亚开行-越南的绿色金融：障碍和解决方案（英文）-2018.11-29页

Summary of "Green Finance in Viet Nam: Barriers and Solutions"

Core Content

This working paper by Trong Co Nguyen, Anh Tu Chuc, and Le Ngoc Dang analyzes the current state of renewable energy (RE) financing in Viet Nam and outlines the challenges and recommendations for promoting green finance in the country. The study emphasizes the need for a transition from fossil fuel-based energy systems to more sustainable and environmentally friendly energy sources to ensure energy security, reduce greenhouse gas (GHG) emissions, and mitigate environmental and health impacts.

Main Viewpoints

• Viet Nam's Energy Mix: The country relies heavily on fossil fuels, particularly coal, which accounts for over 50% of its energy supply. This has led to a significant increase in energy imports and a decline in energy self-sufficiency.
• Energy Security Concerns: The overreliance on coal increases the country's vulnerability to external energy price shocks and threatens long-term energy security.
• Environmental and Health Impacts: Coal-based energy generation causes severe pollution and health issues, with significant environmental costs not reflected in the energy price.
• GHG Emissions and Climate Change: Viet Nam has one of the highest GHG emission growth rates globally and is vulnerable to climate change effects, including extreme weather events and rising sea levels.
• Renewable Energy Potential: Viet Nam has substantial untapped potential for RE, particularly in wind, solar, and biomass, which could contribute significantly to a more sustainable energy mix.
• Need for Green Finance: The country needs to improve its financial mechanisms to support the deployment of RE technologies and reduce dependence on fossil fuels.

Key Information

Current Energy Situation

• Energy Mix: Coal dominates the energy mix at 34% in 2015, followed by oil (25%) and biomass (21%).
• Energy Imports: Viet Nam has become a net importer of coal since 2015, with net imports of 12% in 2015.
• Energy Consumption: The industrial sector accounts for the largest share of final energy consumption (41.72%), followed by residential (33.23%) and transportation (19.54%).

Renewable Energy Potential

• RE Sources: Wind, solar, and biomass are the most promising sources.
• Technical Potential:
  • Small Hydro: 1914 MW (potential for 7,000 MW)
  • Wind: 26.7 GW (development of 10-12 GW by 2035)
  • Biomass: 10.3 GW (development of 2.9-3.7 GW by 2035)
  • Biogas: 5.3 GW
  • Solid Waste: 1.55 GW
  • Solar: ~300 GW (development of 21-40 GW by 2035)

RE Investment Trends

• Investment Growth: From 2011 to 2016, the value of RE investment in Viet Nam increased significantly, reaching $682 million in 2016.
• Global Comparison: In 2016, Viet Nam's RE investment was lower than that of Thailand and the Philippines, but higher than Singapore and Taipei, China.
• Total RE Investment: Until 2016, the total RE investment in Viet Nam was $2,355.73 million, which is relatively small compared to the country's energy needs.

Financial Incentives

• Feed-in Tariffs (FITs): FITs are a key financial mechanism for promoting RE investment. The FIT for wind is 7.8 US cents/KWh, for biomass varies by region, and for solid waste (landfill gas) is 7.28 US cents/KWh.
• Tax Relief: The government has introduced accelerated depreciation tax relief for RE projects, which helps reduce the financial burden on investors.

Challenges in RE Financing

• Inappropriate Energy Pricing Policy: The low domestic electricity prices make it difficult for RE projects to be profitable.
• Non-preferential FITs: The FIT rates for RE are not sufficiently attractive to encourage investment.
• Inefficient Financial System: The domestic financial system lacks the capacity to provide long-term financing and is not equipped to implement green credit appraisal effectively.
• EVN's Creditworthiness Concern: As a state-owned enterprise (SOE), EVN's creditworthiness is uncertain, which affects the attractiveness of RE projects to private investors.

Policy Recommendations

• Revise Energy Price Policy: Implement a more reasonable energy pricing policy to support RE development and reduce the reliance on fossil fuels.
• Increase EVN's Creditworthiness: Strengthen the financial performance and transparency of EVN to increase investor confidence.
• Fiscal Reform: Encourage fiscal policy reforms that discourage CO₂-intensive sectors and support the deployment of RE technology.
• Develop Financial Vehicles: Create a wide range of financial instruments to facilitate long-term financing and risk mitigation for RE projects.

Conclusion

Viet Nam's transition to a more sustainable energy system is crucial for long-term energy security, economic development, and environmental protection. While the country has made progress in diversifying its energy mix, the challenges in financing RE projects remain significant. Addressing these issues through policy reform, financial innovation, and improved institutional frameworks is essential for unlocking the substantial potential of renewable energy in the country.