After months of uncertainty over the policy, the much awaited next round of purchase prices in solar power may be set through auction instead of enjoying the same feed-in tariff required elsewhere. 

The solution of using electricity from oil-run power sources will increase the production cost by VND14 trillion, which will put pressure on electricity prices.

When the purchase prices of solar power are set through auction, prices are expected to fall by 30%-40% from the current levels, said experts at a seminar yesterday.

The purchase prices of solar power will be set through auction, instead of using a common price for the entire country, or different prices for different thermal radiation zones, according to officials.

If Vietnam stops investments in new coal-fired thermopower projects, the total amount of coal it would consume could drop by 221 million tons by 2050.

The central province of Ninh Thuan has seen a boom in renewable energy projects, especially solar power, but power transmission lines in the province have failed to handle the capacity, experts have said.

The tardiness in upgrading electricity transmission networks is expected to cause big losses to solar power plants in Ninh Thuan.

Vietnam is now the leader in Southeast Asia’s solar photovoltaic (PV) market with the largest installed capacity in the region, Wood Mackenzie said in its statement.

Allowing private investors to develop electricity transmission lines is expected to be the best solution to settle the electricity shortage.

In 2030, wind and solar power will be more cost-effective than coal. 

The Electricity Law states that the State holds a monopoly in power transmission. But Deputy Prime Minister Trinh Dinh Dung explained that this means a monopoly in management only, not investment.

Gas-fired power is considered more friendly to the environment than coal-fired power, but the selling price is sky high.

Vietnam has been step by step switching from coal-fire thermopower to renewable power.

Many households and enterprises in Vietnam have proposed continuing the solar power purchasing price at 9.35 cent per kwh, as applied before June 30.

In the context of a serious electricity shortage, importing electricity from China is unavoidable.

Since 2017, Vietnam has had an attractive feed-in tariff (FiT) rate of 9.35 US cents per kilowatt hour for grid-connected solar projects.

The solar power boom in Vietnam is bringing benefits for Chinese suppliers and contractors in engineering, procurement, and construction participating in the value chain, but are urged to be cautious in choosing suitable and reliable partners.

Despite bankability concerns in power purchase agreements, investing in solar power is a new boom in Vietnam as developers, original equipment manufacturers, and contractors rush into the market thanks to the current feed-in tariff. 

Floating solar panels may just be catching on in Vietnam, but they could be about to grab a huge slice of the country's renewable energy market.

Le Dinh Vu, owner of a home decor store in HCM City’s Thu Duc District, spent nearly VND50 million (US$2,155) to install solar panels on the roof of his newly built house.