PANORAMA OF ENERGY SECTOR IN VIETNAM

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PANORAMA OF ENERGY SECTOR IN VIETNAM

• Presented by Prof. LE CHI HIEP
• - Vice President, Vietnam Association of
  Refrigeration Air Conditioning Eng.
• - Head, Dept. of Heat Refrigeration Eng.,
• Ho Chi Minh City University of Technology
• Email lechihiep_at_vnuhcm.edu.vn
• TOKYO, 13 October 2006

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Contents

• 1. General Introduction.
• 2. Panorama of Energy Supply and Consumption.
  
• 3. Energy Demand.
• 4. Renewable Energy Potential Activities.
• 5. Energy Efficiency Activities
• 6. Conclusion.

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1. GENERAL INTRODUCTION
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VIETNAMPopulation 83.5 millionsArea
332,000km2Capital Hanoi
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2. PANORAMA OF ENERGY SUPPLY CONSUMPTION

• Vietnam economy has expanded rapidly in recent
  years
• Growing 7.7 in 2004 (real gross domestic
  product GDP).
• Growing 8.4 in 2005.
• 8 in 2006 (Forecast).

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2.1.Oil

• Vietnam has 600 million barrels of proven oil
  reserves.
• Crude oil production averaged 370,000 barrels/day
  in 2005, down somewhat from the 403,000
  barrels/day in 2004.
• Vietnam remains reliant on imports of petroleum
  products due to a lack of refining capacity.
• Vietnam had net exports of 111,000 barrels/day of
  oil in 2005 (mainly to Japan, South Korea and
  Singapore).

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REFINING

• Vietnam is in the process of building its first
  refinery.
• The 1.5 billion DUNG QUAT refinery (Quang Ngai
  province) will have a crude distillation capacity
  of approximately 140,000 barrels/day.
• A second refinery project is under consideration
  at NGHI SON (Thanh Hoa province) with the
  capacity of approximately 150,000 barrels/day.

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2.2. Natural Gas

• Vietnam has proven gas reserves of 6.8 trillion
  cubic feet.
• Vietnams natural gas production and consumption
  have been rising rapidly since the late 1990s.
• Natural gas is currently produced entirely for
  domestic consumption.
• The largest Vietnamese natural gas production
  area is located in southern Vietnam.

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2.3. Coal

• Vietnam contains coal reserves estimated at 165
  million short tons, the majority of which is
  anthracite.
• Vietnam produced over 18 million short tons of
  coal in 2003 (In 2003, Vietnam exported 7 million
  short tons of coal, primarily to China and
  Japan).
• Although Vietnam has historically relied on
  hydropower, it has recently promoted the
  construction of coal-fired power plants.

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• Coal-fired power plants are expected to
  eventually account for 25 of Vietnams total
  electricity production.
• The Vietnamese government estimates that 10.2
  million short tons of coal is needed per year to
  meet increasing domestic demand, projected at
  20,000 MW by 2010.
• Vietnam continues to exploit new coal reserves
  within its borders. In March 2003, a significant
  coal bed was discovered in Red river delta region
  of northern Vietnam.

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2.4. Electricity

• Although Vietnams per capita electricity
  consumption is among the lowest in Asia, demand
  has risen in recent years.
• In 2003, Vietnam had a total electric generating
  capacity of 8.8 gigawatts and generated 39.7
  billion kilowatt-hours (kWh) of electricity, of
  which 52 was hydropower.

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• Electricity demand in Vietnam is forecasted to
  grow 15 percent per year until 2010.
• Vietnam currently buys power from China to
  prevent shortages in the North, and plans to
  begin purchasing from Laos in 2008.
• In order to meet increased demand, construction
  of expansion is planned for 32 power stations
  (7,547 MW) before 2010.
• Vietnam currently has five hydroelectric
  expansions underway, in which The SON LA project
  (2,400 MW by 2012) will be the largest
  hydroelectric project in Vietnam when completed.

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• The SON LA project 2,400 MW by 2012.

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ENERGY SUMMARY
Proven Oil Reserves (2006) 0.6 billion barrels
Oil Production (2005) 366.4 thousand barrels per day (100 was crude oil)
Oil Consumption (2005) 259.4 thousand barrels per day
Net Oil Exports 67 thousand barrels per day
Crude Oil Distillation Capacity (2006) None
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Proven Natural Gas Reserves (2006) 6.8 trillion cubic feet
Natural Gas Production (2003) 0.1 trillion cubic feet
Natural Gas Consumption (2003) 95.4 billion cubic feet
Recoverable Coal Reserves (2003) 165.3 million short tons
Coal Production (2003) 17.6 million short tons
Coal Consumption (2003) 10.4 million short tons
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Electricity Installed Capacity (2003) 8.7 gigawatts
Electricity Production (2003) 39.7 billion kilowatt-hours
Electricity Consumption (2003) 36.9 billion kilowatt-hours
Total Energy Consumption (2003) 1 quadrillion Btus, of which oil (46), coal (22), hydroelectricity (22), natural gas (10).
Total Per Capita Energy Consumption (2003) 12.1 million Btus.
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3. ENERGY DEMAND

• In industry sector, from 2020 2050, energy
  demand is expected to increase from 24 - 42.
• Electricity demand in Vietnam is forecasted to
  grow 15 percent per year until 2010.
• Coal consumption is expected to decrease from 51
  to 26 (total energy consumption).
• Natural gas demand is expected to increase
  10/year (2010 2020).

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4. RENEWABLE ENERGY ACTIVITIES
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4.1. Mini Hydropower
Capacity 200W 10kW
Site 120,000
Total estimated capacity 20MW
Electricity supply 65106 120106 kWh / year supplied to around 130,000 families
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4.2. Natural Hot Water
Site 200
Water temperature 40oC 100oC
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4.3. Agricultural Residues
Rice husking site More than 100,000 (in Mekong Delta) in which there are around 50 sites with capacity more than 5tons/h.
Sugar-cane residues Enough to operate thermal power stations with total capacity around 250MW.
Biogas / Biomass High potential, especially in Mekong Red river Delta
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4.4. Solar Energy

• Cold season 3 to 4.5 kWh/m2/day
• Hot season 4.5 to 6.5 kWh/m2/day

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Photovoltaic

• No related industry.
• Installed capacity around 3,000 systems (500Wp
  1,500Wp) with total capacity less than one MWp.

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Solar Hot Water

• Nearly no related industry.
• High attraction, especially in southern Vietnam.
• Demand is increasing.
• The number of companies referring to solar hot
  water is also increasing, especially in Ho Chi
  Minh city.

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4.5. Wind Energy

• Islands 860 1410 kWh/m2/year
• Coastal areas 800 1000 kWh/m2/year
• Mainland 500 800 kWh/m2/year

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• Based on a World Bank-AAEP study, there are good
  to excellent wind resource areas for large-scale
  wind generation that can be found in the
  mountains of central and southern Vietnam.
  Furthermore, coastal areas of southern and
  south-central Vietnam show exceptional promise
  for wind energy both because of strong winds and
  their proximity to population centers. On a land
  area basis, around 28,000 sq km of Vietnam (8.6
  of the total land area) experience good to
  excellent winds. 

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WIND ENERGY POTENTIALhttp//www.ec-asean-greenipp
network.net/dsp_page.cfm?viewpageselect97
POOR lt6m/s FAIR 6-7m/s GOOD 7-8m/s VERY GOOD 8-9m/s Excellent gt9m/s
Land area (sq.km) 197342 100361 25679 2187 113
of total land area 60.60 30.80 7.90 0.70 NA
Potential, MW NA 401444 102716 8748 452
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• Installed capacity nearly 1MW at Bach Long Vi,
  Hai Phong and other small wind generators and
  wind pumping.
• VIETNAM WIND POWER JOINT STOCK COMPANY, founded
  officially in September 2001

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PROJECTSscheduled by Vietnam Wind Power Joint
Stock Company
Pilot wind power turbine (0.9MW) Do Son Beach, Hai Phong city (Owner)
Phuong Mai 3 wind power plant (50.4MW) Binh Dinh Province  (Owner)
Phuong Mai 1 wind power plant (15MW) Binh Dinh province (Partner)
Pha Rung wind power plant (20MW) Hai Phong city (Owner)
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RESEARCH on renewable energy

• Solar energy
• - Refrigeration Air Conditioning
• - Dryer
• - Distillation
• Biodiesel
• Biomass Biogas

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5. ENERGY EFFICIENCY ACTIVITIES

• Recently, activities of energy efficiency have
  been promoted in Vietnam.
• The promotion has come from central and local
  governmental agencies, from press, from
  universities, as well as from scientists and
  others.
• But, industry owners and end users have not yet
  paid enough their attention to the problem.

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• WHY???
• There may be many reasons. But, the main reasons
  are
• - Hesitance of technology update.
• - The lack of investment.
• - The lack of knowledge.
• - The lack of appropriate policies coming from
  government such as financial support, tax,...

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• Anyway, in the past few years there have been
  several good results on these activities,
  especially in Ho Chi Minh City and in Hanoi.
• Currently, the activities of energy efficiency in
  Vietnam are mainly promoted by
• Ministry of Science and Technology.
• Ministry of Industry.
• Vietnam National University-Ho Chi Minh City
  (Ho Chi Minh City University of Technology is
  one of its members).
• Department of Science Technology, Ho Chi
  Minh City.

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6. CONCLUSION

• In the near future, Vietnam may satisfy its
  energy demand by itself (oil gas) and may
  continue to export not only crude oil, but also
  refined oil.
• The energy efficiency activities have been
  promoted in Vietnam.
• Currently, the activities of renewable energy and
  energy conservation get the great attention of
  the community in Vietnam.

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• Vietnam needs foreign direct investments to
  develop energy sector in general as well as
  renewable energy sector in particular.
• Vietnam high potential market for renewable
  energy equipments, especially for solar energy
  equipments.

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• But, saying about energy balance, the percentage
  of renewable energy to the total energy supply of
  the country is still nearly zero.
• Up to now, in Vietnam, there is no any industry
  related to renewable energy.

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• THE LACK OF APPROPRIATE POLICIES (financial
  support, tax,) is considered as the main reason
  causing this problem.

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• Hopefully, the situation could be improved very
  soon.

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THANK YOU FOR YOUR ATTENTIONHave a nice day!!!