Vietnam solar power 2025: Expanding Capacity to 16 GW
Vietnam is setting its sights on a greener future by expanding its solar power capacity to 16 gigawatts (GW) by 2025. This ambitious goal aims for solar energy to make up 10% of the country’s total electricity generation. The Ministry of Industry and Trade (MoIT) is in the process of drafting a new policy to reinvigorate solar power development, which has seen a slowdown in new installations since 2020.
For more details about this ambitious goal, visit Vietnam solar capacity 2025: Stunning 16 GW Goal for Renewable Energy.
New Tariffs to Boost Vietnam solar power 2025
The MoIT is crafting a new policy aligned with the Power Development Plan VIII (PDP8), part of Vietnam’s 10-year energy strategy. This plan seeks to rectify the decline in new solar projects by setting a target to increase solar power capacity significantly. This move is crucial as Vietnam aims for solar to account for a substantial portion of its energy mix.
The draft policy introduces new tariffs for rooftop solar projects. Installations completed between 2025 and 2026 will be eligible for a tariff of 1,320 dong per kilowatt-hour (kWh), roughly 5.5 cents/kWh. Projects finished between 2026 and 2028 will receive 1,210 dong/kWh (5 cents/kWh), and those completed between 2028 and 2030 will earn 1,100 dong/kWh (4.5 cents/kWh). Ground-mounted solar projects will have slightly lower tariffs, with rates decreasing gradually over the same periods.
Vietnam solar power 2025: Policy Effects on Rooftop Solar
Although these new tariffs are designed to spur solar power growth, there are concerns they might not be sufficient to attract significant investment. The proposed tariffs are lower than the previous feed-in tariffs (FiTs), which were as high as 9.35 cents/kWh for earlier projects. Moreover, the two-year delay in implementing these tariffs could further dampen investor enthusiasm. This delay is intended to provide the government time to resolve issues with projects completed but not yet connected to the grid.
Between 2020 and 2021, 67 solar projects with a cumulative capacity of 4.6 GW were completed but remained unconnected, a situation the government is currently negotiating to resolve. The decline in new solar installations has been stark, with only 1.4 GW added in 2021 compared to the 9.3 GW surge in 2020.
Challenges in Expanding Vietnam solar power 2025 Capacity
Vietnam’s current total installed solar capacity stands at 16.5 GW, with rooftop solar accounting for 8.7 GW. The country’s ambitious targets include ramping up solar capacity to 24.5 GW by 2030 and reaching 85 GW by 2050. However, achieving these goals, especially for rooftop solar, might be challenging under the new policy.
The MoIT’s draft acknowledges this, emphasizing that the proposed tariffs are based on expected reductions in investment costs, as projected by the PDP8. Should costs not decrease as anticipated, adjustments to the tariffs might be necessary to meet capacity targets.
Despite these hurdles, Vietnam remains committed to its solar power expansion, reflecting its broader strategy to reduce coal reliance and enhance the renewable energy share in its energy portfolio. The success of this expansion hinges on balancing investment needs with the financial viability of the solar sector.
Explore more about Vietnam’s solar energy initiatives and challenges at Northern Vietnam solar projects: 4 Amazing Initiatives Announced.
