Vietnam is rapidly increasing its reliance on solar power, aiming to generate 16% of its energy from the sun by 2030—a shift driven by significant investments in solar farms across the country.
Major Vietnam Solar Energy Projects
One of the most notable projects is the 450 MW Trung Nam solar farm in Ninh Thuan, developed by Trung Nam Group. Operational since 2020, this solar farm is among the world’s largest and stands as a testament to Vietnam’s commitment to expanding its solar energy capacity. Other significant projects include the Phuoc Ninh Solar Power Plant and the 168 MW Phu Yen Solar Power Plant.
The 1.2 GW Thuan Nam solar farm in Binh Thuan is another key development. Its 450 MW first phase was completed in 2021, and the remaining phases are set to be finalized by 2025.
International Investments and Collaborations in Vietnam Solar Energy
Vietnam’s solar energy expansion has attracted significant international attention and investment. Companies such as JinkoSolar, LONGi Solar, and Trina Solar have played crucial roles in supplying solar modules for various projects.
In a landmark deal, Thai energy company B.Grimm Power and Vietnamese partner Truong Thanh Vietnam Group (TTVN) secured $186 million in financing for a 257 MW solar project in Phu Yen province. This project, which became operational in 2020, is the largest solar farm in Southeast Asia and the first in Vietnam to receive foreign financing.
Chinese firm Huawei has also been instrumental in Vietnam’s solar developments, providing smart inverters and other technologies to enhance the efficiency of solar farms. Their solutions have helped drive the rapid growth of Vietnam’s solar capacity, which has jumped from just 86 MW in 2018 to over 4 GW today.
Vietnam Solar Energy Policies and Government Incentives
The Vietnamese government is supporting the growth of solar energy through a range of policies and incentives. These include feed-in tariffs (FITs) for solar projects, a crucial factor in attracting both domestic and foreign investment.
The FITs for ground-mounted solar projects are set at $0.0709/kWh, while floating solar projects receive $0.0769/kWh.
In addition to FITs, the government is promoting the development of rooftop solar systems. With a total potential of 48 GW by 2030, these systems are becoming increasingly popular among businesses and households.
The government is also considering new policies to further encourage solar adoption, including direct power purchase agreements (DPPA) and self-consumption models. These initiatives are expected to open the door for greater private sector participation in the renewable energy sector.
Future Prospects and Challenges for Vietnam Solar Energy
Vietnam’s ambitious solar energy goals are aligned with its commitment to reducing carbon emissions and promoting sustainable development. By 2030, the country aims to have 29 GW of solar power capacity, with solar farms playing a central role in achieving this target.
However, Vietnam’s rapid solar expansion also presents challenges. The country’s grid infrastructure needs significant upgrades to accommodate the increasing share of renewable energy.
The government is working on expanding transmission lines and improving grid stability to ensure the seamless integration of solar power.
Moreover, the financial sustainability of solar projects is another concern. While FITs have been effective in attracting investments, there is a need to transition toward more market-based mechanisms such as auctions to ensure the long-term viability of the sector.
The Vietnam solar market is poised for significant growth, propelled by major solar farm projects and supportive government policies. The country’s shift toward renewable energy not only contributes to global efforts to combat climate change but also positions Vietnam as a leader in the green energy transition in Southeast Asia.
