Decision No. 2068/QD-TTg on approving Viet Nam's Renewable Energy Development Strategy up to 2030, with an outlook to 2050

approved

The Strategy starts with viewpoints on development:&nbsp; <ol><li>Development of renewable energies (RE) shall be in synergy with the realisation of economic, social and environment goals.&nbsp;</li><li>RE development and use shall be concerted with an expansion of RE industry.</li><li>The use of short-term technologies go hand in hand with the promotion of long-term technologies.</li><li>Incentives/support policies shall be matched with market mechanisms (economic and financial incentives/support policies).</li><li>Restructuring and state management capacity building shall come together in the RE field.&nbsp;</li></ol> The Strategy sets various objectives: <ul><li>Increase the rate of access to clean energy and electricity sources by local people in remote areas;&nbsp;</li><li>Develop and use RE sources in a sustainable manner;</li><li>Reduce GHG emissions in various energy activities as compared with BAU scenario: by approx. 5% in 2020; approx. 25% in 2030 and around 45% in 2050;</li><li>Contribute to reduced fuel imports for energy purposes;</li><li>Increase the total production and use of RE sources;</li><li>Increase the total electricity production from RE sources;</li><li>Increase the absorption area of solar water-heating units. Increase the proportion of households with solar water-heating devices (solar water-heating panels, residential cooking hobs, air heating and cooling units, water distillation, etc.);</li><li>Scale up the application of biogas technologies;</li><li>Replace biomass-based conventional stoves and low-performing devices with advanced/high-performing items while utilizing traditional biomass for residential and industrial cooking purposes. Increase the percentage of households using advanced/high- performing stoves;</li><li>Increase the production of biofuels;</li><li>Promote the development of RE technologies and industries, establish RE industrial systems and increase the proportion of domestically-manufactured equipment value in the RE field.</li></ul> The Strategy also sets developments orientations by periods: up to 2030, and towards 2050. For the period to 2030, it prioritises investment in the development of RE-based grid-connected power plants, the development and utilisation of RE sources for heat supply and the development and utilisation of biofuel sources. For the orientation towards 2050 the Strategy aims to bring resources together by applying advanced technologies. It also aims to develop RE technology market, machinery/equipment manufacturing industry and supply of domestic RE services, and lastly, to strengthen potentials for research, transfer and application of new renewable energies. It also sets developments orientations by sub-sectors. This includes development orientations towards hydropowers; biomass energy sources; wind power; and solar energy.&nbsp; Various mechanisms/policies are employed: <ol><li>Formulation of a RE market;</li><li>Policies for electricity tariff and guaranteed investment;</li><li>Individual responsibility;</li><li>Net-metering mechanism;</li><li>Preferential and support policies for the RE development utilisation; including tax incentives</li><li>Policies for environmental protection; includes carbon levy</li></ol> The Strategy also puts forward solutions to strategy implementation. Such are: <ol><li>Strengthened state management in RE development and utilisation;</li><li>Inventory of RE sources</li><li>Preparation of RE development plan(s);</li><li>Development of national standards and norms;</li><li>Solutions to improved rate of RE development and utilisation;</li><li>Financial support for the RE development and utilisation (this includes the establishment of a Sustainable Energy Promotion Fund);</li><li>Solutions to human resource development (such as capacity building, and education);</li><li>Solutions to market formulation and RE technologies;</li><li>Strengthen communication and information and public awareness;</li><li>Strengthen international cooperation in RE field.</li></ol> The Strategy ends with various implementation arrangements.&nbsp;

For power distribution entities that generate/purchase electricity from RE sources and end-use customers who self-generate electricity from RE sources (excluding hydropower sources of greater-than-30 MW capacity), the proportion shall not be less than 5%, 10% and 20% in 2020, 2030 and 2050 respectively.

For power generation entities that have their installed capacity of larger than 1,000 MW (excluding BOT-invested sources), the proportion of electricity generated from RE sources (excluding hydropower sources of greater-than-30 MW capacity) shall not be less than 3%, 10% and 20% in 2020, 2030 and 2050 respectively

The total solar energy for heating purposes shall increase from 1.1 million TOE in 2020 to about 3.1 million TOE in 2030 and 6 million TOE in 2050.

The share of solar power in total electricity production shall increase from a negligible level at present to around 0.5% in 2020, about 6% in 2030 and 20% in 2050

The total solar power production shall increase from about 10 million kWh in 2015 to 1.4 billion kWh in 2020; approx. 35.4 billion kWh in 2030 and 210 billion kWh in 2050.

The share of wind power in total electricity production shall increase from a negligible level at present to about 1% in 2020, 2.7% in 2030 and around 5% in 2050.

Total electricity generated from wind sources shall increase from approx. 180 million kWh in 2015 to 2.5 billion kWh in 2020; approx. 16 billion kWh in 2030 and 53 billion kWh in 2050

Total biomass energy for biofuel production shall increase from 0.2 million TOE in 2015 to 0.8 million TOE in 2020; approx. 6.4 million TOE in 2030 and 19.5 million TOE in 2050

Total biomass energy for heat generation shall increase from 13.7 million TOE in 2015, 13.6 million TOE in 2020 to approx. 16.8 million TOE in 2030 and 23 million TOE in 2050. The share of biomass energy in final energy demand shall account for 25% in 2015, 17% in 2020, 14% in 2030 and approx. 12% in 2050

Total biomass energy for electricity generation shall go up from 0.3 million TOE in 2015 to 1.8 million TOE in 2020; approx. 9 million TOE in 2030 and 20 million TOE in 2050. Accordingly, the electricity generated shall increase from 0.6 billion kWh in 2015 to 7.8 billion kWh in 2020; approx. 37 billion kWh in 2030 and 85 billion kWh in 2050. The share of biomass power in total electricity production shall increase from 1.0% in 2015 to 3.0% in 2020; approx. 6.3% in 2030 and 8.1% in 2050

Total biomass energy volume to be used shall rise from 14.4 million TOE in 2015 to 16.2 million TOE in 2020; approx. 32.2 million TOE in 2030 and 62.5 million TOE in 2050

Increase the disposal rate of municipal wastes for energy purpose from a current negligible level to 30% in 2020, approx. 70% in 2030, and most of municipal wastes shall be used for energy purpose in 2050

Increase the disposal rate of animal wastes for energy purpose (biogas) from about 5% in 2015 to 10% in 2020, approx. 50% in 2030, and most of animal wastes shall be disposed in 2050

Increase the utilization rate of wastes generated from industrial/agricultural plants for energy purposes from 45% in 2015 to 50% in 2020, approx. 60% in 2030 and 70% in 2050.

The capacity of pumped storage power plants shall reach 2,400 MW and 8,000 MW in 2030 and 2050 respectively

The total hydropower production shall be increased from 56 billion kWh in 2015 to nearly 90 billion kWh in 2020; and approx. 96 billion kWh in 2030

increase the proportion of domestically-manufactured equipment value in the RE field up to approx. 30% in 2020 and 60% in 2020; and in 2050, domestic needs for these equipment items shall be essentially met, and a portion of domestically-manufactured equipment items shall be exported to other countries in the region and around the world

Increase the production of biofuels from approx. 150 thousand TOE in 2015 to about 800 thousand TOE, , i.e. 5% of transport sector’s fuel demand in 2020;3.7 million TOE, i.e. 13% of transport sector’s fuel demand in 2030; 10.5 million TOE, i.e. 25% of transport sector’s fuel demand in 2050.

Increase the percentage of households using advanced/high- performing stoves from negligible level at present to approx. 30% in 2020; about 60% in 2025; and from 2030, high-performing/sanitary stoves shall be used by most of rural households

Scale up the application of biogas technologies with a construction volume of from approx. 4 million m3 in 2015 to 8 million m3 in 2020; approx. 60 million m3 in 2030 and 100 million m3 in 2050

Increase the proportion of households with solar water-heating devices (solar water-heating panels, residential cooking hobs, air heating and cooling units, water distillation, etc.) from approx. 4.3% in 2015 to 12% in 2020, 26% in 2030 and 50% in 2050.

Increase the absorption area of solar water-heating units from approx. 3 million m2 in 2015 to about 8 million m2, i.e. a supply of 1.1 million TOE in 2020; approx. 22 million m2, i.e. 3.1 million TOE in 2030 and approx. 41 million m2, i.e. 6 million TOE in 2050

The share of RE-based electricity in the total national production shall rise from 35% in 2015 to 38% in 2020; 32% in 2030 and 43% in 2050

Increase the total electricity production from RE sources from approx. 58 billion kWh in 2015 to 101 billion kWh in 2020, approx. 186 billion kWh in 2030 and 452 billion kWh in 2050

the RE share in total primary energy consumption in 2015 shall be approx. 31.8%; 31% in 2020; 32.3% in 2030 and 44% in 2050.

Increase the total production and use of RE sources from approx. 25 million TOE (tons of oil equivalent) in 2015 to 37 million TOE in 2020; approx. 62 million TOE in 2030 and 138 million TOE in 2050

Reduce by approx. 40 million tons of coal and 3.7 million tons of oil products in 2030; approx. 150 million tons of coal and 10.5 million tons of oil products in 2050

Reduce greenhouse gas emissions in various energy activities as compared with BAU scenario: by approx. 5% in 2020; approx. 25% in 2030 and around 45% in 2050

Decision No. 2068/QD-TTg on approving Viet Nam's Renewable Energy Development Strategy up to 2030, with an outlook to 2050

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