In November 2015 government of Vietnam adopted Renewable Energy Development Strategy 2016-2030 with outlook until 2050 (REDS) coming into force in 2016. The Strategy guides renewable energy development in the country setting clear medium and long-term goals. Special focus is set on biomass, wind and solar technologies.
According to the Strategy Vietnam will promote onshore wind power until 2030 and assess offshore wind resources potential as an electricity solution post 2030.
Renewable power generation should cover 7% of total generation in 2020 and 10% in 2030 (from less than 1%, excluding hydro, in 2014). Additional targets are as follow:
Biofuels consumption in total vehicle fuel consumption
Rate of households using solar heating
Rate of households using high efficiency stoves
Vietnam targets a strong reduction in coal and oil imports to cut greenhouse gas emissions by 5% by 2020, 25% by 2030 and 45% by 2050.
In order to finance above energy goals Vietnam will establish a Sustainable Renewable Energy Fund to be supported by state budget and environmental fees for fossil fuels to cover indicated renewable energy deployment.
The Strategy indicates that a Renewable Portfolio Standard (RPS) will be introduced as a policy mechanism to guide the deployment. Large power generation companies will have to reach 3% of renewable power capacity by 2020, 10% by 2030 and 20% by 2050 (same rates for power sold by distribution companies).
Additionally, net metering and preferential taxation policies will be introduced and land and environmental permitting will be outlined with clear rules and administrative procedures.