Reading Time: 6 minutes
- The price policy must be long-term and adjusted to the market so that investors can calculate the risks in advance.
- Other manufacturing sectors of Vietnam are also considering renewable energy from rooftop solar power systems as the most optimal solution in the plan to reduce greenhouse gas emissions towards the end of the year towards a green economy and sustainable socio-economic development.
- In the immediate future, it is proposed to apply a pilot Direct Power Purchase Agreement (DPPA) mechanism to facilitate users’ demand for green energy.
Can you please give us a brief insight into Vietnam’s rooftop & C&I solar market outlook?
The potential of the rooftop solar market is still a big room. There are many reasons:
- There Increasing rapid of industrial zones in Vietnam that lead to increasing demand for energy: The nation contains 520 industrial parks (IPs) with a total natural land size of 200, 900 hectares as of May 2022. There are 286 operating IPs (generating 3.78 million direct employment) with a 71.8 percent occupancy rate, down from 74% last year. H1/2022 saw the establishment of 30 new industrial parks, 5 more than in H1/2021. Rooftop solar is still the most optimal solution for the factory to cut production costs, reduce greenhouse gas emissions and fight climate change.
- The global trend of combating climate change, Vietnam committed to net zero emissions by 2050: at the United Nations Conference on Climate Change – COP 26. To realize this goal, other manufacturing sectors of Vietnam are also considering renewable energy from rooftop solar power systems as the most optimal solution in the plan to reduce greenhouse gas emissions towards the end of the year towards a green economy and sustainable socio-economic development.
- In the northern region, there may be a shortage of peak capacity at some times, especially when the weather is hot and sunny. The North’s electricity consumption demand currently accounts for nearly 50% of the whole country and is forecast to grow higher than the national average. With the actual situation of 2022, new power sources in the North are expected to be very low, and additional new power sources in the Central and Southern regions (mainly renewable energy) in recent years are also can only partially support the North because the transmission capacity through the 500 kV line is technically limited to the level to ensure the safety and stability of the system.
There are also some issues for solar investors:
- The installation conditions for solar power are still not clearly regulated. At present, the evaluation of standards and legitimacy is still unclear, and most of them are spontaneous and lead to a large appraisal cost.
- There is a lack of consistency and regulation throughout. Some businesses are still confused because there are still no specific instructions. This needs to be clear, the procedure to avoid a lot of trouble.
What is your opinion on its recently proposed PDP-VIII legislation to accelerate Vietnam’s rooftop and C&I installation?
Regarding rooftop solar power (PV), currently, there is no national technical standard for rooftop solar power system equipment. There is no regulation on the supervision and control of solar PV systems, so the dispatching level cannot command and operate. There is no consensus on guidelines for licensing including fire prevention and fighting, construction permits and environmental impact. Especially, the purchase price mechanism for solar and wind power has expired, but there is no replacement and transitional new pricing mechanism.
It is necessary to have a price bracket to buy electricity for solar and wind power projects as soon as possible because the FIT price expires too long. Many businesses have completed building power sources without selling electricity and the power system is at risk of power shortage soon. New businesses do not dare to invest. The price policy must be long-term and adjusted to the market so that investors can calculate the risks in advance.
In the immediate future, it is proposed to apply a pilot Direct Power Purchase Agreement (DPPA) mechanism to facilitate users’ demanding green power.
Continue to allow the development of rooftop solar power for the purpose of self-use, not generating (not selling electricity) to the national grid. However, the Government and the Ministry of Industry and Trade need to issue details and clear technical regulations for self-using rooftop solar power so as not to affect the grid when businesses and people install solar power for their own use.
What would be your preference between N-type and P-type large format solar modules for Vietnam’s distributed solar market and why?
It is dependent on the individual case, if the client’s size roof is small, Investors would like to use the N-type as it could optimize the energy that client could use because N-type provides high performance with a small size of PV. However, we also use the P-type for our clients too, because the cost of PV is quite reasonable so we could offer a higher offer for DPPA services.