Renewable Energy Solutions For Vietnam

Markets Opportunity for Renewables in Vietnam

Vietnam has been making significant progress in developing its renewable energy sector in recent years. The country has set a target of generating 10% of its electricity from renewable sources by 2030 and 20% by 2050.

Solar power is the most promising renewable energy source in Vietnam. The country has a high solar irradiation level, especially in the central and southern regions, making it an ideal location for solar power development. The government has implemented a number of policies to encourage the growth of the solar industry, such as feed-in tariffs, tax incentives, and credit support.

Vietnam is also developing its wind power capacity, particularly in the coastal areas of the central and southern regions. The government has set a target of generating 800 MW of wind power by 2020 and 6 GW by 2030. In addition, there is potential for biomass and hydropower in certain regions of the country.

Several foreign investors have already entered the Vietnamese renewable energy market. In 2020, Vietnam attracted $3.6 billion in renewable energy investments, making it the largest recipient of such investments in Southeast Asia. The government has also been promoting public-private partnerships to develop renewable energy projects.

Country Overview – Economy & Industrialization

GDP growth rate dipped in 2020, but recovered in 2021, with 6.5% as per the IMF. Vietnam's GDP growth also hit a 12-year high of 8.02% in 2022.

Vietnam’s Solar Energy Policy Push

With around 1,600 to 2,700 hours of sunlight per year and an average direct normal irradiance (DNI) of 4-5 kWh/m2, the country has huge potential for solar power. Electricity prices see an increase of almost 7-10% every 2-3 years, providing ample opportunity for Solar to compete with conventional sources.
  • Current electricity prices from diesel or furnace oil-based plants cost around 3800-4750 Dong/kWh.
  • Grid tariffs range from 1850-2050 Dong/kWh for Industries.
  • Solar power accounts for only 0.01 percent of the total output, and the government aims to increase this to 3.3 percent and 20 percent by 2030 and 2050 respectively.
  • The government’s target by 2020 and 2025 is to install 850 MW and 4 GW respectively. By 2030, it aims to increase it to 12 GW.

Generation Stats Value UOM
Total Power Generation Capacity 69,094 MW
Total RE Power Generation Capacity 26,256 MW
Total Installed Solar 17,600 MWp
Installed Rooftop 9,580 MWp
Installed Utility 5,500 MWp
Solar Target 50 GWp by 2030

Fourth Partner Energy’s Vietnam Offerings

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