Want to be in the loop?
subscribe to
our notification
Business News
2021 REMAINS GAP YEAR FOR SOLAR DEVELOPERS
After a boom in solar development thanks to incentives given in 2020, Vietnam held back due to a policy gap that has pushed investors into an awkward situation this year.
In 2020, Tien Thinh Trading and Construction Services Co., Ltd. implemented dozens of solar projects in many southern provinces and cities, with total revenues of the company reaching around $430,000. However, this year the firm only implemented a few small-scale projects with total revenues shrinking to one-tenth lower.
“Many businesses are waiting for the new solar pricing policy,” said Trinh Ngoc Quyet Tien, director of the company.
Tien explained that the incentives for solar projects have expired, whereas state-run Electricity of Vietnam (EVN) stopped receiving requests for connection and signings of power purchase agreements from residents and businesses after the end of last year.
Under the prime minister’s Decision No.13/2020/QD-TTg on mechanisms to promote the development of solar power projects in Vietnam, the prices of each kilowatt-hour generated from ground-mounted, floating, and rooftop solar initiatives are 7.09, 7.69, and 8.38 US cents, respectively, but this policy also expired last year.
Up to now, the government has not yet issued further instructions on procedures for electricity purchases and sale contracts, as well as payments for purchased electricity from rooftop solar power systems.
The south-central province of Ninh Thuan People’s Committee said in a recent document that investors have worked day and night to complete projects, but some of them missed the deadline to enjoy the feed-in tariffs (FiT). Even now, some electricity has been generated and delivered to the grid, but EVN and investors could not calculate selling prices.
There have been many meetings between investors, EVN, and provinces during this year, but no positive movement has been made.
The FiT has had a great impact on equipment manufacturers and trading units, as well as developers and investors using solar power. Rooftop solar installations skyrocketed in Vietnam last year before the FiT deadline, with more than 9GWp of rooftop solar installed in the country. However, the hot development of solar projects caused an overload of supply.
Bui Van Tien, CEO at VATEC Consulting Co., Ltd., said during the Zoom meeting termed “Paving the way for green growth through buildings in Vietnam” hosted by Energy Box Vietnam last week, “After the boom, the solar market was almost frozen due to both the lack of a pricing policy and the pandemic situation. Electricity consumption in 2021 is also lower as factories reduced their capacities.”
However, Tien predicted that this situation would only last “for the short-term as Vietnam made a strong commitment at COP26 to net-zero emissions and policy development for the solar sector in the coming time.”
Hoang Tien Dung, director of the Department of Electricity and Renewable Energy under the Ministry of Industry and Trade admitted that an FiT for solar power was previously considered suitable to attract investment. “Technological progress also helps projects to be more efficient and calculate solar power price reductions while ensuring benefits for investors as well as electricity buyers,” Dung said.
In March, he stated that rooftop solar power could be traded at only 5.2-5.8 US cents per kWh, with these rates based on an assessment by foreign consultants on the changes to and development of renewable energy, as well as the price of equipment in Vietnam and around the world.
Meanwhile, foreign investors have used mergers and acquisitions to expand their renewable energy investment in Vietnam because of a lack of policy for solar power projects at the moment. All acquired projects are completed and received the FiT prices.
For instance, Banpu Power Plc this month announced that it has acquired Ha Tinh Solar Power JSC in a deal worth $23.9 million as part of its strategy for renewable power businesses across Asia-Pacific.
Source: VIR
Related News
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
ONE-TIME OFFER: COMPLEMENTARY CATHAY PACIFIC LOUNGE PASS
Begin your trip on the right note in Cathay Pacific’s first-ever ferry lounge, located at Shenzhen’s Shekou Cruise home port. Situated at the end of the pier, the ferry lounge offers a breathtaking 270-degree view of the sea. You can immerse yourself in sheer luxury and revel in the panoramic beauty. Catch a glimpse of Hong Kong in the distance.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).
![Card image cap](/uploads/news/Investment6.jpg)
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.