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The Pre-Feasibility Study for Photovoltaic / Water Pumping System In Central Vietnam Study Report March 2007 Engineering and Consulting Firms Association, Japan Shikoku Electric Power Co., Inc. Fuji Electric Systems Co., Ltd. This work was subsidized by Japan Keirin Association through its Promotion funds from KEIRIN RACE.
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Page 1: The Pre-Feasibility Study for Photovoltaic / Water Pumping System ...

The Pre-Feasibility Study for

Photovoltaic / Water Pumping System

In Central Vietnam

Study Report

March 2007

Engineering and Consulting Firms Association, Japan

Shikoku Electric Power Co., Inc.

Fuji Electric Systems Co., Ltd.

This work was subsidized by Japan Keirin Association

through its Promotion funds from KEIRIN RACE.

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Central Highlands

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Photos of the 1st Site Survey

Site Survey Photos 1/1

Location Gia Lai Province Mang Yang Commune

Date 09/09/2006

Description

Although there is a well, the water is not sufficient and it often is dry. Therefore, villagers have to walk approximately 500 meters to collect water from a nearby spring.

Location Kon Tum Province To Mo Rong Commune Daic Van I

Date 10/09/2006

Description

To Mo Rong commune is located approximately 3 hours from Pleiku by car. There are about 57 households and a population of 300. Villagers usually walk 300 meters to draw water from a mountain spring and usually make this trip 3 times a day. However, the commune has installed some storage tanks in certain locations. These tanks can hold of water 3m3 and are equipped with a tap for easy access.

Location Gia Lai Province Mang Yang Commune Po Dau Village

Date 12/09/2006

Description

In Po Dau village, there are 3 locations for villagers to collect water. This water comes from the mountains and there is no water shortage. There are also no significant problems with water quality and it is used for drinking, cooking, bathing, animals use and also for irrigation.

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Photos of the 2nd Site Survey

Site Survey Photos 1/4

Location Kon Tum Province Dak Na Commune, Dak Re2 Village

Date 24/10/2006

Description

Dak Re2 village is located 1.5km from power distribution line and is isolated by river it has no bridge. 22 households, 91villagers Ethnic Group: Xe Dany Minority E.L.:783m N: 14°57’ 11.6’’ E:107°47’ 56.3’’ Villagers walk 1km to collect water from a river and use kerosene lamps for lighting (2 liters/month). The government provides subsidized kerosene for villagers.

Location Kon Tum Province

Date 24/10/2006

Description

For the past several years, VN government focused on the electrification of remote area. Note the distribution lines that are located in mountainous rural areas

Location Kon Tum Province Dak Lay Commune Dak King1, 2

Date 25/10/2006

Description

Dak King 1 & 2 villages are located adjacent to each other in the mountains They are 5 to 10 km from distribution line and there is no plan to be electrified in the near future. Dak King 1:42 hhs, 191villagers Dak King 2: 13 hhs, 62villagers Ethnic Group: Xe Dany Minority E.L.:1067-1210m N: 14°53’ 36.0’’ E:107°59’ 43.6’’

Kon Tum Province Dak Na Commune, Dak Re2 Vill

Power Distribution Line in Kon Tum Province

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Site Survey Photos 2/4

Location Kon Tum Province Dak Lay Commune Dak King1, 2

Date 24/10/2006

Description

Pico Hydro generators are operated by villagers for lighting and TV. They can only be used in the rainy season. Kerosene Lamp

Location Kon Tum Province Dak Lay Commune Dak King1, 2

Date 24/10/2006

Description

Villagers typically obtain water from mountain springs but it is not available in the dry season. They must carry water from river one km down from village. They receive no monetary income but they cultivate rice, cassava for their personal use.

Location Kon Tum Province Dak Lay Commune Dak King1, 2

Date 25/10/2006

Description

VN government have a rural development fund also known as the “135 program”. This fund provides villages with water tanks so they may store rainwater in dry season.

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Site Survey Photos 3/4

Location Dak Lak Industry Department

Buon Ma Thuot City Dak Lak Province,

Date 24/10/2006

Remark

The project team met with ID Dak Lak and requested the “list of villages that will not be electrified until 2010” and also for their assistance and support to obtain the permission to conduct our survey. They provided the list and granted the team permission two days later.

Location Dak Nong Industry Department Gia Nghia Town Dak Nong Province

Date 24/10/ 2006

Remark

Dak Nong was recently separated from Dak Lak and its new office is presently under construction. Dak Nong Industry Department was also very willing to support our survey. They sent the list in advance and obtained permission from Peoples Committee in advance. The gentleman on the left is the Director, Bien Van Minh.

Location

No.1 village Dak R Mang Commune Dak Glong District Dak Nong Province

Date 25/10/ 2006

Remark

No.1 village has only one well, from which the residents obtain their drinking water In the dry season, the well cannot provide a sufficient volume of water to meet their needs. Diameter: 2 meter Depth to water: around 10 meter

Dak Lak Industry Department

Dak Nong Industry Department

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Site Survey Photos 4/4

Location

No.2 village Dak R Mang Commune Dak Glong District Dak Nong Province

Date 25/10/ 2006

Remark

Villagers are living on farms but their agricultural products are provided with little or no irrigation Due to the lack of water, human consumption is the highest priority Villagers typically obtain their water from mountain streams, however, this does not provide a sufficient amount of water during the dry season. No.2 village is located about 100 meter away from No.1 village.

Location

Krap village Dak T Pang Commune Kong Cho Ro District Gia Lai Province

Date 27/10/ 2006

Remark

Picture of local residents of Krap village. Dak T Pang Commune is located in a mountainous region, therefore climatic conditions are much different from Pleiku.

Location

Bong village Dak T Pang Commune Kong Cho Ro District Gia Lai Province

Date 27/10/ 2006

Remark

There are 5 wells located in Bong village Presently only 1 is used and the other 4 have been abandoned due to unsanitary conditions (trash disposal) The well currently in use: Diameter: 1.5 meter Depth to water: Approx. 5 meters

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Photos of the 3rd Site Survey Site Survey Photos 1/1

Location Lam Dong Industry Department

Dalat City Lam Dong Province,

Date 15/01/2007

Remark

The survey team met with the Director (gentleman on the right) and also the Head of the Planning Department. The team explained the project and asked for their support and they offered to accompany us on the site survey the following day.

Location

No.1 village (Thon Pang Tieng) Lat Commune Lac Duong District Lam Dong Province

Date 16/01/2007

Remark

In Lam Dong, Village income levels were slightly higher than average at around 5 million VND per year. Primary source of income is coffee, persimmon and vegetables. Drinking water is transported to villages via a piping system that utilizes gravity as power and provided via a centrally located tap. However, the water is not available during the dry season and villager must walk 1-2 km to collect water.

Location Buon Cham Village

Easol Commune Dak Lak Province

Date 17/01/2007

Remark

NRW Germany, Solarlab Ho Chi Minh City in cooperation with the Vietnamese government established a PV site at Buon Cham village in Dak Lak project. The PV equipment was intended to supply power for a community center, water-pumping equipment and provide each habitation with a SHS.

Lam Dong Industry Department

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Table of Contents

1 Introduction.....................................................................................................................................1

1.1 Background and Objectives ..................................................................................................1

1.2 Study Team ...........................................................................................................................2

1.3 Study Schedule......................................................................................................................2

1.4 Scope of Work.......................................................................................................................3

1.5 Study Area.............................................................................................................................3

2 Overview of Rural Electrification Policy and Current Situation ..................................................5

2.1 MOI’s Rural Electrification Policy .......................................................................................5

2.2 Renewable Energy Development Plan..................................................................................8

2.3 Current State of Rural Electrification ...................................................................................9

2.4 Renewable Energy Potential in Vietnam.............................................................................11

3 Overview of Rural Water Supply Policy and Current Situation..................................................14

3.1 Rural Water Supply Policy..................................................................................................14

3.1.1 Challenges...................................................................................................................14

3.1.2 Objectives ...................................................................................................................15

3.1.3 Sustainable Development............................................................................................16

3.2 Current Situation of Rural Water Supply ............................................................................17

3.2.1 Delegation of Responsibilities ....................................................................................17

3.3 Potential for Development and Policy Recommendations..................................................19

4 Overview of the Site Survey .......................................................................................................22

4.1 Location, Topography and Climate.....................................................................................22

4.2 Results of the Site Survey ...................................................................................................24

4.2.1 Target Areas ................................................................................................................25

4.2.2 Water Quality of Target Villages.................................................................................30

4.3. Showcase of Existing Off-Grid Power Systems .................................................................32

5 Photovoltaic Electric Power and Water Supply System Proposal...............................................38

5.1 Study of Optimum System..................................................................................................38

5.2 Cost Calculation..................................................................................................................40

6 Economical Analysis of the Project ............................................................................................43

6.1 Initial Cost...........................................................................................................................43

6.2 Operation Cost ....................................................................................................................44

6.3 Economic Analysis of the System.......................................................................................45

7 Environmental Concerns and Socio-economic Impact ...............................................................47

7.1 Environmental Concerns.....................................................................................................47

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7.2 Socio-Economic Impacts ....................................................................................................49

8 Conclusion and Recommendation ..............................................................................................51

8.1 Conclusion ..........................................................................................................................51

8.2 Recommendation ................................................................................................................52

List of Tables

Table 1.1 Study Team Members.................................................................................................2 Table 2.1 Target of Grid Connected Household............................................................................7 Table 2.2 Investment Plan for Rural Electrification..................................................................7 Table 2.3 Renewable Energy for Power Generation .....................................................................9 Table 2.4 Rural Electrification Rate..............................................................................................9 Table 2.5 Current Photovoltaic Systems .....................................................................................10 Table 2.6 Future Photovoltaic Installations.................................................................................12 Table 4.1 Climate Data of Vietnam.............................................................................................23 Table 4.2 List of Potential Villages in Kon Tum.........................................................................26 Table 4.3 List of Potential Villages in Gia Lai ............................................................................27 Table 4.4 List of Potential Villages in Dak Lak ..........................................................................28 Table 4.5 List of Potential Villages in Dak Nong .......................................................................28 Table 4.6 List of Potential Villages in Lam Dong.......................................................................29 Table 4.7 Drinking Water Standards Compared with Samples ...................................................30 Table 4.8 Drinking Water Standards Compared with Samples ...................................................31 Table 5.1 Village List for System Study .....................................................................................38 Table 5.2 Pre-Conditions of the System......................................................................................39 Table 5.3 Cost calculation of PV system for Pumping Equipment .............................................41 Table 5.4 Cost Calculation for Household Electrification ..........................................................42 Table 6.1 Cost Estimate for Water Pumping ...............................................................................43 Table 6.2 Cost Estimate for Household Electrification (Battery Charging Station)....................44 Table 6.3 Maintenance Cost of the Equipment ...........................................................................45 Table 6.4 Maintenance Cost and Battery Replacement...............................................................45 Table 6.5 Economical Analysis of the System............................................................................46 Table 7.1 Consideration of JBIC Guidelines...............................................................................47 Table 7.2 Expected Socio-Economic Benefits of PV System.....................................................49

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List of Figures

Figure 1.1 Study Schedule .........................................................................................................2 Figure 1.2 Map of the Central Highlands...................................................................................4 Figure 2.1 Investment Plan for Rural Electrification ....................................................................8 Figure 2.2 Rural Electrification Rate ..........................................................................................10 Figure 3.1 Delegation of National Responsibilities ....................................................................18 Figure 3.2 Local Responsibilities................................................................................................18 Figure 4.1 Climate Data in Vietnam ...........................................................................................24 Figure 4.2 External appearance of PV yard ................................................................................33 Figure 4.3 Organization of the Fuji Electric PV System Project ................................................34 Figure 4.4 Outline of Project Flow for Buon Cham Village .......................................................37 Figure 5.1 Image of the Project...................................................................................................40 Figure 6.1 Water Pumping Equipment........................................................................................43 Figure 6.2 Equipment for Household Electrification (Battery Charging Station).......................44

Appendices

Appendix 1 Schedule and Interviewees

Appendix 2 Insolation Data for Vietnam

Appendix 3 Gia Lai Grid Extension Plan

Appendix 3 Summary of Program 135

Appendix 4 Formula for Water Pumping System Configuration

Appendix 5 Formula for PV Household Electrification System Configuration

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Abbreviation

BCC : Battery Charging Center

BCS Battery Charging Station

CERWASS : Center for Rural Water Supply and Environmental Sanitation

DARD : Department of Agriculture and Rural Development

DOI : Department of Industry

EVN : Electricity of Viet Nam

GOV : Government of Vietnam

HCMC : Ho Chi Minh City

ID : Industrial Department

IE : Institute of Energy

IET : Institute of Environmental Technology

JBIC : Japan Bank for International Cooperation

JICA : Japan International Cooperation Agency

MARD : Ministry of Agriculture & Rural Development

MOC Ministry of Construction

MOET Ministry of Education and Training

MOH Ministry of Health

MOI : Ministry of Industry

MOSTE : Ministry of Science and Technology and Environment

NRWSS : National Rural Water Supply and Sanitation Strategy Program

PC : Power Company

PV : Photovoltaic

SHS : Solar Home System

VAST : Vietnamese Academy of Science & Technology

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Executive Summary

1. Background of the study

Vietnam’s market reforms have in the last decade resulted in an economic boom and is

substantiated by its impressive annual GDP growth of approximately 8%. Even more

striking is the forecast that this trend is expected to continue. However, despite this fact the

majority of its population still lives in remote farming areas that are stricken with poverty.

This disparity is evinced by a wide income gap between urban and rural areas. The GOV is

committed to reducing this income gap and the development of these rural regions is one

method to accomplish this goal.

In the Central Highlands, both the electrification rate and the water-supply coverage

still fall below average and most of the people in the remote villages are living without

electricity and collect water from either of existing wells or mountain springs and rivers.

Regarding these villages, the team estimated the water and electricity demand and

designed equipment to provide potable water, reliable electricity and to ultimately improve

quality of life for remote villagers. The target area of the Central Highlands is including

Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong.

2. Overview of Rural Electrification and Renewable Energy in Vietnam

MOI’s Rural Electrification Policy objectives (published in 2000) that specifically relate

to decentralized power systems (off-grid power) in remote areas are as follows:

“Rural electricity supply will utilize both national power grid and off-grid power

systems”. Therefore, off-grid and mini-grids are proposed and selected when the

total cost is less than either grid extension or diesel mini-grids.

“Priority should be given to those areas that have the capacity to enhance the

agricultural productivity, modernization and economic restructuring of strategic

areas”. Emphasis for mini-grids will be on areas with productive opportunities.

Vietnam’s initial goal at the beginning of the decade was to electrify 90% of households

by the year 2010 and to achieve this task; the government invested approximately

200-300 million USD annually in grid extension and rural electrification projects. By

early 2006, Vietnam had already surpassed its initial goal; at that time 91.5% of rural

households were connected to the national grid. For villages that will not be covered by

the power grid and where it is uneconomical to expand the grid, it is anticipated that these

areas will be electrified by renewable energy.

i

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As per EVN’s request, the World Bank, under its Technical Assistance activity, supported a project for renewable energy development in Vietnam. The project is named the Renewable Energy Action Plan (REAP) and was designed with a specified background aiming to assist MOI in developing the necessary instruments to enforce the activities and policy components.

3. Overview of Rural Water Supply

The quality of life for rural people in Vietnam is generally low and income generated

usually covers only the basic necessities, such as clothes and food. Their lifestyle has not

changed much despite Vietnam’s rapid economic development. Despite these challenges,

there is considerable focus by the government on rural development and water supply

improvement. Steering committees have been formed for water supply and sanitation at

both the national and local levels and rural development is considered a high national

priority.

Long-term goals by year 2010 to improve the water supply are set forth as follows:

85% of rural population will use clean water and have access to 60 LPCD

70% of rural households will have approved hygienic latrines

Most rural households have two sources of water, one for drinking and water for

washing. Piped water is uncommon and not readily available in rural areas.

Approximately 30% of households have some basic water supply system and of this, only

10% of households meet the national water standards. In the Central Highlands,

approximately 90% of the population has intestinal worms.

NRWSS suggests that a water resources monitoring system be established that utilizes

data collected from NRWSS implementation. This will help coordinate NRWSS activities

and determine the demand for local areas, not only for drinking water but also water for

other uses. Eventually, it is hoped that this will lead to better management and ultimately

the protection of water resources.

4. Site Survey

The project team requested the Industrial Departments (ID) of all five provinces to

provide data for villages that are expected not to be candidates by 2010 for the power grid

extension plan. The Industrial Departments have specific plans to expand the power grid

to remote areas by 2009. However, there are no plans to supply power to the remaining

villages after 2010. Out targeted areas are these non-electrification that are typically

ii

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difficult to reach during the rainy season even by 4 WD vehicles, these areas are also a

great distance from distribution lines.

Minority groups inhabit most of the un-electrified villages. They use kerosene lamps for

lighting and some of them have Pico Hydro for small appliances such as TV and radio.

Kerosene fuel is subsidized by the local government to remote villages and received free

of charge. Inhabitants often practice subsistence farming with crops such as rice, cassava

and typically receive no monetary income.

Most of the villages have small privately owned wells with a depth of around 5-20

meters as they do not have the technology to dig deeper than 20 meters and this therefore

limits their water supply. They lift up the water by hand in most of these wells and cannot

afford diesel engines to assist with the lifting.

5. Photovoltaic Electric Power and Water Supply System Proposal

The proposed system design for this project was based on many factors. The team collected village information for targeted areas such as number of households, total population and mean water intake etc…during the site survey and also obtained it directly from the respective Peoples Committees in the Central Highlands (Gia Lai, Kon Tum, Dak Lak, Dak Nong and Lam Dong) for system design.

The team decided to focus its efforts on 37 villages; these villages consist of 5,737

households and a total population of 26,805 people. Potential sites were determined

taking into consideration the method of water collection, distance from distribution lines

and road conditions.

The team estimated the initial cost for both water pumping and house electrification.

6. Economic Analysis

According to interviews, for villager’s that own livestock or cultivate certain cash crops,

their capacity to pay for this region is around 300 yen/month. However, many poor

villagers receive no monetary income and it is impractical to assume that villagers will be

able to reimburse the initial cost of 1.412 billion Yen (about 53,000 Yen per person);

therefore, the project team recommends the government to subsidize this cost.

If the government subsidizes the initial cost of the project, villagers will be responsible

iii

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for only the O&M cost. Assuming the generated power sells at a rate of 600 VND/kWh,

total power sales would be 3,706,000 Yen / year. This would result in a monthly electric

fee of about 50 yen/month. Although this is well within the their financial means, it is

recommended that villagers pay an additional 140 yen/month to act as a reserve fund to

cover system O&M. In addition, the project team also recommends that the government

also subsidize the electricity fee for poor villagers that are unable to pay. These payments

will cover the costs of any major malfunctions, battery replacement and also ensure the

long-term sustainability of this project.

7. Conclusion and Recommendation

The development of the Central Highlands in Vietnam has become a major focus area;

future project aid from various donors is expected to increase and together with Laos and

Cambodia, it is often referred to as the “Development Triangle.”

However, the team realizes that villages will remain without grid-connected power and

also continue to suffer from a lack of potable water nearly throughout the year. The local

government in the 5 provinces of the Central Highlands recommended 94 potential sites

and based on local conditions the project team then selected the 37 most appropriate sites.

The total project cost is expected to be approximately 12 million USD with energy output

totaling 1.3 MW.

Although the initial costs of the project are high and villagers often do not have the

knowledge to operate and maintain these systems, most were enthusiastic at the prospect

and agreed to pay for operational costs (approximately 1.6 USD/month) to ensure the

sustainability of the facilities. However, due to the high poverty rate and unfortunate

economic conditions, they will most likely be unable to reimburse the initial cost of the

project.

The Institute of Energy, an organization of the Vietnamese government is in the process

of drafting the “Master Plan for Renewable Energy Development.” This plan will be

completed next year (2008) and it will outline clear target areas for future rural

electrification projects. This pre-feasibility study for the Central Highlands should not be

the final step and every effort should be made for the continued investigation of this

project scheme in response to the upcoming publication.

The project team therefore recommends that this type of transfer program be included in

the next stage (full scale F/S) of the project.

iv

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1 Introduction

1.1 Background and Objectives

Following its dismal economic performance in the early 1980’s, The Government of

Vietnam (GOV) enacted its “Doi Moi” program that abandoned the collectivization of its

industrial and agricultural sectors. Although it was slow to take effect, these market

reforms have in the last decade resulted in an economic boom and is substantiated by its

impressive annual GDP growth of approximately 8%. Even more striking is the forecast

that this trend is expected to continue.

However, despite this fact the majority of its population still lives in remote farming areas

that are stricken with poverty. This disparity is evinced by a wide income gap between

urban and rural areas. The GOV is committed to reducing this income gap and the

development of these rural regions is one method to accomplish this goal.

The GOV wishes to reduce the poverty rate and improve the living conditions in rural

areas by focusing on the development of the water and power supply. In order to

accomplish this task, the “National Rural Water Supply and Sanitation Strategy Program:

NRWSS,” is aiming to provide a safe and stable water supply for both for both drinking

purposes and to ease the burden of daily life. To improve the power supply, the company

“Electricity of Viet Nam” (referred to as EVN) and Peoples’ Committee of the respective

provinces are engaged in rural electrification based on the “Off-grid Rural Electrification

Project” which has already surpassed its goal of achieving a 90% rural electrification rate

for Vietnam by 2010 as the figure now stands at 91.5%. This scheme is not limited to grid

extension projects but it will also utilize renewable energy such as photovoltaic and

mini-hydro power to provide an optimal mix to meet the needs of villagers in these remote

regions.

In the Central Highlands, both the electrification rate and the water-supply coverage still

fall below average and most of the people in the remote villages are living without

electricity and collect water from either of existing wells or mountain springs and rivers.

To improve these conditions, the Peoples’ Committees in the Central Highlands, especially

in Gia Lai Province are very willing to accommodate the survey due to its prior history

1

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with PV projects and the high rate of insolation in the region. Fuji Electric Systems

installed a successful PV project and carried out demonstrative research from 1997-2002.

The study team therefore determined that the possibility to install the water pumping and

supply system powered by photovoltaic that utilizes existing wells in the Central

Highlands shall be studied.

1.2 Study Team

Persons-in-charge of the study are listed below

Table 1.1 Study Team Members

No. Name Specialty

1 Hideo SEMBA Project Manager

2 Masahiro SAKURAI Photovoltaic System Plan

3 Kenichi KUWAHARA Rural Area Development Plan

4 Fumikazu DOI Water-pumping System Plan

5 Naoki YOKOTA Profitability Analysis

6 Chadwick SMITH Rural Area Development Plan

1.3 Study Schedule

(Please see Appendix A for details of travel itinerary and list of interviewees)

Figure 1.1 Study Schedule

MarchFebruaryJanuaryDecemberNovemberOctoberSeptemberAugustJuly MarchFebruaryJanuaryDecemberNovemberOctoberSeptemberAugustJuly

Consultant

「PV

+Wate

r

Consultant

Documentation of the implement plan

「PVWater

1stsite survey

ProjectBasic master plan

Basic design

Survey preparationappoint・ logistics

Summarizeresults

2ndsite survey

Surveypreparation

Procedure forthe contract

BenefitsProf itability Analysis

Preparing report(English)

Summarizeresults

ReportDraft

3rdsite survey

ReportDraft

FinalReportFinal

ReportSystem Design

Economic Analysis

Statementof

Account

Statementof

AccountAccountingdocument

2

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1.4 Scope of Work

The first step of this project is to study the background of the current power and water

situation and the current policy of renewable energy promotion for remote villages of the

Central Highlands.

The study team selected villages based on the recommendation of the Department of

Industry and carried out a site survey to determine such factors as water supply methods,

income, current lighting situation and other factors relevant to daily life.

Regarding these villages, the team estimated the water and electricity demand and

designed equipment to provide potable water, reliable electricity and to ultimately improve

the quality of life for remote villagers. The system will consist of the following equipment:

Photovoltaic array

Water pumping from existing wells and water supply

Battery charging station

Based on the results of the site survey, the team also calculated the initial as well as the

O&M cost to implement the project for the targeted villages and proposed a sustainable

project scheme that will allow it to become both financially and operationally independent.

The feasibility of a large-scale expansion project throughout the Central Highlands is also

studied.

1.5 Study Area

The study was originally focused only on Gia Lai province. However, following the 1st

site survey, it was determined that the population of the villages in Gia Lai province was

not large enough and the small project scale would only a minimum amount of people. The

team therefore reexamined the situation and based on the recommendations of the Peoples

Committee, decided that target area should be expanded to other areas of the Central

Highlands including Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong.

3

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Figure 1.2 Map of the Central Highlands

Location of

Target Sites

4

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2 Overview of Rural Electrification Policy and Current Situation

2.1 MOI’s Rural Electrification Policy

The Government of Vietnam’s (GOV) policy on renewable energy development for rural

electrification and grid supply clearly defines the responsibilities for renewable electricity

management and its development as well as a subsidy mechanism for off-grid renewable

energy projects.

MOI’s Rural Electrification Policy objectives (published in 2000) that specifically relate

to decentralized power systems (off-grid power) in remote areas are as follows:

“Rural electricity supply will utilize both national power grid and off-grid power

systems”. Therefore, off-grid and mini-grids are proposed and selected when the total

cost is less than either grid extension or diesel mini-grids.

“Priority should be given to those areas that have the capacity to enhance the

agricultural productivity, modernization and economic restructuring of strategic areas”.

Emphasis for mini-grids will be on areas with productive opportunities.

The costs of operation, maintenance and financial depreciation of rural electrification

infrastructure should be recovered from revenues earned by EVN, PCs (distribution

companies) and other operating entities in the Vietnam power sector. The GOV provides a

reasonable subsidy mechanism for investment in rural electrification networks and supply

infrastructure when these are deemed uneconomical based on the expected revenues.

Consistent with the GOV’s policy of equitable distribution, it is expected that renewable

energy- based grid and off-grid services will receive transparent subsidies.

Electricity supply for rural consumers should be considered a commercial service, except

for those areas where the subsidy is authorized as a social obligation and keeping

consistent with the aforementioned equitable development objectives.

To encourage investment in decentralized generation systems utilizing a low voltage grid,

the PCs will offer avoided cost capacity and/or energy payments to potential generators.

This is an important policy to support decentralized generation. Avoided cost–based tariff

reflecting the cost of supply at the specified voltage in each PC service area is important

5

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in ensuring the development of economically viable decentralized renewable energy

sources.

For some mountainous and island communes that are unable to connect to the national

grid, provinces will establish on-site or local generation projects suitable to the specific

conditions of each location, such as diesel, small hydropower and photovoltaic power.

The GOV will encourage foreign and local investors to invest in local businesses that

supply electricity. In addition, off-grid and mini-grid options have been identified and the

promotion of renewable energy is expected as a way to electrify large numbers of

communes at a minimum cost. .

The GOV has also formulated the following objectives for the Energy Development

Policy regarding rural electrification and future energy development:

Ⅰ.Consistent exploitation of energy resources and

Investment in energy conservation technologies

Ⅱ.Step by step energy resource development to ensure a sufficient supply

For socio-economic development and improve living standards

For industrialization, modernization and urbanization based on the

diversification of indigenous primary energy resources

Ⅲ.The step by step energy development is to narrow

Socio-economic gap

Energy supply and consumption gap between regions and localities

Ⅳ.Aggressive use of renewable energy aimed to develop the local power resources for

Replacement of the fossil based energy resources

Diversification of the power generation resources

Ⅴ.Upgrade and encourage efficient and reasonable energy use based on demand side

management

Ⅵ.Minimize the environmental impacts of energy development

The Ministry of Industry’s (MOI) initial program was to increase grid-connected

households from 8.95 million in 1999 to 13.73 million by the year 2010 and therefore

rural households connected to grids were expected to increase from 69.7% to 90% during

the same period.

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Table 2.1 Target of Grid Connected Household

S

(1) Rural Electrification Project Description and Strategy:

ork system to supply power

to about 700-800 communes that are inaccessible from the existing power grid.

nes,

al electricity network.

(2 ment

ustrated in Table 2.2 and Figure

2.1.

investment capital is US$ 2.261 billion of which US$ 1.452 billion has already been

vested and the remaining US$ 809 million will be invested in the latter half of the

RegionNumber ofhouseholdsin 1999

Accessedhouseholdsin 1999

Share(%)

Number ofhouseholdsin 2010

Accessedhouseholdsin 2010

Share(%)

North 6.6 5.45 80 8.04 7.49 93Center 2.09 1.35 65 2.48 2.18 88South 3.95 2.15 54 4.67 4.06 87Total 12.84 8.95 69.7 15.19 13.73 90

Unit:Million households

ource : EVN Report

Build a new 110 kV grid and distribution netw

Expand the existing grid in order to supply power for 1,500 – 1,600 commu

which are near grid areas.

Increase the number of rural households that will have access in communes that

are connected to the nation

) Investment Capital for Rural Electricity Develop

The rural electricity investment plan for this decade is ill

Total

in

decade.

Table 2.2 Investment Plan for Rural Electrification

ItemTotal

Investment2000 2001 2002 2003 2004 05-10

20

Unit:Million USD

Rehabilitation 1,003 86 186 186 186 186 173Grid Development 1,218 152 139 139 139 139 616Isolated system 40 4 4 4 4 4Total investment 2,261 123 342 329 329 329 809

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Source : EVN Report

Figure 2.1 Investment Plan for Rural Electrification

Investment Plan

0

100

200

300

400

500

600

700

800

900

2000 2001 2003 2002 2004 05-10

Year

Investment (Millon USD)

Isolated systemGrid DevelopmentRehabilitation

123

342 329 329 329

809

Source: EVN Report

2.2 Renewable Energy Development Plan

As per EVN’s request, the World Bank, under its Technical Assistance activity, supported

a project for renewable energy development in Vietnam. The project is named the

Renewable Energy Action Plan (REAP) and was designed with a specified background

aiming to assist MOI in developing the necessary instruments to enforce the activities and

policy components.

The outline of Renewable Energy Action Plan is as follows:

・ Prepared in 2001 by MOI / EVN with WB financial support

・ A 10 year large-scale renewable energy development program for rural electrification

of rural / remote / mountain areas

・ Purpose: Renewable energy will provide cost-effective and reliable electricity to help

rural people improve their standard of living and increase their income

・ Situation: Electrify more than 1,100 remote mountainous communes and villages that

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represent 750,000 households and 3 million people who are outside the national grid

by the year 2010

Table 2.3 Renewable Energy for Power Generation

MW GWh MW GWh MW GWhSolar 0.8 4-6

Mini Hydro 135 284 500-780Wind 0.8 1.6 200-400Biomass 150 310-410Geothermal - - 100Total 287 ~290 1,114-1,596

2004 Potential by 2020 Potential by 2030

3,600 -5,000

3,300 9,500

Source: Workshop in Phnom Penh, 5-6 October 2006

2.3 Current State of Rural Electrification

The extension of the national power grid to rural areas, particularly northern mountainous

provinces, Central Highlands and Mekong Delta raises the rural electrification rate of

Vietnam higher than many other countries in the region and also throughout the world. As

of early 2006, 511 out of 521 districts (97.9%) had access to the national power grid; 9

island districts and 1 mainland district had site generation sources; 8,801 out of 8,999

communes (97.8%) were electrified, which was increase of 315 communes compared to

the end of 2004, most of these communes were old remote revolution and resistance bases

located in the mountainous; and 11,834,692 out of 12,934,090 rural households (91.5%)

were connected to the national grid. Table 2.4 and Figure 2.4 provide information

regarding the rural electrification rate from 2000 to 2006.

Table 2.4 Rural Electrification Rate

Source : EVN Annual Report ,2004 Workshop in Phnom Penh, 5-6 October 2006

Year 2000 2001 2002 2003 2004 2006District 96.6% 97.6% 97.9% 97.9% 97.9% 98.0%Commune 81.9% 84.9% 90.6% 92.7% 94.6% 97.8%Household 73.5% 77.5% 81.4% 83.5% 87.5% 91.5%

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Figure 2.2 Rural Electrification Rate

As part taic

power for

electrifica

Tab

D is tr ic t

Source : EVN Annual Report ,2004 Workshop in Phnom Penh, 5-6 October 2006

of the rural electrification initiatives, there have been a number of cooperative photovol

projects with foreign governments and aid programs. These projects provide the basis

tion of regions unable to connect grid.

le 2.5 Current Photovoltaic Systems

Source: Workshop in Phnom Penh, 5-6 October 2006

R u ra l E le c tr if ic a t io n R a te

96 .6 % 9 7 .6 % 9 7 .9 % 9 7 .9 % 9 7 .9 %

C om m une

9 4 .6 %

8 1 .9 %8 4 .9 %

9 0 .6 % 9 2 .7 %

7 3 .5 %7 7 .5 %

8 1 .4 % 8 3 .5 %8 7 .5 %

9 8 .0 % 9 7 .8 %

9 1 .5 %

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

7 0 .0 %

8 0 .0 %

9 0 .0 %

1 0 0 .0 %

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 6

Y e a r

H ou se h o ld

Solarlab-Vietnams

2 Electrification -Vietnam

kW MicroHydro

2000-2004Fondem-FranceSolar-Vietnam

Binh Phuocprovince Can Gio

3Solar + MicroHydro

100 kWp + 25kW MicroHydro

1995-1999NEDO-JapanEVN-Vietnam

Gia Lai province

4 Solar + Wind10 kWp + 3kW Wind

NEF-JapanEVN-Vietnam

Kon Tumprovince

5 Rest's Project 10 Wp 1997-2004SIDA-SwedenSolarlab-Vietnam

Dong Thap, Binhphuoc, Dak lac

6Solar Project withGermany

18 kWp 2002-2003Germany-MOST-Vietnam

Bac giang, Dakalk

7Solar Project withKorea

3.3 kWp 2003-2005KIER-KoreaSolarlab-Vietnam

Binh canprovince

8Solar Project withFinland

10 kWp 2000-2003Fortum-FinlandCEMMA-Vietnam

Bac can province

Project PowerDate of

ImplementationInvestors Remark

1Energy -SolidarityVietnam

40 kWp 1992-1999Fondem-France

50 Solar Village

Decentraized Rural 45 kWp + 40

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Vietnam is endowed with an abundant amount of renewable energy and there is strong

potential for its utilization. The GOV and local authorities plan for the intensive

d turbine, hydropower) and there has been a

special emphasis on the promotion and development of bio-energy derived from

network despite its extensive grid extension plan. (up to

010) To electrify these rural communes, it is necessary to utilize potential renewable

verage insolation of 4.0 to 5.9 kWh/m2/day, which remains almost constant throughout

ern areas the insolation varies widely ranging from 2.4 to 5.6

kWh/m2/day. Vietnam’s insolation is comparatively high almost all models of

2.4 Renewable Energy Potential in Vietnam

evelopment of these resources (PV, wind

agricultural and forest residues. Biomass energy is considered to have one of the highest

potentials for future development in the country and its energy production is expected to

create competitive prices for agricultural food products in its production areas. With this

long-term policy, the GOV aims at modernizing its agricultural sector and further

promoting rural development.

According to a projection by the Hydro Power Center, more than 1,100 remote or

mountainous communes or 750,000 households populated by 3 million rural people will

not be covered by EVN’s grid

2

sources according based on the location and available resource options. In northern and

central parts of Vietnam, small hydro and pico hydro systems can be suitable options as

these areas have high potential for such projects. EVN expects as much 250-400 MW will

be supplied to remote areas by other renewable resources, such as biomass cogeneration.

Solar Energy

Vietnam is ideally located in a major insolation belt. Southern and central Vietnam have

a

the year. In north

photovoltaic applications have been utilized, such as Solar Home Systems (SHS), battery

charging station (BCS), solar medical center, solar community center, solar cultural boat,

solar school, solar satellite, receiver transmitter etc. Currently, Vietnam has a total

photovoltaic installed capacity of approximately 650 kW or about 5,000 installations. The

present photovoltaic application market in the country is divided into 3 major segments,

namely professional applications (50%), community, health center and battery charging

station stations (30%) and SHS (20%). All of the PV modules installed are imported while

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some parts of the supporting equipment are locally manufactured.

In the southern and central parts of the country, photovoltaic systems are an option for

electrifying rural communes. Table 2.6 provides a list of future photovoltaic installations.

lthough presently wind power is not being considered as a potential energy resource,

Table

s mentioned in previous section, Vietnam has massive potential for small hydropower

e e) totaling between 800-1,400 MW. About 70-75 % of the

nual runoff is generated during three to four months. Currently about 60 MW of

No. Project TargetImplementaion

PlanInvestors Remark

1 for MountainousAreas in Vietnam

for 300mountainouscommunes

2005-2010ODA-FinishVietnamGovernment

Approved byVN

Government

2Solar Home Systemfor Households inMountainous Areas

9.6 MillionUSD-

30,000SHSOver 10 years

Sponsored byWorld Bank

According toRE ActionPlan

3Solar Energy Projectwith Spain

100 kWp gridconnected + 10kWp standalone system

2006-2010ODA-SpainMOST-Vietnam

PreparationStage

4Commercial SHSProject

152,000 SHSsystem

Loan with lowinterest fromBank for thepoor and Bankfor Agricultureand RuralDevelopment

PreparationStage

A

EVN expects to future development in coastal areas.

2.6 Future Photovoltaic Installations

Solar PV Generation30 Million USD-

Source: Workshop in Phnom Penh, 5-6 October 2006

Small Hydropower

A

dev lopment (<10 MW siz

an

grid-connected mini hydro plants (size 100 to 7,500 kW) is installed at 48 locations in the

country. Among these 48 plants, 6 plants are reported not in operation due to failure of

equipment. With proper rehabilitation programs, there is a substantial scope to increase

the capacity of the hydropower plants presently in operation. The government financed all

of these grid-connected systems either directly or through international aid.

With installed capacity totaling 70 MW, more than 300 communes have small hydro

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systems installed with system capacity ranging from 5 to 200 kW. Most of these systems

re installed in northern and central Vietnam. Most of the community owned systems are

) Wind Power P

・ Current development: 1 MW

150W-200W for battery charging station (locally constructed) 850 kW

land in northern Vietnam

-up water and supplying AC power

2)

Current development: 50 MW

g etc.

Current development: Approximately 35,000 households

heating, cooking etc.

Current development :0 MW

a / Steam bath, heating, cooking

a

in poor working condition and it is reported that 200 out of 300 installed systems are not

in operation. On the other hand, commercially operated hydro systems have a low failure

rate when compared to community owned system. For instance, in the case of Dong Nal,

out of a total of 19 systems, the 10 community owned systems are not in operation while

the remaining 9 operational systems are all commercially operated. Community owned

systems are poorly managed with little or no maintenance. Estimates show that Vietnam

has some 500 MW of small hydropower potential that could be developed for future

community use.

Other Renewable Resources

1・ otential: Not identified

・ System: Almost

system in Bach Long Vy Is

・ Purpose : battery charge, pump

Biomass for electricity

・ Potential: 250-400 MW

・ Purpose: heating, cookin

3) Biogas

・ Potential: Very high

・ Purpose:

4) Geothermal

・Potential : 50 – 200 MW

・Purpose : Saun

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3 Overview of Rural Water Supply Policy and Current Situation

3.1 Rural Water Supply Policy

Most households in rural Vietnam consist of 5 members, these are concentrated in hamlets

a units typically govern villages. The quality of life for these

people is generally low and income generated usually covers only the basic necessities,

Increase government money, ODA on social development

application of new and modern equipment

ility in issuing certificates

stra er propose ways to development the rural areas and mitigate the income

gap that is associated with economic development.

3.

oor education is often the most difficult obstacle in the successful implementation of

e sys villagers do not understand the relation between sanitation and

clean water supply. In addition the present National Rural Water Supply and Sanitation

ater from springs or only have access to deep

round water due to the lack of surface water. Climatic changes have also worsened the

nd traditional administrative

such as clothes and food. The lifestyle of people has not changed much despite Vietnam’s

rapid economic development. Therefore, in 1997 the government set forth the Orientation

for Rural Development. This plan recommended the following proposals:

Investments to increase cash crops, promote livestock breeding and handicraft

production

Create favorable business conditions and partnerships for small retailers and farmers

Promote the

Support to households that join cooperatives, more flexib

for land use

Presently an overarching strategy is being development for rural development. This

tegy will furth

1.1 Challenges

P

thes tems. Many rural

(NRWSS) system is fragmented, uncoordinated and there is a poor legislative framework

to provide guidance and policy directives.

Furthermore, in mountainous regions such as the Central Highlands, people usually lack

water resources altogether and must carry w

g

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situation, floods and droughts have occurred in regions not normally equipped to deal

with these types of events and in some regions, water resources have been exhausted and

immediate attention is needed.

Finally a major challenge is the inability to transfer knowledge of RWSS systems to local

people. There are no centers or programs to provide technology transfer and increase

wareness; these factors are hindering any future progress.

ittees have been formed for

ater supply and sanitation at both the national and local levels and rural development is

through higher agricultural yields. Recently this has

hanged and the government is examining a more comprehensive rural development plan

3.

he Ministry of Construction in consultation with the Ministry of Agriculture and Rural

elopm etermined that the development objectives of the NRWSS are to

improve the health and living conditions of the rural population and to reduce the

85% of rural population will use clean water and have access to 60 LPCD

a

Despite these challenges, there is considerable focus by the government on rural

development and water supply improvement. Steering comm

w

considered a high national priority. Although the more local rural supply schemes lack

certain policy level directives, the decentralization is also a benefit because it reaches

projects at the lowest level.

The government is also reformulating the way it deals with rural development. Previously

living conditions improved only

c

that includes agricultural surpluses that can be used for the processing industry, increased

livestock breeding and the development or rural trade and industries. Ultimately, this will

result in the development of rural centers that will link these rural areas to the more

prosperous regions and further spur rural development.

1.2 Objectives

T

Dev ent have d

environment pollution. These objectives will be implemented by adhering to immediate

goals such clean water access by all public facilities, priority shall be given to areas

lacking clean water such as remote regions or those suffering from pollution and there

shall be protection against water resource exhaustion both surface and groundwater.

Long-term goals are set forth as follows:

By year 2010

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70% of rural households will have approved hygienic latrines and have good personal

ractices

y

ill use clean water t and hygienic latrines that meet national

standards

universal hygiene and sanitary practices through community involvement

3

The government has determined that long-term sustainable development of its rural water

ly m and major goal. A number of actions will be carried

out to ensure that its development receives attention.

ervice life of equipment. This will

nsure that all facilities have a basic management plan for use, appropriate technology and

ail that the users pay all of the costs themselves.

ntractor and finally to manage the

peration and maintenance.

ultimate responsibility rests with the people. In addition,

ducational campaigns will be used to provide instruction and advice to local people

nfidence and management practices

at will further benefit the projects and the people. From 2005, it is expected that RWSS

hygiene p

By ear 2020

All rural people w

Improved

and educational programs.

.1.3 Sustainable Development

supp anagement is a high priority

Clear ownership of facilities will be emphasized so that it encourages a sense of efficient

use and associated maintenance will also extend the s

e

staff capable of carrying out the repair work along with a system of supplying spare parts.

In order to make this program a success, the concept of project implementation will be

shifting from a supply responsive approach to a demand responsive approach. This will

ent

After necessary advice the user will determine the type of facilities and the financing

scheme, construct the facilities or arrange to pay a co

o

Government agencies and donors will provide assistance and guidance, grants will also be

provided to the poor but the

e

before and during the NRWSS projects

This is critical to ensure the long-term sustainability of the rural water supply system. It

will eventually result in the development of self-co

th

16

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will follow this approach.

Current Situation of Rural Water Supply 3.2

ue to its mountainous terrain, climatic conditions and a vast river system, Vietnam is

e pply. However, rice field irrigation and uneven

distribution result in water shortages in certain areas. The inefficient use of water and poor

rural areas. Approximately 30% of

ouseholds have some basic water supply system and of this, only 10% of households

en defecation and this subsequently causes frequent

ater contamination. Outbreaks of cholera and typhoid are common and have increased in

en constructed along with

ilt by villagers; however, this only represents a small fraction of what

3.

esponsibilities will be divided among the national and local levels. However,

rnm icipate in the business activities, they will only

provide policy level guidance and advisory to the users.

and projects. In addition, they

ill coordinate the education system and the funds for grants and loans. MARD will

D

ndowed with an abundant natural water su

sanitation practices further exacerbate this problem.

Most rural households have two sources of water, one for drinking and water for washing.

Piped water is uncommon and not readily available in

h

meet the national water standards.

In addition to these factors, only about 50% of rural households have latrines (toilet

facilities). Most families practice op

w

recent years due to population growth. In certain areas such as the Central Highlands,

approximately 90% of the population has intestinal worms.

Programs funded by UNICEF to correct this deficiency have been ongoing for more than

15 years. Many wells with hand pumps and latrines have be

private facilities bu

is needed and much more work remains to be done in these areas

2.1 Delegation of Responsibilities

R

gove ent organizations will not part

The Ministry of Agricultural Rural Development (MARD) will be the lead ministry and

responsible for the overall coordination of the programs

w

delegate certain tasks to other ministries as follows (See list of Acronyms)

17

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Figure 3.1 Delegation of National Responsibilities

local government will also have the responsibility to carry out a number of duties that

clude:

F Responsibilities

Source: RWSS

The

in

igure 3.2 Local

VillageNo administrative tasks

Provides an important link for rural residentsand community

Mobilize community participation

DistrictImplementation of roject schemes within

district Provide tech., finance, andconstruction advice

CommuneLowest adminisrative level and

closest to the peopleServe as coordinator and advisor to users

ProvinceEstablish appropriate organizations,

sitance to impement NWSSnate with National Level

coordinate asCoordi

MOCConstruction of Water

Supply Facitilies

MOSTE

Supply Systems

Research andDevelopment of Water

MOHAssist with Education

Program forSanitation Issues

MOETResearch for

Education ProgramRelating to Clean

Water Supply

MARDOverall

Coordination

CentralVietnameseGovernment

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3.3 Potential for Development and Policy Recommendations

uture rural water supply will be developed utilizing a number a different technologies

t r dug wells with or without

treatment facilities, fitted with either a hand pump or an electric pump. In addition, piped

es such as gravity piped schemes,

onstruction of small dams or ponds to store rainwater and pumping water from rivers.

s will also involve improving quality of life and this is a

riving force behind GOV’s policy objectives, such as recognizing the lower rate of

nd provincial level to allow

r improved water management.

entation. This will help coordinate NRWSS activities

nd determine the demand for local areas, not only for drinking water but also water for

F

hat suit each different location including tube wells o

schemes may be employed that include simple gravity flow systems or systems that utilize

electric pumps. The connections may be to individual households or to a public

connection located near a cluster of households.

Water supply in mountainous areas is often a problem and the NRWSS recommends

several methods to overcome these difficulti

c

Piped schemes are increasingly popular and are strongly encouraged for all districts, the

project team observed several piped schemes during the site survey in the Central

Highlands. It is estimated that by 2020, approximately 40% of all rural households will be

supplied with piped schemes.

Poor people typically inhabit mountainous areas and often benefit from grant funds.

Furthermore, work in these area

d

literacy and the need for information in minority languages.

Although there is an ample amount of data available in the various ministries dealing with

water resources, it still needs to be organized at the central a

fo

NRWSS suggests that a water resources monitoring system be established that utilizes

data collected from NRWSS implem

a

other uses. Eventually, it is hoped that this will lead to better management and ultimately

the protection of water resources.

It is recommended that each province set up a water resource and inventory database. This

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will allow for the detailed investigation of groundwater, surface water, rainwater and

otential for development of these resources.

out Vietnam, which will ultimately lead to

more effective NRWSS and improve the coordination between national and local

hortage in the 21st century. The NRWSS is

lready making considerable progress and has set up an Action Plan that includes pilot

ion, surveys will be conducted to tailor each education campaign to the

pecific region and attention will be given to local minority languages and also the

11-12 provinces for

ubsequent annual implementation. This stage will also include increased international

n. This may include

aining courses at local Universities or vocational schools in addition to the normal

p

Moreover, this investigation will be able to clearly demonstrate the need for an improved

water management and protection plan through

a

governments and also between provinces.

Vietnam faces formidable challenges regarding water supply. It is estimated that 1 billion

people in Asia will face a water supply s

a

implementation of the NRWSS in 15 provinces in 2005. This initial Action Program will

determine the feasibility and soundness of the strategy and identify areas that need to be

rectified.

In addition, the initial Action Program will include a focused education campaign. Prior to

implementat

s

literacy level. These educational activities will take place through radio and television,

books and advertisements, face to face meeting and also be integrated into other campaign

that teach family planning, poverty alleviation and also agriculture.

After two years of successful pilot implementation, the RWSS will expand in 46 other

provinces; these provinces will be divided into 4 groups of

s

cooperation. Laws regarding water resources, environmental protection and people rights

may also be amended to allow for smooth project implementation.

There will also be an emphasis on human resources development and training of local

staff to carry out the necessary duties for project implementatio

tr

workshop and short training courses. Appropriate mechanisms for funding will be

identified and organizations that act as the implementing bodies will be given the

responsibility of handing the government supported grants and loans.

Additional research and development will be carried out in regards to NRWSS

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technologies and manuals will be drafted to provide guidance to local regional conditions.

inally, efforts should be made to create a water resources database that may serve as a

gram has been successfully carried out for a minimum of two years, the

RWSS will expand to 46 other provinces and it is hoped that this will alleviate the water

garding specific information in the

rgeted project sites.

F

source of detailed information for future water resource development and policy level

legislation.

These initial efforts are expected to be completed around 2005 but may be delayed. Once

the initial pro

N

shortages and concerns for rural people in Vietnam thereby making a significant

improvement to their life and also the region.

This section provided a general outline of the water supply policies and future initiatives.

The following section will provide more details re

ta

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4 Over iew of the Site Survey

4.1 Location, Topography and Climate

Vietnam is situated on the eastern part of Indochina peninsula and covers an area of

3 with China in the north, Laos and Cambodia to the

west. Vietnam also borders several bodies of water including the Gulf of Tonkin, the Gulf

North Central Coast : Bac Trung Bo (BTB)

Red River Delta : Chiru Tho Song Hong (CSH)

tnam has s, midlands, mountains and forests. Three

rters of Vi the majority of the country. There

are 2,860 rivers of which the two biggest ones are the Red River in the North and the

s

tribes, the most prevalent being the M'nong, the Ede, and the Bannar. These groups may

v

25,360 sq. km. Its land borders are

of Thailand and a long coastline stretching 3,444 kilometers.

The country is divided into the following eight economic regions:

Mekong River Delta : Chau Tho Song Me Kong (CSM)

Northeast: Dong Bac (DOB)

Northeast South : Dong Nom Bo (DNB)

South Central Coast : Nam Trung Bo (NTB)

Northwest : Tay Bac (TAB)

Central Highlands : Tay Nguyen (TNG)

Vie a diverse topography of plain

qua etnam is mountainous and forests cover

Mekong River in the South. Due to the topographical situation, northern rivers flow

vigorously during the rainy season and the currents of southern rivers are relatively

peaceful due to the flat plains. There are two large deltas in Vietnam; the Red River Delta

is 15,000 square kilometers and the Mekong River Delta, which is nearly twice its size.

Much of the Central Highlands is a series of flat plateaus, inhabited mainly by various

ethnic groups. The ethnic minorities of the Central Highlands are composed of variou

appear to be similar but are culturally quite different. Most villages consist of thatched

single family houses arranged around a central communal longhouse, called a nha rang in

Vietnamese, raised on stilts at the center of town where all ceremony and governance take

place. Each group has a particular style of nha rang, the most dynamic being the Bannar

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style of an over-three-story-high peak of thatch, but each kind of nha rang is an important

symbol of community-respective groups and the center of worship and colorful ceremony.

The Central Highlands, called Tay Nguyen in Vietnamese, is made up of five provinces:

Kontum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong, stretching along the high ridge of

the Trong Son Mountain Range of the Annamese Cordillera that serves as a natural border

high

m has nearly

2,000 hours of sunshine per year on average, approximately 100 days of rain with an

where the survey sites were located and represents typical conditions for this region. As

Cit

between Vietnam and nearby Laos and Cambodia. With the increase in altitude, the

temperature in the highlands is cool, ranging from between 18°C and 25°C.

Vietnam belongs to a typical Asian monsoon climatic zone. Warm temperatures,

humidity and abundant seasonal rainfall typify this climate zone. Vietna

annual amount of 2,000 mm, and humidity is high at around 85%. Typhoons influence

regional weather patterns in northern areas during the months of September and October.

Table 4.1 and Figure 4.1 show the climate data, temperature, days of sunshine and

humidity in both Pleiku and Hanoi. Pleiku is the largest city in the Central Highlands

demonstrated in the table below, there is a high amount of insolation throughout the year

in the Central Highlands and also rainfall drastically decreases in the months of October

to February during the dry season. This often results in severe water shortages for local

villages and demonstrates the need for improvements in the water supply.

Table 4.1 Climate Data of Vietnam

y Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. AverageHanoi 36 64 46 74 141 185 121 160 122 148 136 161 116

232 140 163 124 156 221 258 259 2176.6 29.8 29.2 29.1 28.3 26.1 23.1 19.3 24.3

Pleiku 19.1 19.9 22.9 24.5 24.3 22.5 22.8 22.3 22.2 21.3 21.3 18.9 21.8Hanoi 6 29 45 161 335 229 366 247 107 8 24 28 132

Sun Shine

T(℃)Rainfall(mm)

Humidity (%)

Pleiku 256 288 262 247Hanoi 17.2 18.1 20.7 24.2 2

(Hr)emperature

Pleiku 40 52 248 694 290 349 208 6 8 2 158Hanoi 79 83 81 85 82 75 79 83 81 67 75 73 79Pleiku 81 76 76 78 83 91 91 94 90 84 80 79 84

Source : Statistical Yearbook 2004

23

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Figure 4.1 Climate Data in Vietnam

Climate Data

0

50

100

150

200

250

300

350

Jan.

Feb.

March

April

May

June

July

Aug.

Sep.

Oct.Nov.

Dec.

Average

City

Sunshine (Hr)

0

5

10

15

20

25

30

35

Temperature (℃)

Sun Shine (Hr) Hanoi Sun Shine (Hr) Pleiku Temperature (℃) Hanoi Temperature (℃) Pleiku

4.2 Results of the Site Survey

We requested the Industrial Departments (ID) of all five provinces to provide data for

villages that are expected not to be candidates by 2010 for the power grid extension plan.

The Industrial Departments have specific plans to expand the power grid to remote areas

by 2009. However, there are no plans to supply power to the remaining villages after 2010.

Out targeted areas are these non-electrification that are typically difficult to reach during

the rainy season even by 4 WD vehicles, these areas are also a great distance from

distribution lines.

Minority groups inhabit most of the un-electrified villages. They use kerosene lamps for

lighting and some of them have Pico Hydro for small appliances such as TV and radio.

Kerosene fuel is subsidized by the local government to remote villages and received free

of charge. Inhabitants often practice subsistence farming with crops such as rice, cassava

and typically receive no monetary income.

After permission was granted to conduct the survey in the region, the team obtained

information regarding the power situation. However data for water resources in each of

the villages is not readily available. Therefore, in order to understand the situation of

villages in each province, the consulted with ID and determined the most appropriate

sites.

24

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Most of the villages have small privately owned wells with a depth of around 5-20 meters

illagers state that potable drinking water is the most vital component of their life and

4. Target Areas

(1) K Tum Province

on Tum province is 9, 614 km2 and has seven districts with a population of 316,000. Its

opulations in individual villages are small at around 100 to 300 for each village. There

our site survey, we visited four villages in Tu Mo Rong district; we chose six potential

as they do not have the technology to dig deeper than 20 meters and this therefore limits

their water supply. They lift up the water by hand in most of these wells and cannot afford

diesel engines to assist with the lifting.

V

they requested improvements in this area during interviews. The team understands that

some villages need not only power but also deeper wells and a reliable supply of water.

2.1

on

K

population density is the lowest among the five provinces in the Central Highlands.

According to the data from ID Kon Tum, there are 18 non-electrified villages that are

difficult to connect to the power grid by 2010.

P

are also villages such as Mang Buk and Ngol Tem commune, which are located in

mountainous areas (elevation more than 1500m) and are difficult to reach by vehicle.

Most villagers can access spring water for drinking from a pipeline in the mountains.

However, in dry season, these areas often run dry and local people suffer from a lack of

water. This requires them to walk 2-7 km in order to collect water for basic needs such as

drinking and cooking therefore living conditions often worsen during this season becomes

very difficult.

In

villages for our study and estimated the cost of system installation.

25

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Table 4.2 List of Potential Villages in Kon Tum

(2) G i province

ia Lai province has 12 districts; a population of about 981,000 and it covers an area of

ecause of the lack of water, there is a water tank to store drinking water from a nearby

Gia Lai and Power Company Gia Lai both have a strong interest in this project and

our site survey, we visited four villages in Dak T Pang and Mang Yang commune and

Village Name Commune Name District Name No. ofHousehold

No. ofPopulation

WaterDemand per

G

i

a

day[kl]

Tu Thon Dak Nen Kon Plong 61 274 13.7

Dick TaCok 35 175 8.75

Dick Pet 42 194 9.7

Mang Vach 40 183 9.15

Dak King 1 Ngoc Lay Tu Mo Rong 39 179 8.95

135 648Tia Plong 1+2, Ngoc Mo 32.4Mang But

Ngoc Tem

Kon Plong

Kon Plong

ia La

G

15,496 km2. The eastern area is mountainous and there are highlands in the west. At the

time this report was written, it was planned that the western area would be electrified by

2010. Nevertheless, according to ID Gia Lai, there are still 11 non-electrified villages that

prove quite difficult to be accommodated by this grid expansion plan and will probably

remain without power. These 11 villages are located a great distance from the distribution

lines and in the mountains. The situation is similar to Kon Tum.

B

mountain, however, this does not provide a sufficient amount during the dry season and

villages suffer from a lack of water.

ID

wish to further develop the Central Highlands, as Pleiku is the capital of Gia Lai and the

largest city in the region, these organizations feel a certain responsibility to the minority

people and have played a major role in assisting our efforts in this study. The support

provided should not be underestimated and it is recommended that any future project

implementation in the region would benefit from involving organizations.

In

we targeted six potential villages to compute a cost estimate.

26

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Table 4.3 List of Potential Villages in Gia Lai

intained by

refer to

(3) D k and Dak Nong province

separated from Dak Lak province. These two provinces

re 19,599 km2 and have 19 districts combined with a population of about 1,793,000.

ependent, ID Dak Nong has an aggressive attitude

ard improving in its newly formed province. Therefore, individuals were very in

illages are primarily located in the mountains and residents depend on

ells and mountain streams for water. The wells are usually in the village center and

Village Name Commune Name District Name . ofHousehold

No. ofPopulation

WaterDemand per

da

Distancefrom GridNo

y[kl] (km)

L. Kon Vong 2 Dak Rong K Bang 44 220 11.0 12

L. Tung Kroong K Bang 63 315 15.8 10

Thon 7 So Pai K Bang 205 1025 51.3 1.5

Thon 8 So Pai K Bang 119 595 29.8 2

L. Kon Yot Ha Dong Dak Doa 45 225 11.3 2.4

Po Pau Lo Pang M Yang 60 300 15.0 3

Additionally, there is a Photovoltaic model site in Gia Lai. This site is well ma

PC Gia Lai and the villagers are able to operate it without difficulties. (Please

section 4.3 for a more detailed description of this site)

ak La

Dak Nong province was recently

a

According to information received from ID Dak Lak and ID Dak Nong, most areas will

be electrified by 2010 but there are still 37 non-electrified villages that will not be

influenced by power grid expansion.

Since Dak Nong recently became ind

tow

assisting the team with our survey and welcomed any type of project that may further

development.

Non-electrified v

w

utilize poorly hand made water tube lines to draw water from the rather distant mountain

streams. Although the water quality is sufficient for drinking, (please refer water quality

data in section 4.2.2) the amount of water drawn from these two sources is extremely low

at roughly 1 liter per person per day. In addition, this amount decreases during the dry

season making it difficult for residents to accomplish basic tasks such as washing.

27

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If river water becomes undrinkable due to the high silt and dirt content, the villagers then

se water from wells and mountain streams for drinking purposes. Due to this unfortunate

uon Cham village in Dak Lak where the similar project was carried out

the past. (Please refer to section 4.3 for a more detailed description)

a cost estimate for

roject implementation. The villages selected are in both provinces, 8 are in Dak Lak and

Table 4.5 List of Potential Villages in Dak Nong

Village Name Commune Name District Name No. ofHousehold

No. ofPopulation

WaterDemand per

da

u

situation, villagers have adapted to a lifestyle with limited potable water. For example,

locally grown agricultural products typically require very little or no irrigation and

villagers have become accustomed to washing their bodies and clothes with murky

unclean water.

The team visited B

in

In our Dak Nong survey, the team visited potential villages to compute

p

7 are in Dak Nong are listed below.

Table 4.4 List of Potential Villages in Dak Lak

Distancefrom Grid

y[kl] (km)

Se Dang Ea Kiet Cu M'gar 120 500 25.0 10

Buon Tria Ea Trul Cu M'gar 100 500 25.0 5

Thon Yang Hanh Cu Dram Krong Bong 352 1408 70.4 15

Buon Cham Ea Sol Ea H'leo 150 900 45.0 8

Ton Thanh Xuan Ea Kenh Krong Pak 140 560 28.0 6.5

Ton Thanh Binh Ea Kenh Krong Pak 147 588 29.4 6.5

Thon 7A Ea Phe Krong Pak 130 520 26.0 3

Thon 7C Ea Phe Krong Pak 125 500 25.0 3

Distancefrom GridVillage Name Commune Name District Name No. of

HouseholdNo. of

Population

WaterDemand per

da

y[kl] (km) Doc 3 Tang Nam Nung Krong No 95 395 19.8 7

Thac Lao Eapo Cu Jar 80 345 17.3 8

Dak Mre Quang Tan Dak R Lap 200 915 45.8 15

Cac cwn dan curxa Dak R Mang Dak R Mang Dak Glong 592 3101 155.1 15

Deo 52 Quang Son Dak Glong 77 405 20.3 12

Khu KTM Ha Tay Quang Son Dak Glong 112 384 19.2 15

Thac 11-12 Quang Son Dak Glong 394 1904 95.2 10

28

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(4) L

1

istricts and is similar in size to Kom Tum at only 9,764 km2. Topography consists

ainly of highlands but there are also many villages that the government finds difficult to

lectrify by 2010. The team obtained information for 33 non-electrified villages, that

ccording to ID Lam Dong will not benefit from the planned region wide power grid

xpansion.

he village populations are typically larger than that of Kon Tum, Gia Lai and the

ouseholds are also more clustered around a central location. This situation is ideal for

installation of a photovoltaic system that will supply power and water to village residents.

is derived from coffee and pepper production and villagers collect water

om small privately owned wells. As with the other provinces, they suffer from a lack of

am Dong province

Lam Dong province has a population of just over 1 million at 1,004,000 and consists of 1

d

m

e

a

e

T

h

Local income

fr

water in the dry season and must walk long distances to streams in order to collect water

for basic necessities.

In our site survey, we visited 3 villages and chose 10 target villages to compute the cost

estimate in our study.

Table 4.6 List of Potential Villages in Lam Dong

Village Name Commune Name District Name No. ofHousehold

No. ofPopulation

WaterDemand Per

Day [kL]

Distancefrom Grid

(km)

Thon Pre Tieng 2 Xa Phu Son 324 1237 61.85

Thon Van Minh Xa Tan Van 210 918 45.9

Thon 10 Xa Da Don 221 938 46.9

Thon 3 117 864 43.2

171 910 45.5

Thon Ha Lam 215 804 40.2

Thon Lien Ha 1 186 825 41.25

201 1005 50.25

Thon 13 Xa Hoa Nam VII Di Linh 205 1025 51.25

Xa Lien Ha

IV Lam Ha Thon 5 185 1021 51.05

Thon 83km or Over

Xa Tan Thanh

Thon 11 Xa Hoa Nam VII Di Linh

29

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4. .2 Water Quality of Target Villages

quipment will be included in the project scheme. The project team collected water from

arious locations and the following list contains a complete water quality analysis for the

rgeted sites. The testing was conducted at the Institute for Environmental Technology,

aboratory for Environmental Analysis in Ho Chi Minh City. Drinking water standards

re also listed to allow for a comparison.

or values not included in the drinking water standards, it is assumed that the tested

amples are within the limits and water is suitable for drinking purposes. As set forth by

e Minister of Health and the People Health Protection Law, all water supply plants,

ater suppliers for eating/drinking, water supply systems for less than 500 people and

rivate water supply systems are recommended to adhere to these standards.

According to the following data, purification equipment is not required for this project

Sample

2

The water quality of rural areas will be the determinant as to whether purification

e

v

ta

L

a

F

s

th

w

p

scheme. There is no significant contamination of the well water and it is deemed suitable

for drinking. Furthermore, salinity values in this region are negligible and desalination

equipment is not required.

Table 4.7 Drinking Water Standards Compared with Samples

No Item Unit Drinking

Water 1 2

Standards

1 pH 6.5-8.5 7.31 6.77

2 Total Dissolved

Solid

mgCaCO3/

L

<1000 61.5 199

3 51.0 Nitrate NO3 mg/L <50 3.15

4 Nitrite NO2 mg/L <3 ND ND

5 Fluoride mg/L .7-1.5 0.41 0.99

6 Chloride Cl- mg/L <250 12.4 137.0

7 Total Nitrogen mgN/L 0.68 11.54

8 mg/L <250 78.6 65.8 Sulphate SO4

9 Total Inorganic mgC/L

Carbon

72.6 104

10 Hardness mgCaCO3/ <300 117 144

30

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L

11 Iron µg/L <500 87 76

12 Lead µg/L ND ND <10

13 mium g/L Cad µ <3 ND ND

14 Arsenic µg/L <10 0.65 0.90

15 ese /L <500 60 4 Mangan µg

) – ell water fr K RMANG mune DAK NONG Provi

) – ell water fr K PA TUN une G Province

D =

ltho e list con wo values not w tandards, u, the

hief nvironmental Analysis a d the proje m that

these ot pose a problem. According to Dr. Cu, it is difficult for natural water to

e lue betwe and v re gener health risk when

they exceed 1.5 mg/L. For th itrate NO3, the value of 51 should “not be a concern” and

s for reference r. Cu conc hat in hi ofessional o n, the

ter ficient king and do quire an fication eq ent.

le ing Water Sta Compared w mples

Sample

(1 Sample of w om DA com nce

(2 Sample of w om DA G comm IA LAI

N Not detected

A ugh the abov tains t that are ithin s Dr. C

C Director of the Laboratory

values do n

for E ssure ct tea

hav a Fluoride va en .7 and 1.5

e N

alues a ally a only

it i included only. D luded t s pr pinio

wa samples are suf for drin not re y puri uipm

Tab 4.8 Drink ndards ith Sa

N Unit Drinking

5

o Item

Water 1 2 3 4 (*)

Standards

1 6.5-8.5 7.16 7.01 7.15 6.56 7.39 pH

2 Total mgCaC <1000 16.0 13.0 9.0 7.6 13.0

Dissolved

solid

O3/L

Nitrate

NO3

mg/L <50 < 0.35 < 0.35 < 0.35 < 0.35 < 0.353

Nitrite

NO2

mg/L <3 ND ND ND ND ND 4

Fluoride mg/L .7-1.5 ND ND ND ND ND 5

6 Chloride

mg/L <250 1.9 2.2 1.86 1.0 3.8

Cl

7 Total mgN/L 0.25 0.014 0.26 X 0.0028

31

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Ni trogen

8 Sulphate

SO4

mg/L ND ND ND ND ND <250

9 Total

n

gC/L

Carbo

m 21.27 21.11 9.2 13.84 2.89

10 C

O3/L

<300 31.2 25.0 11.0 X 2.5 Hardness mgCa

11 Iron µg/L <500 5.0 83.0 16.0 5.0 5.0

12 µg/L <10 < 0.2 < 0.2 < 0.2 0.2 <0.2 Lead

13 m Cadmiu µg/L <3 < 0.2 < 0.2 < 0.2 < 0.2 <0.2

14 ic µg/L <10 < 0.1 0.1 <0.1 <0.1 <0.1 Arsen

15 Mangane

se

µg/L <500 3.0 0.7 0.9 0.2 0.2

( ater sa m Fuji Electric PV+MH Site Lai

( sample from TOM MO RONG Village in KOM TUM Province

( sa om tan M MO NG V in K M Province

( Water sample from tank in PO DAN Village, MANG YANG commune in GIA LAI

P

( sample from mountain stream in PO DAN Village, MANG YANG commune

i P

ND = Not det

. of ng Off-G ower S

(1 ji in Gia

ectric Systems and ID Gia Lai recommended the team to visit a model project site

w Energy and Industrial

etnam (EVN)

he

ents and remains in operation to this day.

1) – W

2) – Water

mple fro in Gia

3) – Water

4) –

mple fr k in TO RO illage OM TU

rovince

5) – Water

n GIA LAI rovince

ected

4.3 Showcase Existi rid P ystems

) Fu System Lai

Fuji El

in Gia Lai. Fuji Electric Systems in cooperation with the Ne

Technology Development Organization (NEDO) and the Electricity of Vi

initiated a PV village electrification project for the Central Highlands. Although t

system’s purpose was to serve as demonstrative research, it greatly improved the lives of

local resid

32

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Figure 4.2 External appearance of PV yard

Source: i Electric Systems

m nd-alone hy d system

between PV nd Micro Hydro Power taking into ac and cost. w

ang Y ct La e and consists of a 100 k

V sy and a 25 micro-hydro system that provides power to 5

househ t villages.

s fo

project, an instruction manual, an op manual a PV experts co

durin was held with s

from Gia Lai Ele g the long-term operation and

maintenance of the system.

99.5kW 880 modules

Fuj

The syste was designed to optimize the configuration of a sta bri

a count both reliability It as

located at Trang Village, M ang distri in Gia i provinc W

stand alone P stem kW 10

olds in 3 differen

Furthermore, the training and technology program consisted of specification r the

eration nd also nducted on-

the-job training sessions g site visits. Finally a meeting individual

ctric Power Compan ey r gardin

Sequencer

Data acquisitionsystem

<<System Controller>>

HybridControllerInduc

Water Turbin

To MH

ti

Transformer 400V/415V

Battery689kWh 2800Ah/246V

4kW/10s×24p 111W Module 26.6

Inverter

Meteoro

<<Power Conditioner>>

100kVA

3Φ4W415V

3Φ,415V25kW

Gret village

PleiBot village

Hlang village

Premises

26.64kW/10s×24p111W Module

22.20kW/10s×20p 111W Module

24.00kW/20s×10p 120W Module

Water Intake

Test Load

Controller

MC1

MC2

MC3

MC4

DC246V

(230V~330V)

PV System

MH System

33

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Figure 4.3 Organization of the Fuji Electric PV System Project

Prior to project implementation, this area had not been electrified and lagged behind in

economic development. Furthermore, the use of kerosene lamps for lighting made it

hrough this system, a myriad of different opportunities have opened up and children are

Ministry of Industry Ministry of Science,

Technology and Environment

Source: Fuji Electric Systems

difficult for children to study in the evening. The project improved the quality of life as

every house was supplied with electric lighting and villagers were then able to socialize in

the evening and children could continue to study after sunset.

Test operations began in September 1999 and actual operations began in January of 2000.

Gia Lai Electric Power Department also dispatched two operators who stayed near the site

to assist with operation and maintenance. The technicians successfully transferred this

knowledge to local people so they could operate the facilities themselves thereby ensuring

long-term sustainability. The research program ended in 2001, however, villagers continue

to enjoy the immense benefits of this program and the project has enriched the lives of so

many who once only knew darkness.

T

now raised with the hopes and dreams of a brighter future. This would not have been

possible without the cooperation and warm relationship between the governments of

Vietnam, Japan and their respective businesses and implementing organizations.

NEDO

Fuji

lectric E

Electricity of Vietnam

Counter-part

Power Company (Electric power company No.3

Gia Lai Electric Power

Department

of central Vietnam)

(Electric power company of Gia Lai Province)

Institute of Energy

(Institute under Electricity of Vietnam)

<Study> <Maintenance, Operation>

34

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(2)

In addition the project site in Gia Lai, representatives from Solarlab in Ho Chi Minh City

ng.

enjoy

traditional dancing, karaoke and could spend more time reading and socializing with other

Buon Cham System

and ID Dak Lak invited the team to visit a PV project site in Dak Lak known as Buon

Cham Village. The team’s visit to the site would prove invaluable as a comparison could

be made with the system in Gia Lai. The Ministry of Science, Technology and

Environment (MOSTE) Vietnam and NRW Germany developed this village under

photovoltaic power scheme. Upon its completion in 2002, it provided power to 100

households, a cultural house, 2 classrooms, medical service, ration telephone, water

pumping equipment, and library lighti

Buon Cham Village was intended to be a showcase village that demonstrates the benefits

of such a system and according to a report in written in 2002 shortly after its completion,

it stated that the lives of villagers have drastically changed and people no longer live in

isolation. They now enjoy color TV’s, radios, lighting systems and regularly

villagers.

However, the project team visited Buom Cham village on January 17, 2007 and was

presented with a different situation. At the time of the site survey, villagers reported that

equipment frequently broke down and the PV system at the cultural house was inoperable.

Many villagers expressed frustration that they could no longer utilize their systems and

were receiving little help from outside sources.

35

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Figure 4.4 Outline of Buon Cham Village

Source: Buon Cham Village Documents from Solarlab

According to the Buon Cham village documents and interviews with villagers, it seems

that this project was thoroughly planned and that all necessary conditions had been met,

further investigation by the project team confirmed this fact, the problem was project

implementation.

The issues that this village faced can provide important lessons for any future PV/water

pumping scheme in this region. There are several reasons why Buon Cham village is in its

current predicament. This information should be used for future projects to ensure that

this is not repeated.

Please refer to the following section for a brief description of project flow and problems

encountered at Buon Cham Village.

36

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Figure 4.4 Outline of Project Flow for Buon Cham Village

Installation and Training

14 day installation and training period3-4 days for installation

10 days for training and instruction3 local villagers sent to HCMC for 7 day training

course on PV maitenance

ProblemsFailed to collect payments, only 20 households pay

Unable to pay salaries of technical staffForced to refund money to 20 familiesNo maitenance scheme implemented

Fees and O/M100 families, each agree to pay 5000 VND/month

500,000 VND/month400,000 VND as salary for 3 staff and100,000 for any needed repair parts

Fee CollectionResponsibility of village leader and 2 assistants

Source: Buon Cham Village Documents from Solarlab

Consequently, the technicians did not receive their salary and returned to farming work.

When a minor problem did occur with system components, villagers contact one of the

technicians and pay directly for any work performed. There was no standardization of fees

collected for work performed; apparently the fee is based on consensus with the

technician and the villager.

Although this system worked for approximately one year with no major malfunctions, it

was apparent that it would not lead to long-term project sustainability. In 2003, there was

a breakdown of the main batteries and control system at the cultural house. This was

repaired by the district at a cost of 120 million VND and paid for by a district subsidy.

Similarly, in 2004 another breakdown of the same parts occurred and it also cost 120

million VND paid for by a district subsidy to repair the problem. Finally in 2005 when the

same problem occurred again, the district denied the subsidy and the system has been

inoperable since that time.

37

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5 Photovoltaic Electric Power and Water Supply System Proposal

The proposed system design for this project was based on many factors. The team

collected village information for targeted areas such as number of households, total

population and mean water intake etc…during the site survey and also obtained it directly

from the respective Peoples Committees in the Central Highlands (Gia Lai, Kon Tum,

Dak Lak, Dak Nong and Lam Dong) for system design.

The team decided to focus its efforts on 37 villages; these villages consist of 5,737

households and a total population of 26,805 people. Potential sites were determined

taking into consideration the method of water collection, distance from distribution lines

and road conditions.

Table 5.1 Village List for System Study

5.1

ken into consideration to determine the ideal system design

household electrification and pump operation

using regional insolation

data

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total

Number of Potential Village 6 6 8 7 10 37

Number of population people 2,680 1,653 5,476 7 49 9,547 26,805

mber of household family 536 352 1,264 1,550 2,035 5,737

,4

Nu

Study of Optimum System

(1) Selection of target project villages

The following factors were ta

for this project.

1. Selection of non-electrified villages in the Central Highlands

2. Number of households and inhabitants

3. Data used for system specification design:

・ Electric power demand for household and pumping system

・ Water demand per household

・ Well depth and head

4. Electric power needed for

5. Calculation of the expected photovoltaic power generation

38

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6. Determination of solar cell module, inverter and battery capacity

(2) Pre-conditions for Optimum System Design

The team conducted a survey of rural villages to determ

ine the appropriate system design

ased on the specific needs and desires of the villagers and also similar projects in the

ken into consideration for system design in order to best suit the

quirements of villagers and also to ensure project sustainability.

Table 5.2 Pre-Conditions of the System

b

same area. For this specific project, it is assumed that villagers will utilize two light bulbs,

a TV, radio and electricity can be supplied for approximately 4 hours a day. Furthermore it

is assumed that each villager will have access to 50 liters of water per day per person.

These factors were ta

re

Number

Light 2Item Television 1[W] Radio 1sumption of Electric Power per Household 100[W]Con

Wat 10m

Ope

15mWell Depth from Ground Surface

Consumption of Water per People

er Level in Hi-tank from Ground surface

rating Time of Water Pump 5 hours/day

50 liter/day/people

Supply Time of Electric Power 4 hours/day

Capacity

205010

Total Capacity

405010

39

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F

Following thoughtful consideration, the team concluded that water purification was not

necessary in this region due to the high quality of water and its lack of both contaminants

and salinity. The team therefore omitted this section from the project report.

(1) Cost Calculation for PV Powered Pumping Equipment

First, the team focused on a PV powered system that pumps up water. The team then

prioritized villages and attempted to focus on non-electrified villages that have

relatively large populations and deep wells. However, despite our efforts, many of the

non-electrified villages in this region have small privately owned shallow wells that

were also included in this study.

igure 5.1 Image of the Project

Photovoltaic Array

Village

5.2 Cost Calculation

In the original proposal, the team planned to recommend three project components, PV

powered water pumping, PV electrification and water purification. In this chapter the

team calculated the PV powered water pumping and electrification.

Hi-tank

Junction box

Drinking water

Irrigation water

Battery

Inverter(CVCF)

Batterycharger

Premises

Village

Rural Electrification

Fluorescent lamp

TV

Pumping up water

Small pump

Water tap

Deep well

Submersiblepump

40

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able 5.3 Cost calculation of PV system for Pumping Equipment

he PV

s a strong need and desire for lighting and appliances such

as TV during the site survey. The following information relates to PV household

electrification.

ined both solar home systems (SHS) and battery charging station

(BCS) as optimal PV systems. The SHS system is advantageous for a village with

re concluded that the

ideal system should be BCS in this study.

T

Unit Gia lai Kon Tum Dac Lak Dak Nong Lam Dong Total

Number of Village 6 6 8 7 10 37

Nu er of population people 2,680 1,653 5,476 7,449 9,547 26,805

Number of household family 536 352 1,264 1,550 2,035 5,737

Necessary of electricpowerfor

mb

pump-upkWh/day 33 20 66 90 116 325

Necessary of water m3/day 134 83 274 372 477 1,340

Necessary Capacity ofmotor kW 7 4 13 46 23 93

Capacity of PV for pump-up kW 16 10 33 45 58 163

Assuming the villagers use 50 liters per day per person, the total capacity of t

system would be 163 kW.

The formula for configuration of the system is listed in Appendix 5

(2) Cost calculation of PV system for Household Electrification

The team confirmed there i

The team exam

scattered households and small power demand. However, the 37-targeted villages all

have relatively large populations and power is expected not only for household

electrification but also for pumping equipment. The team therefo

The necessary electric power for a BCS system is calculated as follows,

41

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T

acity

er.

able 5.4 Cost Calculation for Household Electrification

Unit Gia lai Kon Tum Dac Lak Dak

Assuming the villagers’ use one 100-Watt light bulb per household, the total cap

of PV would be 1.149 MW and a battery would be required to store the pow

Capacity would be 5,737 kWh.

The formula for system configuration is in Appendix 6

Nong Lam Dong Total

Number of V

Number of p

Number of ho

Necessary of 141 506 620 814 2,295

Capacity of PVfor electrific household kW 107 71 253 310 408 1,149

Capacity of Battery for households kWh 536 352 1,264 1,550 2,035 5,737

illage 6 6 8 7 10 37

opulation people 2,680 1,653 5,476 7,449 9,547 26,805

usehold family 536 352 1,264 1,550 2,035 5,737

electric power kWh/day 214

ation of

42

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6 Economical Analysis of the Project

6.1 Initial Cost

The project equipment consists of water pumping system (including water tank)

pho

abo e initial cost for both water pumping and household

elec ification (Battery Charging Station).

(1) Initial Cost for Water Pumping

m are as follows,

Figu

Photovolta System1 Solar Cell Module2 Inverter3 Control4 Frame5 Junctio

Pump-up 1 Pump2 Water T3 Control

Construction Work1 Materia2 Labor FSupervisor / E

tovoltaic array and battery. Assuming the standard equipment components mentioned

ve, the team estimated th

tr

System configuration and cost estimate for Water Pumping Syste

re 6.1 Water Pumping Equipment

ic

Table 6.1 Cost Estimate for Water Pumping

ler

n Box

System

ankler

lee

ngineer / Worker

Photovoltaic Array

Junction box

Electricity

WaterDeep well

SubmersiblepumpPumping up water

Inverter(VVVF)

High tank

Drinking water

Irrigation water

Water tap

Photovoltaic Array

Junction box

Electricity

WaterDeep well

Submersiblepump

Deep well

SubmersiblepumpPumping up water

Inverter(VVVF)

High tank

Irrigation water

Water tap

Drinking water

6 6 8 7 10 37people 2,680 1,653 5,476 7,449 9,547 26,805family 536 352 1,264 1,550 2,035 5,737

Necessary Electric Power kWh/day 32.5 20.0 66.4 90.3 115.8 325.1Necessary Water Amount m3/d 134.0 82.7 273.8 372.5 477.4 1,340.3Pump Capacity kW 6.5 4.0 13.3 45.9 23.2 92.8Photovoltaic Capacity kW 16.3 10.0 33.3 45.2 58.0 162.8

Ⅰ Photovoltaic System Million Yen 11 7 22 30 38 108Ⅱ Battery System Million Yen 0 0 0 0 0 0Ⅳ Pump-up System Million Yen 28 17 58 85 101 288Ⅵ Construction Work Million Yen 3 2 5 7 9 26

Million Yen 42 26 85 122 148 423Total System Cost

Number of VillageNumber of populationNumber of household

Unit Gia lai Kon Tum Lam DongDac Lak Dak Nong Total

43

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(2) Initial Cost for Household Electrification (Battery Charging Station)

System configuration and cost estimate for Battery Charging Station are as follows,

Figu

Table 6.2 Cost Estimate for Household Electrification (Battery Charging Station)

initial cost of the project, it is also necessary to

compute the Operation Cost as well. Therefore, the maintenance cost is calculated by

ent by a fixed rate as follows:

Photovoltaic Array

re 6.2 Equipment for Household Electrification (Battery Charging Station)

Photovolt1 Solar Cell Module2 Controller3 Frame4 Junction Box5 Battery Charger

Battery System1 Battery

Construction Work1 Material2 Labor FeeSupervisor / Engineer / Worker

aic System

Operation Cost

As the previous section only estimated the

6.2

multiplying the cost of each compon

Photovoltaic Array Rural ElectrificationRural ElectrificationJunction boxJunction box

Battery

Batterycharger

Battery Charging Station

Battery

Batterycharger

Battery Charging Station

6 6 8 7 10 37people 2,680 1,653 5,476 7,449 9,547 26,805family 536 352 1,264 1,550 2,035 5,737

Necessary Electric Power kWh/day 214.4 140.8 505.6 620.0 814.0 2,294.8Photovoltaic Capacity kW 107.4 70.5 253.2 310.5 407.7 1,149.3Battery Capacity kWh 536.0 352.0 1,264.0 1,550.0 2,035.0 5,737.0

Ⅰ 64 42 150 184 242 682Ⅱ 11 7 26 32 42 119Ⅳ Pump-up System Million Yen 0 0 0 0 0 0Ⅵ Construction Work Million Yen 18 12 41 51 66 188

Million Yen 93 61 218 268 350 990

TotalUnit Gia lai Kon Tum Lam DongDac Lak Dak Nong

Number of VillageNumber of populationNumber of household

Photovoltaic System Million YenBattery System Million Yen

Total System Cost

44

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Table 6.3 Maintenance Cost of the Equipment

System Fixed Maintenance Cost Rate

Photovoltaic System 0.1% / System cost

Pumping System 0.2% / System cost

Photovoltaic arrays and another incidental devices often require a minimum amount of

maintenance as they generate power from insolation. The primary O&M cost is due to the

necessity of battery replacement. The battery for the proposed system is expected to last at

least 10 years, after which it will need to be replaced and the cost is estimated to be

approximately the same as the initial battery.

he team will estimate the cost for the total system combining both water pumping and

hows the total O&M costs of each

province.

6.3 nomic Analysis of the System

rops,

eir capacity to pay for this region is around 300 yen/month. However, many poor

will be

able to reimburse the initial cost of 1.412 billion Yen (about 53,000 Yen per person);

therefore, the project team recommends the government to subsidize this cost.

T

household electrification components. Table 6-4 s

Table 6.4 Maintenance Cost and Battery Replacement

K Yen 131 83 288 383 482 1,367

Replace Cost of Battery K Yen 1,115 732 2,629 3,224 4,233 11,933

K Yen 1,246 815 2,917 3,607 4,714 13,300

Cost of Maintenance

Total O&M Cost

Eco

According to interviews, for villager’s that own livestock or cultivate certain cash c

th

villagers receive no monetary income and it is impractical to assume that villagers

If the government subsidizes the initial cost of the project, villagers will be responsible for

only the O&M cost. Assuming the generated power sells at a rate of 600 VND/kWh, total

power sales would be 3,706,000 Yen / year. This would result in a monthly electric fee of

about 50 yen/month. Although this is well within the their financial means, it is

45

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recommended that villagers pay an additional 140 yen/month to act as a reserve fund to

cover system O&M. In addition, the project team also recommends that the government

also subsidize the electricity fee for poor villagers that are unable to pay. These payments

will cover the costs of any major malfunctions, battery replacement and also ensure the

long-term sustainability of this project.

Based on the above calculations, it is estimated that the total rate will be approximately

190 yen/month (140+50) and this revenue will be used for maintenance of the PV pump

and also battery replacement.

ble 6.5 Economical Analysis of the System

Ta

6 6 8 7 10 3726,805

family 536 352 1,264 1,550 2,035 5,737

M Yen 42 26 85 122 148 423

M Yen 93 61 218 268 350 990

M Yen 134 87 303 390 499 1,412

K Yen 131 83 288 383 482 1,367

Replace Cost of Battery K Yen 1,115 732 2,629 3,224 4,233 11,933

K Yen 1,246 815 2,917 3,607 4,714 13,300

K Yen 346 227 817 1,001 1,315 3,706

K Yen 900 591 2,124 2,604 3,419 9,638

K Yen 1,247 819 2,940 3,605 4,734 13,345

Dac Lak Dak Nong Lam Dong

Auunal Sales of Electric Power(Average: about 50 yen/Household/month)

Number of VillageNumber oNumber of household

Cost of Maintenance

TotalUnit Gia lai Kon Tum

Total Incom

System Cost of Water Pump

Total O&M Cost

Reserve Fund For O&M( 140yen/Household/month)

Total System Cost

System Cost of HH Electrification

people 2,680 1,653 5,476 7,449 9,547f population

e

46

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7 Environmenta -economic Impact

rior to the project implementation stage, it is necessary to consider the impact on the

7.1 vironmental Concerns

on of Environmental and Social Considerations” published by JBIC in April of

002. According to the guidelines, “18. Water Supply” the following environmental

Table 7.1 Consideration of JBIC Guidelines

tegory Environmental Item Items applicable to the Project Appraisal & Preventive Measures

(1) EIA andEnvironmental Permits

(2) Explanation to the

ot applicable -

(2) Water QualityUnderground water pollution inducedby excess water pumping

Will be designed not to pump up excess water

(2) EcosystemApplied if there is species influencedby machine installation or waterpump-up

N/ADue to no negative impact on species

6

(Omitted) (Will be studied in the next stage)1 rmits andEx anation

JBIC Guide Line

4 En

5

2 M

3 Environment

l Concerns and Socio

P

environment implementing organizations should demonstrate that the project does not

adversely influence the local area. In addition to environmental concerns, the expected

benefits that may be incurred are also mentioned in order to demonstrate the total project

impact.

En

The study follows “Japan Bank for International Corporation (JBIC) Guidelines for

Confirmati

2

items are taken into consideration for this project.

Consideration

Ca

Public

(1) Air Quality N

(3) WasteR/O waste waterWaste water and oil duringconstruction

Managed accoding to manual

(4) Noise and Vibration From pumpsN/ADue to small scale

(5) Subsidence One due to excess water pump-up Will be designed not to take excess water

(1) Protected AreasApplied if the site is in National Parkor so

N/ADue to no nearby protected areas

Mitigationeasures

Natural

(1) Resettlement Land occupationN/ADue to abundant space

(2) Living andLivelihood

Opportunity cost of land occupationor water pumping

N/ABecause the plant is established in an openspace and purpose of underground water is notchanged

(3) HeritageApplied if there is natural or culturalhearitage around

N/ADue to no signifigant effects

(4) Landscape Existance of plant itselfN/ABecause of its small scale

(5) Ethnic Minoritiesand Indigenous Peoples

Applied if there live minoritiesaround

N/ABecause this project benefits minorities

(1) Impacts duringConstruction

Exhausted gas and noise from heavyequipment

Managed according to construction manual

(2) Monitoring Quality of underground water Will be monitored periodically

NoteNote on UsingEnvironmental Checklist

According to Vietnam N/A

Socialvironment

Others

Pepl

47

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Most of the above items are not problematic because the project scale in each village is

latively small and will have a negligible impact on the environment. The only

Disseminate information from the manufacturer to the user and persons responsible

for disposal via manuals and/or the establishment of guidelines that clearly outline

and describe the correct procedures for battery collection and disposal

Establish a used-battery collection and storage system and an inspection agency to

monitor this process to encourage local people not to randomly discard inoperable

batteries

Establish clear legally binding responsibilities as defined by regulations for

user/manufactures

There are several firms that already deal with battery disposal in Vietnam. To ensure the

long-term sustainability of this project, the team recommends close cooperation with these

organizations to establish an appropriate battery disposal system.

re

environmental consideration is that the groundwater quality may be negatively influenced

due to excessive pumping. Therefore, the system should be designed not to pump water

that exceeds its capacity.

(1) PV System for Household Electrification

Photovoltaic power is a clean energy source and typically results in no negative

environmental impact. It is often a safe alterative to diesel generators that generate noise

and pollution along with power. However, the disposal of batteries is something that must

be considered in any PV project. Based on the similar project experience, if there is not a

well-structured system in place and no educational to alert local people to the dangers,

batteries from the electrification system may result in environmental degradation.

Batteries used in PV systems contain certain chemical compounds that are detrimental to

the environment and it is necessary to implement proper battery disposal methods to

ensure long-term project sustainability. The team recommends that battery disposal

programs take into consideration the following points:

48

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7.2

ation is often the first step towards development, villages and municipalities that

lack this basic service are often put at a disadvantage regarding job creation and education.

re prosperous regions and a necessary conduit to improve the

quality of life. Utilizing abundant natural resources is an ideal solution to provide power

an just light, there are countless other

ample, without electricity, villagers

typically use candles or kerosene lamps for lighting. This is often costly due to the high

price of fuel and also dangerous due to the increased risk of fire. Electricity also allows

.

can

nd

re

.

fits

Socio-Economic Impacts

Electrific

Electricity is the link to mo

to remote regions and the high insolation in the Central Highlands makes photovoltaic

power a safe and clean alternative to fossil fuels.

Rural electrification projects often provide more th

direct benefits that villagers will enjoy. For ex

children to study in the evening and also family entertainment such as radio and TV

Finally, the entire village can benefit as it brings people closer together as they

socialize though increased community interaction.

This project also involves water-pumping equipment that will reduce labor spent on ha

pumps to collect water. The pumping equipment will also allow children mo

opportunities for studying as it may decrease the long distances required to collect water

A summary of the expected benefits is in table 7.2.

Table 7.2 Expected Socio-Economic Benefits of PV System

Expected Bene

Reduce the possibility of oil leaks, lam

breakage that may result in fires

p

May use incandescent bulb as a night light

Improve convenience of daily life and

increase safety

External lighting

Improve hygiene Reduce soot and smell from kerosene lamps

Decrease money spent on kerosene fuel

Improve the efficiency of domestic work (can be

done in the evening) and spare time can be used

to engage in handicraft industry

D

i

ecrease expenditures and increase

ncome

Reduces time spent operating hand pump

49

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Increase access to information TV, radio

Increase educational opportunity Lighting provides opportunity for home study

and extended study hours

Increase time spent with family and

com

lighting allows families to spend time

together in the evening and also to socialize with

Electric

munity other families

I

e

ncrease variety of hobbies and

ntertainment

Entertainment media (TV, radio, movies) also

spare time allows more time for personal hobbies

Improve school facilities Lighting in schools

Improve Communication

(Speakers, announcements) V tivities

Street lights make villagers feel safer in the illage Ac

evening

tes. With increased community

teraction and an active life, many project sites report that some relatives return from the

gene

appe

impr on. Finally, the benefits are not only in the villages but the entire region

h

bene

Along with the obvious direct benefits, there are also a number of indirect benefits that

will further improve the quality of life at project si

in

city to the villages. This not only results in family benefits, but also possible income

ration for the region and the mitigation of population imbalances.

Furthermore, external and internal lighting result in villagers caring more about the

arance of their habitations and they often strive to improve this through painting and

oved sanitati

as t e increased education and higher literary further rural development, which eventually

fits all of Vietnam.

50

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8 Conc

8.1

nam has become a major focus area;

ture project aid from various donors is expected to increase and together with Laos and

ntainous regions such as “Program

35.” (See Appendix 4)

ater nearly throughout the year. The project team recognizes the need for development

roject will drastically improve the

uality of life for ethnic minorities that inhabit these areas.

The interviews conducted with numerous officials from the Department of Industry and

Peoples Committees in each of the 5 provinces confirme . Furthermore,

visits to non-electrified villages and dis

cal and central

rongly support any effort

reas with no access ntly

restrained from development; they have isolated

from the outside world. Therefore, the r

table choice for small ccess of several

functioning PV projects in the region furt

The local government in the 5 provin

l condi selected the 37 most

lusion and Recommendation

Conclusion

The development of the Central Highlands in Viet

fu

Cambodia, it is often referred to as the “Development Triangle.” The Vietnamese

government is dedicated to improving the living standards for residents of this area,

especially the ethnic minorities and it is committed to major investments in its

infrastructure over the next three years. Specifically, power grid extension investments in

remote areas are now a high priority and the government is financing these efforts by

funds provided by the central government and foreign donors. This is often done through

social development programs that target rural mou

1

However, the team realizes that despite programs such as “135,” certain villages will

remain without grid-connected power and also continue to suffer from a lack of potable

w

of this region and anticipates that a PV/water pumping p

q

d this dire situation

cussion with local leaders solidified our opinion

ese disadvantaged areas. The lothat there is a strong need to assist th

governments st for development.

These outlying a to electricity and potable water are curre

limited opportunities and are in a sense

ural electrification of these areas using renewable

addition, the high level of insolation make PV

-scale electrification and the su

energy has enormous social potential. In

systems an inevi

her substantiates this fact.

ces of the Central Highlands recommended 94

tions the project team thenpotential sites and based on loca

51

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appropriate sites. The total project cost

with energy capacity totaling 1.3MW.

is expected to be approximately 12 million USD

The most important aspect of this projec

local people a

t though is that it will change the lives of 26,800

project scheme is an investment in social capital nd future generations. The

ill provide mea cades.

Although the initial costs of the proje ten do not have the

rate and maintain thes

and agreed to pay for operational cost ately 1.6 USD/month) to ensure the

sustainability of the facilities. However, due to the high poverty rate and unfortunate

s in the process of

rafting the “Master Plan for Renewable Energy Development.” This plan will be

his project encompasses two primary goals, the development/promotion of renewable

nergy sources that will reduce environmental degradation and also the improvement of

social conditions for many ethnic minorities in the region. Although, this is a

re-feasibility study, it will provide the needed analysis and evaluation for future

evelopment in the area. It is therefore in the opinion of the project team that the general

formation for the Central Highlands and the conceptual design will serve as an

valuable resource for any future detailed development study.

Recommendation

uring the site survey, the team realized that GOV had accelerated the grid-extension

e electrification rate increasing at a pace greater than the

team’s expectation. Due to this, the team confirmed that the villages included in the

chapter 4 were located in difficult locations and as of March 2007, were not expected to

and human welfare that w ningful returns for de

ct are high and villagers of

knowledge to ope e systems, most were enthusiastic at the prospect

s (approxim

economic conditions, they will most likely be unable to reimburse the initial cost of the

project. In order for this project to be a success, it is necessary to obtain funding based on

a grant scheme or through technical assistance funded by the central government.

The Institute of Energy, an organization of the Vietnamese government i

d

completed next year (2008) and it will outline clear target areas for future rural

electrification projects. This pre-feasibility study for the Central Highlands should not be

the final step and every effort should be made for the continued investigation of this

project scheme in response to the upcoming publication.

T

e

p

d

in

in

8.2

D

program and this resulted in th

52

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b by 2010.

t to the furthest extent possible. The project team therefore

commends that this type of transfer program be included in the next stage (full scale

e electrified

The team recommends that if these villages are electrified at some point after the

installation of the PV systems, this equipment should be transferred to a suitable location

that remains outside the power grid and which will also benefit from its installation. For

example, there are many islands in Vietnam with rural populations that rely heavily on

diesel generators for their power needs. The generators require expensive diesel fuel and

are harmful to the environment. PV power would provide a safe and clean alternative.

This would ensure that the equipment continues to people the maximum amount of people

and is not simply abandoned. It would be in the best interest of Vietnam and its populace

to utilize the equipmen

re

F/S) of the project.

53

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s:

Appendix 1: Itinerary of Site Survey and List of Interviewees

The schedules of three site surveys conducted in Vietnam are as follow

First Site Survey

Itinerary/Activities

1 Sep 4 Mon Travel (Japan→Hanoi)

2 Sep 5 Tue Meeting (JICA, MARD-CERWASS)

3 Sep 6 Wed Meeting (VAST)

4 Sep 7 Thu Meeting (EVN-IE, MOI, JBIC)

Meeting (EVN-Rural Electrification)

Travel (Hanoi→Da Nang→Pleiku) 5 Sep 8 Fri

Meeting (Gia Lai Electric, Gia Lai DOI)

6 Sep 9 Sat Site survey (DAC DOA)

7 Sep 10 Sun Site survey (MANG YANG)

8WASS)

Site survey (DAC DOA, MANG YANG, Other Place) Sep 11 Mon

Meeting (Gia Lai Peoples Committee, PCER

9 Sep 12 Tue Site survey (DAC DOA, MANG YANG, Other Place)

Meeting (Gia Lai Peoples Committee) 10 Sep 13 Wed

Travel (Pleiku→Ho Chi Minh)

11 Sep 14 Thu Meeting (VAST, VFEC-HCM)

Meeting (Solar-Lab, Pump Manufacturer) 12 Sep 15 Fri

Travel (Ho Chi Minh→Japan)

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Second Site Survey

Activities

Team A Team B

1 Oct 19 Thu Travel(Japan → Ho Chi Minh)

2 Oct 20 Fri Meeting(Solar Lab、VAST-IET)

3 Oct 21 Sat Prepare Documents/Briefing Materials

4 Oct 22 Sun Travel(Ho Chi Minh→Pleiku)

5 Oct 23 Mon Meeting (ID Gia Lai、Gia Lai Peoples' Committee)

6 Site survey(Kon Tum) Meeting(ID Dak Lak/Nong) Oct 24 Tue

7 Oct 25 Wed Site survey(Kon Tum) Site survey(Dak Nong)

Meeting(ID Dak Nong)

8 Oct 26 Thu Meeting(P-CERWASS) Meeting(ID Dak Lak)

9 Oct 27 Fri Site survey(So Pai) Meeting(PC Gia Lai)

Site survey(Dak To Pang)

10 Oct 28 Sat Prepare Documents/Briefing Materials

1 29 Sun Travel(Pleiku→Hanoi) Travel (Pleiku→HCM) 1 Oct

12 Oct 30 Mon Meeting(JICA、JBIC) Meeting(Solar Lab, VAST-IET)

Travel(Ho Chi Minh→ )

13 Oct 31 Tue Meeting(EVN-IE,MARD) Travel( →Japan)

14 Nov 1 Wed Meeting(Japan Embassy)

Travel(Hanoi→ )

15 Nov 2 Thu Travel( →Japan)

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Third Site Survey

Itinerary/Activities

1 Jan 14 Sun Travel (Japan→Ho Chi Minh City)

2 Jan 15 Mon Travel (Ho C lat) Meeting (ID Lam D

hi Minh City→Daong )

3 Jan 16 Tue Site Survey of Villages in Lam Dong

a Thout) Travel (Dalat→Buon M

4 Jan 17 Wed Meeting (ID Dak Lak), Site Survey of Buon Cham Village,

5 Jan 18 Thu Site Survey Dak Lak Travel (Buon Ma Thout→Pleiku)

6 Jan 19 Fri Meeting (ID Gia Lai)

7 Jan 20 Sat Travel (Pleiku→Danang→Hanoi)

8 Jan 21 Sun Arrange Meetings and Prepare Documents

9 Jan 22 Mon Meeting (Japanese Embassy, IE)

10 Jan 23 Tue Meeting (EVN, MOI,MARD)

11 Jan 24 Wed Travel (Hanoi→Japan)

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List

No. Name Specialty

of Interviewees

1 Ms. ran Hai Anh Project OfT ficer, MOI

2 Ms. Nguyen Thi Kim Kan ficer, MOI Of

3 Dr. Ph anh am Kh Toan Director, EVN-IE

4 Dr. Tra anh L nal Cooperation Department, n Th ien Chief of InternatioEVN-IE

5 Mr. Ng Tien ment R&D of Solar , EVN-IE

uyen Long General Manager of Departand Wind Energy

6 Dr. Nguy uoc ics, EVN-IE en Q Khanh Energy & Econom

7 Mr. Ho Anh Tua -IE n Electric Network Department, ENV

8 Mr. Ng The ural Eleuyen Vinh EVN-R ctrification Dept.

9 Mr. Msc Le Thie Deputy Directou Son r, MARD-CERWASS

10 Mr. Ha Duc Chinh cal an Section, MARD-CERWATechni d Technological

SS 11 g The r, VAST Dr. N uyen Dong Directo -IET

12 ts keha uty Reside etnam e

Ms. I uka I ra DepOffic

nt Rpresentitive, JICA Vi

13 Mr. Ya a Oji Office suhis ma Representative, JBIC Hanoi

14 Mr. Hi Mats Representative, JBIC Hanoi Office royasu uda

15 Mr. Trin uang D , SolarLab HCMh Q ung Director C

16 Dr. Bu g C Lab. E -IET

i Quan u Chief of VAST

nvironment and Water Analysis,

17 Mr. Hgo Van Sinh Deputy of the Chief of Provincial Secretary, eople’s CGia Lai P ommittee

18 Mr. Bui Van Tam Director, Gia Lai P-CERWASS

19 Mr. NGUYEN S Vi e Director, Gia Lai DARD on c

20 Mr. Phan Van Lan Director, Gia Lai ID

21 Mr. NGUYEN QUANG HIEN Director, Gia Lai PC

22 Mr. Vo Thanh Director, Dak Lak ID

23 Mr. Nguyen Bo Director, Kom Tum ID

24 Mr. Bien Van Minh Director, Dak Nong ID

25 Mr. Nguyen Tri Dien Director, Lam Dong ID

26 Mr. Nguyen Duc Tue Director, Department of Survey and Mapping

27 Mr. Vu Van Nghia Department of Survey and Mapping

28 Mr Nguyen Duc Cuong Head of Department, Rural Energy Development, IE

29 Mr Nguyen Ba Cuong Manager of Planning Department, IE

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Appendix 2: Insolation Data for V

ietnam

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Appendix 3: Gia Lai Grid Ex

tension Plan

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Program 135 is a government program in Vietnam to assist the socio-economic

development of communes located in mountainous, border or remote areas. The program

is being conducted in two phases, the first phase was initiated in 1998 and phase two

commenced in 2006.

Although Program 135 is not a National Targeted Program (NTP) it is usually considered

as such. Unlike other programs that may focus on only poverty stricken areas, Program

135 specifically targets poor residents of remote mountainous areas/border regions and

areas inhabited by ethnic minorities. Phase 2 implementation is taking place 2006-2010

and a short overview of the program is provided in the following section.

Overview of Program 135 (Phase 2)

Overall

Objective

-Achieve sustainable improvement of production skills to further development the

region, reduce poverty and mitigate the inequality gap.

-In addition, it is meant to ensure the social order and political security in these

regions.

-Project goal is that by 2010, eliminate hunger stricken households in the target

areas and the number of “poor households” should be below 30% (based on the

2005 poverty line)

Appendix 4: Summary of Program 135

Program

Task

-Accelerate regional development and also shift the economic focus areas to benefit

rural areas.

-Develop infrastructure and strengthen social organization of the community that

will ultimately improve the quality of life

Scope -Phase 2 is expected to cover approximately 1,644 poor and mountainous communes

in 45 provinces, which are home to the majority of Vietnam’s ethnic minorities. This

involves all mountainous and highland provinces, any area inhabited by ethnic

minorities in the southern provinces.

Funding -The program budget is approximately $800 million and financing activities are

grouped according to four broad components: basic infrastructure; improved and

market-oriented agriculture production; improved socio-cultural livelihoods through

better access to social services; and capacity building for officials at all levels to

better implement the program.

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Appendix 5: Formula for PV Water Pumping System Configuration

The output energy through 1 kW of photovoltaic system is calculated using the following formula;

P0 = R x K

P0 : Output energy per day per 1kW (kWh/day/kw)

R : Daily radiation (kWh/m2/day) 3.24 kWh/m2/day (in Pleiku)

K : Coefficient of power loss 0.617

K = K1 x K2 x K3 x K4 x K5 x K6 x K7 x K8 x K9

K1 : Temperature coefficient 0.844

K2 : Coefficient of dirt on the surface of PV module 0.980

K3 : Efficiency of storage battery 0.850

K4 : Coefficient of DC loss 0.980

K5 : Efficiency of power conditioner 0.900

K6 : Coefficient of deviation from Pmax point 0.950

K7 : Coefficient of variation of irradiation 1.000

K8 : Coefficient factor of altitude 1.000

K9 : Correction factor of surroundings 1.000

The output energy per day per 1kW photovoltaic system is 2.00 kWh/day/kW.

Configuration of proposal system

Calculation of Load DemandDriving power of a pump (P)P = 0.163γQH / ηp

where,Q : Amount of discharge [m3/min]H : Total head [m]γ : Density of liquid [kgf/l]ηp : Pump efficiency

Inverte

~ Moter PumpPV

PV

J-box Chargecontroller

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Electrification System Configuration

Q = P / P0

Q : Ca

P : Nec

P0 : Ou W (kWh/day/kW)

Calculatio

The bat ary capacity is calculated with the following formula.

Appendix 6: Formula for PV Household

pacity of photovoltaic (kW)

essary electric power (kWh/day)

tput energy per day per 1k

n of capacity of battery

A battery is used to supply electric power to households in the evening and during periods

of no sunshine. Fig. 6 demonstrates a rough sketch of the electric supply system using

battery.

tery’s necess

PV

PV

J-box Battery

Battery

Calculation of Required Battery Capacity

where,Ld : Daily load demand [k

C=Ld×Df×1000

L×Vb×N×DOD×K5

Wh/day]

AC side

Df : Non-sunshine day [day]L : The rate of maintenanceVb : Nominal voltage of battery [V] N : Quantity of batteriesDOD : Depth of DischargeK5 : Loss coefficient of

Charger

Battery

Battery

Battery

Battery

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ベトナム国 中部高原地域無電化村での

太陽光発電を使った地方給水/電化可能性調査

和 文 要 約

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要 約

1. 調査の背景

年率約 8%の経済成長を続けているベトナム社会主義共和国(以下ベトナム)では、国民

の多くが農村部に居住しており、近年、都市部との格差が社会問題化し、農村地域の貧

困削減策が重点課題となっている。このため、ベトナムは自国補助金や各国ドナーから

の援助資金を最大限活用し、社会インフラとなる給水と電力供給による生活環境の改善

に力を入れている。しかし、少数民族が多い「北部山岳地域」や「中部高原地域」では、

依然として電化率および給水普及率が全国水準を下回っており、早急な社会経済インフ

ラ整備の最優先地域として焦点が当てられている。

今回対象とした「中部高原地域」の 5省(コンツム、ジアライ、ダクラック、ダクノン、

ラムドン)には、配電線延長による電力供給は経済的に成り立たず、電力の恩恵にあず

かれない小規模村落が未だ多数存在している。一方、同地域は月の平均日照時間が 200

時間以上と豊富な太陽エネルギーを有する地域でもある。本調査では、現地政府機関と

協力し、中部高原地域無電化村落での給水および電化の現状を調査したうえで、同地域

へ最適な太陽光発電システムの導入と電化による生活環境改善等に資する案件形成の

可能性を探ることとした。

2. 地方電化と再生可能エネルギーの現状と展望

(1) 地方電化の現状と展望

工業省により 2004年 10月に公布された「Vietnam Power Sector Development Strategy」(政

令)には、

島嶼部や山間部など地形的にグリッド電化が困難な地域への再生可能エネ

ルギーを利用した電力供給

2010年までの地方世帯 90%および 2020年までの 100%電化の達成

といった 2004~2010年における電力セクター戦略並びに 2020年までの方向性が示され

ている。また、続いて施行された電力法には、「山間部等への電力供給のための再生可能

エネルギーを利用した電力設備開発の促進や配電系統への国家予算の活用」等が規定さ

れている。これを達成するため、ベトナム政府は年間約 200-300million USDを投資し、

・ 地方電化の手法は、送配電網からと独立型電源からの電力供給の双方で推進する

こととし、最小コストとなるような最適電化手法を選定する。

・ 地方電化の基準は、電化による農業生産性向上が期待できる地域および経済の近

代化/構造改革を推し進めている戦略的地域を優先する。

という方針のもと、配電線延長による地方電化を進めてきた結果、2006年上期末で、世

帯レベル 91.5%と目標値を達成することができた。

i

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Year 2000 2001 2002 2003 2004 2006District 96.6% 97.6% 97.9% 97.9% 97.9% 98.0%Commune 81.9% 84.9% 90.6% 92.7% 94.6% 97.8%Household 73.5% 77.5% 81.4% 83.5% 87.5% 91.5%

しかし一方で、残された遠隔地域の小規模村落電化は配電線延長では経済性が成り立た

ないため、「Off-Grid 地方電化計画」を策定し、太陽光や小水力といった再生可能エネ

ルギーを利用した電化を強力に推進している。この財源として、工業省では 2005 年か

ら 5年間で 20 million USDを用意している。

(2) 再生可能エネルギー利用の現状と展望

工業省では、管轄する地域ごとに太陽光発電、風力発電、小水力発電など再生可能エネ

ルギー資源の開発計画を策定している。これら計画をもとに、工業省の下部組織である

エネルギー研究所(IE)が、ベトナム全体の再生可能エネルギーマスタープランを作成

中であり、2008年に完成する予定である。

現在ベトナム政府が推進している再生可能エネルギー導入政策は、EVN の要請を受け

て世界銀行が策定した「Renewable Energy Action Plan (REAP)」が基本となっている。こ

のアクションプランには、①政策や基準策定、②資金支援、③技術援助、④トレーニン

グ、⑤情報提供と啓蒙活動について、ベトナム政府のとるべき方向が記されている。

ベトナムにおける主な再生可能エネルギー資源には、太陽エネルギーをはじめ風力、小

水力エネルギーがあり、さらにこれ以外に、農業や林業から得られるバイオマスエネル

ギー利用に大きな期待が寄せられている。このうち、太陽エネルギーは南部や中部高原

地域の日射条件が良く(4.0 ~ 5.2 kWh/m2/day:わが国の 1.5倍程度)、太陽光発電シス

テムの設置に適した地域とされている。すでに、これら地域では太陽光発電による電化

システムが導入運営されている。また乾季の井戸水位低下に対しては、太陽光発電によ

る深井戸揚水も大いに期待されている。一方、風力発電は平地には適した場所が少なく、

沿海地域や島嶼部で

の開発が考えられる。

エネルギー研究所で

は、2020 年に次のよ

うに可能性を掲げ、

その開発を推進して

いる。

MW GWh MW GWh MW GWhSolar 0.8 4-6

Mini Hydro 135 284 500-780Wind 0.8 1.6 200-400Biomass 150 310-410Geothermal - - 100Total 287 ~290 1,114-1,596

2004 Potential by 2020 Potential by 2030

3,600 -5,000

3,300 9,500

ii

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3. 地方給水の現状と展望

ベトナム政府の給水政策は都市給水と地方給水に区別されており、地方給水は農業地方

開発省 MARD が管轄している。同省によれば、電化済みコミューン中心地の地方給水

は MARD が管理運営しているが、無電化村落の給水までは行き届かない状態である。

現在、「National Rural Water Supply and Sanitation Strategy Program: NRWSS」(農村部の給

水衛生改善戦略)により長期的な目標を定め、2010年までに全農村地域の 85%に安全な

生活用水を 60㍑/人・日供給するとしているが、無電化村落は優先順位が低く、給水計

画から取り残されている。特に中部高原地域では水道管による安全な水へのアクセス率

は低く、多くの村民は個人所有の井戸、湧水の引水、雨水に頼っている状態である。

4. 対象村落の選定と現地調査結果

調査団は、中部高原地域5省の工業局および人民委員会から、2010年以降も配電線延長

による電化対象とならない村落リストを入手した。近年の政府による地方電化の加速推

進により、残された無電化村落は、ほとんどが車両でのアクセスも困難な遠隔地域で、

かつ小規模な村落であった。これら村民の多くは米やキャッサバの農耕により生計を建

てているが現金収入は僅かであり、一部が灯油ランプとピコ水力により照明やラジオを

使用しているのみである。井戸の多くは個人所有であり、深さは 20m程度、乾季には水

位が低下し、生活用水を得るため数 km離れた湧き水まで往復せざるを得ない状態であ

る。

調査団は、入手した将来電化が困難な 94 の無電化村落(約 11 千世帯)のリストから、

比較的人口が多く、配電線からの距離が遠い 37ヶ村落(約 5,700世帯)を抽出し、これ

らに対して、太陽光発電による給水および電化計画を検討することとした。一村当たり

の人口、家屋の分布および需要等村民からの聞取り情報をもとに、電化方法は一カ所に

太陽電池パネルを設

置し、井戸水揚水と

バッテリー・チャー

ジング・ステーショ

ン(BCS)を想定す

ることとした。

ProvinceNumber of village Number of house Number of village Number of house

Kon Tum 18 703 6 352

Gia Lai 6 536 6 536

Dak Lac 30 3,533 8 1,264

Dak Nong 7 1,550 7 1,550

Lam Dong 33 5,044 10 2,035

Total 94 11,366 37 5,737

Villages no power until 2010.(ID recommendation)

Target Villages(the team selected)

5. 想定する給水および電化システムの提案

現地調査により抽出した 37村落、5,737世帯について、太陽光発電による給水および電

化の最適なシステムを検討した。まず前提条件として、給水設備は 50㍑/人・日、揚程

25m、ポンプ運転時間 5 時間とした。また、電化設備は世帯あたり1日4時間、100W

iii

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を供給するものとした。設備の基本仕様は次のとおり。

(1) 給水システム

対象とした 37村落、26,000人へ「50㍑/人・日」の水を供給するとして、1,340㌧/日相

当の揚水量が必要となる。このための太陽電池容量はトータルで 163kW。これにもとづ

き、太陽光発電システムおよびポンプ、タンク等設備コストは総額約 4.2億円と試算さ

れた。

Photovoltaic Array

Junction box

Electricity

WaterDeep well

SubmersiblepumpPumping up water

Inverter(VVVF)

High tank

Drinking water

Irrigation water

Water tap

Photovoltaic Array

Junction box

Electricity

WaterDeep well

Submersiblepump

Deep well

SubmersiblepumpPumping up water

Inverter(VVVF)

High tank

Drinking water

Irrigation water

Water tap

37people 26,805family 5,737

Necessary Water Amount m3/d 1,340Pump Capacity kW 93Photovoltaic Capacity kW 163

Million Yen 423

Number of VillageNumber of populationNumber of household

Total System Cost

TotalUnit

Photovoltaic ArrayJunction box

Battery

Batterycharger

Battery Charging Station

Rural ElectrificationPhotovoltaic ArrayJunction box

Battery

Batterycharger

Battery Charging Station

Rural Electrification

37people 26,805family 5,737

Necessary Electric Power kWh/day 2,295Photovoltaic Capacity kW 1,149Battery Capacity kWh 5,737

Million Yen 990

TotalUnit

Number of VillageNumber of populationNumber of household

Total System Cost

(2) 村落世帯電化システム(BCS)

対象とした 5,700世帯へ、一世帯当たり 100Wの電力を供給する場合、必要となる太陽

電池容量はトータルで 1.1MW。バッテリーは 5.7MWh。太陽光発電システムおよびバ

ッテリー等の設備費用は総額約 9.9億円と試算された。

(3) 運営維持管理

遠隔地域の無電化村落の電化では、地域によって配電線延長より再生可能エネルギーに

よる独立配電系統給電やバッテリー充電サービスが、経済性で優位になる。しかしなが

ら、遠隔地域の村民は現金収入が極めて乏しく、太陽光発電設備の初期投資額を回収す

ることはきわめて困難であり、各国ドナーやベトナム中央政府が負担せざるを得ない。

これらの状況に鑑み、今回の調査では、持続可能なシステム構築を目指すため、維持運

営費のみを裨益者負担とすることで検討を進めることとした。

太陽光発電システムにおいて、太陽電池はメンテナンスフリーであり、主な維持管理費

はバッテリーの取替費用である。これを 10 年周期で交換すると仮定し、その費用を電

iv

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気料金もしくはバッテリー取替積立金として住民から徴収するとすれば、190 円/月/世

帯相当となる。この程度の負担は、現金収入源となる家畜や農作物を所有する住民には

支払い可能であるが、現金収入の無い村民は支払えないと考えられる。従って、設備の

持続性を確保するためには、維持運営費についてもベトナム政府からの何らかの補助金

投入が必要であろう。現在でも、中央政府から農村部村民へ補助金が支給されている 135

プログラム等を活用することにより、持続性の確保は可能と期待される。

6. 今後の展開

ベトナム国中部高原地域は、開発の遅れに伴う他地域との経済格差の是正が最優先課題

であり、各国ドナーからも、ラオス、カンボジアと併せて「開発の三角地帯」として注

目されている。このためベトナム政府も貧困層への補助金や小規模インフラ整備を加速

させており、配電線延長による地方電化は当初計画を超えるスピードで進んでいる。

調査団は、2010 年以降も配電線電化の対象となっていない 37 の村落 5,737 世帯のなか

から、中部高原5省の工業局と人民委員会およびエネルギー研究所とも協議のうえ、遠

隔地域の特徴を有する代表的な村落を選定し、太陽光発電による電化と給水の可能性を

探るための現地踏査を実施した。本調査で全ての対象サイトの踏査はできなかったもの

の、この代表村落踏査でえられた情報をもとに、最適なシステム検討を行った結果、37

全ての村落へ太陽光発電による電化および給水を行うために必要な設備は、太陽光発電

容量:1.3MW、総費用は約 14 億円となった。ただ、持続性の確保という視点から見た

場合、初期投資費や維持運営費等に対するベトナム政府の関与等について、今後さらに

検討を要する事項は残されていると考える。

一方、この調査を通じて、中部高原地域をはじめとする遠隔地域村落の電化や給水のみ

ならず、島嶼部等でも太陽光発電による揚水、電化や脱塩のニーズが強いことも判明し

た。

現在、ベトナム政府は 2008 年完成を目指し再生可能エネルギーマスタープランを策定

中である。ここで示されるであろう政策と本調査の成果を併せ、太陽光発電をはじめと

する再生可能エネルギーの有効活用による本格 FS 調査が実施できれば、ベトナム国の

遠隔地域の民生向上にもつながっていくものと期待される。

v


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