Impacts of wind power generation and CO 2 emission constraints on the future choice of fuels and technologies in the power sector of Vietnam

Abstract

This paper examines the impacts of wind power generation on the future choice of fuels and technologies in the power sector of Vietnam. The study covers a time frame of 20 yr from 2005 to 2025 and the MARKAL model has been chosen to be adaptable to this specific task. The results of the study show that on a simple cost base, power generated from wind is not yet competitive with that of fossil fuel-based power plants. In order to make wind energy competitive, either carbon tax or an emission reduction target on the system must be imposed. The presence of wind power would affect not only the change in generation mix from coal-based power plants to wind turbines but also an increase in the capacity of other technologies which emit less carbon dioxide. It thus helps reduce fossil fuel requirement and consequently enhances energy security for the country. The study also shows that wind turbine in Vietnam could be a potential CDM project for annex I party countries.