Issue 2 PolicyPolicy

Issue 2:Issue 2:

Identification of Barriers and PAMs Identification of Barriers and PAMs for the Adoption of CEETs for the Adoption of CEETs

Issue 2 PolicyPolicy

+ The selected CEETs in Vietnam have been identified and ranked with barriers. Selected CEETs include PFBC, Small Hydro, Geothermal . Furthermore, policies and measures (PAMs) to overcome the dominant barriers to selected CEETs have also been identified.

+ Barriers to adoption of CEETs in the power sector have been identified through international and country specific literature review, interviews with the experts and users. Among the barriers identified, some are considered to be more critical than the others depending upon the location, characteristic of the technical options, etc.

+ The methodology used for ranking of the barriers is Analytic Hierarchy Process (AHP) with hierarchy tree that enumerates the objective, actors, criteria and decision alternatives, i.e., barriers to be ranked. The following criteria were used to rank the barriers: a) monetary cost of barrier removal, b) level of efforts needed create awareness, c) level of political/bureaucratic effort for barrier removal, d) impact on adoption of CEET, e) life of the barrier.

Introduction & Identification and Ranking of Barriers

Issue 2 PolicyPolicy

+ Analysis of barriers to small hydro plants & geothermal plants conducted in Vietnam showed that lack of investment of capital was identified as the most significant barrier to the promotion of Small Hydro Plants in Vietnam, followed by lack of domestic equipment suppliers and lack of cooperation between responsible utility and local governments.

+ In the case of Geothermal Plants, the lack of information was found to be the

most dominant barrier identified followed by lack of experts or technical people to handle the technology.

Ranking of Barriers to RETs & CCTs

Table 1c presents the specific major barriers to Clean Coal Technologies (CCTs) - PFBC

Technology Barriers

PFBC Lack of technical know-how to operate CCTs -PFBCHigh capital cost Lack of technological information

Issue 2 PolicyPolicy

+ Policies & measures (PAMs) to remove each of the major barriers were identified based on literature reviews. A list of PAMs was prepared based on the opinions collected from groups of concerned experts/respondents using simple questionnaire, interviews, or forum. The respondents includes utility planners, policy makers, private sector developers, manufacturers, local financial

institutions, utility regulators, government planners and policy makers.

Identification of PAMs to Overcome Barriers

+ PAMs for Small Hydropower Stations

-Financial aids, financial supports: subsidized credits, preferential loans, access

to different favorable funding sources.

-Priority development of local power resources, especially in remote areas

where national grid is not reached.

-Permitting other business companies outside of EVN to construct and

operate power resources, including hydro power stations.

-Establishing and developing of technical consulting and supporting

centers, policy-consulting centers.

-Enhancing investments on R & D

Issue 2 PolicyPolicy

+ PAMs for Geothermal Power Plants- Investment policy in power resource development (Permitting other economic components, business companies outside EVN to construct and operate power resources).

- Implementation of CO2 tax.

- Establishing, developing of technical consulting, supporting centers and human resource development.

- Incentive policy for scientific/ technical/ technological development (R & D).

- Priority policy on development of local remote area economy.

+ PAMs for PFBC Plants- Investment policy in power resource development (Permitting other economic components, other business companies outside EVN to construct and operatepower resources).- Increasing the electricity price.- Incentive policy for R & D (Scientific, technical and technologicaldevelopment).- Establishing, developing technical/technological consulting centers.- Implementing of emission tax collection.

Identification of PAMs to Overcome Barriers

Issue 2 PolicyPolicy

+ In order to develop mini hydro plants in Vietnam, provision of soft loans andprivate sector participation in the development of mini hydro projects are policies identified to remove the barrier lack of capital investment and scarcityof financial resources. In response to identification of policies to eliminate lackof domestic equipment suppliers as well as low quality equipment, it has been identified that the desirable option is to support local R&D for technology development. On the other hand, enhancing the policy framework for renewable energy is the desirable policy identified to remove the barrier weak government policy framework for the promotion of mini hydro.

+ Supporting local R&D to develop the technology locally and establishinginformation centers on renewable energy technologies are the policies identifiedto remove the barrier lack of information on geothermal technology in Vietnam.Also, human resource development on the technology is the policy identifiedto remove the barrier lack of experts.

+ Training and human resources development are the measures identified toeliminate lack of technical know-how on CCTs-PFBC.

PAMs identified to Remove Barriers to RETs & PFBC