Vietnam is experiencing a solar boom, with 11.6 GW of power of this kind added to the national grid last year, according to the International Renewable Energy Agency.
Only 105 MW of solar electricity was installed in the country in 2018, and the figure rose to 5 GW in only a year later, and even to 16.5GW in 2020, the article said, adding this is a considerable increase as compared to other nations at the same time.
As demand for energy in this Southeast Asian country is forecast to shoot up dramatically in the coming time, big players in the field have invested heavily in solar energy plants.
Last summer, a 45 MW plant was put into operation in the central province of Ninh Thuan by Sharp Energy Solutions Corporation, contributing some 76 MWh per year. The firm is carrying out another five 245 MW plants in the country.
The successful solar energy story in Vietnam was sparked by a special market mechanism, which drew much interest from investors. Under the purchasing power at fixed prices, investors would sell the renewable energy they create to the grid at a fixed price – one that would more than cover the cost of investing in renewable energy facilities.
Vietnam could carry out more bidding mechanisms for solar projects, in which all renewable energy projects which are not subject to the fixed price mechanism are able to join.
The Vietnamese Government is planning to double the power capacity in the next 10 years. Accordingly, 29 percent of the nation’s electricity will come from renewable energy source by 2030, and 18 percent from hydropower.
Capacity of renewable energy is envisioned at 45 GW, much higher than the previous plan of 27 GW – the level which is achievable within 2021 or next year as the latest.
Although the energy transition is taking place rapidly, coal-generated electricity accounted for 28 percent of the nation’s total power. However, renewable will take the lion’s share by 2045.