Updated biomass energy project development guideline to benefit investors
Updated biomass energy project development guideline to benefit investors
The Electricity and Renewable Energy Authority (EREA) under the Ministry of Industry and Trade (MOIT), and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) co-organized a consultation workshop to collect stakeholders’ comments on updating the ‘Biomass energy project development guideline’ handbook on January 14, 2021 in Ho Chi Minh City.
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Attendance at the workshop were representatives from the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Natural Resources and Environment, Vietnam Electricity, relevant departments from Phu Yen, Tay Ninh, Tra Vinh, Hau Giang and Tien Giang provinces, the Institute of Energy, Vietnam Sugar and Sugarcane Association, Vietnam Clean Energy Association, universities, power engineering consulting companies and other private companies.
Using the document as the direction, investors can understand administrative procedures and processes in developing grid-connected biomass power projects, from the development, implementation, operation and maintenance to the decommissioning. Covered with clear and extensive knowledge, the guideline is expected to assist investors in reducing risks before and during their projects’ implementation.
This guideline was first introduced by the MOIT and GIZ in 2017 as part of the bilateral cooperation between the Vietnamese and German governments to promote renewable energy, including biomass energy, and contribute to climate change adaptation.
The update is necessary because the government has issued new legal documents such as the planning law and new biomass feed-in-tariffs, and revised the Power Purchase Agreement (PPA) for biomass power projects.
Among important updates are the overview of the power and biomass energy sector, revisions of related policies and omissions or inclusions of steps in the development process. The new version is anticipated to be published in the second quarter of 2021.
The revision of the handbook is part of the Climate Protection through Sustainable Bioenergy Markets in Vietnam (BEM) project, implemented by GIZ and EREA/MOIT. The project is commissioned by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).
Over the past years, the Government of Vietnam has rolled out a number of legislations that have paved the way for utilizing its biomass potential. Among them are the revised National Power Development Plan VII, which sets the goal of increasing the proportion of electricity generated from biomass sources up to 2.1% by 2030, Resolution No. 55/NQ-TW on utilizing biomass cogeneration to the maximum and promoting electricity generation from urban and solid waste and biomass sources, and Decision No. 08/2020/QD-TTg, which amended several terms in Decision No. 24/2014/QD-TTg on incentive mechanisms for biomass power projects in Vietnam. The move proved the country’s great effort towards green and sustainable development.
