Policy ResponsesPolicy ResponsesEnergy production and consumption in Vietnam is low by global standards. Demand is, however, growing rapidly in order to improve living standards and to meet the needs of a growing population.
In 1990, the installed electricity generating capacity was 2,200 MW with a national output of 9-9.5 billion kWh. Electricity consumption per head of population was about 150 kWh and this is projected to grow to 400-450 kWh by the year 2005. Attention is to be paid to current problems in the distribution network. The efficiency is uneven across the country, with particular difficulties being experienced in the south.
Vietnam is fortunate in that it has a rich diversity of natural resources available for energy generation. It is government policy to meet increased demand by taking advantage of this diversity, by making maximum use of domestic energy resources and reducing import dependence, and by improving end-use efficiency.
High quality coal reserves, found mostly in the northeast, amount to 2,000 to 3,000 million tons and peat and lower quality coal reserves occur throughout the country. During the 1980s, coal production has been close to 5 million tons a year and this is expected to double by the early 21st century. About 1 million tons of coal are exported annually.
Exploitation of petroleum and gas reserves is increasingly rapidly, often in co-operation with foreign companies. Total reserves are estimated at 1,500 million tons and 2.5 million tons were extracted in 1990. Crude oil is exported as Vietnam does not, at present, have refining facilities. Petrol and oil imports amount to 1.5 to 2 million tons a year. Current oil consumption is 3 million tons a year and this is projected to double by the early 21st century.
With its vast networks of rivers and streams, Vietnam has enormous hydropower potential and this presents the best opportunity to meet increasing demand. The theoretical hydropower potential is 270 billion kWh a year, out of which 90-100 billion kWh a year is considered technically feasible for exploitation and 60-70 billion kWh a year economically feasible at present.
Hydropower is currently responsible for about half the nation's electricity generation and this proportion is expected to grow to over 70% by the year 2010. Electricity output from hydropower plants will rise to 30 billion kWh a year.
Biomass, such as fuelwood, bamboo and straw and stubble, provides an important source of energy in daily life and in small industries. Consumption is estimated at 40-42 million tons a year. Solar energy is used in the drying of agricultural products and in heating water. Exploitation of the wind resource is difficult as wind speeds are low in inland areas, restricting the use of this resource for pumping and electricity generation. On the coast and islands, the occurrence of tropical cyclones presents serious technical problems. The geothermal and tidal potential is great but little has been done to harness these resources.
The planned growth in energy consumption will inevitably be accompanied by higher greenhouse gas emissions. According to a 1991 ESCAP study, the increased use of fossil fuels will result in a rise in annual carbon emissions from their 1986 value of 4.48 million tonnes to 14.49 million tonnes by the year 2010.
Three means of reducing the rise in Vietnam's contribution have been identified. First, make more effective use of basic energy sources, especially coal, by improving technology as well as equipment efficiency and replace the use of coal with other energy sources, such as oil and gas, which release lower amounts of carbon. Second, step up the exploitation of the hydroelectric potential on the national scale, taking account of impacts on the environment. Third, make more use of renewable energy sources such as biomass (used sustainably), solar and wind energy. This will require research on the application of advanced technologies at lower costs.
Consideration of broader energy-environment relations is a critical concern. Vietnam is already experiencing considerable environmental problems as a result of energy development: most notably, local air pollution around power plants, land loss and degradation and riverflow alteration due to hydroelectric schemes, and accelerated deforestation as a result of fuelwood exploitation and charcoal production.
For example, in developing further the hydropower resource, it will be necessary to consider broader environmental consequences such as changes in climate around the river area, hydrological problems (affecting flow, sediment supply, flood control, salinity and currents) and ecological impacts.
The impact on local peoples must also be considered in terms of the effects on their livelihoods. Changing river flow could alter transportation systems, fisheries and irrigation practices. Experience has shown that the construction of a series of smaller-scale plants rather than single, massive systems can assist in reducing the overall impact.
Based on material provided by
Professor Nguyen Minh Due, Dean, Energy Economics Faculty, Hanoi Polytechnic
Other source
Environmental Considerations in Energy Development, Asian Development Bank, Bangkok, 1991
"Policy Responses: Reducing land-use emissions"
Index