Vietnam’s Auction Plan for Solar Energy

Published onDecember 6, 2019

Vietnam’s electricity demand has been the second-largest in Southeast Asia since 2015 and is expected to retain this position in 2020. However, only 0.5 percent of excess capacity in the electric system is currently available to meet the enormous future demand. To tackle the imminent power shortage, the government has introduced an auction system in Notification No. 402/TB-VPCP on November 22 to promote the integration of solar power into the national electricity structure. The new mechanism is favorable as it is poised to resolve the problems from the expired Feed-in Tariff (FiT) incentives. Entitlement to a flat FiT of 9.35c/kWh (kilowatt-hour) has lured an enormous number of projects coming into Vietnam, with most of them clustering in Ninh Thuan and Binh Thuan provinces.