Vietnam has 30 large-scale solar projects under development but FiT needed

Vietnam has 30 large-scale solar projects under development but FiT needed

Hoa Vu Phuong, specialist, international relations department, Institute of
Energy, Vietnam, explains big solar in the Southeast Asian country. Credit:
MOIT

Solar PV is taking off in Vietnam with many international and domestic
investors showing intention to develop projects in the central and south of
the country, Hoa Vu Phuong, specialist, international relations department,
Institute of Energy, Vietnam, has told PV Tech.

There are now more than 30 projects with capacities ranging from 20-300MW
being developed at different stages. Construction has already started on one
project of 19.2MW while a 30MW project has been granted an investment
certificate, said Vu Phuong.

The figures follow on from last week's news that China-based integrated
manufacturer JinkoSolar now plans a 40MW solar plant in Vietnam, having
received investment approval from the Mekong Delta provincial government.

Even the country's monopoly-holding utility Electricity Vietnam (EVN), has
shown intentions to invest in some large-scale PV projects. The first is a
200MW plant in Ninh Thuan province.

However, developers so far have shown less interest in northern Vietnam as
the irradiation is not as high with drizzle and clouds hampering the winter
and spring of this region, added Vu Phuong. The Spanish government has
provided technical assistance to help Vietnam put together an irradiation
map, seen here.

The north also has several big and small hydropower plants as well as big
thermal power plants. Generation now exceeds local demand and electricity is
transmitted to the South via 500kV lines.

Waiting for subsidies

Vu Phuong said: "Although the enthusiasm for solar PV in Vietnam seems to be
high at the moment, I think what is most awaited for by all IPPs now is the
official Feed-in-Tariff (FiT)."

The third and latest proposal from the Ministry of Industry and Trade (MOIT)
puts the FiT for utility-scale grid-connected PV projects under or equal to
100MW capacity at US$0.112/kWh. The FiT for rooftop PV is proposed for
around US$0.15/kWh. Vu Phuong says further clarification is needed from the
government, but she expects the policy to be finalised next year.

Utility does solar

EVN, which will purchase all the power from solar projects receiving the FiT
has worked with the provincial government of Ninh Thuan for its proposed
200MW solar project, which includes four sub-projects. The Central Power
Corporation, under EVN, is also reported to be preparing a solar PV
investment project of 150MW in Khanh Hoa Province. EVN is also reported to
be considering two other projects.

Vietnam currently has just 5MW of solar deployments. However, under the
latest revision of the National Power Development Masterplan (PDP VII), the
country is targeting 850MW solar by 2020, 4GW by 2025, and 12GW by 2030. The
electricity production from solar energy will take the following proportion
in the total energy mix: 0.5% in 2020, 1.6% in 2025, and 3.3% in 2030.

Vu Phuong said: "This is very high target, and EVN - as the main player in
Vietnam's power market - must of course contribute to achieving this plan."

As a state-run group owning more than 60% of the total installed capacity in
the country's power system, EVN also has greater capability in accessing big
capital for such large-scale solar.

However, EVN is not the only player looking at projects above 100MW. Vu
Phuong said there are reports of some international investors showing
intention to invest in large-scale solar PV in the country of up to 300MW,
including Hanwha (Korea), Solar Park (Korea).

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Ref:
http://www.pv-tech.org/news/vietnam-has-30-large-scale-solar-projects-under-
development-but-fit-needed

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com