Decision No. 2068/QD-TTg dated November 25, 2015 of the Prime Minister approving the development strategy of renewable energy of Vietnam by 2030 with a vision to 2050

THE PRIME MINISTER

Decision No. 2068/QD-TTg dated November 25, 2015 of the Prime Minister approving thedevelopment strategy of renewable energy of Vietnam by 2030 with a vision to 2050

Pursuant to the Law on organization of Government dated 25 December 2001;

Pursuant to the Electricity Law dated 03/12/2004; the Law amending and adding some articles of the Electricity Law dated 20/11/2012;

Considering the recommendation of the Minister of Industry and Trade

DECIDES:

Article 1. To approve the development strategy of renewable energy of Vietnam by 2030 with a vision to 2050 with the following main contents:

I.DEVELOPMENT VIEWPOINT

1.To combine the development of renewable energy with the implementation of environmental, social and economic objectives: Development of renewable energy not only focuses on expanding the scale and increasing the proportion of renewable energy sources in total primary energy supply, contributing to ensure the energy security, but also solves the issues of energy supply to the urban area, contributing to promotion of production development, building a society which economically and effectively use the friendly environmentally natural resources ; development of renewable energy on the basis of resources and socio-economic development in accordance with the natural resources and energy demand of the country and each locality.

2.To develop and use the renewable energy in combination with development of renewable energy industry: Giving the priority to quickly develop the fields of renewable energy with large resources and good commercial prospect such as wind power, solar power, biomass power; taking necessary measures to expand the market demand simultaneously increasing the international cooperation to transfer the equipment fabrication industry technology; acquiring and mastering technologies, improving the equipment manufacturing capability and competitiveness in the renewable energy to meet the sustainability and stability for market demand, facilitating the development with large scale for renewable energy industry.

3.To combine the application of short-term technology with long-term technological development: focusing on application of technologies proven in the field of renewable energy such as hydropower, wind energy, biomass energy, biological gas to develop the renewable energy sources to effectively supply the electric power to the national power system and thermal power for thermal need in production and domestic activities simultaneously focusing on technologies which are new, modern and have a promising future such as the liquid biological fuel production technology with application of advanced technology of second and third generation.

4.To combine the incentive and assisting policies with the market mechanism: Applying the encouraging measures and financial and economic assistance to promote the development and use of renewable energy to solve the shortage of primary energy source and supply energy to the urban areas; establishing the mechanisms and use the market measures to attract capital from all economic components to develop renewable energy and contribute to improve the technical level of renewable energy technology, promoting the development of renewable energy equipment fabrication industry, constantly improving the competitiveness towards the renewable energy industry through the assistance of state policies to soon achieve the large scale for development.

5.To combine the re-structuring with improvement of state management capacity in the field of renewable energy: improving the state management capacity in the Central and localities in management of renewable energy use and development activities; gradually eliminating barriers, issuing the mechanisms and policies to encourage the development of appropriate renewable energy to rapidly develop the renewable energy sources.

II. DEVELOPMENT STRATEGIES AND OBJECTIVES

1.Development strategies: To encourage the mobilization of all resources from the society and people for renewable energy development to strengthen the access to the modern, sustainable and reliable energy source with rational price for all people; promote the development and use of renewable energy, increase in domestic energy supply source, gradually increase the proportion of renewable energy in production and consumption of national energy to decrease the dependence on the fossil fuel, contribute to ensure the energy security, mitigation of climate change, environmental protection and sustainable socio-economic development.

2.Strategic objectives:

-To gradually raise the rate of access to clean energy source and electric power of people in urban, mountainous areas, remote areas, border areas, islands: By 2020, most households have the electricity and by 2030, most households can have access to the services of modern, sustainable and reliable energy at the rational power selling price and energy price.

-To develop and use the renewable energy to contribute to the implementation of sustainable environmental objectives and development of green economy:

+Mitigation of greenhouse gas emissions in the energy activities compared with normal development plan: around 5% by 2020; around 25% by 2030 and around 45% by 2050.

+To contribute to decreasing the imported fuels for the purpose of energy: Reduction of around 40 million tons of coal and 3.7 tons of oil products by 2030; reduction of around 150 million tons of coal and 10.5 million of oil products by 2050.

-To increase the total renewable energy sources for production, use around 25 million tons of TOE (ton of oil equivalent) by 2015 to around 37 million TOE by 2020; around 62 million TOE by 2030 and 138 million TOE by 2050. The percentage of renewable energy in the total primary energy consumption in 2015 reaches around 31.8%, around 31% by 2020; around 32.3% by 2030 and up to around 44% by 2050.

-To increase the power output produced from the renewable energy from around 58 billionkWhin 2015 up to around 101 billionkWhby 2020, around 186 billionkWhby 2030 and around 452 billionkWhby 2050. The percentage of produced power from renewable energy in the total power of the country shall increase from around 35% by 2015 to around 38% by 2020; to around 32% by 2030 and around 43% by 2050.

-To increase the absorption area of water heating unit from solar energy from around3millionm²by2015to around 8 millionm²by 2020, provide 1.1 million TOE; around 22 millionm²by 2030, 3.1 million TOE and up to around 41 millionm²by 2050 and 6 million TOE. To increase the percentage of households having equipment using solar energy (water heating unit from solar energy, solar cooker, heater and air cooler, water distiller…..using solar energy) from around 4.3% in 2015 to around 12% by 2020, around 36% by 2030 and around 50% by 2050.

-To increase the scale of using biogas technology with the building volume from around4millionm³in 2015 to around 8 million m³by 2020; around 60 million m³by 2030 and around 100 million m³by 2050.

-To convert the use of traditional biomass energy in cooking in households and in industry and local handicraft from traditional cookers with low performance into the advanced biomass energy converting equipment with high performance; bring the percentage of households using the advanced cooker with high performance from the negligible percentage currently to around 30%; around 60% by 2025 and from 2030, most households in rural areas shall use the cookers with high performance and sanitation.

-To increase the bio-fuel output from around 150,000 TOE in 2015 to around 800,000 TOE, meeting around 5% fuel demand of transportation industry by 2020; around 3.7 million TOE meeting around 13% of fuel demand of transportation industry by 2030; by 2050, the bio-fuel output shall reach 10.5 million TOE, meeting around 25% of fuel demand of transportation industry.

-To promote the development of renewable energy technology and industries, build the renewable energy industry system, bring the value percentage of equipment domestically manufactured in the field of renewable energy to 30% by 2020 and up to 60% by 2020 and ensure to meet the domestic demand by 2050 with one portion for export to the countries in the region and in the world.

III.DEVELOPMENT ORIENTATION BY STAGES

1.From now to 2030:

-To develop and use the independent renewable energy to meet the target of rural electrification: Develop the programs for development of independent electricity systems from the renewable energy and household scale electricity for difficult and extremely difficult development and remote areas, mountainous areas and islands for the purpose of hunger elimination and poverty reduction and socio-economic development to achieve the target by 2020 that most rural households have electricity and by 2030, most rural households can use the clean and hygienic energy source.

-To invest and develop the power plants using the on-grid renewable energy:

+To encourage the investment and development of power plants from the on-grid renewable energy source with economic feasibility; provide assistance on the basis of competitiveness to ensure the power source with rational cost is mobilized into the system and for development of renewable energy technologies for long-term purposes.

+To encourage and assist the development of some types of renewable energy technology which are not yet economically feasible, on the pilot basis of selection in order to assess the operation capacity, technology completion, market shaping and resource development.

+To focus resources on research, development and transfer of renewable energy technology; invest in survey and building of database of renewable energy sources for long-term purposes.

-To develop and use the renewable energy source for supply of thermal energy:

+Strengthened assistance to investment, research, development and use of renewable energy source for purpose of thermal use in order to reduce the use of fossil fuel and environmental protection.

+The Government shall give assistance to one part of cost in the first stage to encourage the installation and development of renewable energy technologies for effective and sustain production and thermal use on the basis of prescribed standard and quality assurance to meet the set objectives.

-To develop and use bio-fuel source:

+To strengthen the resources for research and development; make survey and planning of bio-fuel production areas and develop the pilot bio-fuel projects to use in replacement of a part of nationwide oil and gas demand.

+To provide assistance to the pilot bio-fuel production projects for second and third generation and use non-food materials

2.Orientation by 2050:

-To focus resources, exploit and use a maximum of renewable energy potential in the country with advanced technologies in accordance with practical conditions of each region to bring about the highly social, economic and environmental effectiveness.

-To strongly develop the market of renewable energy technology and equipment and machinery manufacturing industry and provide renewable energy services in the country.

-To strengthen the potential for research, development, transfer and application of new types of renewable energy

IV.DEVELOPMENT ORIENTATION BY FIELDS:

1.Hydropower development orientation:

-Development of traditional hydropower sources to contribute to the socio-economic development of localities; provide on-the-spot power source and improve the power supply safety.

-Development in accordance with the development planning of small and medium hydropower source of localities on the basis of complete environmental impact assessment.

-The on-grid small hydropower projects are done based on the avoidable cost tariff.

-The electric power produced from the hydropower source shall increase from around56billionkWhin2015to around90billionkWhby2020and around96billionkWhfrom2030.

-Development of storage hydropower source for reserve and adjustment of demand in the electricity system to contribute to improvement of flexibility and effectiveness in operation of electricity system. The capacity of storage hydropower source shall reach2.400 MWby 2030 and around8,000 MWby 2050.

2.Development orientation of biomass energy:

-To give priority to the use of biomass energy for power production, biogas, biomass pellet directly used as fuel and liquid biological fuel. To improve the percentage of use of waste of industrial and agricultural trees for energy purposes from around 45% in 2015 to 50% by 2020, around 60% by 2030 and around 70% by 2050.

-To improve the percentage of livestock waste treatment for energy purpose (biogas) from around 5% in 2015 to around 10% by 2020, around 50% by 2030 and by 2050, most livestock waste shall be treated.

-To increase the percentage of livestock waste treatment for energy purpose from the negligible rate for the time being to 30% by 2020, around 70% by 2030 and most of it is utilized for energy purpose by 2050.

-The total biomass energy used shall increase from around 14.4 million TOE in 2015 to around 16.2 million TOE by 2020; around 32.2 TOE by 2030 and 62.5 million TOE by 2050. In which:

+The total biomass energy for power generation shall increase from 0.3 million TOE in 2015 to around 1.8 million TOE by 2020: around 9.0 million TOE by 2030 and around 20 million TOE by 2050 corresponding to the produced power increased from 0.6 billionkWhin2015to around 7.8 billionkWhby 2020; around 37 billion kWh by 2030 and 85 billion kWh by 2050; bring the percentage of production power from the biomass in the total power output from around 1.0% in 2015 to around 3.0% by 2020; around 6.3% by 2030 and around 8.1% by 2050.

+The total biomass energy for thermal production shall increase from around 13.7 million TOE in 2015, around 13.6 million TOE by 2020 to around 16.8 million TOE by 2030 and around 23 million TOE by 2050. The biomass energy in the final energy demand accounts for around 25% in 2015, around 17% by 2020, 14% by 2030 and around 12% by 2050.

+The total biomass energy for bio-fuel production shall increase from 0.2 million TOE in 2015 to 0.8 million TOE by 2020; around 6.4 million TOE by 2030 and around 19.5 million TOE by 2050.

3.Development orientation of wind power:

-For period to 2030, giving the priority to development of wind power on land; research is done to develop the offshore wind power source and over the continental shelf after 2030.

-The power output produced from the wind power shall increase from around 180 million kWh in 2015 to around 2.5 billion kWh by 2020; around 16 billion kWh by 2030 and around 53 billion kWh by 2050; bring the percentage of power produced from the wind power in the total production power from the negligible rate for the time being to around 1.0% by 2020, around 2.7% by 2030 and around 5.0% by 2050.

4.Development orientation of solar energy:

-To develop the solar power to supply power to the national electricity system and border areas, islands, remote areas which have not been supplied with power from the national electricity source.  The electric power produced from the solar energy shall increase from around 10 million kWh in 2015 to around1.4billionkWhby2020;around 35.4 billion kWh in 2030 and around 210 billion kWh by 2050; bring the percentage of power produced from the solar power in the total production power from the negligible rate for the time being to around 0.5% by 2020, around 6% by 2030 and around 20% by 2050.

-To develop the equipment using solar energy to provide heat for households, industrial and industrial production and services. The total solar energy providing heat from 1.1 million TOE by 2020 to around 3.1 million TOE by 2030 and 6.0 million TOE by 2050.

V.MECHANISMS AND POLICIES

1.Forming the renewable energy market:

-To give the priority to investment and use of renewable energy in development of energy industry as a basis for as the basis for building and promoting the development of the renewable energy market.

-To encourage organizations and individuals with different forms of ownership to participate in development and use of renewable energy. The State shall protect the legitimate rights and interests of the organizations and individuals that develop and use the renewable energy.

2.Policy on electricity price and investment assurance:

-The Ministry of Industry and Trade shall develop the electricity price and submit it to the Prime Minister for approval to be applied to the power production projects using the on-grid renewable energy. The selling price of electricity shall be consistent with the conditions of different areas and features of power generation technology from the different renewable energy sources on the principle to assist the promotion of development and use of renewable energy to ensure the investors shall recover their costs and have rational profits; the selling price of electricity shall be adjusted in a timely manner and in accordance with the development of technologies using the renewable energy sources.

-The electricity units are responsible for buying all power produced from the use of on-grid renewable energy sources in the areas under their management. The sale and purchase of electricity are done by form of electricity sale contract regulated by the Ministry of Industry and Trade

The costs of electricity purchase from the power generation projects using the renewable energy sources shall be recorded in the electricity cost of the electricity unit and calculated and included in the structure of electricity retailing price and recovered through revenues from electricity selling.

-The electricity projects using the renewable energy for power production are given the priority to be connected to the national electricity system. The cost of connection and relevant other costs rationally generated of the power grid units (power transmitting units and distributing units) from purchase of electricity produced from the renewable energy are included in the costs of power transmission and distribution of the power grid units.

-For the independent electricity system using the independent power source produced from the renewable energy, the investor shall prepare the electricity price plan and identify the total assistance from the state policy and submit it to the Ministry of Industry and Trade for appraisal and report to the Prime Minister for approval. The total assistance shall be extracted from the sustainable energy development Fund.

3.The organizations and individuals operating in the electricity field must contribute to the development of renewable energy industry of the country. The power generating and distributing units need to meet theRenewable Portfolio Standard – RPS.

-The power generating units with the installation capacity of types of power sources greater than1.000 MW(excluding the power sources invested in the form of BOT) and the percentage of power produced from the use of renewable energy (excluding the hydropower sources with capacity greater than 30 MW): Not lower than 3% by 2020, 10% by 2030 and 20% by 2050.

-The power distributing units having the percentage of produced power and purchased power produced from power sources using the renewable energy sources and the final customers using power produced by themselves from the renewable energy (excluding the hydropower sources with capacity greater than 30 MW): Not lower than 5% by 2020, 10% by 2030 and 20% by 2050.

-The Ministry of Industry and Trade shall provide for the annual minimum rate of renewable energy sources of electricity producing and distributing units.

4. Net Metering:

-The final customers using power are purchasing power from the national electricity system, implementing the development of power source using the renewable energy with the main purpose of ensuring their electricity demand may apply the net metering mechanism.

-The power generating units shall sign the electricity sale contracts on the principle of net metering payment with their final customers using power with installation of power source using the renewable energy.

-The Ministry of Industry and Trade shall provide for the procedures for simple connection to encourage the final customers using power to be involved in investment; provide for the method of valuation and other necessary commercial agreements to ensure the harmony of interests of final customers using power and the power distributing and trading units.

-The power output produced from the power sources using the renewable energy of the final customers using the power shall be included inRenewable Portfolio Standard – RPSof the power distributing and trading units.

5.Policy on incentives and assistance to development and use of renewable energy:

-The development projects using the renewable energy shall be entitled to the incentives of investment credit under the current regulations of law on investment credit and export credit of the State.

-Tax incentives:

+About import tax: The development projects using the renewable energy shall be entitled to import duty for imported goods to create the fixed assets for the projects; the imported goods as raw materials, supplies, semi-finished products in the country not yet domestically produced are imported for production under the projects in accordance with current regulations of law on import and export tax.

+About corporate income tax: The exemption and reduction of corporate income tax for the development projects using the renewable energy shall be done the same as the projects in the field of investment incentives in accordance with current regulations of law on tax.

-Land incentives: The development projects using the renewable energy shall receive the exemption or reduction of land use fees or land leasing fees in accordance with current regulations of law applied to the projects in the field of investment incentives.

-Priority is given to the researches related to the development and use of natural resources of renewable energy in the field of scientific and technological development and high-tech industrial development; the funding is allocated from the funds to provide assistance to the scientific and technological researches in the pilot projects, industrialization projects for development and use of renewable energy, promotion of technological innovation related to the development and use of renewable energy, reduction of production costs of renewable energy products and improvement of product quality.

6.Policy on environmental protection: The organizations and individuals using the fossil fuel for energy purpose must pay the environmental fees corresponding to the volume of fuel used. One part of environmental fees is used for encouraging the development and use of renewable energy through the sustain energy development Fund.

VI.SOLUTIONS TO STRATEGY IMPLEMENTATION

1.To strengthen the state management in development and use of renewable energy:

-The Ministry of Industry and Trade shall carry out its uniform management functions on development and use of renewable energy in the country. The relevant Ministries based on their functions and duties shall manage the development and use of renewable energy in the relevant fields.

-The bodies performing their state management functions on energy in the provinces and centrally-run cities (referred to as provinces) must manage the development and use of renewable energy in the areas under their management.

2.To survey the natural resources of renewable energy:

-The Ministry of Industry and Trade shall coordinate with the relevant Ministries and bodies to make survey and assessment of potential of renewable energy sources in the country and provide instructions on contents of survey and assessment.

-The Ministries, based on their functions and duties and under the instructions of the Ministry of Industry and Trade, must make survey of relevant renewable energy under their management and send the survey result to the Ministry of Industry and Trade for aggregation.

3.To prepare the planning and plan for development of renewable energy:

-The Ministry of Industry and Trade:

+On the basis of forecasting of energy demand and supply capacity of renewable energy in the country, prepares the planning for development of national renewable energy sources and submit it to the Prime Minister for approval, announcement and implementation after the Planning has been approved by the Prime Minister.

+Based on the national planning on development and use of renewable energy sources, prepares and announces the development of renewable energy industry and the list of key projects which need implementation with priority.

-The provincial People’s Committees which have potential for development of renewable energy, shall prepare the development planning of renewable energy at provincial level and submit it to the Ministry of Industry and Trade for approval.

-The relevant Ministries shall make relevant plans of their Ministries to facilitate the implementation of national objectives for the development and use of renewable energy sources which the Prime Minister has approved.

-The contents of planning and plan for development and use of renewable energy nationwide and at provincial level include the development objectives, essential duties, venues of key projects, implementation progress, building of relevant power network, services system, safety measures,….

4.To build national regulations and standards:

-The Ministry of Industry and Trade shall build for application or announce the application of national technical standards for power grid in line with the power sources using the renewable energy and the national technical standards for other works and equipment related to the renewable energy which need the national technical standards for uniform application in the country.

-The relevant Ministries and sectors shall proactively build or make announcement for application of relevant basic standards for the issues that have not been included in the national standard system.

5.The solutions for improving the rate of development and use of renewable energy:

-Solutions to development and use of solar energy:

+To encourage the organizations and individuals to use and develop the solar energy system for water heating, cooling and heating system using solar energy and power generation system using solar energy.

+The real estate developers shall implement the requirements for using the renewable energy upon house design and building in accordance with technical standards issued by the state competent authorities.

+For a completed building, the users can install the solar energy system in accordance with relevant technical standards and product standards provided that it does not affect the quality and safety of building.

-Solutions to promotion of development and use of biomass energy:

+The power plants using coal fuel need to study the power generation combining the use of biomass energy with coal fuel. The Ministry of Industry and Trade shall provide for the minimum rate of biomass energy for each power plant in accordance with areas of localities and from time to time.

+The investors of old coal-burning thermal power plants with low performance need to study and innovate the technology for convert to use of biomass fuel.

-To encourage the development and use of clean and highly-effective biological fuel and development of energy crops: The State encourages the production and use of liquid bio-fuel. The petroleum enterprises must combine the sale of liquid bio-fuel to meet the national standards in the fuel selling system at localities; annually, the Ministry of Industry and Trade shall issue the regulation on minimum liquid bio-fuel ratio which the petroleum enterprises must combine for sale in the areas of localities.       

-To encourage the development and use of renewable energy sources in rural areas: The provincial People’s Committee shall coordinate with the other relevant bodies on the basis of necessity for socio-economic development of localities, ecological environmental protection and comprehensive control of hygienic conditions, preparation for renewable energy development planning in rural areas in accordance with local conditions, dissemination of use of biogas and other conversion of biomass energy, solar energy, wind energy and small-size hydropower.

6.Financial assistance to development and use of renewable energy:

-To establish the sustainable energy development Fund with capital from the state budget, revenue from environmental fees to the fossil fuel, financing and contribution sources from domestic and foreign organizations and individuals and other legitimate capital sources in order to provide finance for activities which encourage the development of energy industry nationwide. In the field of development and use of renewable energy, the sustainable energy development Fund is used:

+To offset the arising costs of electricity units:

.To make investment in independent electricity system using the independent power source produced from the renewable energy source.

.Due to the development of power grid for connection to the power sources produced from the renewable energy without recovery from the price of electricity transmission.

+To use for assistance to:

.The scientific and technological researches in building the standards and pilot projects for development and use of renewable energy;

.The project using the renewable energy in rural areas;

.To build the independent power generation systems by using the renewable energy sources in remote areas and islands;

.The surveys and assessment of renewable energy sources and building of relevant information systems.

.To promote the production and localization of equipment for development and use of renewable energy.

-To give the priority to researches related to the development and use of renewable energy in the field of scientific and technological development and high-tech industry development; allocate the funding from the funds for assistance to scientific and technological researches in the pilot projects, industrialization projects for development and use of renewable energy; promote the technological advance related to the development and use of renewable energy; reduce the production costs of renewable energy products and improve the product quality.

7.Solutions to human resource development:

-To improve the management capacity of renewable energy development at all levels;

-To encourage and provide the assistance to the universities and vocational facilities to develop textbooks and teaching of new subjects related to the renewable energy.

-To encourage and provide assistance to researches and development of renewable energy in the technical and scientific research organizations especially to the intensive research of particular renewable energy technologies in accordance with Vietnam’s conditions.

-To make short and long-term cooperation plan with international organizations in development of human resources, training and practice of renewable energy.

-To encourage and provide assistance to development of services and consultation organizations in the field of renewable energy.

8.Assistance solutions to forming the market and renewable energy technology:

-To build the national program on renewable energy to promote the use of renewable energy in the field of power generation, use of solar energy and biogas for households; implement the programs for research and development of renewable energy technology, information dissemination, community propagation in the field of development of renewable energy.

-To build and develop the renewable energy industry; encourage effective research, transfer, receipt and application of technical advances and new technologies in production and use of renewable energy.

-To form and develop the renewable energy technology market, create the equality on the basis of fair competition between enterprises in all economic sectors, provide assistance to promotion of projects of development of production, business and services of renewable energy.

9.Strengthened information propagation to raise the awareness of people and community on development and use of renewable energy:

-To promote the propagation and disseminate knowledge to people on the great importance, socio-economic efficiency and environmental protection of development and use of renewable energy during the sustainable development to have practical actions to contribute to the development and use of renewable energy.

-To encourage and provide technical assistance so that people and community could implement and expand the scale of model of development and use of renewable energy in households and enterprises.

-To encourage and provide assistance to the communities in development of model of development and use of renewable energy; pilot and eventually replicate the model of green house, green building, green city and green rural areas (villages and communes) in which the majority of energy demand is supplied from the renewable energy, the waste from industrial, agricultural, forestry and livestock production is treated and used rationally for the energy purpose.

10.Strengthened international cooperation in the field of renewable energy:

-To strengthen the international cooperation to attract the capital and promote the transfer of technology in the field of renewable energy.

-To proactively receive, master and transfer the new technical, technological advances and scientific achievements in the field of development and use of renewable energy in the world to develop the renewable energy industry strongly and rapidly in Vietnam.

-To strengthen the bilateral cooperation, expand the multilateral cooperation with the countries having the advanced renewable energy industry and with the foreign organizations and individuals rich in potential to learn experience in development of renewable energy.

-To proactively build and implement the programs, themes and projects of international cooperation to take the maximum advantage of assistance on experience, brains capital and equipment financing and investment attraction to develop the production and use of renewable energy.

VII.IMPLEMENTATION ORGANIZATION

1.The Ministry of Industry and Trade:

The Ministry of Industry and Trade is the body which takes the prime responsibility in the field of development and use of renewable energy and has the following main duties:

-Performs the assigned duties specified in this Decision.

-Builds a roadmap for implementation of this Decision and submits it to the Prime Minister for review and approval.

-Does researches and pilot projects of renewable energy technology.

-Selects the typical cities and communes of ecological areas to build the pilot plan for development of green urban and rural areas and on such basis recommends the solutions to nationwide replication.

-Builds the transparent market mechanisms to promote the investment, development and use of renewable energy.

-Strengthens the development of human resources for the development of renewable energy sources.

-Coordinates with the relevant Ministries and sectors to integrate the development of renewable energy projects with the urban power supply Program, the national target Program on building of new rural areas and other relevant programs in the rural, mountainous areas and islands.

-Strengthens the propagation to raise the awareness of interests of development and use of renewable energy.

-Promotes the international cooperation with the countries in the region and in the world in the field of renewable energy.

-Issues the regulations and guides the relevant units to implement to ensure the access to the power grid in a fair manner to the electricity production projects by using the renewable energy source.

-Recommends new mechanisms, policies and regulations on encouraging the investment, development and use of renewable energy in accordance with each stage and submit them to the Prime Minister for approval.

2.The Ministry of Construction: Coordinates with the Ministry of Industry and Trade and other relevant Ministries to build the technical standards for the combined use of solar energy with energy system in building apartments and high buildings.

3.The Ministry of Science and Technology:

-Organizes the appraisal and announcement of national regulations and standards related to the production and use of renewable energy as recommended by the relevant Ministries and bodies.

-Gives the priority to the researches related to the development and use of natural resources of renewable energy in scientific and technological development and high-tech industry development.

-Coordinate with the Ministry of Industry and Trade to implement the research programs, promote the scientific and technological activities in the field of renewable energy to encourage the acquisition and application of advanced technologies of the world.

4.TheMinistry of Agriculture and Rural Development:

-Coordinate with the Ministry of Natural Resources and Environment and provincial-level People s Committees to define and develop the policies related to the most effective use of land areas for growing of energy crops.

-Coordinates with the Ministry of Industry and Trade to disseminate the innovated cookers to improve the performance of biomass cookers and develop the advanced biogas system in the rural areas eventually publicize the use of clean energy sources in the rural areas.

-Issues the sustainable criteria and assessment method for sustainable development of biomass energy in forestry industry and builds the programs combining the development of forestry industry and biomass fuel.

-Coordinates with the Ministry of Industry and Trade to build the plan for material production for bio-fuel production.

-Coordinates with the Ministry of Planning and Investment and the Ministry of Finance to build and implement the incentive and assisting policies to production of biomass material for bio-fuel production.

5.The Ministry of Transport: Coordinates with the Ministry of Industry and Trade to do the scientific researches and policies to promote the use of bio-fuel for personal vehicles, public transportation system, goods and air transportation.

6.The Ministry of Finance: Coordinates with the Ministry of Industry and Trade and the relevant Ministries and bodies to provide for the appropriate policies on tax and tax rate for the renewable energy projects.

7.The Ministry of Planning and Investment: Builds the policies and measures to encourage the investment to attract and create favorable conditions for domestic and foreign investors to make their investment in the field of production of renewable energy.

8.The Ministry of Education and Training shall integrate the knowledge and technologies related to the renewable energy into the general educational programs and vocational programs.

9. The electricity units

-The power grid managing Units shall sign the power grid connection agreement with the enterprises using the renewable energy for power generation licensed or included in the list of power source projects using the renewable energy approved by the competent level; purchase all electricity output produced from the power source projects using the renewable energy to meet the technical standards for connection of power grid in the areas covered by the power grid managed by the electricity units.

-Develop the transmission power grid and distribution power grid under the planning of national power development and local power development approved by the competent level; take into account the expected development of power sources using the renewable energy and the links between areas to ensure the power supply security.

-Develop and apply the technology of smart power grid technology and energy storage techniques, improve the power grid operation and management and the capacity for receipt of power source using the renewable energy.

-Do research and prepare the model of market design and power system operation to permit the integration with large scale of power source using the renewable energy (wind power and solar power).

-Study to improve the capacity for forecasting the output of hydropower, wind power, solar power; study to integrate the online forecasting data with the control system of electricity system dispatching centers.

-Study the method of assessing the necessity for adding the solutions to improving the flexibility of power system; study to examine and assess the costs and benefits in the power system in case the power sources using the renewable energy account for high ratio.

10.The relevant Ministries, sectors, localities, enterprises, organizations and individuals based on their functions and duties shall well organize and implement the contents specified in this Decision.

Article2.Effect

1.This Decision takes effect on the signing date.

2.Ministers, Heads of ministerial-level agencies, Heads of governmental bodies, Chairman of People s Committees of provinces and centrally-run cities, the relevant units and individuals are liable to execute this Decision./.

The Prime Minister

Nguyen Tan Dung