Future Prospects for Regenerative Energy in Vietnam

During the MP, 14 executives from Vietnam gained a comprehensive insight into strategies and framework conditions for regenerative energy in Germany and into products of German manufacturers.

In Vietnam, there are still no attractive incentive systems to promote investments in regenerative energy on a large scale. In comparison to the activities in Germany, concepts there are still in their infancy; attempts are being made in the fields of waste recycling, power station construction, wind energy and solar technology. There are several potential areas of application in the fields of waste recycling and waste incineration for generating heat and electricity. For wind energy, initial analyses are available concerning the required parameters for wind turbines and the production of wind energy in island regions with high wind levels. The use of solar panels as an integrated component of building facades is successful in Vietnam. The numerous potential areas of utilisation of renewable energy in Vietnam provide very good chances for German companies.

One example is the company Thanh Thanh Cong Ninh Joint Stock Company (TTC Sugar), which has five factories for the production of sugar; each factory has its own power plant for the generation of electricity and heat. Pham Van Dung, the company’s Power Plant Manager, is responsible for the modernisation of existing power plants and the construction of new ones. Pham Van Dung looked for suitable products of German companies within the scope of the MP. With the support of Export-Akademie Baden-Württemberg GmbH (EABW), he established contact to Standkessel GmbH in Duisburg. In preliminary talks and via video conferences, Pham Van Dung already cleared technical details regarding the operation of steam boilers with biomass fuels, fuel feed, process engineering, legal framework conditions and costs. The result: The costs for a German concept are significantly higher than those for a Chinese supplier. Fuel processing and fuel feed are high cost factors. Unexpectedly, the remedy was provided from within the group: the MP participant Le Thi Kim Thu, Managing Director of the company Owtek, suggested an interesting concept. Le Thi Kim Thu is thoroughly familiar with the power plant market in Vietnam and the surrounding countries; her company is a leader in the field of conveying technology. Her concept envisages the cooperation between the three firms: Standardkessel GmbH supplies the key components and engineering know-how, Owtek supplies the other components in accordance with the specifications of Standardkessel GmbH, and TTC Sugar coordinates the entire project. With this solution, a considerable reduction in costs is achieved, and the companies Standardkessel and Owtek have the opportunity to jointly serve the Vietnamese market. The potential is very high: just for this project – the modernisation of a power plant – the project volume amounts to an eight-digit euro sum.

By Markus König
Export-Akademie Baden-Württemberg, Tübingen