9 January, 2021

Is the solar power market in Vietnam attractive?

Investors want to have a longer and more stable solar power price policy in Vietnam to encourage more businesses to participate in this field. The development of solar energy is an inevitable trend. price advantages and efficiency in ensuring the environment. However, at present, most solar power projects are only small-scale, investors do not pay attention to solar power projects because policies related to these energy source development are not stable. …

Giàu tiềm năng

According to the Vietnam Clean Energy Association, Vietnam is one of the countries with the most sunshine in the world solar radiation chart. In the Central Highlands and South Central provinces, the number of sunny hours ranges from 2,000 to 2,600 hours / year. Average solar radiation is 150 kcal / m2, accounting for about 2,000 – 5,000 hours / year.
However, despite the great potential, the exploitation of this energy source in Vietnam is not significant. Most solar power projects are small-scale.
For example, the first grid-connected solar power project is An Hoi photovoltaic plant (Con Dao, Ba Ria – Vung Tau), which has been implemented since 2014 and completed the construction and installation. connected to the power grid of Con Dao Electricity in early December 2014, but the capacity was only 36 kWp, electricity was more than 50 MWh.
There is only one grid-connected solar power project in Quang Ngai, which is a relatively large-scale project but is also in the completion stage.
The wind and solar power development targets in 2030 under Power Master Plan VII (adjusted) have much greater ambitions than in 2020, with a capacity of 6,000 MW of wind power and 12,000 MW of solar power.

This means that wind power increased by nearly 8 times and solar power increased by 15 times. This is the goal, but also a huge challenge for the state management agencies, EVN and investors.
At the seminar, international experts assessed that the price of solar power in Vietnam was given much higher incentives than other countries, but not many investors were interested in investing in high capacity projects. Only Vietnam Electricity has focused on investing in big projects.
“Missing this opportunity is really a pity for domestic investors because the potential for developing solar power in Vietnam is huge” – Mr. Rainer Brohm, Consulting Company of Renewable Energy create RB (Germany) comment.
Talking about concerns about the potential environmental impact of solar panels if they are built in thickening quantities in Vietnam, Mr. Rainer Brohm said that solar panels are not at all. poses the same hazards to the environment as coal-fired power sources.
Further analysis of this claim, he said, was absolutely no impact from photovoltaic cells. “That means no emissions affect the environment when we produce photovoltaic cells” – Mr. Rainer Brohm said.
According to this position, photovoltaic panels can be used from 1 to 4 years, then can be recycled, European countries have produced and recycled energy panels in a very efficient way.

Need a price stabilization mechanism

Also according to the German expert, solar panels do not produce sound, do not generate emissions, only slightly heat high, so we only need to consider installing solar panels in Far from the airport is more reasonable.
In addition to building policies to develop renewable electricity, experts say that there should be price mechanisms to attract more investors.

Mr. Do Duc Tuong, Clean Energy Advisor of USAID Vietnam Energy Program said that the investment in solar power in Vietnam is still modest.

Investors want a longer and more stable solar PV price policy to encourage more businesses to participate in this field.
At the seminar, experts said that the solar power market in Vietnam is very attractive. The price of solar power equipment is getting cheaper (5 years ago, the price of solar panels from 3-4 USD / Wp is now only about 0.5 USD / Wp).
From this fact, experts say that, in addition to the human resource response, the state should soon have a more complete set of technical standards related to solar power (for example, the standard of the solar panel, the invester of the power transfer , scaffolding …) to help consumers buy the right quality products.
In particular, it is necessary to soon promulgate a reasonable solar power price mechanism and the national grid integration mechanism; issue a set of standards for used equipment and perform quality testing to limit the circulation of poor quality products, correct the people on solar energy efficiency.
According to Ms. Hoang Thu Huong, deputy director of the Central Economic Commission’s Technology Department, the electrical infrastructure system in Vietnam basically meets the requirements of economic development, however, in the coming time, it is necessary to invest in development. further to meet the set target, especially in the renewable energy sector. According to Ms. Huong, the room for solar power generation in Vietnam is huge.
The Government is also introducing many pricing mechanisms for solar and wind power to encourage the development of the renewable energy sector. This is an opportunity for Vietnam to develop this energy source.

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