return icon

Experts say auctions could help reduce solar power prices by 30-40%

When the purchase prices of solar power are set through auction, prices are expected to fall by 30%-40% from the current levels, said experts at a seminar yesterday.



Technicians inspect solar panels at the Da Mi hydroelectric power station in the south-central province of Binh Thuan. Solar power prices are expected to fall 30%-40% when they are set via auction – PHOTO: EVN



At the seminar, entitled “Renewable energy in Vietnam-from policies to reality,” a representative of the International Finance Corporation said many countries have set power prices through auctions.

In Vietnam, two auction plans have been proposed: auctioning land lots for developing solar power farms, or auctioning the capacity of transformer stations.

According to experts, less risky electricity purchase contracts are needed to attract international investors to attend auctions.

In reality, electricity purchase contracts often include an article that Vietnam Electricity Group (EVN) can cancel such contracts while offering low compensation or cut power supplies due to technical reasons. Speakers noted that EVN should bear these risks, not investors.

A representative of the Asian Development Bank said the bank had cooperated with EVN and the Vietnamese Ministry of Industry and Trade to pilot an auction late next year to set the price of solar power generated from a 200-megawatt project, which requires an investment of over US$200 million.

As of June, Vietnam had had 89 wind and solar power plants, with a total capacity of more than 4,500 megawatts, accounting for 8.3% of the country’s total output. The capacity outpaced the planned figure of 850 megawatts by 2020, as stated in the adjusted National Power Development Planning VII.

It was noted during the seminar that the development of transformer stations and power transmission lines have not matched the recent boom in renewable energy projects, forcing many plants to reduce their capacities by up to 60%.

To meet the increasing demand for electricity, the country has plans in the future to develop the national grid. Accordingly, VND214 trillion will be poured into the 2016-2020 period, and VND610 trillion in the next decade.

EVN, however, will find it hard to raise the capital needed for such projects. Meanwhile, power transmission is still a State monopoly and specific conditions to make use of private resources have yet to be worked out.

According to Tran Viet Ngai, chairman of the Vietnam Energy Association, the risk of electricity shortages has been of concern for many years. Despite the development of coal-fired thermal power projects, these projects have lagged behind schedule and failed to generate the expected volume to the national grid.

Additionally, requirements on environmental protection have put pressure on the investors of coal-fired thermal power projects.

Power plants using coal and petroleum gas have met a huge demand for electricity, but supplies of these fuels are being exhausted, cause climate change and harm human health. Therefore, the study and use of renewable energy resources, such as wind, solar, hydro and biomass power, are an indispensable worldwide trend. SGT

Thuy Dung

VN takes lead in Southeast Asia’s solar photovoltaic market

VN takes lead in Southeast Asia’s solar photovoltaic market

Vietnam has taken the lead in Southeast Asia’s solar photovoltaic market with the largest installed capacity in the region, said Rishab Shrestha, a specialist working for Wood Mackenzie.

Solar power prices to be set via auction

Solar power prices to be set via auction

The purchase prices of solar power will be set through auction, instead of using a common price for the entire country, or different prices for different thermal radiation zones, according to officials.  



Strong economic growth creates platform for M&A market


Hanoi Tourism Ao Dai Festival 2022 opens

Use of e-cigarettes by youth rockets with easy availability at shops

Many students and young people have been hospitalized in a deep coma after using e-cigarettes, which are easy to buy.

How will telecom carriers fare in a highly competitive market?

The traditional telecom market is getting saturated and facing upheavals, including a drop in revenue from traditional calls and SMS, a tighter management policy and changes in technology.

Number of international visitors to Vietnam sets 'record' after pandemic

Vietnam welcomed 2.95 million foreign visitors in January-November 2022, 21.1 times up year on year, but still down 81.9% compared with pre-pandemic levels in 2019.

Su-30MK2, Mi helicopters rehearse in Hanoi

On December 2, Su-30MK2 fighters performed in a rehearsal to prepare for the upcoming Vietnam International Defense Exhibition 2022.

Vietnam sends condolences over passing of former Chinese leader Jiang Zemin

Vietnamese leaders on December 2 cabled messages of condolences to Chinese leaders over the death of former General Secretary of the Communist Party of China (CPC) Central Committee and former President of China Jiang Zemin.

Ministry proposes canceling funding plans over disbursement delays

Disbursements of public funds sourced from foreign loans in the year through November had moved at a snail’s pace, reaching only slightly more than 25% of the full-year plan.

Hanoi to pilot bike rental service in six urban districts

Hanoi has approved a year-long pilot bike rental service programme in Hoan Kiem, Tay Ho, Dong Da, Ba Dinh, Hai Ba Trung, and Thanh Xuan districts.

Weightlifters hope for Olympic qualification from world championship

It was scheduled to be held in Chongqing, China, but this changed in March due to COVID-19 measures in China. The new location was announced in April.

Striker Nguyen Van Quyet named best player of 2022 V.League 1

Striker Nguyen Van Quyet received a statue for the most valuable player of the 2022 V.League 1 season at a V.League Awards ceremony organised on December 1 in Hanoi.

Meteor shower to light up Vietnamese skies on December 13

Local sky gazers will have a rare opportunity to witness the peak of the Geminids meteor shower, with the astronomical event set to occur between midnight on December 13 and the morning of December 14.

Da Nang wins Best Vietnam Smart City Award for third time

The central city of Da Nang has been granted the Best Vietnam Smart City Award 2022, the third time so far.

Newly-established, re-operating enterprises up over 33% in 11 months

Vietnam saw nearly 194,700 newly established and re-operating enterprises in the first 11 months of 2022, up 33.2% over the same period in 2021, a 1.3 times higher than the average rate in January – November period from 2017 - 2021.

Politburo members discuss review of resolution on HCM City development

Party General Secretary Nguyen Phu Trong on December 2 chaired a Politburo meeting on a project to review the 10-year implementation of a resolution on the orientations and tasks for the development of HCMC until 2020 and 2030, with a vision to 2050.