Vietnam needs long-term policies on solar power development

The Decision 13/2020 on the development of solar power in Vietnam was released by the government on April 6, 2020.

The new decision, to take effect on May 22, 2020 and be valid until the end of 2020, includes the new feed-in-tariff (FIT 2), or the electricity price at which solar power developers sell to EVN (the Electricity of Vietnam), the only wholesale buyer.

The price will fall to 8.38 cents, or VND1,943 per kwh of rooftop solar power projects, 7.09 cents, or VND1,644 per kwh for ground-mounted solar power, and 7.69 cents, or VND1,783, for floating projects.

Tran Huong Thao from Bach Khoa Solar Energy commented that FIT 2 is helpful but a long-term sustainable solar power encouragement policy, with clear orientation, is needed.

Meanwhile, Dao Du Duong from the Vietnam Clean Energy Association said FIT 2 aims to ‘rescue’ 36 solar power farm projects which could not enjoy FIT 1 (the projects could not become operational prior to June 30, 2019 to enjoy FIT 1).

As for rooftop solar power projects, seven months is too short to execute projects, especially when the southern region is entering the rainy season. It is necessary to extend the FIT 2 deadline for one more year.

He proposed setting up long-term policies for rooftop solar power, six months before the FIT 2 mechanism expires.

Nguyen Duc Toan, chair of EHCMC Solar, made four proposals related to policies for solar power development.

First, rooftop solar power should not be included in Decision 13 which sets the FIT 2.

Second, it is necessary to extend FIT 2, or set up FIT 3, soon after December 31, 2020.

Third, when FIT 2 expires, farm-scale solar power farm projects need to have a bidding policy to be able to continue implementation.

Fourth, it is necessary to upgrade electricity transmission lines to allow power plants to run at full capacity.

Pham Nam Phong, CEO of Vu Phong Solar Power, wants the government to extend FIT 2 to the end of 2021 so that people and businesses have more opportunities to develop rooftop solar power.