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Vietnam Energy Forum

Establishing mechanisms to support the solar power development

 - On October 23, 2015 Deputy Prime Minister (DPM) Hoang Trung Hai, Head of the State Steering Committee of the Power Planning VII chaired a meeting on establishing mechanisms to support the development of solar power projects and assigning the Ministry of Industry and Trade (MOIT) to establish ahead mechanisms for providing with the promises to promote developing and using renewable energy sources, including solar power, in a spirit to aid the projects and programs of developing and using solar power to get preferential treatment for the investment, price and tax.

According to the Power Planning VII, the electricity demand growth of the country is forecast as nearly 10% per year in 2016-2020 period and for satisfying a need of the development while the traditional energy sources more and more exhausted, Vietnam must take into count as soon, the renewable energy sources, especially wind, biomass and solar power energy…

The solar energy potential of Vietnam is evaluated fairly in the world as an average reaction of 230-250 kcal/cm2 with a total sunlight time of 1.400-3.000 hours per year. With this solar reaction the needs of electricity generation, drying and cooking can be satisfied well.

At present, solar power technology for Vietnam is still a new one, there are mainly the pilot projects without connection to national electricity network, no commercial projects due to the large investment rate, high costs and no special mechanism for electricity price to attract investment.

That is a very reason, why the DPM Hoang Trung Hai directs MOIT to establish mechanisms to stipulate planning, object for solar power energy development, grid connection investment and issues relating to start up, operate and terminate the projects.

In supporting mechanisms, managers will stipulate responsibility of electricity purchase from grid connected solar power projects, incentives on the investment, tax and land. Especially, will be framework of electricity prices for on-grid projects and support incentives for off-grid projects.

The mechanisms for the price issues will be carefully studied and refer to the regional and international experiences.

VietnamEnergy.vn

 

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