Vietnam sets record in number of wind, solar power projects

Vietnam has been witnessing a solar and wind power boom for three years, becoming one of the hottest markets in the world.

Vietnam sets record in number of wind, solar power projects

The managers of a large corporation, for example, are busy these days with meetings discussing solutions to speed up the implementation of the VND2 trillion wind power project in Quang Tri province.

They are doing so in order to enjoy the FIT (feed-in-tariff) rate. The preferential prices will be applied to part or entire power plants to be put into commercial operation prior to November 1, 2021 and will be valid for 20 years.

Under the Prime Minister’s Decision No 39 dated September 10, 2018, Electricity of Vietnam (EVN) will buy electricity at VND1,927 per kwh, or 8.5 US cents, from onshore wind power projects, and VND2,223 per kwh, or 9.8 cent, from offshore projects.

As such, investors have to gear up with project implementation, because they don’t have much more time. But it is not easy to negotiate with the top five equipment suppliers in the world to buy equipment and turbines at this time. The equipment price has increased by 10 percent.

After signing equipment procurement contracts, they have to seek companies to install the equipment, hire transport, and do other things at the same time. They are running at full speed to put their plants into operation prior to November 1, 2021. No one knows what the electricity price will be like after the date.

The number of solar and wind power projects has been increasing rapidly in the last three years, from the north to the south, from Lang Son to Ca Mau Cape, and both onshore and ashore. Large international groups have also been flocking to Vietnam to exploit the potential market. The heat of the market seems to be beyond all expectations and predictions by policy makers.

According to EVN, as of December 31, 2020, the total installation capacity of solar projects had reached 19,400 MWp, including 9,300 MWp of rooftop solar systems, or 16,500 MW, or 25 percent of total installation capacity of the national electricity sources.

The total consumed electricity output from solar power plants in 2020 was 10.6 billion kwh, including 1.16 billion kwh from rooftop solar power systems, which accounted for 4.3 percent of total electricity output mobilized.

Meanwhile, there are fewer operational wind power projects because of difficulties in investment. The total existing onshore wind power output is 500 MW, while thousands of MW of wind power plants are under implementation.

Hundreds of trillions of dong worth of private capital have been poured into solar and wind power.

Risks

The total consumed electricity output from solar power plants in 2020 was 10.6 billion kwh, including 1.16 billion kwh from rooftop solar power systems, which accounted for 4.3 percent of total electricity output mobilized.

Mentioning the renewable energy boom, BloombergNEF commented that Vietnam’s story shows that small markets can quickly shift to use clean energy. Six GW of rooftop solar systems was installed in December 2020 and 4.6 GW installed in the last week of 2020 alone.

 

The figure was three times higher than that predicted by BNEF earlier that year and the new capacity is enough to put Vietnam into the third position among the largest solar power markets in the world.

Does the high number of renewable power projects mean an exploitation of Vietnam? The answers vary.

Investors and environmentalists believe that more renewable power projects are needed as soon as possible.

Meanwhile, some experts have warned of the problems of the overly hot development of renewable power.

In the last months of 2020 and early 2021, many investors complained they had to reduce the capacity provided to the national grid because of electricity excess in some periods (from 10 am to 2 pm, especially on weekends and holidays).

Prior to that, many solar power plants had to cut down the capacity because of transmission line overloading.

As investors could not provide all their electricity output to the national grid, they are at risk of taking a loss and failing to implement their financial plans.

Vietnam cannot use only solar and wind power because of the instability of the power sources. A mass of clouds or a rain would be enough to affect the entire system.

The fact that many investors face the risk of loss is also a problem that policy makers need to pay attention to. It is necessary to develop renewable power at a reasonable level which ensures the benefits of all parties – the state, investors and electricity users.

According to the Ministry of Industry and Trade (MOIT), the total capacity of solar power projects added to the national power development plan has reached 10,000 MW. Of this, 8,000 MW is expected to become operational prior to 2020 and 2,000 MW after 2020.

Besides, investors have registered another 25,000 MW but this has not been added to the development plan, including 12,300 MW to be operational prior to 2020 and 12,900 MW after 2020. 

Luong Bang

PM orders review of solar power development-related issues

PM orders review of solar power development-related issues

Prime Minister Nguyen Xuan Phuc has asked the Ministry of Industry and Trade (MoIT), localities and Vietnam Electricity Group (EVN) to review issues related to Vietnam’s solar power development.

Desire for long-term tactics in solar power

Desire for long-term tactics in solar power

Although Vietnam began to develop solar power plants just about three years ago, the initially achieved capacities have been outstanding. 

 
 

Other News

.
Zero Covid and the new quarantine strategy
Zero Covid and the new quarantine strategy
FEATUREicon  08/07/2021 

The Prime Minister’s approval to pilot home quarantine for F1 cases instead of concentrated quarantine is considered a turning point in Covid-19 prevention in Vietnam.

Unemployment in the time of Covid-19
Unemployment in the time of Covid-19
FEATUREicon  08/07/2021 

The unemployment statistics in Vietnam are always controversial.

Opening the huge market for e-sports
Opening the huge market for e-sports
FEATUREicon  08/07/2021 

Along with the development of the game market and digital entertainment platform, eSports has potential for development in a diverse and highly globalized ecosystem.

Vietnam takes a big step forward in international publications in social sciences
Vietnam takes a big step forward in international publications in social sciences
FEATUREicon  08/07/2021 

About 10 years ago, a mathematician said that Vietnam did not yet have social science study works. The comment seemed to be a bit harsh, but it did make sense, especially when it comes to international publications.

Vietnamese children need safer environment in cyberspace
Vietnamese children need safer environment in cyberspace
FEATUREicon  07/07/2021 

Children often spend a lot of time learning, playing and exploring on the internet. Besides the undeniable benefits, unseen threats are also part of cyberspace.

Farm produce exports: specialties reach new markets
Farm produce exports: specialties reach new markets
FEATUREicon  08/07/2021 

Despite Covid-19, Vietnam’s farm produce exports still achieved impressive results, especially litchis.

Newspapers and social media: cooperation or confrontation?
Newspapers and social media: cooperation or confrontation?
FEATUREicon  07/07/2021 

VietNamNet spoke with Nguyen Ngoc Chu, a respected mathematician, who is a well-known Facebooker whose posts on his page attract at least 1,000 likes each.

Is Vietnam’s Covid-19 treatment Favipiravir drug effective?
Is Vietnam’s Covid-19 treatment Favipiravir drug effective?
FEATUREicon  07/07/2021 

Vietnam has never included any antiviral drugs in its Covid-19 treatment regimen because of unclear and unproved effectiveness of the drugs in clinical trial results.

What’s behind the high GDP growth rate?
What’s behind the high GDP growth rate?
FEATUREicon  07/07/2021 

The high GDP growth rate of 5.64 percent reported for H1, when a number of large cities and provinces were under social distancing, businesses had to close, and people lost their livelihoods, has puzzled many people.

Strengthening tools to protect children in cyberspace
Strengthening tools to protect children in cyberspace
FEATUREicon  05/07/2021 

The strong development of the Internet and social networks has made children become digital citizens early, which brings many benefits in the service of learning, entertainment, and enhanced social interaction.

CPI rises slowly as people run out of money
CPI rises slowly as people run out of money
FEATUREicon  06/07/2021 

The reported CPI only reflects 60-70 percent of the real situation, according to the former Chair of the Hanoi Supermarket Association Vu Vinh Phu.

Minister of Home Affairs: state apparatus is too cumbersome
Minister of Home Affairs: state apparatus is too cumbersome
FEATUREicon  06/07/2021 

Minister of Home Affairs Pham Thi Thanh Tra says that the state apparatus is overly cumbersome with too many levels of hierarchy and an overlapping structure in ministries and ministerial-level agencies.

2022 World Cup qualifier: What is Vietnam striving for?
2022 World Cup qualifier: What is Vietnam striving for?
FEATUREicon  06/07/2021 

The Vietnamese team already knows exactly the opponents in the final qualifying round of the 2022 World Cup. How far does it want to go?

Vietnam railways corporation incurs big losses, thousands of workers take leave
Vietnam railways corporation incurs big losses, thousands of workers take leave
FEATUREicon  06/07/2021 

The Vietnam Railways Corporation (VNR) is experiencing its toughest days in history as many trains have stopped running during Covid-19. Many workers have had to take unpaid leave.

Fighting for $52 billion market, int’l groups flock to Vietnam
Fighting for $52 billion market, int’l groups flock to Vietnam
FEATUREicon  05/07/2021 

Despite the effects of the Covid-19 pandemic, the e-commerce industry still witnessed explosive growth in 2020.

Ministers of Home Affairs explain new circular on certificates for civil servants
Ministers of Home Affairs explain new circular on certificates for civil servants
FEATUREicon  05/07/2021 

The burden of certificates has been compared to “sub-licenses”, “a miserable and expensive journey”, and “buying certificates” by many National Assembly deputies.

Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
FEATUREicon  05/07/2021 

Access to Covid-19 vaccine sources has been difficult due to a scarcity of supply in the world. What solutions will Vietnam need to buy enough Covid-19 vaccines for its people?

Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
FEATUREicon  04/07/2021 

Access to Covid-19 vaccine sources has been difficult due to a scarcity of supply in the world. What solutions will Vietnam need to buy enough Covid-19 vaccines for its people?

'Confessions' of Tinder scammers
'Confessions' of Tinder scammers
FEATUREicon  04/07/2021 

No sooner had the appropriation of billions of Vietnamese dong been discovered than the fraudsters suddenly disclosed their swindles, which were quickly done thanks to the trust and affection they easily gained from the victims.

Vietnam welcomes third FDI wave
Vietnam welcomes third FDI wave
FEATUREicon  04/07/2021 

Vietnam is committed to developing its role in the production value chain through FDI and has been preparing for many years to improve the qualifications of its workers.

 
 
 
Leave your comment on an article

OR QUICK LOGIN