Vietnam

Energy sector
A high electrification rate of approx. 98% of the total Vietnamese population characterises the country. About 30% are covered by hydropower. Installed electrical capacity is expected to rise up to 75 MW until 2020. Actually, 64% of energy is generated by coal and gas which is mainly imported, about 30% are generated by hydropower. Thus, the demand for energy efficiency and renewable energy is rising. EVN is the national power supplier based on the principle of minimal costs.

The country has a high potential for the use of water power, wind power, biomass and solar energy. The main utilisation of large hydroelectric power plants covers more than a third of the national electricity demand and uses only a small portion of its hydropower resources.
Even though the annual increase for the use of renewable energy resources was politically decided and expressed in the national Power Sector Master Plan for the period of 2006-2015, so far no federal instruments exist for the promotion of geothermal power generation.

Temperatur measuring

Geothermal potential
So far geothermal resources are neither used for power generation nor for direct heat use (e.g. for fish farming or drying of fruit or tea) in Vietnam. Countrywide about 300 geothermal sources are known where hot springs with temperatures of over 30°C occur, 45 of them with temperatures above 60°C. In southern central Vietnam 8 of the 72 geothermal sources have outflow temperatures of over 70°C.

Project description
In January 2007 a project appraisal mission was conducted by BGR representatives. The mission concluded that a study on the socio-economic framework conditions for geothermal energy utilisationwould be a crucial step for the geothermal development in Vietnam. The study was thereafter conducted from November 2007 until March 2008 by Fugro Consult GmbH and the Transfer Office for Efficient and Renewable Energy Use in Bingen in cooperation with the Department of Geology and Mineral Resources Vietnam (DGMV), the Central Vietnam Division of Hydrogeology and Engineering Geology (CEVIHEGEO) and BGR. The study was the main output of the cooperation between the BGR and Vietnam in this field.
Compared to other south-east Asian countries like Indonesia or the Philippines the geothermal potential of Vietnam is rather limited. It was concluded that the use of geothermal resources would require state subsidies and supporting financial mechanisms by the government in order to become economically viable.

Cooperation partners:
Department of Geology and Mineral Resources Vietnam
Central Vietnam Division of Hydrogeology and Engineering Geology (CEVIHEGEO)