Investors are no longer rushing to pour money into solar power projects because the new solar power purchase price is considered unattractive.

Vietnam will reduce the total capacity of coal-fired thermal power plants from 2020 until 2030, according to the National Steering Committee for Electricity Development.

Vietnam has enacted its strategic orientations for energy development through to 2030 and with a vision for the next quarter of a century, encouraging more of the private sector to develop for the future, and ensuring energy security.

The Politburo will encourage all economic sectors, especially private businesses, to invest in energy projects, Party General Secretary, President Nguyen Phu Trong has said.

National green credit programs will help Vietnam reach its goals in the national green development strategy in a comprehensive way and help drive the economy towards sustainable development.

With the new policy on choosing investors through bidding, the hot race of developing solar power projects is expected to cool down.

2019 was a special year for solar power investors: they sprinted in the first half of the year to fulfill projects, but have been idle since July, and are now waiting for a new policy.

The prices of oil and coal have been decreasing, which is expected to improve the profits of power companies.

Vietnam has offered a very high price for solar power to attract investment in this energy segment, but the country now has to recalculate the pricing to ensure sustainable development for this renewable energy.

Vietnam's most important hydropower reservoirs are lacking a total of 11 billion cubic meters of water compared to normal levels.

While direct power purchase agreements have been one of the key drivers of global renewable energy infrastructure, especially in wind and solar, there is no defined plan for a pilot mechanism in Vietnam yet.

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.

A draft document on solar power development will be filed to the Prime Minister for approval on December 15, local media reported.

After months of uncertainty over the policy, the much awaited next round of purchase prices in solar power may be set through auction instead of enjoying the same feed-in tariff required elsewhere. 

The solution of using electricity from oil-run power sources will increase the production cost by VND14 trillion, which will put pressure on electricity prices.

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.

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.

If Vietnam stops investments in new coal-fired thermopower projects, the total amount of coal it would consume could drop by 221 million tons by 2050.

The central province of Ninh Thuan has seen a boom in renewable energy projects, especially solar power, but power transmission lines in the province have failed to handle the capacity, experts have said.

The tardiness in upgrading electricity transmission networks is expected to cause big losses to solar power plants in Ninh Thuan.