How do private solar power plants work in Vietnam?

Previously, owners of private solar power plants, whether rooftop or large-scale, could only sell electricity to the grid through conventional power purchase agreements (PPAs), with no option for direct sales to consumers. In Vietnam, there are two types of DPPAs: private-wire DPPAs and on-grid DPPAs.

Does Vietnam have a role in the expansion of solar energy?

This article examines Vietnam’s key policies and models that have played a crucial role in driving the expansion of solar energy. They can provide guidance for addressing market challenges, drawing in new investments, and advancing a country toward its climate targets.

Is Vietnam ready for a competitive bidding mechanism for solar energy?

Vietnam is now developing a competitive bidding mechanism for solar energy to improve grid efficiency, promote competition, and ensure a stable energy supply, but it’s currently in the works and hasn’t been implemented yet. As such, Vietnam has been in a transition phase since the end of the FiT policy.

What is Vietnam's 8th National Power Development Plan (PDP 8)?

Vietnam’s Eighth National Power Development Plan (PDP 8), released in 2023, emphasizes the expansion of rooftop solar, particularly in off-grid areas and for self-consumption systems. PDP 8 includes a list of projects for large-scale solar power plants, but while planned, they are not slated for implementation until after 2030.

Does Vietnam have a renewable power source?

By 2023, renewable energy, including solar and wind, accounted for 27% of Vietnam’s total installed capacity, making it the country’s third-largest power source. The distribution of installed capacity by power source is illustrated in Figure 1. However, challenges with the FiT emerged in Vietnam.

Why is Vietnam a leader in solar energy development?

The introduction of the FiT was a significant catalyst, driving a rapid increase in solar capacity and establishing Vietnam as a leader in Southeast Asia’s renewable energy landscape. Although the FiT mechanism has since expired, new opportunities have emerged to sustain and expand solar energy development in the country.