Vietnam’s golden solar years aren’t over, despite policy changes

Published onDecember 11, 2019

A new era dawns for solar power in Vietnam. Last month, the Vietnamese government announced it would shift to an auction system for future ground-mounted solar projects, overruling a previous proposal of a second round of its immensely successful feed-in-tariff scheme. The move, which would cut the tariff scheme that was to expire in 2021 short by one year, sparked dismay among domestic developers whose projects will be affected. But provided the Southeast Asian nation does everything right, auctions could bring long-term benefits to Vietnam’s power supply, including reduced electricity prices, better grid management and improved oversight of clean energy projects. The programme’s implementation, however, will be a balancing act.