Vietnam

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Biogas

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Technologies biogas digesters
EnDev 1 September 2005 -
September 2009
EnDev 2 July 2013 -
June 2017
Partners Ministry of Agriculture and Rural Development (MARD)
Implementers GIZ, SNV
Outcomes (12/2016) Access to electricity:
  • 0 people

Access to modern cooking energy:

  • 156,000 people

Access to modern energy services

  • 0 social institutions
  • 0 SMEs

Figures reflect the non-adjusted sum of EnDev 1 and EnDev 2 outcomes. Read more in EnDev's Monitoring

RBF CALL FOR PARTICIPATION

SNV in cooperation with EnDev is launching 'The Stove Auction', a new innovative trading platform for clean cookstoves in the Mekong Region, enabled by a results-based financing scheme. The aim of the Stove Auction is to facilitate the link between suppliers of high performance cookstoves and local distributors and retailers. How does it work? The Stove Auction pre-qualifies a number of stove models according to certain selection criteria. It then reaches an agreement with suppliers to auction the stoves to local distributors. Local distributors and retailers benefit from financial incentives. The call for participation for interested cookstove suppliers as well as retailers is now open; find more information about the application process here.



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Energy Situation

Vietnam is one of five countries most affected by climate change and it is believed this vulnerability may eliminate the achievements made in poverty reduction and development. The expected increased frequency of floods, typhoons and droughts will push thousands of coastal and farming communities, with weather dependent livelihoods, back into poverty. Vietnam has a rapidly growing pig sector, with over eight million households deriving an income from it.

While the current National Biogas Programme has reached 140,000 pig farming households since 2003, the estimated market for domestic biogas digesters, however, is over two million smallholder farmers. The households that would benefit from the project are relatively low-income rural farmers who have not benefited equally from the economic growth that has taken place in Vietnam over the past few years.

For more information see energypedia.

Approach

EnDev implements a result-based finance (RBF) mechanism through SNV and the National Biogas Programme in the domestic biogas sector. The RBF intervention is aimed at facilitating sector transformation, away from subsidies, and towards a more market-driven domestic biogas sector in Vietnam.

Through this, the project aims to further reduce dependency on external financing and government support through empowerment of the private sector. The project consists of several components aiming at acceleration of market growth by increasing Small-scale Biogas Plants (SBP) deliveries by biogas mason enterprises (BMEs), both those currently supported by the programme as well as non-donor supported digesters in the commercial market. The RBF mechanism will encourage risk-taking, and business development investment of the BMEs while enhancing their capacities and increasing their responsibilities at the same time. Based on the results delivered EnDev’s funds will cover the investments that were necessary for growth (as agreed upon beforehand). Through this system the BMEs experience controlled risk-taking.

Activities include:

  • Stimulate risk-taking by enterprises: the previous investment subsidy for households is replaced by a financial incentive (or fee for service) that will be paid to biogas enterprises after delivering results: a functioning bio-digester that meets predetermined quality standards.
  • Stimulate market growth by providing performance-related bonuses to private enterprises, meaning the more SBPs they build the higher their financial return.
  • Collaborate with Financial Institutions to improve access to microcredit for potential biogas users.
  • Build capacity of the private sector to secure their readiness for risk-taking so that these actors can take over existing activities on a commercial basis in the future.
  • Sustainability of the sector: further commercialise key support of the programme to the market – like quality control and training – and introduce certification.