Deputy Minister Hoang Quoc Vuong of Vietnam’s Ministry of Trade (MOIT) has said that the ministry is contemplating to buy at auction prices of renewable energy, mostly solar power, following the market rules. 

A solar power project. Photo: Internet

The MOIT will apply reasonable solar energy prices at instead of the estimated 9.35 US cent/kWh which the ministry planned in 2017 to buy from supplier, Vuong told the press at a working trip to Tuy Phong Wind Power Plant in the central province of Binh Thuan on December 18.

“The fact that global solar power prices have plunged over the past year forces Vietnam to adjust the expected prices,” Vuong explained. 

On answering the question if the auction goes against the government’s long-term power price policies and the investors’ aspirations, Vuong affirmed that the auction would cause no impact on the investors as the power developers are committed to keep the prices stable for 20 years since the auction. 

Solar power projects mushrooming 

Over the past years, the number of renewable energy projects, including solar power has been on the rise thanks to the government’s favorable policies and increasing demand. 

Statistics by the National Load Dispatch Center (NLDC) showed that Ninh Thuan and Binh Thuan provinces are home to more than half of the country’s total solar power projects which are under the signing and negotiations for power purchase contracts with Vietnam Electricity (EVN). 

The central coastal province of Ninh Thuan has so much potential for solar energy thanks to benefiting 2,843 sunshine hours per year and annual net radiation of 161.6 kcal/cm2, equal to 5.2 kWh/m2 daily. 

So far, Ninh Thuan has kicked off construction of 23 solar energy projects with total investment of VND42 trillion (US$1.78 billion).  

Meanwhile, the neighboring province of Binh Thuan possesses the total annual sunshine duration of 2,728 hours with annual net radiation of 1,961 kWh/m2 or 3.35 kWh/m2 per day. In addition, the province’s weather without storms is favorable for the operations of solar cells.

As of September 2018, Binh Thuan has zoned 40 locations covering 7,730 hectares for the investment portfolio of solar energy. Of the total, 14 projects worth VND20.7 trillion (US$900 million) have got in-principle investment.  

Amid the rapid increase of solar power projects, the Government Office has asked the industry ministry to meditate on the solar energy development. 

Vietnam plans to have 850 MW of solar energy by 2020, making up 1.6% of the country’s total power capacity, and 12,000 MW by 2030 (accounting for 3.3% of total power capacity)