Is Vietnam ready for a competitive bidding mechanism for solar energy?

Vietnam is now developing a competitive bidding mechanism for solar energy to improve grid efficiency, promote competition, and ensure a stable energy supply, but it’s currently in the works and hasn’t been implemented yet. As such, Vietnam has been in a transition phase since the end of the FiT policy.

Is solar power a viable option in Vietnam?

The levelized cost of electricity (LCOE) for solar power in Vietnam has decreased by over 50% since 2018, making it an attractive option for both utility-scale and rooftop installations. Vietnam’s commitment to reducing greenhouse gas emissions and combating climate change has been a significant driver of solar power adoption.

Can solar and wind power meet Vietnam's near-term energy needs?

Such financial hurdles have challenged the government’s ability to use fossil fuels to expand electricity supply in step with Vietnam’s fast-growing economy. Contrastingly, solar and wind power’s lower capital requirements and faster development timelines are well-suited to meeting Vietnam’s near-term energy needs.

Can solar projects be financed in Vietnam?

Owing to the current contractual structure proposed by the government, most solar projects in Vietnam are expected to be financed under a corporate loan or at 100 percent equity, with refinancing possible at a later stage.

How does solar irradiation affect tariffs in Vietnam?

The numbers should be read more as an indication of how the parameters affect tariffs than as a representation of the current situation in Vietnam or as a prediction of a likely tariff. Holding other parameters equal, the level of solar irradiation has a large impact on prices—as much as US$0.02/kWh for sites in Vietnam.