Energy service companies (ESCOs) are facing numerous risks since the regulatory framework for their sector is both incomplete and patchy, according to industry insiders.
The Ministry of Industry and Trade (MOIT) has proposed continuing the FIT (feed in tariff) for wind power, but lowering the tariff by 20 percent, causing concern among wind power developers.
Tens of solar power projects are awaiting to be added to the list of power generation projects to be developed. Meanwhile, ministries are still discussing the new pricing mechanism after the preferential FIT expires.
APV, or Agriculture Photovoltaic system, is becoming increasingly popular around the world. It could be a feasible model in Vietnam if the government sets a reasonable legal framework to develop it.
As of August 23, 45,299 rooftop solar power projects had become operational with total capacity of 1,029 MWp, according to the Electricidty of Vietnam (EVN).
Covid-19 and the slow implementation of power transmission projects may make it impossible for solar power projects to connect to the national grid by the end of the year.
As wind and solar power project developers now can enjoy a high FIT (feed in tariff) price, investors are registering more projects to resell for profit.
A solution for the power industry has been put into discussion: selling entire power plants to investors after they are put into operation.
The Prime Minister’s Decision 13 on solar power projects in Vietnam, which took effect on May 22, will give a push to the development of this kind of clean energy.
The Ministry of Industry and Trade has told the authorities of cities and provinces and Vietnam Electricity Group (EVN) to stop proposing solar power projects under the feed-in tariff (FIT) program until a new decision is issued.
Despite bankability concerns in power purchase agreements, investing in solar power is a new boom in Vietnam as developers, original equipment manufacturers, and contractors rush into the market thanks to the current feed-in tariff.