The lack of policies is amongst the challenges hindering the development of solar energy in Vietnam.
The issue was discussed at a conference about opportunities and challenges to develop solar power on September 21 held by the Vietnam Clean Energy Association.
Solar panels on Spratly Islands
According to the association, many investors have shown an interest in renewable energy market. About 30 investors from France, India, South Korea, Vietnam and other countries are considering plans to build 20MW to over 300MW solar power plants in Ninh Thuan, Binh Thuan or Thua Thien-Hue provinces.
Vietnam has huge potential for solar power development, with average solar radiation of 4.3 KWh/m2 and 2,000 sun hours per year. Central and southern provinces from Danang southwards have higher solar radiation and sun hours of 5 KWh/m2 and 2,500 hours respectively. Using solar power is an effective and cheap solution to provide electricity to remote islands.
Tran Thi Thu Ha from Vietnam Electricity said solar panels could also be installed above hydro-reservoirs. "They can absorb solar power while helping limit water evaporation. We are researching this project to install solar panels above reservoirs in Dong Nai Province," she said.
Vietnam can save huge money with solar power plants as it is having to import coal and liquefied petroleum gas to generate electricity.
However, despite the potential, the solar project has many difficulties. Ha said coal-fired power plants need time and huge reserve capacity in order to be turned on immediately when the sun is set and this will increase the usual operation cost.
Location, availability of sunlight and compensation funds for ground clearance task are also huge obstacles as in order to produce 1MW, they will need 1.5 to 2 hectares of land. The lack of mechanisms and support policies in particular, are preventing investors from entering the market.
Le Vinh Son, chairman of the clean energies and energy saving group under the Vietnam Private Sector Forum and chairman of the Son Ha Group said policies for clean and solar energy are either lacking or unsynchronised."Investing into this sector is costly, yet the outcome is unclear," he said.
Diep Bao Canh, chairman and general director of Red Sun Solar Energy Company, said officials and managers didn't have in-depth knowledge about solar energy so they can't give accurate assessments on solar projects, make plans or suggest technical standards. Financial institutions and banks also don't have experts to assess the projects.
He suggested that government should create technical standards and have plans to control power prices.
