Vietnam Can Learn from Germany’s Experience in Solar Energy Development: GIZ

Tuan Minh

18:17 26/09/2017

BizLIVE - Sonia Lioret, principal technical advisor and head of the Renewable Energy and Energy Efficiency (4E) project funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), has talked to BizLIVE on Vietnam’s solar photovoltaic potential and GIZ’s willingness to support Vietnam in this sector.

Vietnam Can Learn from Germany’s Experience in Solar Energy Development: GIZ

Sonia Lioret, principal technical advisor and head of the Renewable Energy and Energy Efficiency (4E) project. Courtesy photo by GIZ's 4E project.

Vietnam has huge solar PV potential, but not all the potential is commercially viable. What is GIZ's assessment on Vietnam's PV potential and the outlook for development of solar power plants in the country?
Indeed, one should distinguish the theoretical potential (solar irradiation) from the technical potential (areas where technical constraints such as natural forest, infrastructure, cities for ground-mounted solar plants, land-use constraints, etc. have been removed), and from the economic potential (where it is economically viable to develop solar energy). This depends also of the fit-in tariff (FIT).
GIZ is currently assessing the potential on the request of the Power and Renewable Energy Department of The Ministry of Industry and Trade. The assessment team is composed by local consultants, the Institute of Energy and International consultants, the Becquerel Institute.
The assessment should be finalized in January 2018 and we will then be able to offer more details.
As subscription for licenses to develop solar plants has surged in Vietnam, exceeding the government's target of 12GW. How should the Vietnamese government select the best proposals to license? Should it revise up the target?
Not all projects under development will be constructed. It is necessary to have a pipeline of projects widely exceeding the targets. In particular, some developers are competing against each other in very near locations, some will not be able to get financing for their projects, some will experience unforeseen difficulties.
The new feed-in-tariff [set by the government at 9.35 U.S. cents per kilowatt hour] is valid until June 2019. It is a challenge for developers to develop, finance and build their projects until then.
The number of projects able to meet the deadlines will give a good idea of the quality of the pipeline of projects. Then the government has to issue another support mechanism. An auction is now considered. An auction is a mechanism that can control volumes if the pipeline of quality projects is larger than the targets.
What recommendations GIZ has for the Vietnamese government to refine its policy for the clean energy sector, particularly the solar sector?
GIZ aims at supporting the Vietnamese government in meeting its renewable energy and energy efficiency objectives.
Each country has its own way of developing solar energy. Germany has been a market opener for solar energy and represents today the third installed capacity in the world. Germany can share bad and good experience of developing solar energy. However, each country has to find its own way of developing renewable energy and GIZ is willing to support.
Thank you very much!

TUAN MINH

Từ khóa: Vietnam

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