meet safety
standards, we recommend and encourage the government of Vietnam to establish more stringent
import controls and market surveillance mechanisms. Relevant agencies and institutions can
speed up the development of lighting standards that recognize the advantages of LED
technology and move fast on this issue.
The national and local governments should become early adopters of LED technology through
procurement leadership, as part of their energy efficiency, industry development or urban
refurbishment programs. Taking such a role model function by introducing a customer-facing
labeling framework to encourage consumers to choose more energy-efficient products also
6. makes sense from a budget point of view as the switch to LED lighting has provided up to 50%
cost savings.
We ask for authorities’ consideration and acceptance of suggested revised tariff classification
and tax rate for LED importation, to further accelerate adoption of sustainable lighting solutions.
Sustainable buildings
Issue and potential gains/concerns for Vietnam
Buildings are and will be the largest consumers of electricity. The rapid development of the
middle class and its associated lifestyle which includes air conditioning will account for more
than 50% of the energy consumption growth in every main city of Vietnam. Acting on building
design can reduce this growth, not only for tomorrow but also for the next 25 years of a
building’s lifetime.
The recent pickup of the real estate market is a chance to take. It offers a tangible opportunity to
act on the design of future buildings, to limit the growth of energy demand. The Energy
Efficiency Building Code (EEBC) 2013 of Ministry of Construction (MOC) is a positive move
but its application is challenged by the lack of enforcement.
Recommendations
Our recommendation is based on four actions:
• Educate building designers to sustainable building design
• Integrate sustainability work at concept stage of building design
• Implement reward/punish electricity price policy
• Create showcases
Education:
Europe has a worldwide leading position in the field of sustainable buildings and human
comfort. This know-how can be shared with Vietnamese counterparts, adapted to the
Vietnamese market, climate and spread to the community. It includes building related faculties
in the field of architecture, urbanism, mechanical and civil engineering such as: Institute of
Tropical Architecture (ITA) from Hanoi Architecture University, Vietnam National Institute of
Architecture (VIAR), Vietnam Institute for Urban and Rural Planning (VIUP), Vietnam
Association of Civil Engineering Environment (VACEE), etc.
Integrated building design:
The building design methodology is outdated in Vietnam. A sustainable building cannot be
designed after a building has been approved by the authorities or by the client. Architects,
engineers and the client should work in team from the first day in order to optimize the design at
concept stage. The ideal and most economical results are not obtained by efficient machines, but
7. by buildings that do not need those. Buildings that produce little spoiled water will need little
water treatment afterward. Buildings that do not need much energy will not need much outside
energy, whether it is renewable or not. Such integrated building optimization has a double
positive impact on green growth.
Supportive electricity price policy:
EVN should impose to new commercial and residential building owners a tariff scheme that
reward low energy consumption buildings with lower prices and impose higher prices to high
consumption buildings. The policy shall be established on benchmarks based on climatic
environment, type of building usage, quality grade and occupation. It will create a bottom up and
large scale movement that will naturally put more interests to sustainable building design.
Showcase:
Nothing better than to show. The priority for EEBCs should be put on the construction in every
main city of a (near to ) zero energy building that does not consume much electricity, does not
cost more than average and offers the same of better comfort level.
Public-Private Partnerships
Relevant Ministries: Ministry of Industry and Trade (MOIT), Ministry of Planning and
Investment (MPI), Ministry of Finance (MOF), Ministry of Justice (MOJ), Ministry of
Construction (MOC), State Bank of Vietnam (SBV)
Issue and potential gains for Vietnam:
Vietnam’s public budget alone cannot meet its need for infrastructure development. Foreign
private investors are interested in contributing to the development of Vietnam’s infrastructure,
including in renewable energy and waste and water treatment sectors. Vietnam’s Government is
working to improve the legal framework for public-private partnerships (PPP). A new PPP
Decree is expected to be completed by the end of 2014, which will replace existing BOT (Build-
Operate-Transfer etc.) regulations and become the key legislation for all such projects.
Under the latest draft decree, PPP projects can enjoy investment guarantees and incentives with
regard to taxation and land use fees. Investors and lenders will welcome guarantees and
incentives, as they can reduce risks and lower the project’s costs. Compared to current
regulations, the proportion of the state's contribution in PPP projects is no longer fixed. Such
flexibility can help projects that would have been stalled due to State budget constraints.
Public-private partnerships should provide win-win conditions for all partners involved. Many
potential projects in the past have not proceeded to completion as public stakeholders demanded
conditions, which were not feasible for private investors. Private investors are willing to provide
funding and technology and to transfer the infrastructure projects themselves after a period to
recover the initial costs and to gain reasonable profits. The State can gain ownership of
infrastructure at low or no costs to the public budget. In our view, Vietnam has more to gain than
to lose from an attractive environment for foreign investment for PPPs.
8. A few comments and recommendations:
1. More clarity on the selection of PPP projects
The government maintain lists of PPP-eligible projects. Private investors can propose additional
projects to be added the lists. Infrastructure investors often conduct extensive feasibility studies,
before they decide to propose to the government. However, the current draft PPP decree
envisions that investors should first propose the project and then conduct the feasibility study,
while the project would be added to the list and be open for tender from other investors. If
another investor is selected to implement the project, the original proposing investor would lose
out. This will have a chilling effect, even though the decree offers reimbursement for feasibility
study costs. We recommend that especially bilaterally negotiated PPP projects are exempted
from being tendered out after one party has proposed it and conducted adequate feasibility work.
2. More flexibility with regard to contracting parties
The latest draft PPP decree provides that only the State agency and the investor can be
contracting parties. PPP projects generally involve a multitude of private stakeholders joining a
special purpose company (or “Project Enterprise” in the decree). We recommend that at least the
Project Enterprises should also be able to become contracting parties, as is standard international
practice, to reduce the potential risks for individual investors.
3. Unlimited “step-in right” holders
A party who steps into the shoes of a non-performing party can see to have the projects
completed that would otherwise be stalled due to the non-performance of one of the contracting
parties. Under the current draft, only lenders or its appointed competent organizations are
permitted to have step-in rights. PPP projects can last decades, and the risk that contracting
parties may have to withdraw is proportionally high. We recommend that PPP regulations permit
a variety and combination of step-in right holders for the maximum protection of the projects
their completion.
4. More flexibility in choosing a dispute resolution venue
The lasted draft PPP decree requires that dispute between the contracting parties involving the
State to be settled by Vietnamese courts or arbitration in Vietnam. This adds to the foreign
party’s risks, as potential disputes may not be adjudicated impartially, as the State obviously has
“home advantage” in Vietnam. While understanding that Vietnam would like to avoid costly
litigation abroad, we recommend that the parties can agree to a more neutral venue, even outside
of Vietnam.
5. Educating and providing incentives to involved State authorities
Besides the PPP regulations with regard to the projects themselves, in the past, local State
officials often lacked the understanding and motivation to help implement to projects. We
acknowledge that this goal is highly aspirational, but recommend that such State officials are
9. educated and incentivized, so that the public and private stakeholders can actually collaborate as
partners.
In conclusion, private partners will welcome predictability in the implementation of the
regulations. On the other hand, enough flexibility is required to tailor projects according to their
needs. The socio-economic gains for Vietnam could be substantial and invaluable.
Should you have any question, please contact Uomassmann@duanemorris.comU;