World Bank: Vietnam’s auction shift to unlock orderly solar boom

Published onFebruary 20, 2020

One of Asia’s key solar markets could push capacity to the double-digit-gigawatt region within 10 years if it presses on with a shift from feed-in tariffs (FiT) to auctions, according to the World Bank. Vietnam could take installed PV capacity to the “tens of gigawatts” and create some 45,000 jobs every year by 2030 if it uses competitive bidding rather than the direct subsidies it has opted for so far, the global body said in a report it published earlier this week. The advice to leave solar FiTs behind comes after the tariffs sparked a deployment rush that clogged the grid last year, particularly around Vietnam’s high-irradiation south. As the World Bank notes, policymakers were caught unawares by the roll-out of 4.5GW, five times what was planned.