According to forecasts, by 2030, the world will face the risk of severe energy shortages and require about 10.5 thousand billion euro investment in the energy sector. Therefore, energy efficient, environmentally friendly solutions to ensure energy security and sustainability are extremely important. However, the implementation is not simple.
Huge demand
With the speed of the current energy consumption, traditional energy sources of the world are expected to be depleted quickly. According to forecasts, by 2035, global energy consumption will increase 53 percent, and businesses around the world are constantly researching to find clean energy sources. Due to report of APEC, if the energy consumption intensity will not be reduced, energy demand in the region will increase along with economic growth, which is about 225 percent till 2035. Besides, the current routine use of fossil fuels has raised environmental concerns. The burning of fossil fuels generates about 21.3 billion tons of carbon dioxide annually. Carbon dioxide is a greenhouse gas increasing radiation power and contributing global warming, causing the average surface temperature of the Earth to increase. The world is moving toward the use of renewable energy sources, a new way to solve the problem of energy demand.
Vietnam is also facing challenges of energy shortage within the next decade. 2010-2020 may bring imbalance between supply and demand for domestic energy sources, and Vietnam will shift from an exporter to an importer of energy, with dependence on energy imports rising.
The imbalance between energy supply and demand are a direct threat to the economy and society.
Great renewable energy sources
Rural areas in Vietnam hold a lot of great renewable energy fields such as: bioenergy, hydropower, solar, wind or geothermal power. Biogas energy potential is approximately 10 billion m3 a year, which can be collected from landfills, animal excrements and agricultural residues. The technical potential of small hydropower (2 per day throughout the country. Vietnam’s geographic orientation with approximately 3,400km of coastline also provides abundant wind energy with an estimated potential of 500-1000 kWh/m2 per year. The value of these resources can be enhanced by investment in appropriate infrastructure that corresponds to the needs of the community.
Many challenges
Despite huge demand and the potential market, Vietnamese businesses investing in the energy sector face numerous challenges.
One of the biggest challenges is the lack of appropriate policies and investments to encourage and support businesses to develop the energy market, especially renewable energy. A very large sum of money is needed for developing energy infrastructure including system expansion and efficiency improvement.
The Vietnamese private energy companies are limited in size and experience compared to in other markets. They have limited support on market development from technical organizations. They are in need of effective links between the industry and labour force and, most of all, financial capital to implement business ideas and creative projects.
Consequently, renewable energy sources currently account for only 3.5 percent of the country’s total power capacity and the rate is expected to increase to just 6 percent-6.5 percent by 2020 if no special effort is made.
Great opportunity from VBCF for resolving businesses challenges in Vietnam
Recognizing these opportunities and challenges, Vietnam Business Challenge Fund (VBCF) has been established, to support private business operating in Vietnam in building innovative inclusive business models. VBCF focuses on 03 areas identified as key sectors for sustainable development and inclusive business, including agriculture, low carbon growth, infrastructure and basic services.
In the field of low carbon growth, sustainable energy development in Vietnam, VBCF encourages business to submit innovative and commercially viable business ideas which might solve business challenges such as:
1)Introduction of new energy and sustainable, low emissions solutions that include the participation or directly benefit the low-income people of Vietnam;
2)Reduce pollution and improve the economic conditions of the community by turning waste into energy under models that include or benefit the low income people of Vietnam
The businesses supported by VBCF are expected to generate benefits for their companies and at the same time for low income people, and contribute to protecting the natural environment, or creating clean, renewable energy. VBCF helps private businesses turn their initiatives into reality. These are businesses directly including low income people in the business value chain, creating a sustainable business model for mutual benefit as VBCF slogan: “Business opportunities, Community benefits”.
VBCF will support businesses through mentoring support and funding of up to 49 percent of total investment of the project. VBCF funding scale will be in the range of US$100,000 to US$800,000 for each selected project.
Companies interested in VBCF may have more information by accessing the link http://www.vbcf.org.vn/, emailing info@vbcf.org.vn or calling directly +84437265214.
Thu Ha
Đăng ký: VietNam News
