The Pre-Feasibility Study for Photovoltaic / Water Pumping

The Pre-Feasibility Study for

Photovoltaic / Water Pumping System

In Central Vietnam

Study Report

March 2007

Engineering and Consulting Firms Association, Japan

Shikoku Electric Power Co., Inc.

Fuji Electric Systems Co., Ltd.

This work was subsidized by Japan Keirin Association through its Promotion funds from KEIRIN RACE.

Central Highlands Photos of the 1st Site Survey

Site Survey Photos 1/1 Gia Lai Province Location Mang Yang Commune Date 09/09/2006

Although there is a well, the water is not sufficient and it often is dry. Description Therefore, villagers have to walk approximately 500 meters to collect water from a nearby spring.

Kon Tum Province Location To Mo Rong Commune Daic Van I Date 10/09/2006 To Mo Rong commune is located approximately 3 hours from Pleiku by car. There are about 57 households and a population of 300. Villagers usually walk 300 meters to draw water from a mountain spring and usually make this trip 3 times a Description day.

However, the commune has installed some storage tanks in certain locations. These tanks can hold of water 3m3 and are equipped with a tap for easy access. Gia Lai Province Location Mang Yang Commune Po Dau Village Date 12/09/2006

In Po Dau village, there are 3 locations for villagers to collect water. This water comes from the mountains and there is no water Description shortage. There are also no significant problems with water quality and it is used for drinking, cooking, bathing, animals use and also for irrigation. Photos of the 2nd Site Survey Site Survey Photos 1/4 Kon Tum Province Location Dak Na Commune, Dak Re2 Village Kon Tum Province Dak Na Commune, Dak Re2 Date 24/10/2006 Vill Dak Re2 village is located 1.5km from power distribution line and is isolated by river it has no bridge.

22 households, 91villagers Ethnic Group: Xe Dany Minority E.L.:783m Description N: 14°57’ 11.6’’ E:107°47’ 56.3’’ Villagers walk 1km to collect water from a river and use kerosene lamps for lighting (2 liters/month). The government provides subsidized kerosene for villagers.

Location Kon Tum Province Power Distribution Line in Kon Tum Province Date 24/10/2006

For the past several years, VN government focused on the Description electrification of remote area. Note the distribution lines that are located in mountainous rural areas

Kon Tum Province Location Dak Lay Commune Dak King1, 2 Date 25/10/2006

Dak King 1 & 2 villages are located adjacent to each other in the mountains They are 5 to 10 km from distribution line and there is no plan to be electrified in the near future.

Description Dak King 1:42 hhs, 191villagers Dak King 2: 13 hhs, 62villagers Ethnic Group: Xe Dany Minority E.L.:1067-1210m N: 14°53’ 36.0’’ E:107°59’ 43.6’’

Site Survey Photos 2/4 Kon Tum Province Location Dak Lay Commune Dak King1, 2 Date 24/10/2006 Pico Hydro generators are operated by villagers for lighting and TV.

They can only be used in the rainy season.

Kerosene Lamp Description

Kon Tum Province Location Dak Lay Commune Dak King1, 2 Date 24/10/2006

Villagers typically obtain water from mountain springs but it is not available in the dry season.

They must carry water from river Description one km down from village.

They receive no monetary income but they cultivate rice, cassava for their personal use.

Kon Tum Province Location Dak Lay Commune Dak King1, 2 Date 25/10/2006

VN government have a rural development fund also known as the “135 program”. Description This fund provides villages with water tanks so they may store rainwater in dry season.

Site Survey Photos 3/4 Dak Lak Industry Department Dak Lak Industry Department Location Buon Ma Thuot City Dak Lak Province, Date 24/10/2006

The project team met with ID Dak Lak and requested the “list of villages that will not be electrified until 2010” and also for their Remark assistance and support to obtain the permission to conduct our survey. They provided the list and granted the team permission two days later.

Dak Nong Industry Department Location Gia Nghia Town Dak Nong Industry Department Dak Nong Province Date 24/10/ 2006

Dak Nong was recently separated from Dak Lak and its new office is presently under construction.

Dak Nong Industry Department was also very willing to support Remark our survey. They sent the list in advance and obtained permission from Peoples Committee in advance.

The gentleman on the left is the Director, Bien Van Minh.

No.1 village Dak R Mang Commune Location Dak Glong District Dak Nong Province Date 25/10/ 2006

No.1 village has only one well, from which the residents obtain their drinking water In the dry season, the well cannot Remark provide a sufficient volume of water to meet their needs. Diameter: 2 meter Depth to water: around 10 meter

Site Survey Photos 4/4 No.2 village Dak R Mang Commune Location Dak Glong District Dak Nong Province Date 25/10/ 2006 Villagers are living on farms but their agricultural products are provided with little or no irrigation Due to the lack of water, human consumption is the highest priority

Remark Villagers typically obtain their water from mountain streams, however, this does not provide a sufficient amount of water during the dry season. No.2 village is located about 100 meter away from No.1 village. Krap village Dak T Pang Commune Location Kong Cho Ro District Gia Lai Province Date 27/10/ 2006

Picture of local residents of Krap village.

Remark Dak T Pang Commune is located in a mountainous region, therefore climatic conditions are much different from Pleiku.

Bong village Dak T Pang Commune Location Kong Cho Ro District Gia Lai Province Date 27/10/ 2006

There are 5 wells located in Bong village Presently only 1 is used and the other 4 have been abandoned due to unsanitary conditions (trash Remark disposal)

The well currently in use: Diameter: 1.5 meter Depth to water: Approx. 5 meters

Photos of the 3rd Site Survey Site Survey Photos 1/1 Lam Dong Industry Department Lam Dong Industry Department Location Dalat City Lam Dong Province, Date 15/01/2007

The survey team met with the Director (gentleman on the right) and also the Head of the Planning Department.

Remark The team explained the project and asked for their support and they offered to accompany us on the site survey the following day.

No.1 village (Thon Pang Tieng) Lat Commune Location Lac Duong District Lam Dong Province Date 16/01/2007 In Lam Dong, Village income levels were slightly higher than average at around 5 million VND per year. Primary source of income is coffee, persimmon and vegetables. Drinking water is transported to Remark villages via a piping system that utilizes gravity as power and provided via a centrally located tap. However, the water is not available during the dry season and villager must walk 1-2 km to collect water.

Buon Cham Village Location Easol Commune Dak Lak Province Date 17/01/2007

NRW Germany, Solarlab Ho Chi Minh City in cooperation with the Vietnamese government established a PV site at Buon Cham village in Dak Lak project.

Remark The PV equipment was intended to supply power for a community center, water-pumping equipment and provide each habitation with a SHS.

Table of Contents

１ Introduction...... 1 1.1 Background and Objectives ...... 1 1.2 Study Team ...... 2 1.3 Study Schedule...... 2 1.4 Scope of Work...... 3 1.5 Study Area...... 3 2 Overview of Rural Electrification Policy and Current Situation ...... 5 2.1 MOI’s Rural Electrification Policy ...... 5 2.2 Renewable Energy Development Plan...... 8 2.3 Current State of Rural Electrification ...... 9 2.4 Renewable Energy Potential in Vietnam...... 11 3 Overview of Rural Water Supply Policy and Current Situation...... 14 3.1 Rural Water Supply Policy...... 14 3.1.1 Challenges...... 14 3.1.2 Objectives ...... 15 3.1.3 Sustainable Development...... 16 3.2 Current Situation of Rural Water Supply ...... 17 3.2.1 Delegation of Responsibilities ...... 17 3.3 Potential for Development and Policy Recommendations...... 19 4 Overview of the Site Survey...... 22 4.1 Location, Topography and Climate...... 22 4.2 Results of the Site Survey ...... 24 4.2.1 Target Areas ...... 25 4.2.2 Water Quality of Target Villages...... 30 4.3. Showcase of Existing Off-Grid Power Systems ...... 32 5 Photovoltaic Electric Power and Water Supply System Proposal...... 38 5.1 Study of Optimum System...... 38 5.2 Cost Calculation...... 40 6 Economical Analysis of the Project ...... 43 6.1 Initial Cost...... 43 6.2 Operation Cost ...... 44 6.3 Economic Analysis of the System...... 45 7 Environmental Concerns and Socio-economic Impact ...... 47 7.1 Environmental Concerns...... 47 7.2 Socio-Economic Impacts ...... 49 8 Conclusion and Recommendation ...... 51 8.1 Conclusion ...... 51 8.2 Recommendation ...... 52

List of Tables

Table １.1 Study Team Members...... 2 Table 2.1 Target of Grid Connected Household...... 7 Table 2.2 Investment Plan for Rural Electrification...... 7 Table 2.3 Renewable Energy for Power Generation ...... 9 Table 2.4 Rural Electrification Rate...... 9 Table 2.5 Current Photovoltaic Systems ...... 10 Table 2.6 Future Photovoltaic Installations...... 12 Table 4.1 Climate Data of Vietnam...... 23 Table 4.2 List of Potential Villages in Kon Tum...... 26 Table 4.3 List of Potential Villages in Gia Lai...... 27 Table 4.4 List of Potential Villages in Dak Lak ...... 28 Table 4.5 List of Potential Villages in Dak Nong ...... 28 Table 4.6 List of Potential Villages in Lam Dong...... 29 Table 4.7 Drinking Water Standards Compared with Samples ...... 30 Table 4.8 Drinking Water Standards Compared with Samples ...... 31 Table 5.1 Village List for System Study ...... 38 Table 5.2 Pre-Conditions of the System...... 39 Table 5.3 Cost calculation of PV system for Pumping Equipment ...... 41 Table 5.4 Cost Calculation for Household Electrification ...... 42 Table 6.1 Cost Estimate for Water Pumping ...... 43 Table 6.2 Cost Estimate for Household Electrification (Battery Charging Station)...... 44 Table 6.3 Maintenance Cost of the Equipment ...... 45 Table 6.4 Maintenance Cost and Battery Replacement...... 45 Table 6.5 Economical Analysis of the System...... 46 Table 7.1 Consideration of JBIC Guidelines...... 47 Table 7.2 Expected Socio-Economic Benefits of PV System...... 49

List of Figures

Figure １.1 Study Schedule ...... 2 Figure １.2 Map of the Central Highlands...... 4 Figure 2.1 Investment Plan for Rural Electrification...... 8 Figure 2.2 Rural Electrification Rate ...... 10 Figure 3.1 Delegation of National Responsibilities ...... 18 Figure 3.2 Local Responsibilities...... 18 Figure 4.1 Climate Data in Vietnam ...... 24 Figure 4.2 External appearance of PV yard ...... 33 Figure 4.3 Organization of the Fuji Electric PV System Project ...... 34 Figure 4.4 Outline of Project Flow for Buon Cham Village ...... 37 Figure 5.1 Image of the Project...... 40 Figure 6.1 Water Pumping Equipment...... 43 Figure 6.2 Equipment for Household Electrification (Battery Charging Station)...... 44

Appendices

Appendix 1 Schedule and Interviewees Appendix 2 Insolation Data for Vietnam Appendix 3 Gia Lai Grid Extension Plan Appendix 3 Summary of Program 135 Appendix 4 Formula for Water Pumping System Configuration Appendix 5 Formula for PV Household Electrification System Configuration

Abbreviation

BCC : Battery Charging Center BCS Battery Charging Station CERWASS : Center for Rural Water Supply and Environmental Sanitation DARD : Department of Agriculture and Rural Development DOI : Department of Industry EVN : Electricity of Viet Nam GOV : Government of Vietnam HCMC : Ho Chi Minh City ID : Industrial Department IE : Institute of Energy IET : Institute of Environmental Technology JBIC : Japan Bank for International Cooperation JICA : Japan International Cooperation Agency MARD : Ministry of Agriculture & Rural Development MOC Ministry of Construction MOET Ministry of Education and Training MOH Ministry of Health MOI : Ministry of Industry MOSTE : Ministry of Science and Technology and Environment NRWSS : National Rural Water Supply and Sanitation Strategy Program PC : Power Company PV : Photovoltaic SHS : Solar Home System VAST : Vietnamese Academy of Science & Technology

Executive Summary

1. Background of the study Vietnam’s market reforms have in the last decade resulted in an economic boom and is substantiated by its impressive annual GDP growth of approximately 8%. Even more striking is the forecast that this trend is expected to continue. However, despite this fact the majority of its population still lives in remote farming areas that are stricken with poverty. This disparity is evinced by a wide income gap between urban and rural areas. The GOV is committed to reducing this income gap and the development of these rural regions is one method to accomplish this goal.

In the Central Highlands, both the electrification rate and the water-supply coverage still fall below average and most of the people in the remote villages are living without electricity and collect water from either of existing wells or mountain springs and rivers. Regarding these villages, the team estimated the water and electricity demand and designed equipment to provide potable water, reliable electricity and to ultimately improve quality of life for remote villagers. The target area of the Central Highlands is including Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong.

2. Overview of Rural Electrification and Renewable Energy in Vietnam MOI’s Rural Electrification Policy objectives (published in 2000) that specifically relate to decentralized power systems (off-grid power) in remote areas are as follows: “Rural electricity supply will utilize both national power grid and off-grid power systems”. Therefore, off-grid and mini-grids are proposed and selected when the total cost is less than either grid extension or diesel mini-grids. “Priority should be given to those areas that have the capacity to enhance the agricultural productivity, modernization and economic restructuring of strategic areas”. Emphasis for mini-grids will be on areas with productive opportunities.

Vietnam’s initial goal at the beginning of the decade was to electrify 90% of households by the year 2010 and to achieve this task; the government invested approximately 200-300 million USD annually in grid extension and rural electrification projects. By early 2006, Vietnam had already surpassed its initial goal; at that time 91.5% of rural households were connected to the national grid. For villages that will not be covered by the power grid and where it is uneconomical to expand the grid, it is anticipated that these areas will be electrified by renewable energy.

As per EVN’s request, the World Bank, under its Technical Assistance activity, supported a project for renewable energy development in Vietnam. The project is named the Renewable Energy Action Plan (REAP) and was designed with a specified background aiming to assist MOI in developing the necessary instruments to enforce the activities and policy components.

3. Overview of Rural Water Supply The quality of life for rural people in Vietnam is generally low and income generated usually covers only the basic necessities, such as clothes and food. Their lifestyle has not changed much despite Vietnam’s rapid economic development. Despite these challenges, there is considerable focus by the government on rural development and water supply improvement. Steering committees have been formed for water supply and sanitation at both the national and local levels and rural development is considered a high national priority. Long-term goals by year 2010 to improve the water supply are set forth as follows: ¾ 85% of rural population will use clean water and have access to 60 LPCD ¾ 70% of rural households will have approved hygienic latrines Most rural households have two sources of water, one for drinking and water for washing. Piped water is uncommon and not readily available in rural areas. Approximately 30% of households have some basic water supply system and of this, only 10% of households meet the national water standards. In the Central Highlands, approximately 90% of the population has intestinal worms.

NRWSS suggests that a water resources monitoring system be established that utilizes data collected from NRWSS implementation. This will help coordinate NRWSS activities and determine the demand for local areas, not only for drinking water but also water for other uses. Eventually, it is hoped that this will lead to better management and ultimately the protection of water resources.

4. Site Survey The project team requested the Industrial Departments (ID) of all five provinces to provide data for villages that are expected not to be candidates by 2010 for the power grid extension plan. The Industrial Departments have specific plans to expand the power grid to remote areas by 2009. However, there are no plans to supply power to the remaining villages after 2010. Out targeted areas are these non-electrification that are typically

ii difficult to reach during the rainy season even by 4 WD vehicles, these areas are also a great distance from distribution lines.

Minority groups inhabit most of the un-electrified villages. They use kerosene lamps for lighting and some of them have Pico Hydro for small appliances such as TV and radio. Kerosene fuel is subsidized by the local government to remote villages and received free of charge. Inhabitants often practice subsistence farming with crops such as rice, cassava and typically receive no monetary income.

Most of the villages have small privately owned wells with a depth of around 5-20 meters as they do not have the technology to dig deeper than 20 meters and this therefore limits their water supply. They lift up the water by hand in most of these wells and cannot afford diesel engines to assist with the lifting.

5. Photovoltaic Electric Power and Water Supply System Proposal The proposed system design for this project was based on many factors. The team collected village information for targeted areas such as number of households, total population and mean water intake etc…during the site survey and also obtained it directly from the respective Peoples Committees in the Central Highlands (Gia Lai, Kon Tum, Dak Lak, Dak Nong and Lam Dong) for system design.

The team decided to focus its efforts on 37 villages; these villages consist of 5,737 households and a total population of 26,805 people. Potential sites were determined taking into consideration the method of water collection, distance from distribution lines and road conditions. The team estimated the initial cost for both water pumping and house electrification.

6. Economic Analysis According to interviews, for villager’s that own livestock or cultivate certain cash crops, their capacity to pay for this region is around 300 yen/month. However, many poor villagers receive no monetary income and it is impractical to assume that villagers will be able to reimburse the initial cost of 1.412 billion Yen (about 53,000 Yen per person); therefore, the project team recommends the government to subsidize this cost.

If the government subsidizes the initial cost of the project, villagers will be responsible

iii for only the O&M cost. Assuming the generated power sells at a rate of 600 VND/kWh, total power sales would be 3,706,000 Yen / year. This would result in a monthly electric fee of about 50 yen/month. Although this is well within the their financial means, it is recommended that villagers pay an additional 140 yen/month to act as a reserve fund to cover system O&M. In addition, the project team also recommends that the government also subsidize the electricity fee for poor villagers that are unable to pay. These payments will cover the costs of any major malfunctions, battery replacement and also ensure the long-term sustainability of this project.

7. Conclusion and Recommendation The development of the Central Highlands in Vietnam has become a major focus area; future project aid from various donors is expected to increase and together with Laos and Cambodia, it is often referred to as the “Development Triangle.”

However, the team realizes that villages will remain without grid-connected power and also continue to suffer from a lack of potable water nearly throughout the year. The local government in the 5 provinces of the Central Highlands recommended 94 potential sites and based on local conditions the project team then selected the 37 most appropriate sites. The total project cost is expected to be approximately 12 million USD with energy output totaling 1.3 MW.

Although the initial costs of the project are high and villagers often do not have the knowledge to operate and maintain these systems, most were enthusiastic at the prospect and agreed to pay for operational costs (approximately 1.6 USD/month) to ensure the sustainability of the facilities. However, due to the high poverty rate and unfortunate economic conditions, they will most likely be unable to reimburse the initial cost of the project.

The Institute of Energy, an organization of the Vietnamese government is in the process of drafting the “Master Plan for Renewable Energy Development.” This plan will be completed next year (2008) and it will outline clear target areas for future rural electrification projects. This pre-feasibility study for the Central Highlands should not be the final step and every effort should be made for the continued investigation of this project scheme in response to the upcoming publication. The project team therefore recommends that this type of transfer program be included in the next stage (full scale F/S) of the project.

1 Introduction

1.1 Background and Objectives

Following its dismal economic performance in the early 1980’s, The Government of Vietnam (GOV) enacted its “Doi Moi” program that abandoned the collectivization of its industrial and agricultural sectors. Although it was slow to take effect, these market reforms have in the last decade resulted in an economic boom and is substantiated by its impressive annual GDP growth of approximately 8%. Even more striking is the forecast that this trend is expected to continue.

However, despite this fact the majority of its population still lives in remote farming areas that are stricken with poverty. This disparity is evinced by a wide income gap between urban and rural areas. The GOV is committed to reducing this income gap and the development of these rural regions is one method to accomplish this goal.

The GOV wishes to reduce the poverty rate and improve the living conditions in rural areas by focusing on the development of the water and power supply. In order to accomplish this task, the “National Rural Water Supply and Sanitation Strategy Program: NRWSS,” is aiming to provide a safe and stable water supply for both for both drinking purposes and to ease the burden of daily life. To improve the power supply, the company “Electricity of Viet Nam” (referred to as EVN) and Peoples’ Committee of the respective provinces are engaged in rural electrification based on the “Off-grid Rural Electrification Project” which has already surpassed its goal of achieving a 90% rural electrification rate for Vietnam by 2010 as the figure now stands at 91.5%. This scheme is not limited to grid extension projects but it will also utilize renewable energy such as photovoltaic and mini-hydro power to provide an optimal mix to meet the needs of villagers in these remote regions.

To improve these conditions, the Peoples’ Committees in the Central Highlands, especially in Gia Lai Province are very willing to accommodate the survey due to its prior history

1 with PV projects and the high rate of insolation in the region. Fuji Electric Systems installed a successful PV project and carried out demonstrative research from 1997-2002. The study team therefore determined that the possibility to install the water pumping and supply system powered by photovoltaic that utilizes existing wells in the Central Highlands shall be studied.

1.2 Study Team

Persons-in-charge of the study are listed below

Table 1.1 Study Team Members

No. Name Specialty 1 Hideo SEMBA Project Manager 2 Masahiro SAKURAI Photovoltaic System Plan 3 Kenichi KUWAHARA Rural Area Development Plan 4 Fumikazu DOI Water-pumping System Plan 5 Naoki YOKOTA Profitability Analysis 6 Chadwick SMITH Rural Area Development Plan

1.3 Study Schedule (Please see Appendix A for details of travel itinerary and list of interviewees)

Figure 1.1 Study Schedule

July August September October November December January February March

C C o Documentation of n o the implement plan s n Project u s Survey preparation 1st Summarize

l u Basic master plan t appoi nt・logistics results

l Procedure for

a site survey t Basic design a

n the contract

t 「n 「t Survey P 2nd Summarize 3rd

P preparation V site survey results site survey

＋V ＋

W System Design ReportReport Preparing report FinalFinal W a Economic Analysis （ English） t a DraftDraft ReportReport e

t r 」e 」r Benefits StatementStatement Accounting Profitability Analysis ofof document AccountAccount

1.4 Scope of Work

The first step of this project is to study the background of the current power and water situation and the current policy of renewable energy promotion for remote villages of the Central Highlands.

The study team selected villages based on the recommendation of the Department of Industry and carried out a site survey to determine such factors as water supply methods, income, current lighting situation and other factors relevant to daily life.

Regarding these villages, the team estimated the water and electricity demand and designed equipment to provide potable water, reliable electricity and to ultimately improve the quality of life for remote villagers. The system will consist of the following equipment:

¾ Photovoltaic array ¾ Water pumping from existing wells and water supply ¾ Battery charging station

Based on the results of the site survey, the team also calculated the initial as well as the O&M cost to implement the project for the targeted villages and proposed a sustainable project scheme that will allow it to become both financially and operationally independent. The feasibility of a large-scale expansion project throughout the Central Highlands is also studied.

1.5 Study Area

The study was originally focused only on Gia Lai province. However, following the 1st site survey, it was determined that the population of the villages in Gia Lai province was not large enough and the small project scale would only a minimum amount of people. The team therefore reexamined the situation and based on the recommendations of the Peoples Committee, decided that target area should be expanded to other areas of the Central Highlands including Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong.

Figure 1.2 Map of the Central Highlands

Location of Target Sites

2 Overview of Rural Electrification Policy and Current Situation

2.1 MOI’s Rural Electrification Policy

The Government of Vietnam’s (GOV) policy on renewable energy development for rural electrification and grid supply clearly defines the responsibilities for renewable electricity management and its development as well as a subsidy mechanism for off-grid renewable energy projects.

MOI’s Rural Electrification Policy objectives (published in 2000) that specifically relate to decentralized power systems (off-grid power) in remote areas are as follows:

“Rural electricity supply will utilize both national power grid and off-grid power systems”. Therefore, off-grid and mini-grids are proposed and selected when the total cost is less than either grid extension or diesel mini-grids. “Priority should be given to those areas that have the capacity to enhance the agricultural productivity, modernization and economic restructuring of strategic areas”. Emphasis for mini-grids will be on areas with productive opportunities.

The costs of operation, maintenance and financial depreciation of rural electrification infrastructure should be recovered from revenues earned by EVN, PCs (distribution companies) and other operating entities in the Vietnam power sector. The GOV provides a reasonable subsidy mechanism for investment in rural electrification networks and supply infrastructure when these are deemed uneconomical based on the expected revenues. Consistent with the GOV’s policy of equitable distribution, it is expected that renewable energy- based grid and off-grid services will receive transparent subsidies.

Electricity supply for rural consumers should be considered a commercial service, except for those areas where the subsidy is authorized as a social obligation and keeping consistent with the aforementioned equitable development objectives.

To encourage investment in decentralized generation systems utilizing a low voltage grid, the PCs will offer avoided cost capacity and/or energy payments to potential generators. This is an important policy to support decentralized generation. Avoided cost–based tariff reflecting the cost of supply at the specified voltage in each PC service area is important

5 in ensuring the development of economically viable decentralized renewable energy sources.

For some mountainous and island communes that are unable to connect to the national grid, provinces will establish on-site or local generation projects suitable to the specific conditions of each location, such as diesel, small hydropower and photovoltaic power. The GOV will encourage foreign and local investors to invest in local businesses that supply electricity. In addition, off-grid and mini-grid options have been identified and the promotion of renewable energy is expected as a way to electrify large numbers of communes at a minimum cost. .

The GOV has also formulated the following objectives for the Energy Development Policy regarding rural electrification and future energy development:

Ⅰ．Consistent exploitation of energy resources and ¾ Investment in energy conservation technologies Ⅱ．Step by step energy resource development to ensure a sufficient supply ¾ For socio-economic development and improve living standards ¾ For industrialization, modernization and urbanization based on the diversification of indigenous primary energy resources Ⅲ．The step by step energy development is to narrow ¾ Socio-economic gap ¾ Energy supply and consumption gap between regions and localities Ⅳ．Aggressive use of renewable energy aimed to develop the local power resources for ¾ Replacement of the fossil based energy resources ¾ Diversification of the power generation resources Ⅴ．Upgrade and encourage efficient and reasonable energy use based on demand side management Ⅵ．Minimize the environmental impacts of energy development

The Ministry of Industry’s (MOI) initial program was to increase grid-connected households from 8.95 million in 1999 to 13.73 million by the year 2010 and therefore rural households connected to grids were expected to increase from 69.7% to 90% during the same period.

Table 2.1 Target of Grid Connected Household

Unit:Million households Number of Accessed Number of Accessed Share Share Region households households households households (%) (%) in 1999 in 1999 in 2010 in 2010 North 6.6 5.45 80 8.04 7.49 93 Center 2.09 1.35 65 2.48 2.18 88 South 3.95 2.15 54 4.67 4.06 87 Total 12.84 8.95 69.7 15.19 13.73 90 Source : EVN Report

(1) Rural Electrification Project Description and Strategy:

à Build a new 110 kV grid and distribution network system to supply power to about 700-800 communes that are inaccessible from the existing power grid. à Expand the existing grid in order to supply power for 1,500 – 1,600 communes, which are near grid areas. à Increase the number of rural households that will have access in communes that are connected to the national electricity network.

(2) Investment Capital for Rural Electricity Development

The rural electricity investment plan for this decade is illustrated in Table 2.2 and Figure 2.1.

Total investment capital is US$ 2.261 billion of which US$ 1.452 billion has already been invested and the remaining US$ 809 million will be invested in the latter half of the decade.

Table 2.2 Investment Plan for Rural Electrification

Unit:Million USD Total 2000 2001 2002 2003 2004 05-10 Item Investment Rehabilitation 1,003 86 186 186 186 186 173 Grid Development 1,218 152 139 139 139 139 616 Isolated system 404444420 Total investment 2,261 123 342 329 329 329 809

7 Source : EVN Report

Figure 2.1 Investment Plan for Rural Electrification

Investment Plan

900 Isolated system 809 800 Grid Development Rehabilitation 700

600

500

400 342 329 329 329

300 123

Investment (Millon USD) 200

100

0 2000 2001 2003 2002 2004 05-10 Year

Source: EVN Report

2.2 Renewable Energy Development Plan

The outline of Renewable Energy Action Plan is as follows:

・ Prepared in 2001 by MOI / EVN with WB financial support

・ A 10 year large-scale renewable energy development program for rural electrification of rural / remote / mountain areas

・ Purpose: Renewable energy will provide cost-effective and reliable electricity to help rural people improve their standard of living and increase their income

・ Situation: Electrify more than 1,100 remote mountainous communes and villages that

8 represent 750,000 households and 3 million people who are outside the national grid by the year 2010

Table 2.3 Renewable Energy for Power Generation

2004 Potential by 2020 Potential by 2030 MW GWh MW GWh MW GWh Solar 0.8 4-6 Mini Hydro 135 284 500-780 Wind 0.8 1.6 200-400 3,600 - 3,300 9,500 Biomass 150 310-410 5,000 Geothermal - - 100 Total 287 ～290 1,114-1,596 Source: Workshop in Phnom Penh, 5-6 October 2006

2.3 Current State of Rural Electrification

The extension of the national power grid to rural areas, particularly northern mountainous provinces, Central Highlands and Mekong Delta raises the rural electrification rate of Vietnam higher than many other countries in the region and also throughout the world. As of early 2006, 511 out of 521 districts (97.9%) had access to the national power grid; 9 island districts and 1 mainland district had site generation sources; 8,801 out of 8,999 communes (97.8%) were electrified, which was increase of 315 communes compared to the end of 2004, most of these communes were old remote revolution and resistance bases located in the mountainous; and 11,834,692 out of 12,934,090 rural households (91.5%) were connected to the national grid. Table 2.4 and Figure 2.4 provide information regarding the rural electrification rate from 2000 to 2006.

Table 2.4 Rural Electrification Rate

Year 2000 2001 2002 2003 2004 2006 District 96.6% 97.6% 97.9% 97.9% 97.9% 98.0% Commune 81.9% 84.9% 90.6% 92.7% 94.6% 97.8% Household 73.5% 77.5% 81.4% 83.5% 87.5% 91.5%

Source : EVN Annual Report ,2004 Workshop in Phnom Penh, 5-6 October 2006

Figure 2.2 Rural Electrification Rate

District Rural Electrification Rate Commune Household 97.6% 97.9% 97.9% 97.9% 98.0% 97.8% 100.0% 96.6% 94.6% 90.6% 92.7% 91.5% 87.5% 90.0% 84.9% 81.9% 81.4% 83.5% 80.0% 77.5% 73.5% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2000 2001 2002 2003 2004 2006 Year

Source : EVN Annual Report ,2004 Workshop in Phnom Penh, 5-6 October 2006

As part of the rural electrification initiatives, there have been a number of cooperative photovoltaic power projects with foreign governments and aid programs. These projects provide the basis for electrification of regions unable to connect grid.

Table 2.5 Current Photovoltaic Systems

Date of Project Power Investors Remark Implementation Energy -Solidarity Fondem-France 1 40 kWp 1992-1999 50 Solar Villages Vietnam Solarlab-Vietnam Decentraized Rural 45 kWp + 40 Fondem-France Binh Phuoc 2 Electrification - kW Micro 2000-2004 Solar-Vietnam province Can Gio Vietnam Hydro 100 kWp + 25 Solar + Micro NEDO-Japan 3 kW Micro 1995-1999 Gia Lai province Hydro EVN-Vietnam Hydro 10 kWp + 3 NEF-Japan Kon Tum 4 Solar + Wind kW Wind EVN-Vietnam province SIDA-Sweden Dong Thap, Binh 5 Rest's Project 10 Wp 1997-2004 Solarlab-Vietnam phuoc, Dak lac Solar Project with Germany- Bac giang, Dak 6 18 kWp 2002-2003 Germany MOST-Vietnam alk Solar Project with KIER-Korea Binh can 7 3.3 kWp 2003-2005 Korea Solarlab-Vietnam province Solar Project with Fortum-Finland 8 10 kWp 2000-2003 Bac can province Finland CEMMA-Vietnam Source: Workshop in Phnom Penh, 5-6 October 2006

2.4 Renewable Energy Potential in Vietnam

Vietnam is endowed with an abundant amount of renewable energy and there is strong potential for its utilization. The GOV and local authorities plan for the intensive development of these resources (PV, wind turbine, hydropower) and there has been a special emphasis on the promotion and development of bio-energy derived from agricultural and forest residues. Biomass energy is considered to have one of the highest potentials for future development in the country and its energy production is expected to create competitive prices for agricultural food products in its production areas. With this long-term policy, the GOV aims at modernizing its agricultural sector and further promoting rural development.

According to a projection by the Hydro Power Center, more than 1,100 remote or mountainous communes or 750,000 households populated by 3 million rural people will not be covered by EVN’s grid network despite its extensive grid extension plan. (up to 2010) To electrify these rural communes, it is necessary to utilize potential renewable sources according based on the location and available resource options. In northern and central parts of Vietnam, small hydro and pico hydro systems can be suitable options as these areas have high potential for such projects. EVN expects as much 250-400 MW will be supplied to remote areas by other renewable resources, such as biomass cogeneration.

¾ Solar Energy

Vietnam is ideally located in a major insolation belt. Southern and central Vietnam have average insolation of 4.0 to 5.9 kWh/m2/day, which remains almost constant throughout the year. In northern areas the insolation varies widely ranging from 2.4 to 5.6 kWh/m2/day. Vietnam’s insolation is comparatively high almost all models of photovoltaic applications have been utilized, such as Solar Home Systems (SHS), battery charging station (BCS), solar medical center, solar community center, solar cultural boat, solar school, solar satellite, receiver transmitter etc. Currently, Vietnam has a total photovoltaic installed capacity of approximately 650 kW or about 5,000 installations. The present photovoltaic application market in the country is divided into 3 major segments, namely professional applications (50%), community, health center and battery charging station stations (30%) and SHS (20%). All of the PV modules installed are imported while

11 some parts of the supporting equipment are locally manufactured.

In the southern and central parts of the country, photovoltaic systems are an option for electrifying rural communes. Table 2.6 provides a list of future photovoltaic installations. Although presently wind power is not being considered as a potential energy resource, EVN expects to future development in coastal areas.

Table 2.6 Future Photovoltaic Installations

Implementaion No. Project Target Investors Remark Plan 30 Million USD- Solar PV Generation ODA-Finish Approved by for 300 1 for Mountainous 2005-2010 Vietnam VN mountainous Areas in Vietnam Government Government communes Solar Home System 9.6 Million According to Sponsored by 2 for Households in USD- Over 10 years RE Action World Bank Mountainous Areas 30,000SHS Plan 100 kWp grid Solar Energy Project connected + 10 ODA-Spain Preparation 3 2006-2010 with Spain kWp stand MOST-Vietnam Stage alone system Loan with low interest from Bank for the Commercial SHS 152,000 SHS Preparation 4 poor and Bank Project system Stage for Agriculture and Rural Development Source: Workshop in Phnom Penh, 5-6 October 2006

¾ Small Hydropower

As mentioned in previous section, Vietnam has massive potential for small hydropower deve lopment (<10 MW size) totaling between 800-1,400 MW. About 70-75 % of the annual runoff is generated during three to four months. Currently about 60 MW of grid-connected mini hydro plants (size 100 to 7,500 kW) is installed at 48 locations in the country. Among these 48 plants, 6 plants are reported not in operation due to failure of equipment. With proper rehabilitation programs, there is a substantial scope to increase the capacity of the hydropower plants presently in operation. The government financed all of these grid-connected systems either directly or through international aid.

With installed capacity totaling 70 MW, more than 300 communes have small hydro

12 systems installed with system capacity ranging from 5 to 200 kW. Most of these systems are installed in northern and central Vietnam. Most of the community owned systems are in poor working condition and it is reported that 200 out of 300 installed systems are not in operation. On the other hand, commercially operated hydro systems have a low failure rate when compared to community owned system. For instance, in the case of Dong Nal, out of a total of 19 systems, the 10 community owned systems are not in operation while the remaining 9 operational systems are all commercially operated. Community owned systems are poorly managed with little or no maintenance. Estimates show that Vietnam has some 500 MW of small hydropower potential that could be developed for future community use.

¾ Other Renewable Resources

1) Wind Power ・ Potential: Not identified ・ Current development: 1 MW ・ System: Almost 150W-200W for battery charging station (locally constructed) 850 kW system in Bach Long Vy Island in northern Vietnam ・ Purpose : battery charge, pump-up water and supplying AC power

2) Biomass for electricity ・ Potential: 250-400 MW ・ Current development: 50 MW ・ Purpose: heating, cooking etc.

3) Biogas ・ Potential: Very high ・ Current development: Approximately 35,000 households ・ Purpose: heating, cooking etc.

4) Geothermal ・Potential : 50 – 200 MW ・Current development :0 MW ・Purpose : Sauna / Steam bath, heating, cooking

3 Overview of Rural Water Supply Policy and Current Situation

3.1 Rural Water Supply Policy

Most households in rural Vietnam consist of 5 members, these are concentrated in hamlets and traditional administrative units typically govern villages. The quality of life for these people is generally low and income generated usually covers only the basic necessities, such as clothes and food. The lifestyle of people has not changed much despite Vietnam’s rapid economic development. Therefore, in 1997 the government set forth the Orientation for Rural Development. This plan recommended the following proposals:

¾ Investments to increase cash crops, promote livestock breeding and handicraft production ¾ Increase government money, ODA on social development ¾ Create favorable business conditions and partnerships for small retailers and farmers ¾ Promote the application of new and modern equipment ¾ Support to households that join cooperatives, more flexibility in issuing certificates for land use

Presently an overarching strategy is being development for rural development. This strategy will further propose ways to development the rural areas and mitigate the income gap that is associated with economic development.

3.1.1 Challenges

Poor education is often the most difficult obstacle in the successful implementation of these sys tems. Many rural villagers do not understand the relation between sanitation and clean water supply. In addition the present National Rural Water Supply and Sanitation (NRWSS) system is fragmented, uncoordinated and there is a poor legislative framework to provide guidance and policy directives.

Furthermore, in mountainous regions such as the Central Highlands, people usually lack water resources altogether and must carry water from springs or only have access to deep ground water due to the lack of surface water. Climatic changes have also worsened the

14 situation, floods and droughts have occurred in regions not normally equipped to deal with these types of events and in some regions, water resources have been exhausted and immediate attention is needed.

Finally a major challenge is the inability to transfer knowledge of RWSS systems to local people. There are no centers or programs to provide technology transfer and increase awareness; these factors are hindering any future progress.

Despite these challenges, there is considerable focus by the government on rural development and water supply improvement. Steering committees have been formed for water supply and sanitation at both the national and local levels and rural development is considered a high national priority. Although the more local rural supply schemes lack certain policy level directives, the decentralization is also a benefit because it reaches projects at the lowest level.

The government is also reformulating the way it deals with rural development. Previously living conditions improved only through higher agricultural yields. Recently this has changed and the government is examining a more comprehensive rural development plan that includes agricultural surpluses that can be used for the processing industry, increased livestock breeding and the development or rural trade and industries. Ultimately, this will result in the development of rural centers that will link these rural areas to the more prosperous regions and further spur rural development.

3.1.2 Objectives

The Ministry of Construction in consultation with the Ministry of Agriculture and Rural Developm ent have d etermined that the development objectives of the NRWSS are to improve the health and living conditions of the rural population and to reduce the environment pollution. These objectives will be implemented by adhering to immediate goals such clean water access by all public facilities, priority shall be given to areas lacking clean water such as remote regions or those suffering from pollution and there shall be protection against water resource exhaustion both surface and groundwater.

Long-term goals are set forth as follows: By year 2010 ¾ 85% of rural population will use clean water and have access to 60 LPCD

15 ¾ 70% of rural households will have approved hygienic latrines and have good personal hygiene practices

By y ear 2020 ¾ All rural people will use clean water t and hygienic latrines that meet national standards ¾ Improved universal hygiene and sanitary practices through community involvement and educational programs.

3.1.3 Sustainable Development

The government has determined that long-term sustainable development of its rural water supply m anagement is a high priority and major goal. A number of actions will be carried out to ensure that its development receives attention.

Clear ownership of facilities will be emphasized so that it encourages a sense of efficient use and associated maintenance will also extend the service life of equipment. This will ensure that all facilities have a basic management plan for use, appropriate technology and staff capable of carrying out the repair work along with a system of supplying spare parts.

In order to make this program a success, the concept of project implementation will be shifting from a supply responsive approach to a demand responsive approach. This will entail that the users pay all of the costs themselves.

After necessary advice the user will determine the type of facilities and the financing scheme, construct the facilities or arrange to pay a contractor and finally to manage the operation and maintenance.

Government agencies and donors will provide assistance and guidance, grants will also be provided to the poor but the ultimate responsibility rests with the people. In addition, educational campaigns will be used to provide instruction and advice to local people before and during the NRWSS projects

This is critical to ensure the long-term sustainability of the rural water supply system. It will eventually result in the development of self-confidence and management practices that will further benefit the projects and the people. From 2005, it is expected that RWSS

16 will follow this approach.

3.2 Current Situation of Rural Water Supply

Due to its mountainous terrain, climatic conditions and a vast river system, Vietnam is endowed with an abundant natural water supply. However, rice field irrigation and uneven distribution result in water shortages in certain areas. The inefficient use of water and poor sanitation practices further exacerbate this problem.

Most rural households have two sources of water, one for drinking and water for washing. Piped water is uncommon and not readily available in rural areas. Approximately 30% of households have some basic water supply system and of this, only 10% of households meet the national water standards.

In addition to these factors, only about 50% of rural households have latrines (toilet facilities). Most families practice open defecation and this subsequently causes frequent water contamination. Outbreaks of cholera and typhoid are common and have increased in recent years due to population growth. In certain areas such as the Central Highlands, approximately 90% of the population has intestinal worms.

Programs funded by UNICEF to correct this deficiency have been ongoing for more than 15 years. Many wells with hand pumps and latrines have been constructed along with private facilities built by villagers; however, this only represents a small fraction of what is needed and much more work remains to be done in these areas

3.2.1 Delegation of Responsibilities

Responsibilities will be divided among the national and local levels. However, governm ent organizations will not participate in the business activities, they will only provide policy level guidance and advisory to the users.

The Ministry of Agricultural Rural Development (MARD) will be the lead ministry and responsible for the overall coordination of the programs and projects. In addition, they will coordinate the education system and the funds for grants and loans. MARD will delegate certain tasks to other ministries as follows (See list of Acronyms)

Figure 3.1 Delegation of National Responsibilities

Central MOH MOSTE Vietnamese Assist with Education Research and Government Program for Development of Water Sanitation Issues Supply Systems

MARD Overall MOC MOET Coordination Construction of Water Research for

Supply Facitilies Education Program Relating to Clean Water Supply

Source: RWSS The local government will also have the responsibility to carry out a number of duties that include:

Figure 3.2 Local Responsibilities

Province

Establish appropriate organizations, coordinate assitance to impement NWSS Coordinate with National Level

District Implementation of roject schemes within district Provide tech., finance, and

construction advice

Commune Lowest adminisrative level and closest to the people Serve as coordinator and advisor to users

Villag e No administrative tasks Provides an important link for rural residents and community Mobilize community participation

3.3 Potential for Development and Policy Recommendations

Future rural water supply will be developed utilizing a number a different technologies that suit each different location including tube wells or dug wells with or without treatment facilities, fitted with either a hand pump or an electric pump. In addition, piped schemes may be employed that include simple gravity flow systems or systems that utilize electric pumps. The connections may be to individual households or to a public connection located near a cluster of households.

Water supply in mountainous areas is often a problem and the NRWSS recommends several methods to overcome these difficulties such as gravity piped schemes, construction of small dams or ponds to store rainwater and pumping water from rivers. Piped schemes are increasingly popular and are strongly encouraged for all districts, the project team observed several piped schemes during the site survey in the Central Highlands. It is estimated that by 2020, approximately 40% of all rural households will be supplied with piped schemes.

Poor people typically inhabit mountainous areas and often benefit from grant funds. Furthermore, work in these areas will also involve improving quality of life and this is a driving force behind GOV’s policy objectives, such as recognizing the lower rate of literacy and the need for information in minority languages.

Although there is an ample amount of data available in the various ministries dealing with water resources, it still needs to be organized at the central and provincial level to allow for improved water management.

It is recommended that each province set up a water resource and inventory database. This

19 will allow for the detailed investigation of groundwater, surface water, rainwater and potential for development of these resources.

Moreover, this investigation will be able to clearly demonstrate the need for an improved water management and protection plan throughout Vietnam, which will ultimately lead to a more effective NRWSS and improve the coordination between national and local governments and also between provinces.

Vietnam faces formidable challenges regarding water supply. It is estimated that 1 billion people in Asia will face a water supply shortage in the 21st century. The NRWSS is already making considerable progress and has set up an Action Plan that includes pilot implementation of the NRWSS in 15 provinces in 2005. This initial Action Program will determine the feasibility and soundness of the strategy and identify areas that need to be rectified.

In addition, the initial Action Program will include a focused education campaign. Prior to implementation, surveys will be conducted to tailor each education campaign to the specific region and attention will be given to local minority languages and also the literacy level. These educational activities will take place through radio and television, books and advertisements, face to face meeting and also be integrated into other campaign that teach family planning, poverty alleviation and also agriculture.

After two years of successful pilot implementation, the RWSS will expand in 46 other provinces; these provinces will be divided into 4 groups of 11-12 provinces for subsequent annual implementation. This stage will also include increased international cooperation. Laws regarding water resources, environmental protection and people rights may also be amended to allow for smooth project implementation.

There will also be an emphasis on human resources development and training of local staff to carry out the necessary duties for project implementation. This may include training courses at local Universities or vocational schools in addition to the normal workshop and short training courses. Appropriate mechanisms for funding will be identified and organizations that act as the implementing bodies will be given the responsibility of handing the government supported grants and loans.

Additional research and development will be carried out in regards to NRWSS

20 technologies and manuals will be drafted to provide guidance to local regional conditions. Finally, efforts should be made to create a water resources database that may serve as a source of detailed information for future water resource development and policy level legislation.

These initial efforts are expected to be completed around 2005 but may be delayed. Once the initial program has been successfully carried out for a minimum of two years, the NRWSS will expand to 46 other provinces and it is hoped that this will alleviate the water shortages and concerns for rural people in Vietnam thereby making a significant improvement to their life and also the region.

This section provided a general outline of the water supply policies and future initiatives. The following section will provide more details regarding specific information in the targeted project sites.

4 Overv iew of the Site Survey

4.1 Location, Topography and Climate

Vietnam is situated on the eastern part of Indochina peninsula and covers an area of 325,360 sq. km. Its land borders are with China in the north, Laos and Cambodia to the west. Vietnam also borders several bodies of water including the Gulf of Tonkin, the Gulf of Thailand and a long coastline stretching 3,444 kilometers.

The country is divided into the following eight economic regions:

9 North Central Coast : Bac Trung Bo (BTB) 9 Mekong River Delta : Chau Tho Song Me Kong (CSM) 9 Red River Delta : Chiru Tho Song Hong (CSH) 9 Northeast: Dong Bac (DOB) 9 Northeast South : Dong Nom Bo (DNB) 9 South Central Coast : Nam Trung Bo (NTB) 9 Northwest : Tay Bac (TAB) 9 Central Highlands : Tay Nguyen (TNG)

Vietnam has a diverse topography of plains, midlands, mountains and forests. Three quarters of Vi etnam is mountainous and forests cover the majority of the country. There are 2,860 rivers of which the two biggest ones are the Red River in the North and the Mekong River in the South. Due to the topographical situation, northern rivers flow vigorously during the rainy season and the currents of southern rivers are relatively peaceful due to the flat plains. There are two large deltas in Vietnam; the Red River Delta is 15,000 square kilometers and the Mekong River Delta, which is nearly twice its size.

Much of the Central Highlands is a series of flat plateaus, inhabited mainly by various ethnic groups. The ethnic minorities of the Central Highlands are composed of various tribes, the most prevalent being the M'nong, the Ede, and the Bannar. These groups may appear to be similar but are culturally quite different. Most villages consist of thatched single family houses arranged around a central communal longhouse, called a nha rang in Vietnamese, raised on stilts at the center of town where all ceremony and governance take place. Each group has a particular style of nha rang, the most dynamic being the Bannar

22 style of an over-three-story-high peak of thatch, but each kind of nha rang is an important symbol of community-respective groups and the center of worship and colorful ceremony.

The Central Highlands, called Tay Nguyen in Vietnamese, is made up of five provinces: Kontum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong, stretching along the high ridge of the Trong Son Mountain Range of the Annamese Cordillera that serves as a natural border between Vietnam and nearby Laos and Cambodia. With the increase in altitude, the temperature in the highlands is cool, ranging from between 18°C and 25°C.

Vietnam belongs to a typical Asian monsoon climatic zone. Warm temperatures, high humidity and abundant seasonal rainfall typify this climate zone. Vietnam has nearly 2,000 hours of sunshine per year on average, approximately 100 days of rain with an annual amount of 2,000 mm, and humidity is high at around 85%. Typhoons influence regional weather patterns in northern areas during the months of September and October.

Table 4.1 and Figure 4.1 show the climate data, temperature, days of sunshine and humidity in both Pleiku and Hanoi. Pleiku is the largest city in the Central Highlands where the survey sites were located and represents typical conditions for this region. As demonstrated in the table below, there is a high amount of insolation throughout the year in the Central Highlands and also rainfall drastically decreases in the months of October to February during the dry season. This often results in severe water shortages for local villages and demonstrates the need for improvements in the water supply.

Table 4.1 Climate Data of Vietnam

City Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Average Sun Shine Hanoi 36 64 46 74 141 185 121 160 122 148 136 161 116 (Hr) Pleiku 256 288 262 247 232 140 163 124 156 221 258 259 217 Temperature Hanoi17.218.120.724.226.629.829.229.128.326.123.119.324.3 (℃） Pleiku 19.1 19.9 22.9 24.5 24.3 22.5 22.8 22.3 22.2 21.3 21.3 18.9 21.8 Rainfall Hanoi 6 29 45 161 335 229 366 247 107 8 24 28 132 （mm) Pleiku 40 52 248 694 290 349 208 6 8 2 158 Hanoi79838185827579838167757379 Humidity (%) Pleiku 81 76 76 78 83 91 91 94 90 84 80 79 84 Source : Statistical Yearbook 2004

23 Figure 4.1 Climate Data in Vietnam

Climate Data

Sun Shine (Hr) Hanoi Sun Shine (Hr) Pleiku Temperature (℃） Hanoi Temperature (℃） Pleiku

350 35

300 30

250 25

200 20

150 15 Temperature (℃） Temperature Sunshine (Hr) 100 10

50 5

0 0 . . n b. ril e ly g. v rch p u o Ja Fe a A May Jun J Au Sep. Oct. N Dec. M Average City

4.2 Results of the Site Survey

We requested the Industrial Departments (ID) of all five provinces to provide data for villages that are expected not to be candidates by 2010 for the power grid extension plan. The Industrial Departments have specific plans to expand the power grid to remote areas by 2009. However, there are no plans to supply power to the remaining villages after 2010. Out targeted areas are these non-electrification that are typically difficult to reach during the rainy season even by 4 WD vehicles, these areas are also a great distance from distribution lines.

After permission was granted to conduct the survey in the region, the team obtained information regarding the power situation. However data for water resources in each of the villages is not readily available. Therefore, in order to understand the situation of villages in each province, the consulted with ID and determined the most appropriate sites.

24 Most of the villages have small privately owned wells with a depth of around 5-20 meters as they do not have the technology to dig deeper than 20 meters and this therefore limits their water supply. They lift up the water by hand in most of these wells and cannot afford diesel engines to assist with the lifting.

Villagers state that potable drinking water is the most vital component of their life and they requested improvements in this area during interviews. The team understands that some villages need not only power but also deeper wells and a reliable supply of water.

4.2.1 Target Areas

(1) Kon Tum Province

Kon Tum province is 9, 614 km2 and has seven districts with a population of 316,000. Its population density is the lowest among the five provinces in the Central Highlands. According to the data from ID Kon Tum, there are 18 non-electrified villages that are difficult to connect to the power grid by 2010.

Populations in individual villages are small at around 100 to 300 for each village. There are also villages such as Mang Buk and Ngol Tem commune, which are located in mountainous areas (elevation more than 1500m) and are difficult to reach by vehicle. Most villagers can access spring water for drinking from a pipeline in the mountains. However, in dry season, these areas often run dry and local people suffer from a lack of water. This requires them to walk 2-7 km in order to collect water for basic needs such as drinking and cooking therefore living conditions often worsen during this season becomes very difficult.

In our site survey, we visited four villages in Tu Mo Rong district; we chose six potential villages for our study and estimated the cost of system installation.

25 Table 4.2 List of Potential Villages in Kon Tum

Water No. of No. of Village Name Commune Name District Name Demand per Household Population day[kl] Tu Thon Dak Nen Kon Plong 61 274 13.7

Tia Plong 1+2, Ngoc Mo Mang But Kon Plong 135 648 32.4

G Dick TaCok 35 175 8.75 Dick Pet Ngoc Tem Kon Plong 42 194 9.7 i Mang Vach 40 183 9.15

a Dak King 1 Ngoc Lay Tu Mo Rong 39 179 8.95

(2) Gia La i province

Gia Lai province has 12 districts; a population of about 981,000 and it covers an area of 15,496 km2. The eastern area is mountainous and there are highlands in the west. At the time this report was written, it was planned that the western area would be electrified by 2010. Nevertheless, according to ID Gia Lai, there are still 11 non-electrified villages that prove quite difficult to be accommodated by this grid expansion plan and will probably remain without power. These 11 villages are located a great distance from the distribution lines and in the mountains. The situation is similar to Kon Tum.

Because of the lack of water, there is a water tank to store drinking water from a nearby mountain, however, this does not provide a sufficient amount during the dry season and villages suffer from a lack of water.

ID Gia Lai and Power Company Gia Lai both have a strong interest in this project and wish to further develop the Central Highlands, as Pleiku is the capital of Gia Lai and the largest city in the region, these organizations feel a certain responsibility to the minority people and have played a major role in assisting our efforts in this study. The support provided should not be underestimated and it is recommended that any future project implementation in the region would benefit from involving organizations.

In our site survey, we visited four villages in Dak T Pang and Mang Yang commune and we targeted six potential villages to compute a cost estimate.

Table 4.3 List of Potential Villages in Gia Lai

Water Distance No. of No. of Village Name Commune Name District Name Demand per from Grid Household Population day[kl] (km) L. Kon Vong 2 Dak Rong K Bang 44 220 11.0 12

L. Tung Kroong K Bang 63 315 15.8 10

Thon 7 So Pai K Bang 205 1025 51.3 1.5

Thon 8 So Pai K Bang 119 595 29.8 2

L. Kon Yot Ha Dong Dak Doa 45 225 11.3 2.4

Po Pau Lo Pang M Yang 60 300 15.0 3

Additionally, there is a Photovoltaic model site in Gia Lai. This site is well maintained by PC Gia Lai and the villagers are able to operate it without difficulties. (Please refer to section 4.3 for a more detailed description of this site)

(3) Dak La k and Dak Nong province

Dak Nong province was recently separated from Dak Lak province. These two provinces are 19,599 km2 and have 19 districts combined with a population of about 1,793,000. According to information received from ID Dak Lak and ID Dak Nong, most areas will be electrified by 2010 but there are still 37 non-electrified villages that will not be influenced by power grid expansion.

Since Dak Nong recently became independent, ID Dak Nong has an aggressive attitude toward improving in its newly formed province. Therefore, individuals were very in assisting the team with our survey and welcomed any type of project that may further development.

Non-electrified villages are primarily located in the mountains and residents depend on wells and mountain streams for water. The wells are usually in the village center and utilize poorly hand made water tube lines to draw water from the rather distant mountain streams. Although the water quality is sufficient for drinking, (please refer water quality data in section 4.2.2) the amount of water drawn from these two sources is extremely low at roughly 1 liter per person per day. In addition, this amount decreases during the dry season making it difficult for residents to accomplish basic tasks such as washing.

27 If river water becomes undrinkable due to the high silt and dirt content, the villagers then use water from wells and mountain streams for drinking purposes. Due to this unfortunate situation, villagers have adapted to a lifestyle with limited potable water. For example, locally grown agricultural products typically require very little or no irrigation and villagers have become accustomed to washing their bodies and clothes with murky unclean water.

The team visited Buon Cham village in Dak Lak where the similar project was carried out in the past. (Please refer to section 4.3 for a more detailed description)

In our Dak Nong survey, the team visited potential villages to compute a cost estimate for project implementation. The villages selected are in both provinces, 8 are in Dak Lak and 7 are in Dak Nong are listed below.

Table 4.4 List of Potential Villages in Dak Lak

Water Distance No. of No. of Village Name Commune Name District Name Demand per from Grid Household Population day[kl] (km) Se Dang Ea Kiet Cu M'gar 120 500 25.0 10

Buon Tria Ea Trul Cu M'gar 100 500 25.0 5

Thon Yang Hanh Cu Dram Krong Bong 352 1408 70.4 15 Buon Cham Ea Sol Ea H'leo 150 900 45.0 8 Ton Thanh Xuan Ea Kenh Krong Pak 140 560 28.0 6.5 Ton Thanh Binh Ea Kenh Krong Pak 147 588 29.4 6.5 Thon 7A Ea Phe Krong Pak 130 520 26.0 3

Thon 7C Ea Phe Krong Pak 125 500 25.0 3

Table 4.5 List of Potential Villages in Dak Nong

Water Distance No. of No. of Village Name Commune Name District Name Demand per from Grid Household Population day[kl] (km) Doc 3 Tang Nam Nung Krong No 95 395 19.8 7

Thac Lao Eapo Cu Jar 80 345 17.3 8

Dak Mre Quang Tan Dak R Lap 200 915 45.8 15 Cac cwn dan cur Dak R Mang Dak Glong 592 3101 155.1 15 xa Dak R Mang Deo 52 Quang Son Dak Glong 77 405 20.3 12

Khu KTM Ha Tay Quang Son Dak Glong 112 384 19.2 15

Thac 11-12 Quang Son Dak Glong 394 1904 95.2 10

28 (4) Lam Dong province

Lam Dong province has a population of just over 1 million at 1,004,000 and consists of 11 districts and is similar in size to Kom Tum at only 9,764 km2. Topography consists mainly of highlands but there are also many villages that the government finds difficult to electrify by 2010. The team obtained information for 33 non-electrified villages, that according to ID Lam Dong will not benefit from the planned region wide power grid expansion.

The village populations are typically larger than that of Kon Tum, Gia Lai and the households are also more clustered around a central location. This situation is ideal for installation of a photovoltaic system that will supply power and water to village residents. Local income is derived from coffee and pepper production and villagers collect water from small privately owned wells. As with the other provinces, they suffer from a lack of water in the dry season and must walk long distances to streams in order to collect water for basic necessities.

In our site survey, we visited 3 villages and chose 10 target villages to compute the cost estimate in our study.

Table 4.6 List of Potential Villages in Lam Dong

Water Distance No. of No. of Village Name Commune Name District Name Demand Per from Grid Household Population Day [kL] (km) Thon Pre Tieng 2 Xa Phu Son 324 1237 61.85

Thon Van Minh Xa Tan Van 210 918 45.9

Thon 10 Xa Da Don 221 938 46.9

Thon 3 117 864 43.2 IV Lam Ha Thon 5 Xa Tan Thanh 185 1021 51.05 3km or Over Thon 8 171 910 45.5

Thon Ha Lam 215 804 40.2 Xa Lien Ha Thon Lien Ha 1 186 825 41.25

Thon 11 Xa Hoa Nam VII Di Linh 201 1005 50.25

Thon 13 Xa Hoa Nam VII Di Linh 205 1025 51.25

29 4.2 .2 Water Quality of Target Villages

The water quality of rural areas will be the determinant as to whether purification equipment will be included in the project scheme. The project team collected water from various locations and the following list contains a complete water quality analysis for the targeted sites. The testing was conducted at the Institute for Environmental Technology, Laboratory for Environmental Analysis in Ho Chi Minh City. Drinking water standards are also listed to allow for a comparison.

For values not included in the drinking water standards, it is assumed that the tested samples are within the limits and water is suitable for drinking purposes. As set forth by the Minister of Health and the People Health Protection Law, all water supply plants, water suppliers for eating/drinking, water supply systems for less than 500 people and private water supply systems are recommended to adhere to these standards.

According to the following data, purification equipment is not required for this project scheme. There is no significant contamination of the well water and it is deemed suitable for drinking. Furthermore, salinity values in this region are negligible and desalination equipment is not required.

Table 4.7 Drinking Water Standards Compared with Samples

No Item Unit Drinking Sample Water 1 2 Standards 1 pH 6.5-8.5 7.31 6.77

2 Total Dissolved mgCaCO3/ <1000 61.5 199 Solid L

3 Nitrate NO3 mg/L <50 3.15 51.0

4 Nitrite NO2 mg/L <3 ND ND 5 Fluoride mg/L .7-1.5 0.41 0.99 6 Chloride Cl- mg/L <250 12.4 137.0 7 Total Nitrogen mgN/L 0.68 11.54

8 Sulphate SO4 mg/L <250 78.6 65.8 9 Total Inorganic mgC/L 72.6 104 Carbon

10 Hardness mgCaCO3/ <300 117 144

30 L 11 Iron µg/L <500 87 76 12 Lead µg/L <10 ND ND 13 Cadmium µg/L <3 ND ND 14 Arsenic µg/L <10 0.65 0.90 15 Manganese µg/L <500 60 4

(1) – Sample of well water from DA K RMANG com mune DAK NONG Province (2) – Sample of well water from DA K PA TUNG comm une GIA LAI Province ND = Not detected

Although the above list contains t wo values that are not within s tandards, Dr. C u, the Chief Director of the Laboratory for Environmental Analysis assure d the project tea m that these values do n ot pose a problem. According to Dr. Cu, it is difficult for natural water to have a Fluoride value between .7 and 1.5 and values a re generally a health risk only when

they exceed 1.5 mg/L. For the N itrate NO3, the value of 51 should “not be a concern” and it is included for reference only. D r. Cu concluded t hat in his pr ofessional opinio n, the water samples are sufficient for drin king and do not re quire any puri fication equipm ent.

Table 4.8 Drink ing Water Standards Compared with Sa mples

No Item Unit Drinking Sample Water 1 2 3 4 (*) 5 Standards 1 pH 6.5-8.5 7.16 7.01 7.15 6.56 7.39 2 Total mgCaC <1000 16.0 13.0 9.0 7.6 13.0

Dissolved O3/L solid 3 Nitrate mg/L <50 < 0.35 < 0.35 < 0.35 < 0.35 < 0.35

NO3 4 Nitrite mg/L <3 ND ND ND ND ND

NO2 5 Fluoride mg/L .7-1.5 ND ND ND ND ND 6 Chloride mg/L <250 1.9 2.2 1.86 1.0 3.8 Cl 7 Total mgN/L 0.25 0.014 0.26 X 0.0028

31 Nitrogen 8 Sulphate mg/L <250 ND ND ND ND ND

SO4 9 Total mgC/L 21.27 21.11 9.2 13.84 2.89 Carbon 10 Hardness mgCaC <300 31.2 25.0 11.0 X 2.5

O3/L 11 Iron µg/L <500 5.0 83.0 16.0 5.0 5.0 12 Lead µg/L <10 < 0.2 < 0.2 < 0.2 0.2 <0.2 13 Cadmium µg/L <3 < 0.2 < 0.2 < 0.2 < 0.2 <0.2 14 Arsenic µg/L <10 < 0.1 0.1 <0.1 <0.1 <0.1 15 Mangane µg/L <500 3.0 0.7 0.9 0.2 0.2 se

(1) – W ater sample fro m Fuji Electric PV+MH Site in Gia Lai (2) – Water sample from TOM MO RONG Village in KOM TUM Province (3) – Water sample fr om tank in TO M MO RO NG Village in KOM TU M Province (4) – Water sample from tank in PO DAN Village, MANG YANG commune in GIA LAI Province (5) – Water sample from mountain stream in PO DAN Village, MANG YANG commune in GIA LAI Province ND = Not detected

4.3. Showcase of Existi ng Off-Grid P ower Systems

(1) Fuji System in Gia Lai

Fuji Electric Systems and ID Gia Lai recommended the team to visit a model project site in Gia Lai. Fuji Electric Systems in cooperation with the New Energy and Industrial Technology Development Organization (NEDO) and the Electricity of Vietnam (EVN) initiated a PV village electrification project for the Central Highlands. Although the system’s purpose was to serve as demonstrative research, it greatly improved the lives of local residents and remains in operation to this day.

Figure 4.2 External appearance of PV yard

99.5kW 880 modules Data acquisition Meteoro system 3Φ4W MC1 415V 26.64kW/10s×24p Gret village 111W Module <> PleiBot village Sequencer MC2 Hlang village PV 26.64kW/10s×24p Inverter DC246V System 111W Module (230V～330V) Premises MC3 22.20kW/10s×20p Test Load Transformer 111W Module 100kVA 400V/415V To MH MC4 Controller 24.00kW/20s×10p 120W Module Battery 689kWh <> 2800Ah/246V

Water Intake Water 3Φ,415V MH Turbin 25kW System Hybrid Induc Controller ti Source: Fuj i Electric Systems

The system was designed to optimize the configuration of a stand-alone hybri d system between PV a nd Micro Hydro Power taking into account both reliability and cost. It was located at Trang Village, Mang Yang distri ct in Gia Lai provinc e and consists of a 100 kW stand alone PV system and a 25 kW micro-hydro system that provides power to 510 households in 3 different villages.

Furthermore, the training and technology program consisted of specifications for the project, an instruction manual, an operation manual and also PV experts conducted on- the-job training sessions during site visits. Finally a meeting was held with individual s from Gia Lai Electric Power Company r egarding the long-term operation and maintenance of the system.

33 Figure 4.3 Organization of the Fuji Electric PV System Project

Ministry of Science, Ministry of Industry Technology and Environment

NEDO Counter- Electricity of part Vietnam

Fuji Electric ＜Study＞＜Maintenance, Operation＞

Institute of Power Company (Electric power company Energy No.3 of central Vietnam) （Institute under Electricity of Vietnam） Gia Lai Electric (Electric power company Power Department of Gia Lai Province) Source: Fuji Electric Systems

Prior to project implementation, this area had not been electrified and lagged behind in economic development. Furthermore, the use of kerosene lamps for lighting made it difficult for children to study in the evening. The project improved the quality of life as every house was supplied with electric lighting and villagers were then able to socialize in the evening and children could continue to study after sunset.

Test operations began in September 1999 and actual operations began in January of 2000. Gia Lai Electric Power Department also dispatched two operators who stayed near the site to assist with operation and maintenance. The technicians successfully transferred this knowledge to local people so they could operate the facilities themselves thereby ensuring long-term sustainability. The research program ended in 2001, however, villagers continue to enjoy the immense benefits of this program and the project has enriched the lives of so many who once only knew darkness.

Through this system, a myriad of different opportunities have opened up and children are now raised with the hopes and dreams of a brighter future. This would not have been possible without the cooperation and warm relationship between the governments of Vietnam, Japan and their respective businesses and implementing organizations.

34 (2) Buon Cham System

In addition the project site in Gia Lai, representatives from Solarlab in Ho Chi Minh City and ID Dak Lak invited the team to visit a PV project site in Dak Lak known as Buon Cham Village. The team’s visit to the site would prove invaluable as a comparison could be made with the system in Gia Lai. The Ministry of Science, Technology and Environment (MOSTE) Vietnam and NRW Germany developed this village under photovoltaic power scheme. Upon its completion in 2002, it provided power to 100 households, a cultural house, 2 classrooms, medical service, ration telephone, water pumping equipment, and library lighting.

Buon Cham Village was intended to be a showcase village that demonstrates the benefits of such a system and according to a report in written in 2002 shortly after its completion, it stated that the lives of villagers have drastically changed and people no longer live in isolation. They now enjoy color TV’s, radios, lighting systems and regularly enjoy traditional dancing, karaoke and could spend more time reading and socializing with other villagers.

However, the project team visited Buom Cham village on January 17, 2007 and was presented with a different situation. At the time of the site survey, villagers reported that equipment frequently broke down and the PV system at the cultural house was inoperable. Many villagers expressed frustration that they could no longer utilize their systems and were receiving little help from outside sources.

35 Figure 4.4 Outline of Buon Cham Village

Source: Buon Cham Village Documents from Solarlab

According to the Buon Cham village documents and interviews with villagers, it seems that this project was thoroughly planned and that all necessary conditions had been met, further investigation by the project team confirmed this fact, the problem was project implementation.

The issues that this village faced can provide important lessons for any future PV/water pumping scheme in this region. There are several reasons why Buon Cham village is in its current predicament. This information should be used for future projects to ensure that this is not repeated.

Please refer to the following section for a brief description of project flow and problems encountered at Buon Cham Village.

36 Figure 4.4 Outline of Project Flow for Buon Cham Village

Installation and Training 14 day installation and training period 3-4 days for installation 10 days for training and instruction 3 local villagers sent to HCMC for 7 day training course on PV maitenance

Fees and O/M 100 families, each agree to pay 5000 VND/month 500,000 VND/month 400,000 VND as salary for 3 staff and 100,000 for any needed repair parts

Fee Collection Responsibility of village leader and 2 assistants

Problems Failed to collect payments, only 20 households pay Unable to pay salaries of technical staff Forced to refund money to 20 families No maitenance scheme implemented

Source: Buon Cham Village Documents from Solarlab

Consequently, the technicians did not receive their salary and returned to farming work. When a minor problem did occur with system components, villagers contact one of the technicians and pay directly for any work performed. There was no standardization of fees collected for work performed; apparently the fee is based on consensus with the technician and the villager. Although this system worked for approximately one year with no major malfunctions, it was apparent that it would not lead to long-term project sustainability. In 2003, there was a breakdown of the main batteries and control system at the cultural house. This was repaired by the district at a cost of 120 million VND and paid for by a district subsidy. Similarly, in 2004 another breakdown of the same parts occurred and it also cost 120 million VND paid for by a district subsidy to repair the problem. Finally in 2005 when the same problem occurred again, the district denied the subsidy and the system has been inoperable since that time.

37 5 Photovoltaic Electric Power and Water Supply System Proposal

The proposed system design for this project was based on many factors. The team collected village information for targeted areas such as number of households, total population and mean water intake etc…during the site survey and also obtained it directly from the respective Peoples Committees in the Central Highlands (Gia Lai, Kon Tum, Dak Lak, Dak Nong and Lam Dong) for system design.

Table 5.1 Village List for System Study

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total Number of Potential Village66871037

Number of population people 2,680 1,653 5,476 7,4 49 9,547 26,805

Number of household family 536 352 1,264 1,550 2,035 5,737

5.1 Study of Optimum System

(1) Selection of target project villages The following factors were taken into consideration to determine the ideal system design for this project. 1. Selection of non-electrified villages in the Central Highlands 2. Number of households and inhabitants 3. Data used for system specification design: ・ Electric power demand for household and pumping system ・ Water demand per household ・ Well depth and head 4. Electric power needed for household electrification and pump operation 5. Calculation of the expected photovoltaic power generation using regional insolation data

38 6. Determination of solar cell module, inverter and battery capacity

(2) Pre-conditions for Optimum System Design

The team conducted a survey of rural villages to determine the appropriate system design based on the specific needs and desires of the villagers and also similar projects in the same area. For this specific project, it is assumed that villagers will utilize two light bulbs, a TV, radio and electricity can be supplied for approximately 4 hours a day. Furthermore it is assumed that each villager will have access to 50 liters of water per day per person. These factors were taken into consideration for system design in order to best suit the requirements of villagers and also to ensure project sustainability.

Table 5.2 Pre-Conditions of the System

Capacity Number Total Capacity Light 20 2 40 Item Television 50 1 50 [W] Radio 10 1 10 Consumption of Electric Power per Household 100[W] Supply Time of Electric Power 4 hours/day Consumption of Water per People 50 liter/day/people Well Depth from Ground Surface 15m Wat er Level in Hi-tank from Ground surface 10m

Operating Time of Water Pump 5 hours/day

39 Figure 5.1 Image of the Project

Rural Electrification Photovoltaic Array Junction box Premises

Battery Inverter Fluorescent lamp Village charger (CVCF)

Battery

TV Village

Pumping up water Hi-tank

Irrigation water Deep well Small pump Submersible pump Drinking water Water tap

5.2 Cost Calculation

In the original proposal, the team planned to recommend three project components, PV powered water pumping, PV electrification and water purification. In this chapter the team calculated the PV powered water pumping and electrification.

Following thoughtful consideration, the team concluded that water purification was not necessary in this region due to the high quality of water and its lack of both contaminants and salinity. The team therefore omitted this section from the project report.

(1) Cost Calculation for PV Powered Pumping Equipment

First, the team focused on a PV powered system that pumps up water. The team then prioritized villages and attempted to focus on non-electrified villages that have relatively large populations and deep wells. However, despite our efforts, many of the non-electrified villages in this region have small privately owned shallow wells that were also included in this study.

Table 5.3 Cost calculation of PV system for Pumping Equipment

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total

Number of Village 6 6 8 7 10 37

Numb er of population people 2,680 1,653 5,476 7,449 9,547 26,805

Number of household family 536 352 1,264 1,550 2,035 5,737

Necessary of electric power kWｈ/day 33 20 66 90 116 325 for pump-up Necessary of water m3/day 134 83 274 372 477 1,340

Necessary Capacity of kW 7 4 13 46 23 93 motor

Capacity of PV for pump- kW 16 10 33 45 58 163 up

Assuming the villagers use 50 liters per day per person, the total capacity of the PV system would be 163 kW.

The formula for configuration of the system is listed in Appendix 5

(2) Cost calculation of PV system for Household Electrification

The team confirmed there is a strong need and desire for lighting and appliances such as TV during the site survey. The following information relates to PV household electrification.

The team examined both solar home systems (SHS) and battery charging station (BCS) as optimal PV systems. The SHS system is advantageous for a village with scattered households and small power demand. However, the 37-targeted villages all have relatively large populations and power is expected not only for household electrification but also for pumping equipment. The team therefore concluded that the ideal system should be BCS in this study.

The necessary electric power for a BCS system is calculated as follows,

41 Table 5.4 Cost Calculation for Household Electrification

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total

Number of Village 66871037

Number of population people 2,680 1,653 5,476 7,449 9,547 26,805

Number of household family 536 352 1,264 1,550 2,035 5,737

Necessary of electric power kWh/day 214 141 506 620 814 2,295

Capacity of PV kW 107 71 253 310 408 1,149 for electrification of household

Capacity of Battery for households kWh 536 352 1,264 1,550 2,035 5,737

Assuming the villagers’ use one 100-Watt light bulb per household, the total capacity of PV would be 1.149 MW and a battery would be required to store the power. Capacity would be 5,737 kWh.

The formula for system configuration is in Appendix 6

42 6 Economical Analysis of the Project

6.1 Initial Cost

The project equipment consists of water pumping system (including water tank) photovoltaic array and battery. Assuming the standard equipment components mentioned above, the team estimated the initial cost for both water pumping and household electr ification (Battery Charging Station).

(1) Initial Cost for Water Pumping System configuration and cost estimate for Water Pumping System are as follows,

Figure 6.1 Water Pumping Equipment

Photovoltaic System 1 Solar Cell Module 2 Inverter Photovoltaic Array Junction box 3Controller High tank 4Frame 5 Junction Box Irrigation water Pump-up System Inverter 1Pump (VVVF) Water tap 2 Water Tank Electricity 3Controller Deep Drinking water Water well Construction Work Submersible Pumping up water 1Material pump 2Labor Fee Supervisor / Engineer / Worker

Table 6.1 Cost Estimate for Water Pumping

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total Number of Village 66871037 Number of population people 2,680 1,653 5,476 7,449 9,547 26,805 Number of household family 536 352 1,264 1,550 2,035 5,737 Necessary Electric Power kWh/day 32.5 20.0 66.4 90.3 115.8 325.1 Necessary Water Amount m3/d 134.0 82.7 273.8 372.5 477.4 1,340.3 Pump Capacity kW 6.5 4.0 13.3 45.9 23.2 92.8 Photovoltaic Capacity kW 16.3 10.0 33.3 45.2 58.0 162.8 Ⅰ Photovoltaic System Million Yen 11 7 22 30 38 108 Ⅱ Battery System Million Yen 000000 Ⅳ Pump-up System Million Yen 28 17 58 85 101 288 Ⅵ Construction Work Million Yen 3257926 Total System Cost Million Yen 42 26 85 122 148 423

43 (2) Initial Cost for Household Electrification (Battery Charging Station) System configuration and cost estimate for Battery Charging Station are as follows,

Figure 6.2 Equipment for Household Electrification (Battery Charging Station)

Photovoltaic System 1 Solar Cell Module 2 Controller

3Frame Photovoltaic Array Rural Electrification 4 Junction Box Junction box Battery Charging Station 5 Battery Charger Battery Battery System charger 1Battery

Construction Work 1Material 2Labor Fee Battery Supervisor / Engineer / Worker

Table 6.2 Cost Estimate for Household Electrification (Battery Charging Station)

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total Number of Village 66871037 Number of population people 2,680 1,653 5,476 7,449 9,547 26,805 Number of household family 536 352 1,264 1,550 2,035 5,737 Necessary Electric Power kWh/day 214.4 140.8 505.6 620.0 814.0 2,294.8 Photovoltaic Capacity kW 107.4 70.5 253.2 310.5 407.7 1,149.3 Battery Capacity kWh 536.0 352.0 1,264.0 1,550.0 2,035.0 5,737.0 Ⅰ Photovoltaic System Million Yen 64 42 150 184 242 682 Ⅱ Battery System Million Yen 117263242119 Ⅳ Pump-up System Million Yen 000000 Ⅵ Construction Work Million Yen 18 12 41 51 66 188 Total System Cost Million Yen 93 61 218 268 350 990

6.2 Operation Cost

As the previous section only estimated the initial cost of the project, it is also necessary to compute the Operation Cost as well. Therefore, the maintenance cost is calculated by multiplying the cost of each component by a fixed rate as follows:

Table 6.3 Maintenance Cost of the Equipment

System Fixed Maintenance Cost Rate Photovoltaic System 0.1% / System cost Pumping System 0.2% / System cost

Photovoltaic arrays and another incidental devices often require a minimum amount of maintenance as they generate power from insolation. The primary O&M cost is due to the necessity of battery replacement. The battery for the proposed system is expected to last at least 10 years, after which it will need to be replaced and the cost is estimated to be approximately the same as the initial battery.

The team will estimate the cost for the total system combining both water pumping and household electrification components. Table 6-4 shows the total O&M costs of each province.

Table 6.4 Maintenance Cost and Battery Replacement

Cost of Maintenance K Yen 131 83 288 383 482 1,367 Replace Cost of Battery K Yen 1,115 732 2,629 3,224 4,233 11,933 Total O&M Cost K Yen 1,246 815 2,917 3,607 4,714 13,300

6.3 Economic Analysis of the System

According to interviews, for villager’s that own livestock or cultivate certain cash crops, their capacity to pay for this region is around 300 yen/month. However, many poor villagers receive no monetary income and it is impractical to assume that villagers will be able to reimburse the initial cost of 1.412 billion Yen (about 53,000 Yen per person); therefore, the project team recommends the government to subsidize this cost.

If the government subsidizes the initial cost of the project, villagers will be responsible for only the O&M cost. Assuming the generated power sells at a rate of 600 VND/kWh, total power sales would be 3,706,000 Yen / year. This would result in a monthly electric fee of about 50 yen/month. Although this is well within the their financial means, it is

45 recommended that villagers pay an additional 140 yen/month to act as a reserve fund to cover system O&M. In addition, the project team also recommends that the government also subsidize the electricity fee for poor villagers that are unable to pay. These payments will cover the costs of any major malfunctions, battery replacement and also ensure the long-term sustainability of this project.

Based on the above calculations, it is estimated that the total rate will be approximately 190 yen/month (140+50) and this revenue will be used for maintenance of the PV pump and also battery replacement.

Table 6.5 Economical Analysis of the System

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total Number of Village 66871037 Number of population people 2,680 1,653 5,476 7,449 9,547 26,805 Number of household family 536 352 1,264 1,550 2,035 5,737 System Cost of Water Pump M Yen 42 26 85 122 148 423 System Cost of HH Electrification M Yen 93 61 218 268 350 990 Total System Cost M Yen 134 87 303 390 499 1,412 Cost of Maintenance K Yen 131 83 288 383 482 1,367 Replace Cost of Battery K Yen 1,115 732 2,629 3,224 4,233 11,933 Total O&M Cost K Yen 1,246 815 2,917 3,607 4,714 13,300

Auunal Sales of Electric Power K Yen 346 227 817 1,001 1,315 3,706 (Average: about 50 yen/Household/month) Reserve Fund For O&M K Yen 900 591 2,124 2,604 3,419 9,638 ( 140yen/Household/month) Total Income K Yen 1,247 819 2,940 3,605 4,734 13,345

46 7 Environmental Concerns and Socio-economic Impact

Prior to the project implementation stage, it is necessary to consider the impact on the environment implementing organizations should demonstrate that the project does not adversely influence the local area. In addition to environmental concerns, the expected benefits that may be incurred are also mentioned in order to demonstrate the total project impact.

7.1 Environmental Concerns

The study follows “Japan Bank for International Corporation (JBIC) Guidelines for Confirmation of Environmental and Social Considerations” published by JBIC in April of 2002. According to the guidelines, “18. Water Supply” the following environmental items are taken into consideration for this project.

Table 7.1 Consideration of JBIC Guidelines

JBIC Guide Line Consideration Category Environmental Item Items applicable to the Project Appraisal & Preventive Measures (1) EIA and 1 Pe rmits and Environmental Permits （Omitted） (Will be studied in the next stage) Expl anation (2) Explanation to the Public (1) Air Quality Not applicable - Underground water pollution induced (2) Water Quality Will be designed not to pump up excess water by excess water pumping

R/O waste water 2 Mitigation (3) Waste Waste water and oil during Managed accoding to manual Measures construction N/A (4) Noise and Vibration From pumps Due to small scale (5) Subsidence One due to excess water pump-up Will be designed not to take excess water Applied if the site is in National Park N/A (1) Protected Areas or so Due to no nearby protected areas 3 Natural Applied if there is species influenced Environment N/A (2) Ecosystem by machine installation or water Due to no negative impact on species pump-up N/A (1) Resettlement Land occupation Due to abundant space N/A (2) Living and Opportunity cost of land occupation Because the plant is established in an open Livelihood or water pumping space and purpose of underground water is not 4 Social changed Environment Applied if there is natural or cultural N/A (3) Heritage hearitage around Due to no signifigant effects N/A (4) Landscape Existance of plant itself Because of its small scale (5) Ethnic Minorities Applied if there live minorities N/A and Indigenous Peoples around Because this project benefits minorities (1) Impacts during Exhausted gas and noise from heavy Managed according to construction manual 5 Others Construction equipment (2) Monitoring Quality of underground water Will be monitored periodically Note on Using 6 Note According to Vietnam N/A Environmental Checklist

47 Most of the above items are not problematic because the project scale in each village is relatively small and will have a negligible impact on the environment. The only environmental consideration is that the groundwater quality may be negatively influenced due to excessive pumping. Therefore, the system should be designed not to pump water that exceeds its capacity.

(1) PV System for Household Electrification

Photovoltaic power is a clean energy source and typically results in no negative environmental impact. It is often a safe alterative to diesel generators that generate noise and pollution along with power. However, the disposal of batteries is something that must be considered in any PV project. Based on the similar project experience, if there is not a well-structured system in place and no educational to alert local people to the dangers, batteries from the electrification system may result in environmental degradation.

Batteries used in PV systems contain certain chemical compounds that are detrimental to the environment and it is necessary to implement proper battery disposal methods to ensure long-term project sustainability. The team recommends that battery disposal programs take into consideration the following points:

¾ Disseminate information from the manufacturer to the user and persons responsible for disposal via manuals and/or the establishment of guidelines that clearly outline and describe the correct procedures for battery collection and disposal ¾ Establish a used-battery collection and storage system and an inspection agency to monitor this process to encourage local people not to randomly discard inoperable batteries ¾ Establish clear legally binding responsibilities as defined by regulations for user/manufactures

There are several firms that already deal with battery disposal in Vietnam. To ensure the long-term sustainability of this project, the team recommends close cooperation with these organizations to establish an appropriate battery disposal system.

48 7.2 Socio-Economic Impacts

Electrification is often the first step towards development, villages and municipalities that lack this basic service are often put at a disadvantage regarding job creation and education. Electricity is the link to more prosperous regions and a necessary conduit to improve the quality of life. Utilizing abundant natural resources is an ideal solution to provide power to remote regions and the high insolation in the Central Highlands makes photovoltaic power a safe and clean alternative to fossil fuels.

Rural electrification projects often provide more than just light, there are countless other direct benefits that villagers will enjoy. For example, without electricity, villagers typically use candles or kerosene lamps for lighting. This is often costly due to the high price of fuel and also dangerous due to the increased risk of fire. Electricity also allows children to study in the evening and also family entertainment such as radio and TV. Finally, the entire village can benefit as it brings people closer together as they can socialize though increased community interaction.

This project also involves water-pumping equipment that will reduce labor spent on hand pumps to collect water. The pumping equipment will also allow children more opportunities for studying as it may decrease the long distances required to collect water.

A summary of the expected benefits is in table 7.2.

Table 7.2 Expected Socio-Economic Benefits of PV System

Expected Benefits Reduce the possibility of oil leaks, lamp Improve convenience of daily life and breakage that may result in fires increase safety May use incandescent bulb as a night light External lighting Improve hygiene Reduce soot and smell from kerosene lamps Decrease money spent on kerosene fuel Improve the efficiency of domestic work (can be Decrease expenditures and increase done in the evening) and spare time can be used income to engage in handicraft industry Reduces time spent operating hand pump

49 Increase access to information TV, radio Lighting provides opportunity for home study Increase educational opportunity and extended study hours Electric lighting allows families to spend time Increase time spent with family and together in the evening and also to socialize with community other families Increase variety of hobbies and Entertainment media (TV, radio, movies) also entertainment spare time allows more time for personal hobbies Improve school facilities Lighting in schools Improve Communication (Speakers, announcements) Village Ac tivities Street lights make villagers feel safer in the evening

Along with the obvious direct benefits, there are also a number of indirect benefits that will further improve the quality of life at project sites. With increased community interaction and an active life, many project sites report that some relatives return from the city to the villages. This not only results in family benefits, but also possible income generation for the region and the mitigation of population imbalances.

Furthermore, external and internal lighting result in villagers caring more about the appearance of their habitations and they often strive to improve this through painting and improved sanitation. Finally, the benefits are not only in the villages but the entire region as th e increased education and higher literary further rural development, which eventually benefits all of Vietnam.

50 8 Conclusion and Recommendation

8.1 Conclusion

The development of the Central Highlands in Vietnam has become a major focus area; future project aid from various donors is expected to increase and together with Laos and Cambodia, it is often referred to as the “Development Triangle.” The Vietnamese government is dedicated to improving the living standards for residents of this area, especially the ethnic minorities and it is committed to major investments in its infrastructure over the next three years. Specifically, power grid extension investments in remote areas are now a high priority and the government is financing these efforts by funds provided by the central government and foreign donors. This is often done through social development programs that target rural mountainous regions such as “Program 135.” (See Appendix 4)

However, the team realizes that despite programs such as “135,” certain villages will remain without grid-connected power and also continue to suffer from a lack of potable water nearly throughout the year. The project team recognizes the need for development of this region and anticipates that a PV/water pumping project will drastically improve the quality of life for ethnic minorities that inhabit these areas.

The interviews conducted with numerous officials from the Department of Industry and Peoples Committees in each of the 5 provinces confirmed this dire situation. Furthermore, visits to non-electrified villages and discussion with local leaders solidified our opinion that there is a strong need to assist these disadvantaged areas. The local and central governments strongly support any effort for development.

These outlying areas with no access to electricity and potable water are currently restrained from development; they have limited opportunities and are in a sense isolated from the outside world. Therefore, the rural electrification of these areas using renewable energy has enormous social potential. In addition, the high level of insolation make PV systems an inevitable choice for small-scale electrification and the success of several functioning PV projects in the region further substantiates this fact.

The local government in the 5 provinces of the Central Highlands recommended 94 potential sites and based on local conditions the project team then selected the 37 most

51 appropriate sites. The total project cost is expected to be approximately 12 million USD with energy capacity totaling 1.3MW.

The most important aspect of this project though is that it will change the lives of 26,800 local people and future generations. The project scheme is an investment in social capital and human welfare that will provide meaningful returns for decades.

Although the initial costs of the project are high and villagers often do not have the knowledge to operate and maintain these systems, most were enthusiastic at the prospect and agreed to pay for operational costs (approxim ately 1.6 USD/month) to ensure the sustainability of the facilities. However, due to the high poverty rate and unfortunate economic conditions, they will most likely be unable to reimburse the initial cost of the project. In order for this project to be a success, it is necessary to obtain funding based on a grant scheme or through technical assistance funded by the central government.

This project encompasses two primary goals, the development/promotion of renewable energy sources that will reduce environmental degradation and also the improvement of social conditions for many ethnic minorities in the region. Although, this is a pre-feasibility study, it will provide the needed analysis and evaluation for future development in the area. It is therefore in the opinion of the project team that the general information for the Central Highlands and the conceptual design will serve as an invaluable resource for any future detailed development study.

8.2 Recommendation

During the site survey, the team realized that GOV had accelerated the grid-extension program and this resulted in the electrification rate increasing at a pace greater than the team’s expectation. Due to this, the team confirmed that the villages included in the chapter 4 were located in difficult locations and as of March 2007, were not expected to

52 be electrified by 2010.

The team recommends that if these villages are electrified at some point after the installation of the PV systems, this equipment should be transferred to a suitable location that remains outside the power grid and which will also benefit from its installation. For example, there are many islands in Vietnam with rural populations that rely heavily on diesel generators for their power needs. The generators require expensive diesel fuel and are harmful to the environment. PV power would provide a safe and clean alternative.

This would ensure that the equipment continues to people the maximum amount of people and is not simply abandoned. It would be in the best interest of Vietnam and its populace to utilize the equipment to the furthest extent possible. The project team therefore recommends that this type of transfer program be included in the next stage (full scale F/S) of the project.

Appendix 1: Itinerary of Site Survey and List of Interviewees

The schedules of three site surveys conducted in Vietnam are as follows:

First Site Survey

Itinerary/Activities

1 Sep 4 Mon Travel (Japan→Hanoi) 2 Sep 5 Tue Meeting (JICA, MARD-CERWASS) 3 Sep 6 Wed Meeting (VAST) 4 Sep 7 Thu Meeting (EVN-IE, MOI, JBIC) Meeting (EVN-Rural Electrification) 5 Sep 8 Fri Travel (Hanoi→Da Nang→Pleiku) Meeting (Gia Lai Electric, Gia Lai DOI) 6 Sep 9 Sat Site survey (DAC DOA) 7 Sep 10 Sun Site survey (MANG YANG) Meeting (Gia Lai Peoples Committee, PCERWASS) 8 Sep 11 Mon Site survey (DAC DOA, MANG YANG, Other Place) 9 Sep 12 Tue Site survey (DAC DOA, MANG YANG, Other Place) Meeting (Gia Lai Peoples Committee) 10 Sep 13 Wed Travel (Pleiku→Ho Chi Minh) 11 Sep 14 Thu Meeting (VAST, VFEC-HCM) Meeting (Solar-Lab, Pump Manufacturer) 12 Sep 15 Fri Travel (Ho Chi Minh→Japan)

Second Site Survey

Activities

Team A Team B 1 Oct 19 Thu Travel（Japan → Ho Chi Minh） 2 Oct 20 Fri Meeting（Solar Lab、VAST-IET） 3 Oct 21 Sat Prepare Documents/Briefing Materials 4 Oct 22 Sun Travel（Ho Chi Minh→Pleiku)

5 Oct 23 Mon Meeting （ID Gia Lai、Gia Lai Peoples' Committee）

6 Oct 24 Tue Site survey（Kon Tum） Meeting（ID Dak Lak/Nong）

Site survey（Dak Nong） 7 Oct 25 Wed Site survey（Kon Tum) Meeting（ID Dak Nong）

8 Oct 26 Thu Meeting（P-CERWASS） Meeting（ID Dak Lak）

Site survey（So Pai） 9 Oct 27 Fri Site survey（Dak To Pang） Meeting（PC Gia Lai） 10 Oct 28 Sat Prepare Documents/Briefing Materials

11 Oct 29 Sun Travel（Pleiku→Hanoi） Travel (Pleiku→HCM)

Meeting（Solar Lab, VAST-IET） 12 Oct 30 Mon Meeting（JICA、JBIC） Travel（Ho Chi Minh→ ）

13 Oct 31 Tue Meeting（EVN-IE,MARD） Travel（ →Japan）

Meeting（Japan Embassy） 14 Nov 1 Wed Travel（Hanoi→ ） 15 Nov 2 Thu Travel（ →Japan）

Third Site Survey

Itinerary/Activities

1 Jan 14 Sun Travel (Japan→Ho Chi Minh City) Travel (Ho Chi Minh City→Dalat) 2 Jan 15 Mon Meeting (ID Lam Dong ) Site Survey of Villages in Lam Dong 3 Jan 16 Tue Travel (Dalat→Buon Ma Thout) Meeting (ID Dak Lak), 4 Jan 17 Wed Site Survey of Buon Cham Village, Site Survey Dak Lak 5 Jan 18 Thu Travel (Buon Ma Thout→Pleiku) 6 Jan 19 Fri Meeting (ID Gia Lai) 7 Jan 20 Sat Travel (Pleiku→Danang→Hanoi) 8 Jan 21 Sun Arrange Meetings and Prepare Documents 9 Jan 22 Mon Meeting (Japanese Embassy, IE)

10 Jan 23 Tue Meeting (EVN, MOI,MARD)

11 Jan 24 Wed Travel (Hanoi→Japan)

List of Interviewees No. Name Specialty 1 Ms. Tran Hai Anh Project Officer, MOI 2 Ms. Nguyen Thi Kim Kan Officer, MOI 3 Dr. Pham Kh anh Toan Director, EVN-IE 4 Dr. Tran Th anh Lien Chief of International Cooperation Department, EVN-IE 5 Mr. Nguyen Tien Long General Manager of Department R&D of Solar and Wind Energy, EVN-IE 6 Dr. Nguyen Q uoc Khanh Energy & Economics, EVN-IE 7 Mr. Ho Anh Tuan Electric Network Department, ENV-IE 8 Mr. Nguyen The Vinh EVN-Rural Electrification Dept. 9 Mr. Msc Le Thieu Son Deputy Director, MARD-CERWASS 10 Mr. Ha Duc Chinh Technical and Technological Section, MARD-CERWASS 11 Dr. N guyen The Dong Director, VAST-IET 12 Ms. I tsuka I kehara Deputy Resident Rpresentitive, JICA Vietnam Office 13 Mr. Yasuhis a Ojima Representative, JBIC Hanoi Office 14 Mr. Hiroyasu Matsuda Representative, JBIC Hanoi Office 15 Mr. Trinh Q uang Dung Director, SolarLab HCMC 16 Dr. Bui Quan g Cu Chief of Lab. Environment and Water Analysis, VAST-IET 17 Mr. Hgo Van Sinh Deputy of the Chief of Provincial Secretary, Gia Lai People’s Committee 18 Mr. Bui Van Tam Director, Gia Lai P-CERWASS 19 Mr. NGUYEN Son Vic e Director, Gia Lai DARD 20 Mr. Phan Van Lan Director, Gia Lai ID 21 Mr. NGUYEN QUANG HIEN Director, Gia Lai PC 22 Mr. Vo Thanh Director, Dak Lak ID 23 Mr. Nguyen Bo Director, Kom Tum ID 24 Mr. Bien Van Minh Director, Dak Nong ID 25 Mr. Nguyen Tri Dien Director, Lam Dong ID 26 Mr. Nguyen Duc Tue Director, Department of Survey and Mapping 27 Mr. Vu Van Nghia Department of Survey and Mapping 28 Mr Nguyen Duc Cuong Head of Department, Rural Energy Development, IE 29 Mr Nguyen Ba Cuong Manager of Planning Department, IE

Appendix 2: Insolation Data for Vietnam

Appendix 3: Gia Lai Grid Extension Plan

Appendix 4: Summary of Program 135

Program 135 is a government program in Vietnam to assist the socio-economic development of communes located in mountainous, border or remote areas. The program is being conducted in two phases, the first phase was initiated in 1998 and phase two commenced in 2006.

Although Program 135 is not a National Targeted Program (NTP) it is usually considered as such. Unlike other programs that may focus on only poverty stricken areas, Program 135 specifically targets poor residents of remote mountainous areas/border regions and areas inhabited by ethnic minorities. Phase 2 implementation is taking place 2006-2010 and a short overview of the program is provided in the following section.

Overview of Program 135 (Phase 2) Overall -Achieve sustainable improvement of production skills to further development the Objective region, reduce poverty and mitigate the inequality gap. -In addition, it is meant to ensure the social order and political security in these regions. -Project goal is that by 2010, eliminate hunger stricken households in the target areas and the number of “poor households” should be below 30% (based on the 2005 poverty line) Program -Accelerate regional development and also shift the economic focus areas to benefit Task rural areas. -Develop infrastructure and strengthen social organization of the community that will ultimately improve the quality of life Scope -Phase 2 is expected to cover approximately 1,644 poor and mountainous communes in 45 provinces, which are home to the majority of Vietnam’s ethnic minorities. This involves all mountainous and highland provinces, any area inhabited by ethnic minorities in the southern provinces. Funding -The program budget is approximately $800 million and financing activities are grouped according to four broad components: basic infrastructure; improved and market-oriented agriculture production; improved socio-cultural livelihoods through better access to social services; and capacity building for officials at all levels to better implement the program.

Appendix 5: Formula for PV Water Pumping System Configuration

Configuration of proposal system

PV Inverte J-box Charge Moter Pump controller ~ PV

Calculation of Load Demand Driving power of a pump (P)

P = 0.163γQH / ηp where, Q : Amount of discharge [m3/min] H : Total head [m] γ : Density of liquid [kgf/l]

ηp : Pump efficiency

The output energy through 1 kW of photovoltaic system is calculated using the following formula;

P0 = R x K

P0 : Output energy per day per 1kW (kWh/day/kw) R : Daily radiation (kWh/m2/day) 3.24 kWh/m2/day (in Pleiku) K : Coefficient of power loss 0.617

K = K1 x K2 x K3 x K4 x K5 x K6 x K7 x K8 x K9

K1 : Temperature coefficient 0.844

K2 : Coefficient of dirt on the surface of PV module 0.980

K3 : Efficiency of storage battery 0.850

K4 : Coefficient of DC loss 0.980

K5 : Efficiency of power conditioner 0.900

K6 : Coefficient of deviation from Pmax point 0.950

K7 : Coefficient of variation of irradiation 1.000

K8 : Coefficient factor of altitude 1.000

K9 : Correction factor of surroundings 1.000

The output energy per day per 1kW photovoltaic system is 2.00 kWh/day/kW.

Appendix 6: Formula for PV Household Electrification System Configuration

Q = P / P0 Q : Capacity of photovoltaic (kW) P : Necessary electric power (kWh/day)

P0 : Output energy per day per 1kW (kWh/day/kW)

Calculation of capacity of battery A battery is used to supply electric power to households in the evening and during periods of no sunshine. Fig. 6 demonstrates a rough sketch of the electric supply system using battery.

Battery PV Battery J-box Battery Charger PV Battery

Battery Battery

The battery’s necessary capacity is calculated with the following formula.

Calculation of Required Battery Capacity Ld×Df×1000 C＝ L×Vb×N×DOD×K5

where, Ld : Daily load demand [kWh/day] Df : Non-sunshine day [day] L : The rate of maintenance Vb : Nominal voltage of battery [V] N : Quantity of batteries DOD : Depth of Discharge

K5 : Loss coefficient of AC side

ベトナム国中部高原地域無電化村での

太陽光発電を使った地方給水/電化可能性調査

和文要約

要約

１．調査の背景年率約 8％の経済成長を続けているベトナム社会主義共和国(以下ベトナム)では、国民の多くが農村部に居住しており、近年、都市部との格差が社会問題化し、農村地域の貧困削減策が重点課題となっている。このため、ベトナムは自国補助金や各国ドナーからの援助資金を最大限活用し、社会インフラとなる給水と電力供給による生活環境の改善に力を入れている。しかし、少数民族が多い「北部山岳地域」や「中部高原地域」では、依然として電化率および給水普及率が全国水準を下回っており、早急な社会経済インフラ整備の最優先地域として焦点が当てられている。

今回対象とした「中部高原地域」の 5 省（コンツム、ジアライ、ダクラック、ダクノン、ラムドン）には、配電線延長による電力供給は経済的に成り立たず、電力の恩恵にあずかれない小規模村落が未だ多数存在している。一方、同地域は月の平均日照時間が 200 時間以上と豊富な太陽エネルギーを有する地域でもある。本調査では、現地政府機関と協力し、中部高原地域無電化村落での給水および電化の現状を調査したうえで、同地域へ最適な太陽光発電システムの導入と電化による生活環境改善等に資する案件形成の可能性を探ることとした。

２．地方電化と再生可能エネルギーの現状と展望（１）地方電化の現状と展望工業省により 2004 年 10 月に公布された「Vietnam Power Sector Development Strategy」（政令）には、 ¾ 島嶼部や山間部など地形的にグリッド電化が困難な地域への再生可能エネルギーを利用した電力供給 ¾ 2010 年までの地方世帯 90％および 2020 年までの 100％電化の達成といった 2004～2010 年における電力セクター戦略並びに 2020 年までの方向性が示されている。また、続いて施行された電力法には、「山間部等への電力供給のための再生可能エネルギーを利用した電力設備開発の促進や配電系統への国家予算の活用」等が規定されている。これを達成するため、ベトナム政府は年間約 200-300million USD を投資し、・地方電化の手法は、送配電網からと独立型電源からの電力供給の双方で推進することとし、最小コストとなるような最適電化手法を選定する。・地方電化の基準は、電化による農業生産性向上が期待できる地域および経済の近代化／構造改革を推し進めている戦略的地域を優先する。という方針のもと、配電線延長による地方電化を進めてきた結果、2006 年上期末で、世帯レベル 91.5％と目標値を達成することができた。

Year 2000 2001 2002 2003 2004 2006 District 96.6% 97.6% 97.9% 97.9% 97.9% 98.0% Commune 81.9% 84.9% 90.6% 92.7% 94.6% 97.8% Household 73.5% 77.5% 81.4% 83.5% 87.5% 91.5%

しかし一方で、残された遠隔地域の小規模村落電化は配電線延長では経済性が成り立たないため、「Off-Grid 地方電化計画」を策定し、太陽光や小水力といった再生可能エネルギーを利用した電化を強力に推進している。この財源として、工業省では 2005 年から 5 年間で 20 million USD を用意している。

（２）再生可能エネルギー利用の現状と展望工業省では、管轄する地域ごとに太陽光発電、風力発電、小水力発電など再生可能エネルギー資源の開発計画を策定している。これら計画をもとに、工業省の下部組織であるエネルギー研究所（IE）が、ベトナム全体の再生可能エネルギーマスタープランを作成中であり、2008 年に完成する予定である。

現在ベトナム政府が推進している再生可能エネルギー導入政策は、EVN の要請を受けて世界銀行が策定した「Renewable Energy Action Plan (REAP)」が基本となっている。このアクションプランには、①政策や基準策定、②資金支援、③技術援助、④トレーニング、⑤情報提供と啓蒙活動について、ベトナム政府のとるべき方向が記されている。

ベトナムにおける主な再生可能エネルギー資源には、太陽エネルギーをはじめ風力、小水力エネルギーがあり、さらにこれ以外に、農業や林業から得られるバイオマスエネルギー利用に大きな期待が寄せられている。このうち、太陽エネルギーは南部や中部高原地域の日射条件が良く（4.0 ～ 5.2 kWh/m2/day：わが国の 1.5 倍程度）、太陽光発電システムの設置に適した地域とされている。すでに、これら地域では太陽光発電による電化システムが導入運営されている。また乾季の井戸水位低下に対しては、太陽光発電による深井戸揚水も大いに期待されている。一方、風力発電は平地には適した場所が少なく、沿海地域や島嶼部で 2004 Potential by 2020 Potential by 2030 の開発が考えられる。 MW GWh MW GWh MW GWh Solar 0.8 4-6 エネルギー研究所で Mini Hydro 135 284 500-780 は、年に次のよ Wind 0.8 1.6 200-400 3,600 - 2020 3,300 9,500 5,000 うに可能性を掲げ、 Biomass 150 310-410 Geothermal - - 100 その開発を推進して Total 287 ～290 1,114-1,596 いる。

ii ３．地方給水の現状と展望ベトナム政府の給水政策は都市給水と地方給水に区別されており、地方給水は農業地方開発省 MARD が管轄している。同省によれば、電化済みコミューン中心地の地方給水は MARD が管理運営しているが、無電化村落の給水までは行き届かない状態である。現在、「National Rural Water Supply and Sanitation Strategy Program: NRWSS」(農村部の給水衛生改善戦略)により長期的な目標を定め、2010 年までに全農村地域の 85％に安全な生活用水を 60 ㍑/人・日供給するとしているが、無電化村落は優先順位が低く、給水計画から取り残されている。特に中部高原地域では水道管による安全な水へのアクセス率は低く、多くの村民は個人所有の井戸、湧水の引水、雨水に頼っている状態である。

４．対象村落の選定と現地調査結果調査団は、中部高原地域５省の工業局および人民委員会から、2010 年以降も配電線延長による電化対象とならない村落リストを入手した。近年の政府による地方電化の加速推進により、残された無電化村落は、ほとんどが車両でのアクセスも困難な遠隔地域で、かつ小規模な村落であった。これら村民の多くは米やキャッサバの農耕により生計を建てているが現金収入は僅かであり、一部が灯油ランプとピコ水力により照明やラジオを使用しているのみである。井戸の多くは個人所有であり、深さは 20m 程度、乾季には水位が低下し、生活用水を得るため数 km 離れた湧き水まで往復せざるを得ない状態である。

調査団は、入手した将来電化が困難な 94 の無電化村落（約 11 千世帯）のリストから、比較的人口が多く、配電線からの距離が遠い 37 ヶ村落（約 5,700 世帯）を抽出し、これらに対して、太陽光発電による給水および電化計画を検討することとした。一村当たりの人口、家屋の分布および需要等村民からの聞取り情報をもとに、電化方法は一カ所に太陽電池パネルを設 Villages no power until 2010. Target Villages Province (ID recommendation) (the team selected) 置し、井戸水揚水と Number of village Number of house Number of village Number of house バッテリー・チャー Kon Tum 18 703 6 352 Gia Lai 6 536 6 536 ジング・ステーショ Dak Lac 30 3,533 8 1,264 ン（BCS）を想定す Dak Nong 7 1,550 7 1,550 ることとした。 Lam Dong 33 5,044 10 2,035 Total 94 11,366 37 5,737

５．想定する給水および電化システムの提案現地調査により抽出した 37 村落、5,737 世帯について、太陽光発電による給水および電化の最適なシステムを検討した。まず前提条件として、給水設備は 50 ㍑/人・日、揚程 25m、ポンプ運転時間 5 時間とした。また、電化設備は世帯あたり１日４時間、100W

iii を供給するものとした。設備の基本仕様は次のとおり。（１）給水システム対象とした 37 村落、26,000 人へ「50 ㍑/人・日」の水を供給するとして、1,340 ㌧/日相当の揚水量が必要となる。このための太陽電池容量はトータルで 163kW。これにもとづき、太陽光発電システムおよびポンプ、タンク等設備コストは総額約 4.2 億円と試算された。 Photovoltaic Array Junction box High tank Unit Total Number of Village 37 Irrigation water Number of population people 26,805 Number of household family 5,737 Inverter (VVVF) Water tap Necessary Water Amount m3/d 1,340 Pump Capacity kW 93 Electricity Deep Drinking water Photovoltaic Capacity kW 163 Water well Submersible Pumping up water Total System Cost Million Yen 423 pump

（２）村落世帯電化システム（BCS）対象とした 5,700 世帯へ、一世帯当たり 100W の電力を供給する場合、必要となる太陽電池容量はトータルで 1.1MW。バッテリーは 5.7MWｈ。太陽光発電システムおよびバッテリー等の設備費用は総額約 9.9 億円と試算された。

Unit Total Photovoltaic Array Rural Electrification Junction box Battery Charging Station Number of Village 37 Battery Number of population people 26,805 charger Number of household family 5,737 Necessary Electric Power kWh/day 2,295 Photovoltaic Capacity kW 1,149 Battery Capacity kWh 5,737 Total System Cost Million Yen 990 Battery

（３）運営維持管理遠隔地域の無電化村落の電化では、地域によって配電線延長より再生可能エネルギーによる独立配電系統給電やバッテリー充電サービスが、経済性で優位になる。しかしながら、遠隔地域の村民は現金収入が極めて乏しく、太陽光発電設備の初期投資額を回収することはきわめて困難であり、各国ドナーやベトナム中央政府が負担せざるを得ない。これらの状況に鑑み、今回の調査では、持続可能なシステム構築を目指すため、維持運営費のみを裨益者負担とすることで検討を進めることとした。

太陽光発電システムにおいて、太陽電池はメンテナンスフリーであり、主な維持管理費はバッテリーの取替費用である。これを 10 年周期で交換すると仮定し、その費用を電

iv 気料金もしくはバッテリー取替積立金として住民から徴収するとすれば、190 円/月/世帯相当となる。この程度の負担は、現金収入源となる家畜や農作物を所有する住民には支払い可能であるが、現金収入の無い村民は支払えないと考えられる。従って、設備の持続性を確保するためには、維持運営費についてもベトナム政府からの何らかの補助金投入が必要であろう。現在でも、中央政府から農村部村民へ補助金が支給されている 135 プログラム等を活用することにより、持続性の確保は可能と期待される。

６．今後の展開ベトナム国中部高原地域は、開発の遅れに伴う他地域との経済格差の是正が最優先課題であり、各国ドナーからも、ラオス、カンボジアと併せて「開発の三角地帯」として注目されている。このためベトナム政府も貧困層への補助金や小規模インフラ整備を加速させており、配電線延長による地方電化は当初計画を超えるスピードで進んでいる。

調査団は、2010 年以降も配電線電化の対象となっていない 37 の村落 5,737 世帯のなかから、中部高原５省の工業局と人民委員会およびエネルギー研究所とも協議のうえ、遠隔地域の特徴を有する代表的な村落を選定し、太陽光発電による電化と給水の可能性を探るための現地踏査を実施した。本調査で全ての対象サイトの踏査はできなかったものの、この代表村落踏査でえられた情報をもとに、最適なシステム検討を行った結果、37 全ての村落へ太陽光発電による電化および給水を行うために必要な設備は、太陽光発電容量：1.3MW、総費用は約 14 億円となった。ただ、持続性の確保という視点から見た場合、初期投資費や維持運営費等に対するベトナム政府の関与等について、今後さらに検討を要する事項は残されていると考える。

一方、この調査を通じて、中部高原地域をはじめとする遠隔地域村落の電化や給水のみならず、島嶼部等でも太陽光発電による揚水、電化や脱塩のニーズが強いことも判明した。

現在、ベトナム政府は 2008 年完成を目指し再生可能エネルギーマスタープランを策定中である。ここで示されるであろう政策と本調査の成果を併せ、太陽光発電をはじめとする再生可能エネルギーの有効活用による本格 FS 調査が実施できれば、ベトナム国の遠隔地域の民生向上にもつながっていくものと期待される。