Vietnam is a fast growing economy with significant growth in energy consumption and double digit growth rates for electricity consumption. At COP21 in Paris in 2015, Vietnam pledged an unconditional 8% reduction target in greenhouse gasses in 2030 and a conditional 25% reduction target depending on international support.
In 2013 Vietnam and Denmark entered into a long-term cooperation agreement for the purpose of strengthening Vietnam’s transition to a low-carbon economy. The Danish Energy Agency (DEA) cooperates with the Ministry of Industry and Trade (MOIT) in Vietnam through the joint Danish-Vietnamese Energy Partnership Programme (DEPP). Based on the achieved results during the previous programme (2013-2016), the following focus areas were identified for DEPP II (2017-2020):
- long-term energy planning,
- integrating renewable energy in the power grid,
- energy efficiency in the industrial sector.
To strengthen bilateral collaboration, a Danish senior advisor is posted long-term at MOIT in Hanoi, Vietnam.
The present three-year programme is funded with DKK 21.6 million from the Danish Climate Envelope.
The government of Vietnam has adopted an ambitious strategy for renewable energy deployment in the power sector. To assist the implementation of this strategy, Denmark has helped develop capacity in the field of power sector planning, using Danish tools and approaches to effectively integrate large amounts of renewable energy. In 2017 a power planning model was developed for Vietnam and MOIT and DEA have jointly published the first Vietnamese Energy Outlook Report 2017 (EOR). The EOR indicates that it is possible to operate the Vietnamese electricity system with very high levels of renewable energy without incurring in curtailment of RE generation. Moreover, the energy efficiency options and the fuel substitution opportunities in the demand sectors can offer an economic gain while reducing GHG emissions and improving the national energy security.
Long-term energy planning
The objective of the first component of DEPP II is to develop Vietnam’s energy system in a more sustainable way through implementation of cost-optimized policy and planning by assisting the Electricity and Renewable Energy Authority (EREA) under MOIT to commission, develop, and analyze comprehensive long-term energy scenarios.
Together the Danish Energy Agency and EREA developed the first Energy Outlook Report of its kind in Vietnam and published it in 2017. This was under DEPP II followed up by the development of Vietnam’s first ever Technology Catalogue providing Vietnamese authorities and stakeholders with high quality data about electricity producing technologies of today and in the future. The Technology Catalogue was launched in Hanoi in May 2019.
In the time from the first outlook report the concept in Vietnam was enhanced with more advanced modelling, more capacity development through training in modelling tools and more involvement of stakeholders through workshops and meetings. This lead to the development of the Vietnam Energy Outlook Report 2019, which was launched in Hanoi in November 2019. Based on well-documented and detailed modelling of the energy system, outlook report provides a scenario-based foundation for policy action by shedding light on the development of the Vietnamese energy system towards 2050.
The Technology Catalogue can be downloaded below:
Vietnam Technology Catalogue (in English)
Data sheet for Vietnam Technology Catalogue (in English)
Vietnam Technology Catalogue (in Vietnamese)
Data sheet for Vietnam Technology Catalogue (in Vietnamese)
The Vietnam Energy Outlook Report 2019 and background reports can be downloaded below:
Renewable energy integration in the power system
A well-managed and regulated power system is crucial for the development of a low-carbon energy system. The second component of DEPP focuses on supporting the Vietnamese Electricity Regulatory Authority, ERAV, and the National Load Dispatch Center, NLDC, in implementing the 2013 Prime Ministerial decision on a power market reform.
The objective of the second component is through training to support Vietnamese authorities in preparation of a new grid operation paradigm that efficiently integrates a larger share of variable Renewable Energy (RE), such as wind and solar power, into the electricity grid as targeted for in the Vietnam RE Master Plan. This will also support the Electricity Regulatory Authority of Vietnam (ERAV) in its key objectives; furthering energy security, maintaining a reasonable price for electricity and protecting the environment. Based on experiences from these activities, the Danish Energy Agency and the Danish TSO, Energinet, are supporting the development of forecasts of renewables for system operation, efficient development of ancillary services and grid codes.
Low carbon development in the industrial sector
The industrial sector is one of the most energy consuming sectors in Vietnam. For that reason, it is essential to optimize its energy efficiency. Vietnam has a comprehensive policy on the promotion of energy efficiency (EE), particularly with regards to large energy intensive industries.
The focus of the third component program is to further strengthen policy on energy efficiency in industry in order to exploit the potential for improving energy efficiency in the industry even more. Focus is on making necessary adjustments of the legal basis and the implementation of the Law on Energy Efficiency and Conservation (LEEC) on national and provincial levels.
The Danish Energy Agency engages on national and provincial level with the objective of introducing a set of tools to MOIT and the provincial departments (DOIT’s), which will enable them to better monitor the impact of the LEEC, and if necessary propose adjustments to the legal framework and develop procedures, guidelines and templates to assist in the administration and implementation of the law across Vietnam.
Funding from the Danish Climate Envelope
The Danish Energy Partnership Programme II (2017-2020) is funded through the Danish Climate Envelope Programme. The Danish Energy Agency cooperates bilaterally with four growth economies; China, Vietnam, South Africa and Mexico, which experience increasing carbon emissions and have large mitigation potentials.
The four programmes focus on decoupling these countries’ carbon emissions from their economic growth by reforming energy sectors towards more renewable energy and increased energy efficiency.