HCM CITY — Việt Nam has great potential in renewable energy, but the Government should have suitable mechanisms and policies to encourage investment in the field, a seminar heard in HCM City on Friday.

Dr Nguyễn Anh Tuấn, director of the Renewable Energy Centre, said theoretically Việt Nam’s has a renewable energy -- biomass, biogas, wind, and solar -- potential of 9.1 million MW though its technical potential is only 385,708 MW.

The Government’s revised power development plan VII approved last year set a target for renewable energy for around 7 per cent of total generation by 2020 and 10 per cent by 2030.

It now accounts for a very small proportion though it is increasing, he told the seminar titled Green Energy Insights: Việt Nam and Taiwan’s Trends and Development.

Talking about challenges, he said the huge initial cost of renewable energy was the key hurdle in Việt Nam.

Besides, tariffs are not very attractive for renewable energy, and there is difficulty and uncertainty in system connections, a shortage of skilled professionals and engineers in the field, lack of information/reliable database for assessing the potential of renewable energy sources and a potential constraint on land resources, he said.

He suggested that the Government should develop suitable mechanisms and policies to promote the renewable energy industry.

"A renewable energy fund to support solar, wind and biomass projects and organising training courses in co-operation with universities to train skilled engineers are also needed," he said.

Karen Ma, director of Taiwan’s Green Trade Project Office, said demand for green and renewable energy had increased globally.

"There is very good potential for green energy development in ASEAN, including Việt Nam.

"Taiwan targets a rate of 20 per cent from renewables by 2025," she said.

Organised by the Việt Nam Chamber of Commerce and Industry and Taiwan External Trade Development Council (TAITRA), the seminar sought to acquaint Vietnamese companies with global trends in green development and renewable energy opportunities in Việt Nam, photovoltaic technology, use of lithium ion batteries in green energy, and other technologies.

According to TAITRA, the Taiwanese green energy industry has been growing steadily, and today the island ranks second globally in the production of solar cells.

Both Việt Nam and Taiwan are working on green energy development, and the seminar is expected to promote co-operation between the two sides in the sector. — VNS