GIZ and the Electricity and Renewable Energy Authority (EREA) under the Ministry of Industry and Trade (MOIT) co-organised the workshop ’Analysis of alternatives business models for sugar mills to run their biomass plants’ on April 13 in Phu Yen.
Currently, Viet Nam has 10 bagasse-fired co-generation heat power (CHP) plants. The feed-in tariff (FIT) for such projects, which generate both heat and electricity, is 7.03 US cents/kWh, according to Decision No. 08/2020/QD-TTg issued on March 5, 2020 by the Prime Minister on support mechanisms for the country’s biomass power development. The FIT is 8.47 US cents/kWh for non-CHP generation projects.
Previously, sugar plants mainly operated during sugarcane seasons and used bagasse as input materials for their heat and electricity production. Some of them have recently continued to run their businesses during off-season to maintain their sustainable operation. As bagasse is not available at that time, they need to buy other biomass sources as inputs for generating electricity instead.
Therefore, the workshop aimed to find proper solutions for the CHP plants. The participants discussed current situations of biomass power projects in Viet Nam and put forward incentives to operate the plants throughout the year so investors are more interested in the sector.
Participants in the workshop were representatives of the Electricity Regulatory Authority of Viet Nam (ERAV)/MOIT, the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development, Phu Yen People’s Committee, National Assembly members, who come from provinces having biomass power plants, and others of the Vietnam Electricity (EVN), relevant provincial departments, the Institute of Energy, the Vietnam Sugar and Sugarcane Association, consultation agencies, private companies and international experts. Notably, Chairman of Phu Yen People’s Committee Tran Huu The gave a speech at the event.
The workshop is part of the Climate Protection through Sustainable Bioenergy Markets in Viet Nam (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).
See more about BEM project at ESP’s website: https://bit.ly/32t50Vj
GIZ/VECEA
