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COVER STORY

Opportunities

& obstacles

Dr. Tran Huu Hiep, a consultant to the partnership group
supporting sustainable energy transition in the Mekong
Delta, tells VET’s Chuong Phuong about how rooftop solar
energy holds multiple benefits across the environmental,
economic, and social realms.

INTERVIEW

% How would you assess the potential ating 252.1-291.5 billion kWh annually. As must find an optimal solution for supply,
and current status of solar energy in such, the envisioned target for 2050 positions demand, and maintaining equilibrium,
Vietnam? solar energy as the largest contributor to supported by regulatory and legal frame-
As a tropical nation, Vietnam boasts Vietnam’s electricity grid, comprising over works. The rapid growth of solar and
significant potential in solar energy, esti- 38.5 per cent of total capacity. wind power models, along with decen-
mated at around 963,000 MW according tralized electricity production, represents
to various studies. This potential is dis- % Resolution No. 55-NQ/TW from the a significant step forward in Vietnam’s
tributed across different surfaces, including Politburo on the national energy devel- energy transition.
approximately 837,400 MW on land, 77,400 opment strategy, including an orien- Unfortunately, these initial steps face
MW on water, and 48,200 MW on rooftops. tation for developing rooftop and water institutional hurdles. Vietnam still lacks
The central and southern regions of Viet- surface solar power, has been enacted. a competitive electricity market, and
nam receive abundant sunlight throughout What mechanisms has Vietnam’s power monopolistic mechanisms persist. Admin-
the year, presenting a substantial oppor- sector identified to implement the res- istrative interventions in the market are
tunity for solar energy development. One olution effectively? no longer suitable in the current context
study conducted by the German Corpo- Though PDP8 sets ambitious targets and must be aligned with the broader
ration for International Cooperation (GIZ) for solar energy expansion, the policies interests of the populace and society to
suggested that the total solar energy capac- surrounding solar power remain ambigu- prevent major disruptions.
ity in these regions could reach up to ous. Coal prices have surged over recent
136,275 MW, with an anticipated annual years, sometimes quadrupling or even % What are the obstacles hindering
electricity output of 216.5 billion kWh. quintupling, yet the energy production progress in solar energy?
As of the end of 2023, Vietnam had structure remains heavily reliant on fossil The practical execution of solar energy
installed solar energy capacity of about fuels, leading to substantial health and investments in various regions is encoun-
16,600 MW, with rooftop solar contributing environmental repercussions. Meanwhile, tering several hurdles. Three key barriers
over 9,000 MW. This accounts for approx- numerous solar projects encounter obsta- need to be recognized and addressed.
imately 20.5 per cent of the country’s total cles due to complex procedures, not only Firstly, there are legal, policy, and reg-
electricity generation. Looking ahead, the within the electricity sector but also involv- ulatory hurdles. Currently, there is an over-
Power Development Plan VIII (PDP8) out- ing various ministries, sectors, and local- lap in regulations across different docu-
lines targets for solar energy expansion, ities related to procurement mechanisms, ments, resulting in confusion in under-
aiming to add 4,100 MW by 2030. Long- construction procedures, and investment. standing and implementing policies aimed
term projections indicate that, by 2050, Consequently, clean energy companies at promoting solar energy investment.
Vietnam’s solar energy capacity could range are forced to scale back their operations. Specific solar energy capacities by 2030
between 168,594 and 189,294 MW, gener- Vietnam’s energy security equation and 2050 are outlined in PDP8. By 2030,

22 Vietnam Economic Times May 15, 2024 en.vneconomy.vn