Biomass power to be priced higher next year

Published on The Saigon Times Daily, October 8th, 2013

The prices of biomass power will increase by nearly twice when the Government issues a decision on a mechanism supporting power projects running on solid wastes late this year, said the Center for Renewable Energy under the Institute of Energy.

Nguyen Duc Cuong, director of the center, told at a conference on renewable energy projects in An Giang Province held last week in HCMC that the price of power generated from bagasse, husk, waste and landfill will rise to 6.1 U.S. cents, 7.3 cents, 10 cents and 7.3 cents per kWh.

According to Cuong, when the new policy comes out, Vietnam Electricity Group (EVN) will have to buy all such biomass power without negotiations.

The mechanism of supporting power projects running on waste is being mapped out by the Ministry of Industry and Trade.

Cuong said that the low power prices have discouraged investors from investing in renewable power projects. Therefore, the aforementioned prices can help investors have benefits and boots investments in the biomass power sector, he added.

The current total power capacity in Vietnam is around 26,000 MW, with renewable power generated from waste, wind, bagasse and solar energy accounting for 3.7% and expected to be raised to 9.4% in 2030, according to the Institute of Energy.

The potential of biomass power in Vietnam is huge as there are over 100 millions tons of materials generated each year. Vietnam targets to have the biomass power capacity of 500 MW in 2020 and 2,000 MW in 2030.

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