By Rubina Obaid
Numerous solar power became operational, reflecting the wave of solar power development in Vietnam to catch up economic growth and implementing sustainable renewable energy resources to also meet climate neutrality goals
In pursuit of safe energy, transition countries are striving to reduce carbon emission and combating climate change by developing solar energy, renewable energy sources. Government policies up surged solar power of the Vietnam deadline boom. Vietnam is no exception in taking key measures for playing a constructive role to diversify away from coal. Till 2017 solar energy played almost no part in energy of the Vietnam mix and in order to speed up the technology adoption government started to incentivize the suppliers to encourage them to take initiative in the time span of two years. Due to this various solar power plants became operational in the first half in the year 2019 reflecting the part of solar development wave and became a hotspot in Asia. By the end of 2019, the country experienced an unprecedented boom and found itself with 5GW which is more than Australia. However, the increasing demand also led to grid congestion challenges.
Whereas some projects are found to be underperforming that leads to long curtailment periods and eventually shortfall in production. Therefore, in order to maintain long term momentum in Vietnam, Alectris called for investment to help in developing a domestic O&M industry to provide support for existing and upcoming projects. According to Alectris it is imperative to foster developer and investor collaboration in early-stage to enable best practices for asset management for expanding the horizons of solar development. It is critical to maintaining solar project development under FiT schemes to maintain high level of quality during construction and to instill confidence among investors. Also for the sustainable development of the solar sector of Vietnam SkyXSolar announced to sign a joint venture with SAIGONTEL to build rooftop solar projects.
Commercial and industrial segments are going to be focused by SkyX, solar rooftop developer, as it would hold the majority of the stake. The venture would initially develop and operate 50 MW of rooftop projects and 10 industrial parks and it will offer end to end renewable energy solutions to creditworthy client partners, which in turn will be absolutely cost-effective and environment friendly. Samresh Kumar Executive Chairman of SkyX solar said that “Rooftop solar, especially for the commercial and industrial segment will be a game-changer for the renewable power sector in Vietnam. The partnership is a strong milestone in our journey to 150 MW+ development in the country over the next three years”
Rooftop solar power market is experiencing a considerable boom as leading companies are greatly switching towards sustainable energy sources which are cost-effective too, due to the rising energy prices in Vietnam. International finance corporation, a member of world bank group have announced to provide financial support to the country by providing loan to Vietnam Joint Stock Commercial Bank to lend support to small and medium enterprises for reaching climate neutrality. Vietnam being one of the most carbon-intensive countries and facing huge climate challenges. Also, Asian Development Bank has signed a $37 million loan agreement to extend the help for financing the installation of a 47.5 MW floating solar power project.