Solar energy in Vietnam is showing highly after periods of shuttling from an extreme to another, with the state often looking as if it was reverting to coal and on other occasions as if it was to make investments on renewable energy.
Vietnam had exceeded Malaysia and Thailand by the close of last year by hitting Southeast Asia’s most significant installed solar electricity capacity of 44 percent, according to statistics by the energy consulting service seller firm WoodMackenzie.
The statistics show Vietnam’s seriousness concerning solar energy, a subject that has brought discussion for years. The advocates of solar power were motivated to see the state offer high tariff feed (FIT), a German pioneered fee to let solar panel users sell electricity to the grid. The FIT contributed to pushing Vietnam to a solar power capacity of 5.5 gigawatts last year.
However, Vietnam plans to build more coal-fired power plants, casting doubt on the cleaner energy target. Some construction, for now, seems to be shelved by the public opposition to coal.
Rishab Shrestha, Wood Mackenzie’s Solar Analyst, says: “Fee In Tariffs have shown to be a powerful policy tool for inducing fast growth of renewable energy production, and Vietnam building is yet another illustration of such.” He continued that “in many areas of Vietnam, the plant economy remains enticing” Like many other countries, Vietnam is yet to deal with some of the possible inconveniences of solar energy, such as how photovoltaic panels are disposed of responsibly. The groups contain harmful compounds such as lead and can not easily be recycled.
However, solar, along with other renewable energy, like those of wind, is one of Vietnam’s cleanest alternatives as of now. It is associated with a rising global pattern, from California, which this year passed a law requiring all new homes fitted with solar panels, to India where trains are shifting to solar energy.
Next will be Vietnam’s choice of how much to pay for solar energy. The rate for the kilowatt-hour used to be more than 9 U.S. cents, but in June, the offer expired. According to Duane Morris LLC, an attorney firm that advises its customers on solar energy, investors wait on a joint decision determined by three ministries, the Government Office and the State Power Utility. As part of this process, the state company, Vietnam Electricity, sent a letter explaining how the tariff adds up and who would be liable for this to the Ministry of Trade.
Oliver Massmann, General Manager at Duane Morris Vietnam LLC, said in a blog post,’ The letter of Submission is not so clear.’
Nevertheless, he predicts the government’s tariff for ground-built solar energy projects will settle at over 7 U.S. cents per kilowatt-hour and a somewhat higher solar-floating energy plant limit. Vietnam is driving investors to provide more inexpensive power as the rapidly growing economy raises consumer demand.