15-17 Nov 2004 Italy-Vietnam Cooperation Perspectives 1

International workshop on

Management and Protection of Vietnam’s Natural Environment and Resources

Hai Phong, 15-17 November 2004

Session 4: Renewable Energy

UNIDO Country Office in Vietnam

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1. UNIDO’s Regional Programme on Rural Energy

Preparatory Assistance Phase (PA) : Early 2003 by the Energy and Cleaner Production

Branch Objective: assess the potential on rural energy

(RE) and income generation (field study, market analysis, etc)

Status: Cambodia: project approved by the Gov and

funded by Austria Laos: proposal under formulation Vietnam: support by the Gov and negotiations

with donors

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2. Country’s framework: key featuresSocio Economy Energy Sector Rural Energy Renewable

EnergyGDP averaged growth: 7.6%Indust. output: 15%SME sector backbone of the economyHousehold sector at riskService/tourism booming

Consump. petroleum, coal and electricity (10% ann. growth)Installed capacity: - - 8,860 MW serving the public grid- 47% large hydro power plants EVN: to invest in hydropower, associated natural gas, RE

Priority: electricity supply by grid extension to the rural areas EVN to connect 100% or all communes to the public grid, by 2010Remote communes (mountainous areas, off-shore islands)?

Solar and hydro energiesWind resources (costal/islands)Hydropower most important source for electr. generation 59% Discrepancies potential and utilization of RE

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3. UNIDO and Vietnam

The Integrated Programme (IP) 2003-2005 between UNIDO and the SR of Vietnam focuses on:

SME Promotion Environmentally Sustainable Industrial Development Rural Industry Development

Next IP 2006-2008: strong focus on export, technology and productivity enhancement with a Public Private Partnership approach

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4. Renewable Energy in Quang Nam Province

Milestones:

November 2003: preparatory assistance mission

Project area identified: Quang Nam Province, Cham Island

Scope of the initiative defined

August 2004: Government-Donor workshop Findings presented Dialogue with potential partners initiated

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5. Quang Nam Province

Cham Islands

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6. Cham Island: Harbor

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7. Project area: Cham Island

15 communes; 1,591 ha ; 2,777 inhabitants

Productive utilization

85 % of island population make their living from fishing (only a few processing activities of noodles, ice, French bread, cakes)

No traditional handicraft skills Fast rising tourist industry on-shore in Hoi An

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8. Immediate objective

The commune of Cu Lao Cham Islands participate in income generating activities through functional associations for:

self-managed electricity services eco-tourism development joint marketing of its fishermen’s sea

products

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9. Technical Assistance

Institutional, technical and financial barriers

Develop agreements and partnership

Support to investment projects

Identification of selection criteria for the business model/replication projects

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10. Business Model

Demonstration of the BM, through the participation of private enterprises, cooperatives, associations, such as:

Viable Hybrid RE model for power generation and distribution Solar dryer model for food / fish processing PV Battery charging station Ice making units for the fishing community Household connections for small businesses (sewing, carving, knitting, embroidery, etc.)

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11. Project outputs1. Energy supply meets eco-tourism demands and

standards

2. Productive utilization of RE (services, production, processing) meets the eco-tourism standards and demands

3. New mode of Industrial Organization created around energy resources

4. Lessons available for further dissemination to similar locations

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Thank you!