Solar panels installed on the roof of a seafood processing factory in the Mekong Delta. (Photo: evn.vn) Hanoi (VNA) - Technological advances, preferential credit policies and pricingincentives have set the stage for solar rooftop energy to become the next bigthing in clean energy in Vietnam, according to industry insiders.
As the number of solar farms surged in 2018-2019, the Ministry of Industry andTrade has suspended the issuance of new licences for solar farms. This,however, does not cover solar rooftop projects, which still enjoy a purchasingprice of 8.39 US cents per kWh. The price point, despite having been scaleddown from a previous of 9.35 US cent per kWh, was still largely considered asprofitable by investors.
Several preferential policies by the State have also been implemented toshorten the return of investment period to no more than 5-7 years compared to10-12 years previously, industry insiders have said.
In addition, strides have been made in battery technology that has allowed theproduction of greater capacity units at lower costs. As solar rooftoptechnology becomes increasingly economically viable, individual households andreal estate developers have shown more interest in getting involved. Meanwhile,large-scale installations in industrial zones now boast even greater potentialto cut costs.
According to the HCM City-based export-processing zone Hepza BusinessAssociation (HBA), more than 1,000 factories located in the city’s numerousindustrial zones have signed up to develop solar rooftop energy with BCGEnergy, a subsidiary of Bamboo Capital Group.
The association said during 2020-24, it will develop up to 300MWp through solarrooftop projects to bring it to 1000MWp and cut carbon emissions by 23 milliontonnes.
Last week, SkyX Solar, a subsidiary of VinaCapital, and HCM City-basedtelecommunications firm Saigontel formed a joint venture to develop a solarrooftop project with a combined capacity of 50MWp in 10 industrial zones in Vietnam’scentral and southern regions.
Likewise, real estate developers have wasted no time hopping on the wagon.Developer Novaland and TTC Energy have signed a partnership, which will powerAqua City’s public utility demand with solar-based energy projects.
TTC Energy’s track record includes solar projects with a combined output ofmore than 700,000kW in Jamona City and Jamona Golden Silk, which the firmclaimed help cut emissions by 232 tonnes per year. TTC Energy has also beenworking with large supermarket chains including Saigon Co.op, Giga Mall Pham Van Dong, cinema chain Galaxy and tourism park Dam Sen.
Traditionally shunned for high costs and dismal efficiency, solar rooftopprojects have seen a second wind as more preferential policies wereimplemented, said HBA’s chairman Nguyen Van Be.
Be said solar rooftop may hold the answer to the country’s energy shortage inthe future and could be key to cutting carbon emissions./.
VNA
