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After months of confusion and uncertainty in Vietnam's renewable energy projects, Vietnamese Prime Minister Nguyen Xuan Phuc announced that the country will resume solar auctions and decided to cancel the FiT system.
Ruan Chunfu said that for on-grid tariff subsidies, everything is not over, except for rooftop solar energy, which can still be enjoyed, it is still applicable to solar projects that have signed power purchase agreements and started construction in 2020 or put into production this year.
In April 2017, Vietnam promulgated a measure to grant a feed-in tariff of 9.35c / kWh, but the measure expired 5 months ago. In the past two years, the implementation of feed-in tariffs has greatly promoted the development of solar energy in Vietnam. As of July 2019, Vietnam's solar power generation capacity has been approaching 4.5 GW.
This is 500% higher than the projected value of 850 MW by 2020. This fully illustrates the development of Vietnam's renewable energy sector and how the private sector can play a role in the development, financing and construction of these projects.
In addition, Ruan Chunfu also mentioned the weak power grid infrastructure in Vietnam. Ruan Chunfu said that the lack of power grid infrastructure is currently the main factor affecting the growth of the renewable energy industry.
Earlier this year, the Asian Development Bank (ADB) signed a $ 37 million loan agreement to fund the installation of a 47.5 MW floating solar project in Vietnam. The global lender has signed an agreement with Vietnam's DHD Hydropower Co., Ltd. to facilitate DHD's installation of floating solar on artificial reservoirs in existing hydropower projects.
In 2018, the United States Trade and Development Agency (USTDA) provided a grant to Vietnam's state-owned power company Vietnam Electric Power Company (EVN) to study the feasibility of deploying advanced energy storage technologies in Vietnam.
These technologies, including battery energy storage systems, will help EVN reduce power shortages and losses, and support increased renewable energy generation across the country.
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