Hanoi (VNA) – Solar power is attracting greatattention from the Vietnamese Government and businesses, but certain challengesare facing the utilisation of this type of renewable energy.

In April 2017, Prime Minister Nguyen Xuan Phucissued a decision on mechanisms for encouraging solar power development. Thisdecision has given a boost to this sector as it set up an attractive price forsolar electricity – 2,086 VND or 9.35 US cent per kWh – for 20 years, comparedto the current average power price of 1,500-1,700 VND per kWh. It also includesother incentives in terms of tax and land.

As a result, while the number of registeredsolar power projects was still modest by early 2017, 121 projects with acombined capacity of over 9,200MW had been added to the electricity developmentplan as of September 2018. Meanwhile, another 211 projects with a total of16,800MW haven’t even been named in the list yet.

Dr. Nguyen Huy Hoach from the Vietnam CleanEnergy Association said the national electricity development plan for 2011-2020requests that power projects using renewable energy resources, including solarenergy, be accelerated so that their capacity will reach 850MW by 2020 and 4,000MWby 2025.

To that end, solar power generation facilitieswith a capacity of over 200MW, 600MW, and 1,600MW will need to be installedeach year by 2020, between 2020 and 2015, and in the five following years,respectively, he added.

Diep Bao Canh, Chairman of the Red Sun EnergyJSC, said Vietnam now has a chance to strongly develop solar power as more andmore businesses enter the industry. Additionally, equipment prices havedeclined considerably as solar panel prices have dropped from 3-4 USD per Wattpeak to less than 0.5 USD per Watt peak. The country’s natural conditions,including the average solar irradiance of 4.5-5.5 kWh per sq.m each day, arealso favourable for solar power development.

However, it is not a completely smooth path forsolar power development in the country.

According to the Vietnam Energy Association,certain technical solutions are needed to convert electric current to connectsolar or wind electricity plants with the national grid. As the grid’sconnection points with wind and solar power factories increase, risks ofoperational problems also arise. 

Dinh Quang Tri, Deputy General Director of theVietnam Electricity (EVN) group, said the connection will raise transmissionand distribution expenses, elaborating that most of these plants have beenplanned in the central region, especially Ninh Thuan and Binh Thuan provinces.Meanwhile, the local transmission system is quite weak as the electricitydemand here is lower than other regions.

The EVN has asked for more transmission lines tobe constructed, but the work is related to procedures and site clearance, so itwill not be able to be completed soon to transmit all electricity from solarpower plants.

Tri added that if the EVN does not purchasesolar power, an electricity shortage is likely to happen. However, if thegroup, designated to buy all electricity from solar power projects, fails toload, disagreements between project investors and the EVN could occur.

Le Van Luc, Deputy Director of the Electricityand Renewable Energy Authority at the Ministry of Industry and Trade, saidthat with favourable policies, Vietnam is attracting investment in solar andwind power. 

However, there haven’t been detailed analyses ofwhere such projects should be located in or how to connect them with thenational grid. Even in potential areas like Binh Thuan and Ninh Thuan, morestudies on the projects’ connection and operation are needed to ensure safe,constant and stable supply.

Luc also pointed out problems in dealing withwaste from solar power plants, such as panels, since there hasn’t been a detailedguidance issued on how to treat it. –VNA