According to Reuters, to ease the pressure on the power grid Vietnam planned to reduce the feed-in tariff subsidies available for rooftop photovoltaic projects from April, and the reduction ratio will be as high as 30.8%-37.9%.
Vietnam's "Grand Unity" quoted Hoang Tien Dung, director of the Electricity and Renewable Energy Bureau of the Ministry of Industry and Trade, as saying that the Ministry of Industry and Trade plans to lower the feed-in tariff for rooftop photovoltaics to 5.2-5.8 cents/kWh.
The "Grand Unity" pointed out that the reduction of the rooftop photovoltaic feed-in tariff subsidy by the Ministry of Industry and Trade of Vietnam is "unexpected." As early as January this year, the National Power Dispatching Center of Vietnam proposed that due to the excessive growth of rooftop photovoltaic installations in Vietnam last year, this year, Vietnam will cut 500 million kWh of photovoltaic power generation. Nguyen Dening, director of the center, said that the Vietnamese government has recommended that some small hydropower projects adjust their power generation time and suspend power generation during the peak period of sunshine from 11 to 13 o'clock every day to make more room for photovoltaic projects. In addition, the photovoltaic power generation market will be planned as a whole according to clear standards to limit disorderly development.
It is understood that in 2020, there has been a “running wave” of rooftop photovoltaic installations in Vietnam. In December alone, the installed capacity exceeded 6.7 GW, and the annual new installed capacity exceeded 9 GW. As of January this year, the cumulative installed capacity of rooftop photovoltaics in Vietnam has increased from 378 MW in 2019 to 9.583 GW, an increase of 2435 percent.
Industry organization PV-tech pointed out that last year's roof photovoltaic installations in Vietnam suddenly became popular, mainly due to the stimulation of national subsidy policies. In April last year, the Vietnamese government announced the latest feed-in tariff for utility-scale photovoltaic power plants, rooftop photovoltaic power plants, and floating photovoltaic power plants. Among them, the purchase price of new rooftop photovoltaic power plants was 8.38 cents/kWh.
In fact, in recent years, Vietnam has become one of the fastest growing markets for renewable energy scale electricity in Asia. However, due to the lagging development of the Vietnamese power system, the surge in installed renewable energy power capacity has also caused the industry to worry about the stability of the Vietnamese power grid.
Vietnam Power Group once stated in a report that in Vietnam, photovoltaic power generation has accounted for a quarter of the total power generation of the power system. This explosive growth has affected the stability of Vietnam's power distribution system.
According to Reuters, according to the Vietnamese government’s draft power development plan this year, Vietnam needs to invest as much as US$128.3 billion in the power industry from 2021 to 2030, of which nearly one-fifth of which needs to be invested in the construction of power grids, before Vietnam can be Its total installed power capacity has increased from 69 GW at the end of last year to 137.2 GW to meet its power demand.
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