Peter Cowling, general manager of renewable sales in Asia Pacific at GE Power & Water said the Vietnamese Government and relevant ministries should work with the international community to solve the capital shortage problem that aims to promote clean energy development in Viet Nam. — VNS Photo Quynh Hoa.

by Quynh Hoa

HCM CITY (Biz Hub) — A lack of financial resources and skilled engineers have prevented the development of clean-energy projects in Viet Nam, said speakers at the US-Vietnam Clean Energy Conference, held in HCM City on May 14.

Organised by the US Consulate General and Vietnam Investment Review under the sponsorship of General Electric (GE), the conference, themed Smart Solutions for Viet Nam, included discussions of the challenges, benefits and solutions in pursuing green-energy sustainability in Viet Nam.

Peter Cowling, general manager of renewable sales in Asia Pacific at GE Power & Water, said support policies, especially electricity prices, have not met investors' expectations.

The Vietnamese Government and relevant ministries should work with the international community to solve the capital shortage problem, he said.

"I know there are many investors showing interest in the clean energy sector, especially the wind farm sector. Together with capital support policies, energy security should be enhanced in the future. Viet Nam is a good alternative destination for international investors," Cowling said.

Pham Trong Thuc, director general of General Department of Energy's New and Renewable Energy Office, said clean energy development was one of many feasible solutions to address energy demand, security and environmental protection. It can also achieve objectives for rural electrification.

Viet Nam's potential for clean energy development, with wind energy, solar, biomass, and small hydropower plants, is huge, he said.

"However, we must construct solutions facilitating clean-energy development sustainability, with long-term operational capacity, and act independently from the State budget via the Trust Funds for Clean Energy Development, and pursue enforcement of pollution tariffs or a carbon tax," Thuc said.

The industry also needs technical and financial assistance from donors for clean energy projects.

Viet Nam has placed priority on renewable clean-energy development with tax exemptions on imported equipment for non-manufactured use domestically, and exemption and reduction of land-use tariffs and environmental-protection tariffs.

Organised by the US Consulate General and Vietnam Investment Review under the sponsorship of General Electric, the conference, themed Smart Solutions for Viet Nam, included discussions of the challenges, benefits and solutions in pursuing green-energy sustainability in Viet Nam. —Photo baodautu

Other priorities include the enterprise income-tax exemption for the first four years of business operation and a 50 per cent tax-reduction for the following eight years; and EVN will purchase all energy output from renewable sources., Thuc said.

Nguyen The Phuong, deputy minister of Planning and Investment, said Viet Nam, as a responsible country among the international community, strives to contribute to the world's steady growth and take leadership in sustainable development.

Searching for smart solutions to promote green energy sustainability is also a key content of Viet Nam's National Green Growth Strategy, which has been implemented for years.

Experience from the US will be a useful reference for the Government in the creation and improvement of policies to promote the development of renewable and clean energy.

At the conference, GE shared their innovative technologies and solutions for wind power as well as distributed power, including biomass and waste-to-energy.

It provided technological support to other renewable energy and power generation projects in the country.

GE provided a total of 62 wind turbines for two phases of the Bac Lieu wind-power project in the Mekong Delta and recently was chosen as the provider of 14 turbines for phase one of the Tay Nguyen wind-farm project located in Dak Lak Province.

Viet Nam is endowed with excellent renewable energy resources throughout the country. The geographic orientation, with approximately 3,400 km of coastline, provides abundant wind energy at an estimated potential of 500-1,000 kWh/sq.m per year.

Solar energy is abundant with average solar radiation at 5kWh/sq.m per day across the country. Moreover, the technical potential of small hydropower (<30 MW) is larger than 4,000 MW.

Attending the conference were 150 representatives from US Government agencies, financial organisations, NGOs and investors, including UNDP, USAID, USTDA, IFC, OPIC, Dragon Capital, General Electric and their Vietnamese counterparts such as PECC3/EVN, ERAV, Cong Ly and HBRE.

They offered their ideas on how Viet Nam could improve its policy to encourage the development of renewable energy to increase sustainable economic, social and environment development.

The conference is a part of the continuing celebration of the 20-year anniversary of the normalisation of bilateral relations between the US and Viet Nam. — VNS