Vietnam is going through a ‘solar energy boom’
Source：vietnamnewsgazette
From：Taiwan Trade Center, Representative Office In Ho Chi Minh City
Update Time：2021/12/26
The VNA correspondent in Germany quoted the above article as saying that the energy transition is taking place strongly in Vietnam and according to a report by the International Renewable Energy Agency, last year there were 11.6 GW of electricity. from the solar energy system, it is connected to the national electricity grid. If in 2018, the installed capacity in Vietnam only reached 105 MW, then after only one year, this number has increased to 5 GW and by 2020, the installed capacity has increased to 16.5 GW, a the increase is significant if compared with the same period with many other countries.
The strong development of solar power in Vietnam – a country with rapid economic growth and the third largest exporter of textiles and clothing in the world, is completely understandable because With high solar radiation, the output from this energy system in Vietnam is much higher than in other parts of the world.
With the forecast that the demand for energy in Vietnam will continue to increase strongly in the coming years, many major energy companies have taken the opportunity and invested heavily in the solar energy system. Last summer, a 45-MG facility was connected to the power grid in Ninh Thuan province, generating about 76 MWh / year. This project is implemented by Sharp Energy Solutions Group (SESJ) and the company has also installed 5 additional facilities with a total capacity of 245 MW in Vietnam.
According to the article, the success story of solar energy in Vietnam can be explained by a rather special market mechanism, the program of purchasing electricity with fixed price. Under this program, renewable energy producers receive fixed prices and offset their costs, thus significantly reducing investment risks.
Last year, the Government of Vietnam also extended this mechanism, but at a lower tariff. In the future, Vietnam may implement a bidding mechanism in which all renewable energy projects that are not under a fixed price electricity purchase program can participate. These can provide better control over the energy transition, especially when considering partitioning on expansion.
The energy development plan, however, specifies that renewable energy expansion will be accelerated by 2045, with renewables capacity increasing to 127 GW. Photovoltaic power is thought to have the largest share, at 43% (55 GW), followed by onshore wind energy 31% (40 GW) and offshore wind energy 17% (21 GW). Currently, to ensure the power source, the Government of Vietnam must continue to maintain coal power in the coming years, currently accounting for about 35% of the total electricity output.
The fact that investors boost capital inflows into renewable energy has really created a solar boom in Vietnam over the past two years. Vietnam needs to continue stabilizing this trend and could soon play a leading role in renewable energy in Southeast Asia.
Source: https://www.vietnamnewsgazette.com/vietnam-is-going-through-a-solar-energy-boom/