Vietnam adjusts biomass power prices

Adjustments have been made to biomass power prices under the Prime Minister’s Decision No.08/2020/QD-TTg on amendments and supplements to several articles of the Decision No.24/2014/QD-TTg dated March 24, 2014.

Accordingly, the prices will range from 1,634 – 1,968 VND (0.07 – 0.08 USD) per kWh, exclusive of added value tax.

According to the German Agency for International Development (GIZ), the new decision lays an important foundation for the Vietnamese Government to draw more investment in biomass power development, towards the goal of generating 660 MW, 1,200 MW and 3,000 MW of biomass power by 2020, 2025 and 2030, respectively under the Power Master Plan VII.

Last year, only 175 MW of electricity generated by biomass power projects were added to the national grid.

Over the past years, the EU-Vietnam Energy Facility (EVEF) project, carried out by the GIZ, has assisted the Vietnamese Ministry of Industry and Trade (MoIT) in recalculating biomass power prices, through collecting international experience and evaluating biomass market in Vietnam and the world.

Since 2019, the GIZ has cooperated with the Electricity and Renewable Energy Authority to carry out the Climate Protection through Sustainable Bioenergy Markets in Vietnam (BEM) project, with the aim of promoting the sustainable development of biomass resources for thermal and power production.

The BEM project is funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety.

The MoIT reported that after nearly six years of development, around 350 MW of biomass power have been connected to the national grid, or half of the target under the Power Master Plan VII till 2020.

Source: Vietnam News Agency