Hanoi (VNA) – Vietnam plans to add 9,600 MW of electricity from biomass by 2030, but this will require additional incentives.
Pham Huong Giang, an official of the Electricity and Renewable Energy Authority under the Ministry of Industry and Commerceunderlined the low rate of contribution of biomass to the national electricity grid.
As part of Vietnam’s renewable energy development strategy by 2030 with a vision for 2050, biomass energy should represent 1% of combined production electricity production in 2020, 2.1% in 2030 and 8.1% in 2050.
However, the figure was only 0.13 percent last year, far from the target, despite government-issued incentives to boost the development of the sector, Giang added.
Nguyen Anh Tuan, former director of the Center for Renewable Energy of the Energy Institute, said the modest contribution of biomass energy is due to difficulties in controlling materials and fluctuating material prices. .
Huge investment capital and unattractive pricing mechanisms also remained major obstacles, he said.
Luong Quang Huy, from the Ministry of Natural Resources and Environment’s Climate Change Department, said finance and technology were among the obstacles.
Other problems are unattractive policies and high operational costs, as well as difficulties in developing material areas, he added.
According to the National Electricity Development Plan for the period 2021 – 2030, with a vision towards 2045 (PDP VIII), the installed capacity of biomass energy in Vietnam will reach 1,730 MW by 2030.
To this end, the country needs more mechanisms to encourage and attract investment in this form of energy.
Giang suggested reviewing mechanisms and policies to attract more investment in technology and finance, and evaluating the effectiveness of the feed-in tariff (FiT) mechanism.
Mathias Eichelbronner, international expert in biomass power, said Vietnam’s FiT mechanism is not sufficient to encourage the development of biomass power, as the price of 8.47 cents/kWH is much lower than that of Thailand, Malaysia and the Philippines.
Other experts also suggested that the Vietnamese government review the price of FiT, modify legal documents and refine administrative procedures to facilitate the development of the sector./.