Viet Nam and Germany had an energy dialogue from November 28th to 30th 2022 on sharing common opportunities and challenges in the green energy transition. The dialogue has opened the door to further cooperation between the two countries towards the common carbon-neutrality target in the long term.
The dialogue is within the framework of a visit of Dr. Nicole Glanemann – Deputy Head of Division for Bilateral Energy Cooperation of the German Ministry for Economic Affairs and Climate Action (BMWK) to Viet Nam. Welcoming and working with BMWK are representatives from the Vietnamese Ministry of Industry and Trade (MOIT), as well as relevant ministries, departments, sectors, state-owned and private enterprises in the energy sector in Viet Nam.
The Viet Nam – Germany energy cooperative relationship has been built and developed previously at the Berlin Energy Transition Dialogue and the Vietnamese- German Energy Day in the framework of Vietnamese representatives’ visit to Berlin, which took place in March 2022. This time, the relationship was fostered by dialogues related to formulating policies for renewable energy (RE) development, green hydrogen potential in Viet Nam, setting up an energy efficiency club, as well as meeting German businesses in Viet Nam.
Challenges and solutions to power systems with high shares of renewable energy
Viet Nam and Germany are moving towards the net-zero target. To realise its goal in 2045, Germany has built and developed a power system with a high proportion of RE. During an exchange at the headquarters of Vietnam Electricity (EVN) on November 29, the representatives from BMWK shared many digital initiatives to address the challenges to power system operation, including market design focusing on both energy production and consumption, real-time electricity price calculation, consumer centricity; building procurement platforms for grid congestion management services; applying artificial intelligence solutions to RE assets, promoting the enhancement of controllable devices; as well as improving system imbalance forecasting.
Energy Efficiency Club
Energy Efficiency Club (EEC) is also among the focused topics of the dialogue. Besides the transition to green energy sources, the economical and efficient use of energy is also one of the significant and sustainable strategies. Viet Nam National Energy Efficiency Program in the 2019-2030 period (VNEEP III) sets the goal of making energy saving a regular activity for designated energy users and energy-intensive industries.
A workshop of EEC was held with participation of representatives of BMWK, representatives of German associations in electrical equipment, energy and environment sector, the Vietnam Energy Conservation and Energy Efficiency Association (VECEA) and the Energy Conservation Research and Development Center (ENERTEAM). These clubs will help connect businesses which are close together and have relatively similar features that could support each other regarding techniques, machinery, and equipment, thereby improving the quality of energy audit and management. Businesses can, therefore, learn from others and expand their network to prestigious consulting firms in the energy sector.
Also on this working day, a Letter of Intent was signed, marking the commitment of German energy associations and networks to support the development of energy efficiency networks in Viet Nam.
Policy framework for RE development and Green Hydrogen potential in Viet Nam
On the last working day of November 30th, BMWK’s representatives and the Electricity and Renewable Energy Authority (EREA)/MOIT discussed the topic “Policy framework for Renewable Energy development and Potential for Green Hydrogen in Viet Nam”. The workshop was attended by more than 80 delegates from relevant Ministries, Departments, and sectors such as the Electricity Regulatory Authority of Viet Nam (ERAV), the Oil, Gas and Coal Department under the MOIT, as well as international organisations, associations, enterprises, and universities nationwide.
International experiences in developing policy frameworks for RE development were shared at the event. Accordingly, the RE law should be associated with national and global long-term strategies, and consistent with sectoral policies as well as strategies to ensure energy security. The content of the law needs to remain unchanged for several years or decades. Besides, the investment safety of private investors should be a matter of concern.
From German side, it was shared that continuous policy development has contributed to promoting the deployment of RE in Germany with the share of RE sources accounting for nearly 50% of current electricity production. Germany identifies five main strategic pillars, including promoting RE; phasing out fossil energy; enhancing energy efficiency; electrification of heating & cooling and transport sectors; and developing clean hydrogen.
The participants also had a lively discussion about the potential for green hydrogen development in Viet Nam. Green hydrogen is a key technology in promoting the energy transition, and an optimal solution for areas facing difficulties in reducing greenhouse gas emissions. Viet Nam has many favorable conditions for green hydrogen production; however, policies and partnerships will be essential to ensure the success of hydrogen development. Much of the hydrogen production capacity being built for export is likely to be developed in the context of bilateral partnerships, with preferential financing conditions and long-term supply contracts. Under such an approach, Viet Nam’s production costs are likely to be sufficiently competitive on the global market.
In the context that Viet Nam and Germany share ambitious goals of Net Zero, Dr. Nicole Glanemann shared that Germany hopes to have more bilateral cooperation activities with Viet Nam to seize opportunities and overcome challenges in green energy transition towards the sustainable economic and social development of the country.