Educational Material of Vietnam Blended Learning Program, undertaken by Institute of Energy Science, with support of World Bank and Vietnam Development Information Center

1. 26/06/2013
The World Bank in Vietnam
Vietnam Development Information Center
Vietnam Blended Learning Program
Project:
Training Program on Renewable Energy Potential
and Carbon Offset opportunities for Agriculture
and Forestry Development in Vietnam
Proposed by:
UQ SMART (Australia)
Institute of Energy Science (Vietnam)
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2. 26/06/2013
Overview
1. Energy supply and demand trends in Vietnam
2. Review of Technical Needs Assessment for Climate
Change Mitigation and Adaptation in Vietnam
3. Carbon Finance & the Clean Development Mechanism
4. CDM Projects in Vietnam
i. Overview
ii. Vietnam CDM Project Case studies
iii. Barriers to CDM projects in Vietnam
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Energy supply and d
E
l
d demand t
d trends in Vietnam
d i Vi t
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Energy sources
EIA, 2010.
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Installed capacity 11,340 MW
At 2005
Ref: World Bank
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Greenhouse Emissions
Adapted from: UNFCC Country Emission Profiles, 2000
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Review of Technical Needs Assessment for
Climate Change Mitigation and Adaptation
in Vietnam
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http://unfccc.int/ttclear/sunsetcms/storage/c
ontents/stored-file20130327170620878/TechnologyNeedsAssess
ment-Mitigation_Vietnam.pdf
http://unfccc.int/ttclear/sunsetcms/storage/
p //
/
/
/
g /
contents/stored-file20130327170654615/TechnologyNeedsAsse
ssment-Adaptation_Vietnam.pdf
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9. 26/06/2013
Technology Needs Assessment for
Climate Change and Adaptation
Mitigation technologies
identified for priority sectors
(UNEP, GEP, AiT, June, 2012)
 Energy
 Agriculture
 Land use and change
and forestry
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10. 26/06/2013
Technology Needs Assessment for
Climate Change and Adaptation,
Adaptation technologies
identified for priority sectors
(UNEP, GEP, AiT, June, 2012)
 Agriculture
 Land Use, Land Use Change
and Forestry (LULUCF)
 Coastal zone management
 Water resources
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11. 26/06/2013
Suggested Mitigation Technologies
- Energy




Wind power
Energy efficiency (compact fluoro lights)
Large scale heat and power (cogeneration)
Bus rapid transit
p
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Suggested Mitigation Technologies Agriculture
 Biogas (anaerobic digestion)
 Nutrition improvement through fodder
supplements
 Wet and dry irrigation in certain rice growth
stages
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Mitigation Technologies – Land use,
Land use change & Forestry
 Sustainable forest management
 Afforestation and reforestation
 Rehabilitation of mangrove
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Suggested Adaptation Technologies –
Agriculture
 Plant/genetic breeding
 Rice to upland grain
 Triple to double cropping and shrimp/fish/rice
poultry crop
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Adaptation Technologies – Coastal
Zone Management
 Sea dyke
Sea-dyke
 Coastal wetland rehabilitation
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Potential Mitigation Projects
Project ideas cited for international support
(potential CDM projects):
 Financial support and subsidies for wind power
 Bio-fuel/cogeneration
 Bio-energy in livestock sector (reduce burning and
produce methane)
 Afforestation on sandy land at South Central coast
y
 Reforestation and protection of mangrove forests.
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Potential Adaptation Projects
Project ideas cited for international support
j
pp
(and potential CDM projects):
 Building a conversion model to change rice
crops into fruit tree crops
fruit-tree
 Financial support and subsidies for wind power
 Developing high-quality timber trees for
plantation economy
economy.
 Develop agro-forestry model in Ninh Thuan and
Binh Thuan region
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Carbon Finance & the Clean Development
Mechanism
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Potential Carbon Finance Bodies
 UNFCC Carbon Development Mechanism
 https://cdm.unfccc.int/about/index.html
 World Bank Carbon Finance
 http://carbonfinance.org
 European Investment Bank & Carbon Finance
 http://eib.org (EUR 150 million assigned Oct 2012)
 UNFCC Green Climate Fund
 http://gcfund.net/home.html
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Potential For CDM and VCS Carbon
Offset Projects in Vietnam
 Significant hydropower resources
 3000 km of windswept coast
 300 hot-stream sources ranging from 30-148°C
g g
(geothermal power)
 Great potential for solar
 Agriculture residues for energy usage
Ref: Nguyen et al 2010
al,
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Potential For CDM and VCS Carbon
Offset Projects in Vietnam
 Biomass and other small hydro suggested as
cost-effective at 2 $/tCO2
 Wind energy would be economical at 3 $/tCO2
(Nguyen and Ha-Duong, 2009a, 2009b, cited by Nguyen et al, 2010)
 Energy efficiency projects e.g. power
generators, industrial boilers, domestic
 Biomass and biogas recovery
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22. 26/06/2013
Barriers to Carbon Offset Projects
 Regulatory (structures process delays process)
(structures,
delays,
 Bureaucracy
 Tariff uncertainty
 Access to information e.g. electricity sector data
 Local capacity
Ref: Nguyen et al, 2010
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23. 26/06/2013
CDM Projects in Asia, Dec 2012
• Total 7,218 projects
7 218
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24. 26/06/2013
CER Price, May 2013
 Currently 20 euro cents
 Too low to support
CDM projects
 Projects that have higher
environmental credentials
command higher price on
voluntary market
 Carbon financing (non–market) key to lowemissions projects in the short-medium term
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25. 26/06/2013
CDM Projects in Vietnam
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26. 26/06/2013
Vietnam CDM Projects, Dec 2012
 233 projects registered
 E
Expected emission reduction of 123,913,250 tCO2e
t d
i i
d ti
f 123 913 250 tCO2
 Hydro (213), methane avoidance (24), biomass
energy (19), land fill gas (7)
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27. 26/06/2013
CDM Project Case Studies
A.
A VASB Bi
Biogas P j t M k
Project, Mekong D lt
Delta
B. Fuel conversion (biomass), Textile
Manufacturer, Ho Chi Minh
C.
C Dak Psi 5 Hydropower Project
D. Chi Khe Hydropower Project
E. Muong Hum 32 MW Hydropower Project
F.
F Methane Recovery & Biogas Utilisation
G. Cao Phong Reforestation Project
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CDM Project Case Studies
CDM P j t S
Project Search Page:
hP
https://cdm.unfccc.int/Projects/projsearch.html
Refer to Project ID# for each case study.
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A) VASB Biogas, Mekong Delta
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A) VASB Biogas, Mekong Delta
Installation of 917 VACB reactors (total 3.32 MW thermal)
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A) VASB Biogas, Mekong Delta
 Mekong Delta contributes 50% of total rice
g
production and 50% of aquaculture
 Project ID# 6132
 Project supports 917 farm households
 T t l emission reduction of 1 045 tCO2/ as
Total
i i
d ti
f 1,045 tCO2/yr
biogas replaces use of fossil fuel/wood
 Other benefits
 forest conservation & improving livelihoods
 reductionof fertiliser use
 odour reduction
 Capital cost – US$144,150
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B) Ho Chi Minh Textiles Manufacturer
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B) Ho Chi Minh Textiles Manufacturer
 Small Scale Renewable CDM
 Project ID# 6598
 Boiler Fuel Conversion from fuel oil to biomass
(rice husk briquettes)
 15.4 MW thermal
 Capital Cost: 13.3 billion VND
 CO2 reduction:
 24,040 tCO2/year
 168,280 tCO2 (7 yrs)
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C) Dak Psi 5 Hydropower Project
http://cdm.unfccc.int/Projects/DB/TUEVRHEIN1301992418.38/view
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C) Dak Psi 5 Hydropower Project
 S ll S l R
Small Scale Renewable CDM
bl
 Project ID# 4656
 Hydropower - 10 MW power plant, 2 x 5 MW each
on Dak Psi stream at Dak Psi, Western Highlands
 Annual electricity output: 43,720 MWh
 Project Supporters: Duc Thanh Gia Lai Joint Stock
Company/ Investment & Trade Consultancy Co.
Ltd/ RWE Power Aktiengesellschaft
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C) Dak Psi 5 Hydropower Project
 Capital cost: US$ 9.6 million
 CO2 reduction:
 23 719 tCO2/year
23,719
 166,033 tCO2 (7 yrs)
 Carbon breakeven price: $11/tCO2
 Risk Level: Low
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D) Chi Khe Hydropower Project
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D) Chi Khe Hydropower Project
 Large Scale Renewable CDM 2011
CDM,
 Project ID# 4520
 41 MW Hydropower located on Ca River in Chi Khe
commune,
commune Nghe An province
province,
 Annual elec output: 191,290 MWh
 Project Supporters: Agrita - Nghe Tinh Energy Joint
Stock Co. /Energy and Environment Consultancy
Co
Joint Stock Co./ South Pole Carbon Asset
Management Ltd.
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D) Chi Khe Hydropower Project
 CO2 reduction:
 91,939 tCO2/year
 643 572 tCO2 (7 yrs)
643,572
 Carbon breakeven price: unknown
 Risk Level: Medium due to carbon price,
regulatory issues
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E) Muong Hum 32 MW
Hydropower Project
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E) Muong Hum 32 MW
Hydropower Project
 Small Scale Renewable CDM
 Project ID# 4949
 Hydropower - 32MW hydropower plant with
spillway gates on th N i Ph t Ri
ill
t
the Ngoi Phat River i L C i
in Lao Cai
Province in NW Vietnam
 Annual elec output: 122 GWh
 Project Supporters: Son Vu Energy Development
Joint Stock Co. / Kyushu Electric Power Co., Inc.
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E) Muong Hum 32 MW
Hydropower Project
 Capital: US$ 25.5 million
 CO2 reduction:
23,719
 23 719 tCO2/year
 166,033 tCO2 (7 yrs)
 Carbon breakeven price: $15/tCO2
 Risk Level: Medium due to carbon price
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F) Methane Recovery &
Biogas Utilisation
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F) Methane Recovery &
Biogas Utilisation
 Small Scale Waste/Energy CDM
gy
 Project ID# 2368
 Waste water treatment with biogas recovery for
starch processing (cassava) factory.
 M th
Methane t
to
fuel a dryer.
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F) Methane Recovery &
Biogas Utilisation
 Project Supporters: Yen Binh Trading & Investment
j
pp
g
Company Ltd/ AES Carbon Exchange Ltd
 Capital: US$ 2 million
 CO2 reduction:
 39,618 tCO2/year
 277,329 tCO2 (7 yrs)
 Carbon breakeven price: $
$14/tCO2
 Risk Level: Low
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G) Cao Phong Reforestation Project
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G) Cao Phong Reforestation Project
 Small Scale Agriculture/Reforestation
 Project ID# 2363
p
g
grass and
 365 ha of tree plantations on degraded g
shrub land in Xuan Phong and Bac Phong
communes, Hoa Binh province
 Project Supporters: Forest Development Fund
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G) Cao Phong Reforestation Project
 Capital: $2 348 million VND
$2,348
 CO2 reduction:
 2,665 tCO2/year
 42,645 tCO2 (15 yrs)
,
( y )
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49. 26/06/2013
UQ SMART – The University of Queensland (Australia)
Viện Khoa học năng lượng (Việt Nam)
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