DOCSLIB.ORG

Assessing the Technical, Economic, and Environmental

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Assessing the Technical, Economic, and Environmental ASSESSING THE TECHNICAL, ECONOMIC, AND ENVIRONMENTAL FEASIBILITY OF FLOATING SOLAR POWER GENERATION ON WATER RESERVOIRS IN VIETNAM By Phuong Anh Bui A Thesis Presented to The Faculty of Humboldt State University In Partial Fulfillment of the Requirements for the Degree Master of Science in Environmental Systems: Energy, Technology and Policy Committee Membership Dr. Peter Alstone, Committee Chair Dr. Arne Jacobson, Committee Member Dr. Charles Chamberlin, Committee Member Dr. Margaret Lang, Program Graduate Coordinator December 2019 ABSTRACT ASSESSING THE TECHNICAL, ECONOMIC, AND ENVIRONMENTAL FEASIBILITY OF FLOATING SOLAR POWER GENERATION ON WATER RESERVOIRS IN VIETNAM Phuong Anh Bui Vietnam has been developing an energy path involving increased renewable energy use. With over 7,000 existing water reservoirs, Vietnam has great potential to install floating solar photovoltaic (FPV) plants that will protect productive lands, reduce greenhouse gas emissions, and reduce water evaporation rates. This study investigates the technical, economic, and environmental feasibility of installing FPV in three reservoirs in Vietnam: Hoa Binh, Tri An, and Dau Tieng. The capacities of the FPV plants assessed for three reservoirs range from 96 MW to 4,300 MW. The yearly solar generation from the three reservoirs ranges from 900 GWh to 13,700 GWh, and investment costs range from 690 to 10.3 billion USD, dependent on the reservoir size and FPV area coverage of 1%, 5%, 10%, and 15%. The payback period of the FPV systems at the three reservoirs could range from 6 to 14 years. The estimated Levelized Cost of Energy (LCOE) for Hoa Binh reservoir’s FPV system ranges from $50 to $95/MWh, while the other two reservoirs’ LCOEs range from $40 to $70/MWh. These systems could supply 4% of Vietnam’s predicted 2025 energy demand and would avoid approximately 11 million tons of CO2e emissions per year. The shading ii provided by the FPV systems can save up to 136 million m3 of water annually. If the water savings are coupled with hydropower on Hoa Binh and Tri An Reservoir, the whole facility could generate an additional 12 GWh per year. Future study should include more in-depth research into factors such as the impact of substation upgrade costs, variable interest rates, and economies of scale on project economics; environmental impacts such as changes in hydropower operation on aquatic life; and human social and economic displacement due to FPV infrastructure land and water occupation. iii ACKNOWLEDGEMENTS I would like to acknowledge and provide my sincere gratitude to my Committee, including Dr. Peter Alstone, Dr. Arne Jacobson, and Dr. Charles Chamberlin for their support and guidance during my study and thesis research. I would like to acknowledge the resources and software that were used in this project such as Asian Development Bank, International Renewable Energy Agency, NASA GRanD database, Advanced Land Observing Satellite 2, Esri and Google Earth Pro. I would like to thank Mr. Michael Gabisch from Asian Development Bank who gave me more insights into the Da Mi project financing and inviting me on the field trip, and Mr. Tinh Nguyen, Director of Vietnam Directorate of Water Resource for his support in this project. I appreciate the help and unfailing enthusiasm of Mr. Ingmar Stelter from GIZ Vietnam, who I met two years ago in a solar business conference in Thailand, who since then has always answered my email, making me believe in the fact that “Just reach out to people. Don’t be scared”. This quote I sincerely adapt from Mr. Michael Furniss, who has helped keep me sane throughout the graduate school life thanks to his knowledge and interest in doing great work to protect the Earth. I also want to thank Professor Bill Trush for his challenging questions and critical thinking skills throughout our research on the impact of dams and fish ladder mitigation in the Mekong Basin. Finally, I would like to express my profound gratitude towards my family, including my parents, my grandparents, my brother, and my fellow graduate students – iv Chih-Wei Hsu who have been providing me the greatest push for me to continue my study and believing in my ability. This accomplishment would not have been possible without their love and support. v TABLE OF CONTENTS ABSTRACT ........................................................................................................................ ii ACKNOWLEDGEMENTS ............................................................................................... iv TABLE OF CONTENTS ................................................................................................... vi TABLES OF FIGURES ..................................................................................................... ix TABLES OF TABLES ...................................................................................................... xi LIST OF APPENDICES .................................................................................................. xiv INTRODUCTION .............................................................................................................. 1 LITERATURE REVIEW ................................................................................................... 4 Vietnam Energy Outlook ................................................................................................ 4 Vietnam Electricity Sector .............................................................................................. 6 Overall structure .......................................................................................................... 6 Wholesale Electricity Market...................................................................................... 7 Retail Electricity Market ........................................................................................... 11 Transmission Networks ............................................................................................ 14 Vietnam Renewable Energy development ................................................................ 14 Floating Photovoltaic Solar Generation ........................................................................ 20 Technology ............................................................................................................... 20 Economics of FPV .................................................................................................... 27 Environmental ........................................................................................................... 29 Additional benefits and disadvantages ...................................................................... 31 Literature Gaps .......................................................................................................... 32 vi Vietnam Floating Solar Generation Potential ........................................................... 34 Study Reservoirs ........................................................................................................... 35 METHODS ....................................................................................................................... 39 Technical feasibility ...................................................................................................... 39 Economic feasibility ...................................................................................................... 45 Environmental feasibility .............................................................................................. 49 RESULTS ......................................................................................................................... 54 Technical feasibility ...................................................................................................... 54 Economic feasibility ...................................................................................................... 61 Environmental feasibility .............................................................................................. 68 Sensitivity analysis ........................................................................................................ 73 Payback period and LCOE assumption, and sensititivity analysis ........................... 73 Environmental analysis assumption and sensitivity analysis .................................... 82 DISCUSSION ................................................................................................................... 84 CONCLUSIONS AND RECOMMENDATIONS ........................................................... 86 REFERENCES ................................................................................................................. 88 APPENDIX A ................................................................................................................. 106 APPENDIX B ................................................................................................................. 109 APPENDIX C ................................................................................................................. 113 APPENDIX D. ................................................................................................................ 119 APPENDIX E ................................................................................................................. 122 APPENDIX F.................................................................................................................. 127 APPENDIX G. ...............................................................................................................
Load more

Recommended publications
  • Made in Vietnam Energy Plan (MVEP 1.0)
    ENERGY PLAN 2.0 | 1 A business case for the primary use of MADE IN Vietnam’s domestic resources to stimulate investment in clean, secure, and affordable VIETNAM energy generation. ENERGY December 1, 2019 Vietnam Business Forum PLAN 2.0 Power and Energy Working Group 2 | MADE IN VIETNAM CONTENTS Acknowledgements 4 Executive Summary 5 1 MVEP 1.0’s focus on renewables as an alternative to coal remains valid 12 1.1 Coal thermal poses financial, security, environmental and public health risks 13 1.1.1 Under the forecast proposed by PDP VII (revision), Vietnam would require over 100 million tons 13 of imported coal by 2030—with important consequences. 1.1.2 Domestic sources of energy are under-utilized 14 1.1.3 External, social and environmental risks were not fully considered 14 1.1.4 A reduction in the long-term competitiveness of Vietnam’s energy sector 14 1.2 MVEP 2.0 makes an even stronger case for renewables, clean technologies, natural gas, and energy 14 efficiency 2 The trend outside Asia has been towards increased renewables, a shift from coal to natural gas, 15 and investment in new battery storage technologies and energy efficiency 2.1 While Asia invests in coal, the rest of the world shifts to renewables, natural gas, and battery storage 15 2.1.1 Coal Demand 15 2.1.2 Power plant construction 15 2.1.3 Price volatility 17 2.1.4 Coal Financing 18 2.2 Globally, wind and solar are becoming the lower cost alternative to coal and battery storage is 19 becoming a competitive alternative to gas peaker plants 2.2.1 Wind and solar power 19
    [Show full text]
  • Making Carbon Markets Work for the Poor in Vietnam
    Making Carbon Markets Work for the Poor in Vietnam FINAL REPORT June, 2009 Institute of Energy Vietnam Produced by Practical Action Consulting in association with Carbon Aided, Forum for the Future, The Institute of Energy in Vietnam and the Eco Consulting Group, June 2009. Practical Action Consulting The Schumacher Centre for Technology and Development, Bourton Hall, Rugby CV23 5YH UK Tel: +44 (0) 1926 634 403 Fax: +44 (0) 1926 634 405 [email protected] www.practicalactionconsulting.org List of Acronyms A/R Afforestation/Reforestation CCBS Climate, Community and Biodiversity Standards CER Carbon Emissions Reductions CDM Clean Development Mechanism CDM EB CDM Executive Board DEFRA Department for Food and Rural Affairs DFID Department for International Development DOE Designated Operational Entity DNA Designated National Authority ERPA Emission Reductions Purchase Agreement EU European Union GS Gold Standard ICROA International Carbon Reduction and Offset Alliance IIED International Institute for Environment and Development IoE Institute of Energy JI Joint Implementation KP Kyoto Protocol LMDG Like Minded Donor Group LOA Letters of Approval MOIT Ministry of Industry and Trade MONRE Ministry of Natural Resource and Environment NGO Non Governmental Organisation NTP RCC National Target Programme to Respond to Climate Change ODI Overseas Development Institute PAC Practical Action Consulting PDD Project Design Document REDD Reducing Emissions from Deforestation and Forest Degradation UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change VCM Voluntary Carbon Market VCS Voluntary Carbon Standard VER Voluntary Emissions Reductions VER+ Voluntary Emissions Reductions Plus 3 Executive Summary There are two carbon markets that can potentially benefit the poor in Vietnam, the UN’s Clean Development Mechanism (CDM) and the voluntary carbon market (VCM).
    [Show full text]
  • Investment Incentives for Renewable Energy in Southeast Asia: Case Study of Viet Nam
    Investment Incentives for Renewable Energy in Southeast Asia: Case study of Viet Nam Nam, Pham Khanh; Quan, Nguyen Anh; and Binh, Quan Minh Quoc December 2012 www.iisd.org/tkn © 2013 The International Institute for Sustainable Development © 2013 The International Institute for Sustainable Development Published by the International Institute for Sustainable Development. About IISD The International Institute for Sustainable Development (IISD) contributes to sustainable development by advancing policy recommendations on international trade and investment, economic policy, climate change and energy, and management of natural and social capital, as well as the enabling role of communication technologies in these areas. We report on international negotiations and disseminate knowledge gained through collaborative projects, resulting in more rigorous research, capacity building in developing countries, better networks spanning the North and the South, and better global connections among researchers, practitioners, citizens and policy-makers. IISD’s vision is better living for all—sustainably; its mission is to champion innovation, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and has 501(c)(3) status in the United States. IISD receives core operating support from the Government of Canada, provided through the International Development Research Centre (IDRC), from the Danish Ministry of Foreign Affairs and from the Province of Manitoba. The Institute receives project funding from numerous governments inside and outside Canada, United Nations agencies, foundations and the private sector. Head Office 161 Portage Avenue East, 6th Floor, Winnipeg, Manitoba, Canada R3B 0Y4 Tel: +1 (204) 958-7700 | Fax: +1 (204) 958-7710 | Web site: www.iisd.org About TKN The Trade Knowledge Network (TKN) is a global collaboration of research institutions across Africa, Asia, Europe and the Americas working on issues of trade, investment and sustainable development.
    [Show full text]
  • Renewable Energy from Biomass Surplus Resource
    www.nature.com/scientificreports OPEN Renewable energy from biomass surplus resource: potential of power generation from rice straw in Vietnam Tran Thien Cuong1, Hoang Anh Le 1*, Nguyen Manh Khai1, Pham Anh Hung1, Le Thuy Linh1, Nguyen Viet Thanh1, Ngo Dang Tri2 & Nguyen Xuan Huan1 Biomass, one of the renewable resources, is expected to play an important role in the world’s energy future. In Asia, rice straw is an abundant agricultural surplus because rice is one of the leading staple food crops in the region. Often, rice straw is burned directly in the feld via uncontrolled combustion methods that emit large amounts of short-lived air pollutants, greenhouse gases, and other pollutants. In Vietnam, the energy and environment protection sectors are facing great challenges because of rapid urbanisation and industrialisation. A national strategic choice is to exploit renewable energy, including biomass-derived energy, to achieve energy security and CO2 emission reduction. This study investigates the potential of rice straw as an energy source for power plants at a local scale in Vietnam using data derived from satellite Sentinel-1 images. The results show that Vietnam can produce 2,565 MW from rice straw, for which 24 out of 63 provinces have a potential capacity higher than 30 MW, and the Kien Giang province has the highest capacity (245 MW). The study also analyses limitations and obstacles overcoming which can promote the biomass energy sector in the country. Abbreviations CHA Central Highlands areas of Vietnam ENcoms Energy consumption
    [Show full text]
  • Renewable Energy in Vietnam
    Renewable Energy in Vietnam KoreaLatviaLithuaniaakuBrusselsGuangzhouKabulMuscatPortOfSpainStockholmTripoliBamakoBratislavaHanoiJubaakuBrusselsGuangzhouKabulMuscatPortOfSpainS In spite of Vietnam´s current dependency on fossil fuels and coal, the Vietnamese government actively supports renewable energy, and the sector is thereby becoming increasingly interesting for Dutch companies and organisations. While realising the challenges, business opportunities can be found in biomass, wind and solar energy. With a population of over 90 million people, Vietnam has the Business environment third largest population in Southeast Asia after Indonesia and the Philippines. Since the mid-eighties, the country has transi- The market for renewable energy and energy efciency in tioned from the rigidities of a centrally planned economy into Vietnam is still limited in size, but it is defnitely emerging and its one of Asia’s fastest growing emerging markets. It reached lower growth potential is high, given rising awareness that continued middle income status in 2010 and is a member of WTO and economic and demographic growth ensure a subsequent regional forums, including the Association of Southeast Asian increase in energy demand. The Vietnamese government is Nations (ASEAN). After several years of lower economic growth, committed to the promotion of renewable energy and energy Vietnam’s economy is gaining momentum again and is expected efciency and has taken several measures (including mecha- to grow by 6-7% annually in the upcoming years. Currently, the
    [Show full text]
  • Renewable Energy in Vietnam
    Renewable Energy in Vietnam 2018 Samantha Campbell, Robin Musch and Long Huynh Renewable Energy in Vietnam 2018 3 Contents Introduction 5 Power Sector overview 6 Renewable Energy overview 8 Appendix: Wind PPA and Solar PPA – key differences and bankability concerns 14 Contacts 20 4 Hogan Lovells Renewable Energy in Vietnam 2018 5 Introduction We are pleased to provide you with this memorandum on renewable energy in Vietnam. This sets out a general overview of the power sector in Vietnam and an overview of Vietnam's renewable energy sector and current legal framework, including in particular details of investment initiatives. The Appendix sets out in tabular form our analysis on the potential bankability issues contained in the standard power purchase agreement (the "PPA") issued by the Vietnam Ministry of Industry and Trade ("MOIT") for use on wind and solar power projects. The term "renewable energy" in this Memorandum excludes large- and small-scale hydropower projects. 6 Hogan Lovells Power sector overview Background Vietnam is one of the world's best performing frontier – Level 3 – The establishment of a competitive retail markets with average annual GDP growth of 6.68% in electricity market. Q4 2016 (up from 6.56% in the previous quarter) and an However, to date, EVN remains the unchallenged overall economic growth of 6.21% in 2016. Manufacturing, dominant electricity off-taker and distributor in exports, imports and retail sales all saw significant growth Vietnam. in 2016 and foreign direct investments increased 9% to USD15.8bn.1 The revised Power Development Master Plan EVN owns the vast majority of generation capacity, (PDMP) VII, issued in March 2016 (the "Revised PDMP with State-owned PetroVietnam also owning and VII"),2 shows a requirement for investment in an amount operating significant plants.
    [Show full text]
  • 11899796 01.Pdf
    2 PREFACE In response to a request from the Government of Socialist Republic of Vietnam, the Government of Japan accepted to carry out the Study on National Energy Master Plan of Vietnam. The study was implemented by the Japan International Cooperation Agency (JICA). From December 2006 to September 2008, JICA dispatched to Vietnam six times a study team led by Mr. Kensuke Kanekiyo of the Institute of Energy Economics, Japan (IEEJ). During staying in Vietnam, the team consisting of member from IEEJ and the Tokyo Electric Power Company, conducted related field surveys and held discussions with the officials concerned of the Government of Socialist Republic of Vietnam. While in Japan, the team conducted further studies, the result of which they compiled in this final report. It is our wish that this report will contribute to devise the optimum strategy for the Development of Energy Industry in Socialist Republic of Vietnam and at the same time to enhance the relationship between both countries. I express my sincere appreciation to the officials concerned of the Government of Socialist Republic of Vietnam for their close cooperation in conducting the study. September 2008 Seiichi NAGATSUKA Vice President Japan International Cooperation Agency 3 4 September 2008 Mr. Seichi Nagatsuka Vice President Japan International Cooperation Agency Tokyo, Japan Letter of Transmittal We are pleased to submit to you the Final Report of the Study on National Energy Master Plan of Vietnam. Under the contract with your esteemed organization, the subject study was carried out during 22-month period from December 2006. With due consideration of the current situation of energy supply and demand, and also of related law, rules and regulations in Vietnam, the present study has been conducted to determine a comprehensive and long-term energy master plan that enables the Ministry of Trade and Industry (MOIT) to promote utilization of energy continuously after the completion of the study.
    [Show full text]
  • Development of Rice Husk Power Plants Based on Clean Development Mechanism: a Case Study in Mekong River Delta, Vietnam
    sustainability Article Development of Rice Husk Power Plants Based on Clean Development Mechanism: A Case Study in Mekong River Delta, Vietnam Nguyen Van Song 1 , Thai Van Ha 2,*, Tran Duc Thuan 3, Nguyen Van Hanh 4, Dinh Van Tien 2, Nguyen Cong Tiep 1, Nguyen Thi Minh Phuong 5, Phan Anh Tu 6 and Tran Ba Uan 7 1 Faculty of Economics and Rural Development, Vietnam National University of Agriculture (VNUA), Ha Noi 10000, Vietnam; [email protected] (N.V.S.); [email protected] (N.C.T.) 2 Faculty of Business Administration, Ha Noi University of Business and Technology (HUBT), Ha Noi 10000, Vietnam; [email protected] 3 Faculty of Economics and Administration, Dong Nai Technology University (DNTU), Dong Nai 76000, Vietnam; [email protected] 4 Institute of Energy of Viet Nam (IEVN), Ton That Tung, Dong Da, Ha Noi 10000, Vietnam; [email protected] 5 Faculty of Economics, Vinh University (VU), Nghe An 43000, Vietnam; [email protected] 6 International Business Department, School of Economics, Can Tho University, Can Tho 94000, Vietnam; [email protected] 7 Faculty of Economic and Finance, Dien Bien Technical Economic College, Dien Bien 32000, Vietnam; [email protected] * Correspondence: [email protected] Abstract: In this research, we planned and conducted estimations for developing a pilot-scale Clean Citation: Song, N.V.; Ha, T.V.; Thuan, Development Mechanism (CDM) project for group plant activities in the Vietnam electricity/energy T.D.; Hanh, N.V.; Tien, D.V.; Tiep, N.C.; Phuong, N.T.M.; Tu, P.A.; Uan, sector.
    [Show full text]
  • Future Skills and Job Creation Through Renewable Energy in Vietnam Assessing the Co-Benefi Ts of Decarbonising the Power Sector
    COBENEFITS STUDY October 2019 Future skills and job creation through renewable energy in Vietnam Assessing the co-benefi ts of decarbonising the power sector Executive report Koffer/ Herz COBENEFITS Study Vietnam This study has been realised in the context of the project “Mobilising the Co-Benefits of Climate Change Mitigation through Capacity Building among Public Policy Institutions” (COBENEFITS). This print version has been shortened and does not include annexes. The full version of this report is available upon request. This project is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports this initiative on the basis of a decision adopted by the German Bundestag. The COBENEFITS project is coordinated by the Institute for Advanced Sustainability Studies (IASS, Lead) in partnership with the Renewables Academy (RENAC), Independent Institute for Environmental Issues (UfU), International Energy Transition GmbH (IET) and in Vietnam the Green Innovation and Development Centre (GreenID). October 2019 Editors: Ayodeji Okunlola, Laura Nagel, Sebastian Helgenberger, Nguy Thi Khanh, Nguyen Thi Mai Dung and Sarah Kovac — IASS Potsdam, GreenID and UfU Technical implementation: Klaus Sauerborn, Pham Ngoc Toan, Nguyen Thi Hoang Nguyen, Đào Quang Vinh — Institute of Labour Science and Social Affairs, Vietnam Assessing the co-benefits of decarbonising the power sector COBENEFITS of the new energy world of renewables for the people in Vietnam Vietnam is in the midst of an energy transition, with Institute for Advanced Sustainability Studies (IASS) important social and economic implications depending invited ministries and government agencies such as on the pathways that are chosen.
    [Show full text]
  • Renewable Energy Integration in Vietnam's Power System
    energies Article Renewable Energy Integration in Vietnam’s Power System: Generation Adequacy Assessment and Strategic Implications Binh Do 1,* , Thai Tran 2 and Ninh Nguyen 3,4 1 Department of Strategic Management, Faculty of Business Administration, Thuongmai University, 79 Ho Tung Mau Road, Hanoi 100000, Vietnam 2 Vietnam Electricity Group, 11 Cua Bac Street, Hanoi 100000, Vietnam; [email protected] 3 Charles Darwin University, Asia Pacific College of Business and Law, Darwin City, NT 0800, Australia; [email protected] or [email protected] 4 Business Sustainability Research Group, Thuongmai University, 79 Ho Tung Mau Road, Hanoi 100000, Vietnam * Correspondence: [email protected] Abstract: Vietnam is widely considered as an energy-intensive economy. Renewable energy in- tegration has been set as an important goal in the country’s revised Power Development Plan 7 (PDP7). This study first conducted a generation adequacy assessment using the basic probabilistic modeling approach to evaluate how the generation fleet, as foreseen in the PDP7, can meet the demand, despite the fast-changing renewable energy sources (RES) generation. The adequacy of the generation was measured using the Loss of Load Expectation (LOLE, expressed in hours) index. The study then conducted in-depth interviews with key stakeholders to identify and propose efficient strategic approach and policy implementations for integration of RES into the current power system in Vietnam. The results suggested that three major pillars should be considered to ensure the success of RES integration: strategic objectives, structural reforms and system transformation. Citation: Do, B.; Tran, T.; Nguyen, N. Renewable Energy Integration in Keywords: renewable energy integration; generation adequacy assessment; probabilistic modeling Vietnam’s Power System: Generation approach; strategic approach; power sector; Vietnam Adequacy Assessment and Strategic Implications.
    [Show full text]
  • A Low-Carbon Industrial Strategy For
    CLIMATEWORKS AUSTRALIA | VIVID ECONOMICS DISCUSSION PAPER | JULY 2019 A LOW-CARBON INDUSTRIAL STRATEGY FOR DISCUSSION PAPER: A LOW-CARBON INDUSTRIAL STRATEGY FOR VIETNAM 1 CLIMATEWORKS AUSTRALIA | VIVID ECONOMICS CONTENTS Executive Summary 02 Why develop a low-carbon industrial strategy? 04 What opportunities for low-carbon industrialisation are available to the Vietnam? 11 Vietnam can join the regional race 18 Appendix 22 Executive Summary The world economy is transitioning towards in 2000, South Korea was in a similar position to cleaner and less carbon-intensive forms of Vietnam today and only exported 3% of global growth. Demand for low-carbon products is low-carbon exports. In 2008 it announced a expected to grow at 11% per year, between 2020 green growth strategy and in a span of ten years, and 2050, and could accelerate as the world managed to become one of the global leaders enters a zero-carbon paradigm. Unprecedented in low-carbon products, exporting nearly 10% of demand for green technology solutions is likely global market share. There is still time for other to emerge by the second half of the century as countries to replicate this experience. countries face a hard deadline to limit global temperature rise. Regardless of individual country For Vietnam to be competitive in the global efforts to limit emissions, global demand for low-carbon economy, it requires a robust green technologies will continue to experience green industrial strategy to consolidate upon robust growth. promising opportunities, and this starts with identifying priority sectors. A low-carbon Countries that get a head start in developing industrial strategy can help pivot Vietnam’s low-carbon technologies today will be the major economy towards increasingly profitable sectors.
    [Show full text]
  • Setting the Right Expectations for Vietnam's LNG Project Pipeline
    1 Thu Vu, Energy Finance Analyst January 2021 Beyond the Noise: Setting the Right Expectations for Vietnam’s LNG Project Pipeline Regulators and Market Realities Will Give Investors No Easy Route To Success Executive Summary Vietnam is quickly becoming one of the most promising liquified natural gas (LNG) importing markets in Asia. Industry players—both domestic and global—have voiced their intent to pursue projects in Vietnam, encouraged by the government’s departure from its traditional coal-centric mindset and the rapid penetration of renewable energy in Vietnam’s power mix in recent years. The gas power developers have worked hard to push the message that gas can be a “transition fuel” and that gas-fired power systems with rapid peaking can serve as the much-needed complement to intermittent renewable energy sources. The market frenzy Sitting behind this marketing push is a simple reality. is nothing Vietnam has ever seen. Global LNG suppliers are struggling with a medium-term supply glut that has left them little choice but to target energy growth markets like Vietnam with an aggressive sales pitch to back a range of gas and power deals. The resultant market frenzy—and associated diplomatic pressure—is like nothing Vietnam’s power system has ever seen. While the noise has largely come from well- publicized projects involving U.S. developers and U.S.-sourced LNG, Asian players including the leading Japanese and South Korean energy companies have also joined the fray. Domestic private groups are also in the mix, keen to leverage their local project development expertise to succeed in the LNG-to-power sector.
    [Show full text]