USAID Vietnam Low Emission Energy Program (V-LEEP) Component 2: RE Developer Characterization Report

The program seeks to address various challenges, including low energy prices, inconsistent permitting and licensing, weak capacities of relevant stakeholders, and a lack of investment guidance and regulatory framework for clean energy development. To address these challenges, the V-LEEP team conducted an assessment of wind, biomass power, and solar PV developers in Vietnam. The main activities undertaken by this study included identifying the wind, biomass, and solar PV technologies and sectors that V-LEEP desires to target, evaluating the likelihood of penetration and adoption by project developers, profiling the project developers according to a characterization criteria, and developing this characterization report. The key findings of the study characterize RE developers in Vietnam as follows: most developers are able to conduct and analyze site surveys and construction requirements, and are knowledgeable about permitting requirements. However, knowledge about estimating resource potential assessment is limited. Many developers with previous experience in conventional power projects are familiar with the process of power project development, but there is a significant need for developers who are inexperienced in power development to be supported with capacity building. The study also found that many developers are weak at conducting activities related to management of engineering, procurement, and construction in the RE sector. Capacities for equipment installation, commissioning, compliance check (safety, fire protection), and environmental issues are relatively weak and should be strengthened. Experience and capacity are limited with respect to RE project development, particularly in areas such as O&M procedures and processes, import tax, CIT exempted, land use, other incentives, and power purchase agreements. The report highlights the need for capacity building in all the aforementioned areas and recommends that this will be a fundamental component of the V-LEEP program. The report also provides recommendations on policy that can support the development and implementation of RE projects and selected actions for supporting the developers. The analysis to characterize renewable energy developers in Vietnam was carried out by desk research and primary data/information collection activities. The VLEEP team established a criteria for profiling and characterization of RE developers in Vietnam, which is based on the capacity of project developers through the whole cycle of project development, covering development, construction, and operation of renewable projects. The characterization report profiles current and future developers and identifies gaps in the capacity to consummate renewable energy projects in Vietnam. The report aims to provide a better understanding of the characteristics, capabilities, project preferences, and regulatory frameworks and state management that support RE project development in Vietnam.