The feed-in tariff (FiT) for biomass power projects will range from VND1,634 to VND1,968 per kWh, exclusive of value-added tax, setting the stage for more investment in biomass electricity.

Since 2015, Vietnam has shifted from an energy exporting country to an importing country. It has to import 3 percent of the primary energy needed, but the figure will rise to 24 percent by 2030.

Sugar mill owners remain cautious about plans to generate electricity from bagasse, while experts say the low price of electricity produced from bagasse makes investors hesitate to invest in the field.

VietNamNet Bridge - The amount of bagasse, a sugarcane byproduct, that Vietnamese throw away every year could be used to generate billions of kwh of electricity.

The power provided to the entire lighting system of an industrial zone (IZ) is derived from a waste-to-energy plant, while processed and packaged straw residue is sold for VND60,000 per kilo. 

About 76,000 tons of waste is discharged every day in Vietnam, 80 percent of which is carried to landfills. It is estimated that the  7,000 tons of solid domestic waste dumped daily in HCMC could produce 1 billion kwh of electricity a year.