Incentives for cheaper electricity from solar energy has significantly sparked activities in the Vietnam solar sector. Local investors and international solar suppliers are teaming up while international donors and local/international banks are considering to provide financial packages for solar energy.
(Photo: Solar BK Vietnam)
The Vietnamese Government has set demanding targets for solar power development, which are 10 000MW and 100 000 MW by 2020 and 2030 respectively. Thanks to the issuance of a new Feed in Tariff (FIT) for solar energy on 11 April 2017, making electricity from solar energy cheaper for the Vietnamese, the targets will probably be materialized soon.
The new FIT will be in effect from June 2017 to 31 June 2019, which only applies for on-grid projects with a solar cell capacity factor over 16% (or of solar module being over 15%?). This FIT will be adjusted according to the fluctuation of the VND/USD exchange rate as specified in the standard Power Purchase Agreement (PPA), which is expected to be issued by the Ministry of Industry and Trade by June 2017. It is said that any solar PPA to be signed from June 2017 until 31 June 2019 will have a term of 20 years and can be extended based on regulations in effect at that time.
In need of co-investors and suppliers
Vietnam investors are in hurry to find co-investors, suppliers and financial providers to develop solar power projects before the deadline of 31 June 2019. Electricity of Vietnam (EVN) is among the most active local investors. EVN is now looking for good suppliers who can provide a long- term guarantee of PV panel, as well as technology providers who can provide combination solutions for both solar power and agriculture in the same piece of lands.
Recently, a number of Norwegian players in the solar sector have paid special attention to the Vietnamese solar energy market. It is expected that Norwegians will contribute to light up Vietnam in the time to come.
For more information, contact:
Hai Anh Tran
Senior Market Adviser
Innovation Norway Hanoi/Royal Norwegian Embassy
8th Floor, Hanoi Towers, 49 Hai Ba Trung Street, Hanoi, Vietnam
M: +84 903463318
Tel: +84 4 3974 2932