The next decade is one of action. By 2030, investments into renewable energy projects should be doubled from $330 billion to $750 billion to achieve the objectives of energy transition and sustainable development goals, a top decision-maker said in Abu Dhabi. International Renewable Energy Agency (Irena) director-general Francesco La Camera stressed the need for stronger policies and more investment. He noted renewables should be central to energy and economic planning.
The Ministry of Industry and Trade has proposed a new feed-in tariff 32 percent lower than the earlier incentive rate. It wants a fixed rate of 7.09 cents per kWh, down from the 9.35 cents offered to projects completed before June 30 last year, it said in a recent proposal to the government. The new tariff will apply to projects that were begun before November 23 last year and start commercial operations between July 2019 and the end of this year. To be effective for 20 years, it has not accounted for value-added tax and fluctuations in currency exchange rates.
Technological advancements such as increased-capacity wind turbines, floating wind turbines and 3D printing have brought down the overall cost of offshore wind power and opened new offshore locations that were previously inaccessible. These improvements are accelerating the adoption of wind power and driving the global offshore wind turbines market toward monumental growth. The scaling up of investments in the renewable energy sector through national, regional and international climate change-related policies has had an enormous effect on the offshore wind turbine market.
Renewable energy is starting to lose its subsidies because it has proved that it can be as cheap as and even cheaper than fossil fuels. For example, China and the United Kingdom, two of the most ardent supporters of green energy, have recently pulled back on subsidies, and the Trump administration in the United States would also like to. But while wind and solar power rates can cost less than traditional fuels, the subsidies are masking another problem — one that is becoming apparent as the subsidies are eliminated.
World Bank and GIF support the Government of Vietnam to mobilize private investment in solar pilot auction program
The Global Infrastructure Facility’s (GIF) Governing Council approved $1.5 million in funding to support the World Bank’s work with the Government of Vietnam on the Solar Pilot Auction Program. The GIF, working with the World Bank’s Energy Global Practice, will help the government to design and structure the Auction Program to transition from a feed-in tariff regime, to a sustainable competitive auction scheme for solar generation.
The outlook for growth in Vietnam’s renewables sector is positive, writes Daine Loh, research analyst at Fitch Solutions. And the solar segment is one of the key drivers of this impressive growth. Vietnam still has substantial untapped solar power potential. Coupled with an increasingly supportive regulatory environment, and an expected surge in electricity consumption over the next decade, the country’s renewables sector is poised for a new dawn. And this will bring substantial opportunities for investors
Vietnam’s plans to move from renewable feed-in tariffs (FiTs) to competitive auctions have now crystallised into a pilot tender, set to contract two major floating solar projects. The Asian Development Bank (ADB) will back plans by the Southeast Asian state to hold this year and next tenders for up to 400MW of floating solar. Documents show the ADB is looking for six experts to support the auction, which will see IPPs bid for a 50-100MW first floating PV batch in 2020 and a 300MW second stretch in 2021.
Technological innovations and favourable government policies are among the four trends expected to drive Southeast Asia’s transition to renewable energy in the coming years. A report published by global auditing firm KPMG titled ‘The Renewable Energy Transition’ noted that while there are still 70 million ASEAN citizens without access to reliable electricity, the potential for renewable energy is huge in those markets and governments are increasingly turning to solar and wind energy to address the issue.