Mar 13 - Global Information Network

With oil prices rising, hydroelectric and atomic power are emerging as favorite alternate energy sources to feed Vietnam's growing economy.

Vietnam plans to bring power to all rural households by 2020. But according to Tran Thanh Lien, who heads international relations at the Energy Institute of Vietnam (EIV), Vietnam would need 200 to 230 billion kilowatt hours (kwh) of electricity by 2020 but may only have 165 billion kwh from conventional sources.

The shortage and difficulties in extending the national power grid to remote areas has prompted experts to consider various renewable energy options and seek outside help.

During his visit to Hanoi last month, Russian Prime Minister Mikhail Fradkov said his country planned to take part in the development of the Vietnamese energy sector.

"Russia plans to participate in a tender for the construction of the Son La hydroelectric station, and in future it could also take part in the construction of nuclear power plants in Vietnam," Fradkov said.

Vietnam is keen to develop nuclear power as a non-fossil energy source. The country plans to build its first nuclear plant by 2015 and operate it by 2020. It envisages that by 2015 nuclear energy will make up 11 percent of the total energy output and 25-30 percent by 2040-2050.

With oil prices hovering around 60 U.S. dollar a barrel, several ASEAN countries, including Vietnam, are looking at everything from nuclear energy and hydroelectricity to solar energy and wind power to meet energy needs. ASEAN leaders recently agreed to greater cooperation to slash dependence on imported oil.

"Vietnam is keen on finding out ways to develop non-fossil energy, so as to cut power wastage and improve network efficiency," said Pham Quyet Chi, of the EVI. Energy security, he noted, is a major challenge for Vietnam, whose economy has been growing about 7 percent annually over the last decade.

Demand for energy is growing at 15-16 percent a year. EVN forecasts that the country will be short of 1.1 billion kwh in 2006, 6.6 billion kwh in 2007, 8.6 billion kwh in 2008 and 10.3 billion kwh in 2009.

Currently, the country produces around 6,000 Mw a year, 40 percent of which is produced by burning fossil fuels, coal in particular. This is both inefficient and produces greenhouse gases.

Vietnam has a number of rivers that could be harnessed for hydroelectricity. Nearly 55 percent of Vietnam's electricity is currently generated by five hydropower plants. Last year, the country started the construction of Son La project, the largest so far. When completed, in 2012, the plant will have a generating capacity of 2,400 Mw.

Some strategists are uncomfortable with heavy reliance on hydropower in northern Vietnam since it makes the capital of Hanoi vulnerable to accidents, earthquakes or terrorist attacks. Besides, prolonged droughts lower water levels in reservoirs supplying hydroelectric plants, causing shortages of electricity. Water levels have fallen 20-40 percent since 2004, and, this year, they are predicted to be an average of 30 percent lower than normal.

"Each year, electricity demands increase by 1,500-2,000 Mw, equal to the capacity of Hoa Binh hydropower plant, the biggest in Vietnam," EVN officials said.

The country tries to meet shortages through natural gas-fired plants. The Phu My complex in Ba Ria-Vung Tau province, when completed, will provide an estimated 47 percent of the country's power. Another project, the 715 Mw Phu My 2-2 plant on the Mekong Delta, is being developed by a consortium including Japan's Tokyo Electric Power and Sumitomo and France's Electricite de France.

To ease power shortages in the north, Vietnam buys power from China as part of a long-term program with several members of the Greater Mekong sub-region. Last year, Vietnam purchased 100 million kwh of electricity from China, and is expected to be buy about 1.3 billion kwh by 2007. It also plans to start buying power from Laos in 2008.

Chi said that the major advantage of renewable energy projects was in environmental terms. Phu Quoc island's biogas combustion plant, built with German technology, will not only generate additional energy but also produce organic fertilizer for 500 hectares of black pepper plantations.