During a meeting with Deputy Prime Minister Nguyen Chi Dung on 4/7, Honna Hitoshi, President and CEO of Erex (Japan), discussed biomass power development projects.
Biomass power is a form of renewable energy produced using organic waste (crops, forests, agricultural waste, etc.) to generate electricity. Vietnam currently has 9 biomass power plants operating over 10 MW, with a total capacity of about 332 MW, according to the Electricity Regulatory Authority (Ministry of Industry and Trade). By 2030, 14 more biomass power plants are expected to be operational, adding about 300 MW to the power system.
Erex is one of Japan's leading biomass power corporations. They want to implement projects to develop raw material areas, invest in biomass power projects, and convert coal-fired power plants to this clean energy source in Vietnam.
In Vietnam, Erex has developed some biomass power plants such as projects in Hau Giang (20 MW), Yen Bai (50 MW), and Tuyen Quang (50 MW).
The government has identified renewable energy, including biomass power, as playing an important role in helping Vietnam achieve net-zero emissions by 2050. Power Development Plan VIII sets a target for installed biomass power capacity, generated from waste, of approximately 2,270 MW by 2030.
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Deputy Prime Minister Nguyen Chi Dung receives Honna Hitoshi, President and CEO of Erex, on 4/7. Photo: VGP |
Deputy Prime Minister Nguyen Chi Dung receives Honna Hitoshi, President and CEO of Erex, on 4/7. Photo: VGP
Deputy Prime Minister Nguyen Chi Dung welcomed Erex's efforts to introduce biomass power technology to Vietnam. He affirmed that these projects will contribute positively to the development of Vietnam's energy sector and the cooperative relationship between the two countries.
The Deputy Prime Minister suggested that the corporation continue to expand investment and transfer technology with coal-biomass co-firing projects and support Vietnam's energy transition. He also requested the investor to coordinate with relevant authorities to implement projects in Vietnam in accordance with the law and in line with industry planning.
The government leader affirmed that Vietnam encourages and supports Japanese businesses to increase investment and cooperate with Vietnamese businesses. This also aims to help domestic enterprises participate more deeply in Japan's global supply chain, especially in semiconductors, renewable energy, and biomass power.
At the meeting, Honna Hitoshi made proposals regarding the biomass energy price framework and exchange rate adjustments in power purchase agreements. In addition, they also offered scholarships to support Vietnam in training human resources in the renewable energy and semiconductor sectors.
According to the Deputy Prime Minister, the price framework is being calculated based on many factors, such as the competitiveness of biomass power with other renewable energy sources, the impact on purchase and sale prices, and data collected from existing projects. "The support mechanism for biomass power generation is calculated reasonably and harmoniously with other power sources," he said.
He also requested Erex to provide the parameters of the projects implemented by the corporation in Yen Bai 1 and Tuyen Quang to Vietnam Electricity (EVN) for aggregation as a basis for proposing a power generation price framework for the next phase.
Regarding exchange rate adjustments in power purchase agreements, the Deputy Prime Minister stated that this policy is applied to a limited extent and must comply with current regulations.
Phuong Dung
