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.

Fourth Partner Energy’s Vietnam Offerings

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