Vuong Xuan Hoa
Institute of Meteorology, Hydrology and Environment
Ministry of Natural Resources and Environment
Climate Change Research Center
Vietnam
NAMA
of Vietnamof Wind Power
Barriers
forpotential
the Implementation
NAMA in Vietnam
Content
1. Analysis of barriers;
2. Identification of possible options;
3. Proposed measures.
1. Analysis of barriers
• Market barriers:
– Wind energy price: 1,614 VND/ kWh (7.8 US cent/kWh);
FIT 1.0 UScents/kWh;
– Lack of reliable information on wind power capacity;
• Economic and Financial barriers:
– High price of input materials;
– High up-front cost (1800 – 2000 US$/kW);
– Difficulties to assess financial sources.
1. Analysis of barriers (cont’)
• Technical barriers:
– Lack of human resources in wind energy sector;
– Less-developed infrastructure;
– The dependence on imported technologies.
• Legal, regulatory, institutional barriers:
– Lack of wind energy development planning ;
– Lack of collaboration between stakeholders;
– Lack of specifically supporting policies and incentives.
2. Identification of possible options
• Market barriers:
– Increase wind energy price: 10 – 11 US cent/kWh;
– Increase FIT 3 – 4 US cent/kWh (VEPF + consumers);
– Conduct detail analysis for wind power capacity in all
potential areas.
• Economic and Financial barriers :
– Low-interest loans from mitigation funds (up to 85% of
investment cost, term loan 20 years, loan renewal 5
years, interest rate 3 – 5%);
– Government guarantee.
2. Identification of possible options (cont’)
• Technical barriers:
– Develop education system for human resources in wind
energy sector;
– Encourage the development of wind power technologies
domestically;
• Legal, regulatory, institutional barriers:
– Support for the development of wind energy planning;
– Build capacity for the collaboration between stakeholders;
– Legal framework supporting the development of wind
energy.
3. Proposed measures for the NAMA
• MOIT:
– Developing supporting specific mechanisms and legal
framework;
• The Wind Power NAMA:
– Propose a low-interest loan mechanism for wind power
projects in Vietnam from mitigation funds;
– Propose a mechanism for government guarantee;
Thank you for your attention!!!