Overview on investing in geothermal projects in Vietnam
Rice fields in Quang Ngai province, Vietnam (source: flickr/ Marika, creative commons)
Alexander Richter
4 Eyl 2014
Vietnam has great geothermal potential, at least for 400 MW yet it needs to address geothermal more specifically due to a lack of clarity in current legislation.
In a recent article published by law firm Duane Morris, the author provides an introduction on investment into geothermal power projects in Vietnam.
While the geothermal potential in Vietnam clearly is not as large as in Indonesia or the Philippines, there is potential, particular in Phu Tho, Quang Binh and Quang Tri among other areas. The same source states that eventhough geothermal is still under researching status in Vietnam, there is potential for 400 MW for electrical power generation.
The law firm also states that Ormat Technologies is the leading US geothermal entity in the country, since “Ormat has applied for a license to build five geothermal energy plants in Le Thuy (Quang Binh), Mo Duc, Nghia Thang (Quang Ngai), Hoi Van (Binh Dinh), and Tu Bong (Khanh Hoa) with the proposed capacity of these plants of 150-200MW and in April 2012, it is reported that Vietnam Geothermal energy Corp. has chosen Ormat as the main technical partner for two projects in Mo Duck and Tu Nghia district, Quang Ngai province with a designed capacity of each 18.7 MW.”
Another relevant hurdle the country has to address is the lack of specific legislation regarding geothermal exploration and feed-in tariffs, which makes the process of moving forward more uncertain yet, according to the article, the main regulatory framework for renewable energy seems to also cover geothermal.
Nevertheless there is potential and Vietnam could soon open up to geothermal development in a near future.
To read the full article by the Law firm, please follow the link below:
Source: Oliver Massman on Lexology Website
