Green Finance and Investment Clean Energy Finance and Investment Policy Review of Viet Nam.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development.

Language:

English

Subjects (All):

Clean energy investment--Vietnam.

Clean energy investment.

Energy policy--Vietnam.

Energy policy.

Physical Description:

1 online resource (173 pages)

Edition:

1st ed.

Place of Publication:

Paris : OECD Publishing, 2021.

Summary:

Viet Nam has become a leading regional market for renewable energy in a short space of time led by private sector investment facilitated by favourable support mechanisms. The Clean Energy Finance and Investment Policy Review of Viet Nam provides a comprehensive overview of the current policy framework, highlighting progress and identifying untapped opportunities for strengthening policy interventions that can help scale up clean energy finance and investment.

Contents:

Intro

Preface

Foreword

Abbreviations and acronyms

Executive summary

Assessment

Planning and public governance

Regulatory framework

Investment and competition policy

Investment promotion and facilitation

Financial market policy

Cross-cutting issues

1 Introduction and recent trends in clean energy finance and investment

Economic and social developments

The economy has grown consistently over the last decade

Poverty levels are declining and electricity access has reached 99%

Key energy demand and efficiency trends

Energy demand and energy related emissions are increasing rapidly

Industry and buildings are the priority areas for energy efficiency

Progress has been made in energy efficiency through the VNEEP programmes

Power sector trends

Fossil fuel generation continues to play a key role in Viet Nam's power sector

Renewables deployment has increased substantially over the last years

There remains significant untapped wind and solar potential in the country

Viet Nam's market for clean energy

Public investment has supported the bulk of power through large hydropower and coal

Viet Nam is now the 7th largest renewable energy market

Renewables are increasingly becoming cost competitive

The domestic market for energy efficiency has ample room for expansion

References

Notes

2 Planning and governance

Assessment and recommendations:

Viet Nam has set ambitious clean energy targets but co-ordination on planning remains a challenge

Clarity is needed on the process for supplementing the Power Development Plan VIII

Oversight and governance will be central to creating a competitive power market

EVN has strengthened planning and system operation practices

Technical and market-based solutions will be required to integrate variable renewable capacity.

Policy coherence, co-ordination, and monitoring

Top down planning is the main instrument for policy coherence and co-ordination

MOIT, MPI and MOF are key actors in formulating and implementing clean energy policy

At sub-nation level, the Peoples Provincial Committee play a pivotal role

Long-term goal setting to promote clean energy investment

Clean energy plays a key a role in Viet Nam's long term energy security strategy

Ambitions set out in renewable energy strategies have met with early success

Energy efficiency features across different strategies but progress has been slower

A comprehensive climate agenda is reinforced through international commitments

Energy efficiency planning

VNEEP is the main instrument for energy efficiency planning

VNEEP III places a stronger emphasis on co-ordination

Provincial and municipal authorities play a larger role in VNEEP III

Institutional framework for the electricity market

Progress has been made towards a partially competitive power market

EVN's role in generation is evolving as the market liberalisation process continues

Authorities within the electricity market need to be strengthened

Electricity planning

PV capacity additions boomed in 2019 far beyond the PDP VII Revised 2020 target

Co-ordination between master plans remains an issue under the new planning law

PDP development requires extensive coordination between various stakeholders

PDP VIII sets power sector development targets over the coming decades

Energy efficiency features in the PDP VIII

A greater focus on mechanism for integrating a higher share of renewable is needed

3 Regulatory framework

Assessment &amp

Recommendations

Recent success attracting renewable energy investment brings urgent new regulatory priorities.

A shift in approach to renewable energy procurement creates market uncertainty

Risk allocation in standard power purchase agreements restricted international capital

Regulation for energy efficiency promotion has advanced quickly but processes for monitoring, enforcement, and impact evaluation can be improved

Dedicated regulations that guide energy performance contracting will build market confidence

Energy Efficiency Policies and Regulations

Significant progress has been made developing the regulatory framework for industrial energy efficiency promotion but monitoring and enforcement needs to be strengthened

Energy management system certification to international standards is increasing

Minimum Energy Performance Standards &amp

Labelling can be tightened in line with market conditions

Energy services companies are active in Viet Nam but a regulatory framework guiding energy performance contracting modalities would build market confidence

Energy Efficiency Regulation in the Building Sector

Electricity market design and renewable energy policies and regulations

Recent success attracting renewable energy investment brings urgent new priorities to adapt regulatory frameworks for facilitating grid integration

Viet Nam's competitive power market is developing but a single buyer model remains for renewable energy independent power producers

Improved ancillary services will be required to maintain power quality and reliability

Renewable energy procurement is regulated through a series of ministerial decisions

Standardised power purchase agreements fall below international bankability standards

A shift in approach to renewable energy procurement creates market uncertainty

Distributed solar has boomed despite issues with administration of net metering.

Renewable portfolio standards have been prioritised but are yet to be implemented

4 Investment and competition policy

Assessment and recommendations

Progress is being made towards developing a competitive power market

Significant transmission upgrades are needed to integrate variable renewable capacity

Contracting under Public Private Partnership (PPP) laws are underused for clean energy projects

Commitment to clean energy will strengthen its status as an attractive FDI market

Dispute Resolution should be strengthened in order to boost investor confidence

Coordination around land-use rights remains a challenge for project development

Creating a level playing field between public and private investors in clean energy infrastructure

More efforts are needed to level the playing field between IPPs and EVN

There is a need to create a more transparent, clear and predictable procurement process

Strengthening competition should be a priority in the equitisation process

Increasing the independence of electricity market actors will ensure effective competition and market confidence

Promoting equal treatment of foreign and domestic investors in clean energy

Viet Nam boasts an attractive and open environment for FDI

Clean energy will be essential to fulfil ambitions of becoming a leading industrial hub

Complex procedures and unclear risk allocation may limit FDI in renewable projects

Mechanisms for dispute resolution may not be sufficient to reassure foreign investors

Facilitating land access for renewable electricity development

Issues around securing land rights play a central role in project development

Competitive bidding guidelines, floating solar and cities provide new opportunities

Harnessing public procurement and public-private partnerships for clean energy.

Technical standards in public procurement drive investment in energy efficiency

PPP can be an effective tool for supporting greater clean energy investment

Private participation can play a key role in updating the transmission system

5 Investment promotion and facilitation

Viet Nam has taken strong action to reduce fossil fuel subsidies

Planning for a carbon market is underway to strengthen Viet Nam's climate policy

Fiscal incentives are in place to promote clean energy investment

Renewable energy project approval and permitting processes can be streamlined

Public retrofitting schemes can accelerate the energy efficiency market development

Fossil fuel subsidy reform and carbon pricing

Targeted incentives and funds for energy efficiency investment

Improved demand-side incentives can play an important role in market transformation

Financing conditions for energy efficiency remain challenging

Investment in public programmes can drive energy efficiency market development

Targeted incentives and funds for renewable electricity

Feed-in tariffs have facilitated a rush of renewable investment but with mixed results across technologies

The support mechanism for offshore wind procurement is still uncertain

Feed-in tariff support for distributed solar is set to continue

Pilot corporate power purchase agreements will provide new routes to market

6 Financial market policy

Rapid solar expansion financed mainly through domestic and regional banks

Regulation has guided the development of green finance frameworks that facilitated domestic lending.

Refinancing of operational projects could create opportunities for new investors.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9789264976139

9264976132

9789264883376

9264883371

OCLC:

1321801174