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In recent years, Vietnam’s solar revolution benefited a lot from its long sunshine time.
It’s true that Vietnam’s solar revolution got the favor of Gods. The average sunshine in the North ranges from 1,500 to 1,700 hours per year. The central and southern regions have much higher numbers: From 2,000 to 2,600 hours per year.
Vietnam is a beautiful country with beautiful beaches, magnificent mountains and a long history and culture. The author from Donnergy Technology (Donnergy solar inverter factory) visited Hochimin City and Hanoi City several times. Through business communication and study, I am impressed with the installed capacity of solar power in Vietnam. As a person who worked in the solar energy industry for 10 years, in this article, I will try to explore why and how Vietnam became a photovoltaic pioneer. I deeply believe that there is a much higher demand for clean energy in Vietnam.
Khí hậu Việt Nam··· thuộc vùng khí hậu nhiệt đới gió mùa .Nhiệt độ trung bình năm từ 22ºC đến 27ºC. Hàng năm, có khoảng 100 ngày mưa với lượng mưa trung bình từ 1.500 đến 2.000mm. Độ ẩm không khí trên dưới 80%. Số giờ nắng khoảng 1.500 – 2.000 giờ,.
Firstly, let’s look at the installed capacity of clean energy in Vietnam
With a dynamic economy and soaring energy demands, Vietnam has emerged as a powerhouse in the field of renewable energy, particularly in photovoltaics (PV). At the forefront of the ASEAN region, Vietnam’s commitment to sustainable energy solutions is transforming it into a global leader in the photovoltaic industry.
Vietnam has emerged as a global leader in the photovoltaic (PV) industry, boasting a cumulative installed capacity exceeding 16 GW as of 2020. By July 2021, Vietnam had further bolstered its position with a total installed photovoltaic capacity of approximately 19,400 MWp. Household photovoltaic installations contributed nearly 9,300 MWp, almost half the total capacity. This remarkable achievement translates to around 16,500 MW, representing approximately 25% of the country’s installed electricity capacity.
Actually, in the ASEAN region, Vietnam stands out for its dominance in photovoltaic manufacturing and installed capacity. The country boasts unique solar resources, with a staggering total technical potential of photovoltaic power generation reaching 1,646 GW. This includes 1,569 GW of land-based photovoltaic potential and 77 GW of water-based photovoltaic potential.
Vietnam’s dynamic economy, coupled with soaring demand for electricity, has positioned it as an attractive investment destination for domestic and foreign investors.
Under the big-times background of economic development, Vietnam’s solar revolution was energized so much by its geographical conditions and abundant natural resources.
Vietnam’s natural landscape offers a rich tapestry of renewable energy sources, with wind power, hydropower, and photovoltaics as prominent contributors to the nation’s energy portfolio.
Hydropower Dominance
Hydropower is Vietnam’s primary renewable resource, with a considerable developable capacity ranging from 25-38 GW. As of 2020, Vietnam’s hydropower installed capacity reached 21,600 MW, contributing nearly 30% to power generation. However, further growth in this sector is limited due to saturation in large-scale hydropower projects.
Vietnam’s Coastal and Hilly Regions for Wind Energy
Vietnam’s coastline and hilly regions offer ample opportunities for wind power development. Research indicates that over 39% of the country’s areas exhibit average annual wind speeds exceeding 6m/s at a height of 65 m, indicating a substantial capacity potential of 512 GW.
Rapid growth in wind energy. Vietnam’s wind power sector has experienced rapid growth, with the number of wind turbines connected to the grid increasing from just 7 in May 2019 to 84 new wind farms by July 2022, totaling over 4,000 megawatts in installed capacity.
Southern Vietnam: Embracing Photovoltaics
If wind power remains the cornerstone of growth in northern Vietnam, the country’s southern regions predominantly rely on photovoltaic energy sources to meet their energy needs.
In contrast, southern Vietnam’s flat terrain and ample sunlight make it an ideal location for deploying photovoltaic (PV) solar panels. The region’s high solar irradiance levels and long hours of sunshine create optimal conditions for solar energy generation. As a result, photovoltaics have become the primary source of renewable energy in southern Vietnam, powering homes, businesses, and industries across the region. The widespread adoption of solar energy technologies reflects the commitment to sustainable development and the transition towards clean, renewable power sources.
We can quote a summary of current price (Feed-in tariff-FIT price) support mechanisms for renewable energy types.
| RE type | Technology | Price type | Electricity price |
|---|---|---|---|
| Small hydroelectricity | Power generation | Avoided cost is published annually | 598-663 VND/kWh (by time, region, season) 302-320 VND/kWh (excess electricity compared to the contract) 2158 VND/kW (capacity price) |
| Wind power | Power generation | FIT price 20 years | 8.5 US¢/kWh (on shore) and 9.8 US¢/kWh (off shore) |
| Solar power | Power generation | FIT price 20 years | 7.69 US¢/kWh (floating) 7.09 US¢/kWh (ground) 8.38 US¢/kWh (rooftop) |
| Biomass energy | Cogeneration Power generation | Avoided cost is published annually | 5.8 US¢/kWh (for cogeneration) 7.5551 US¢/kWh (North) 7.3458 US¢/kWh (Central) 7.4846 US¢/kWh (South) |
| Waste to energy | Direct burning Burning of gases from landfills | FIT price 20 years FIT price 20 years | 10.5 US¢/kWh 7.28 US¢/kWh |
How do the people of that land engage them in Vietnam’s solar revolution?
They are tapping into abundant solar potential
Now we know that Vietnam’s southern and central regions boast abundant solar resources, with average annual sunshine hours ranging from 2,000 to 2,600 hours per year. This wealth of sunlight has propelled the growth of solar energy infrastructure, with the country’s installed solar power capacity reaching approximately 19,400 MWp as of July 2021.
Vietnam successfully obtained global influence. The effort is worth it.
Vietnam’s dominance in the photovoltaic sector extends beyond its borders. According to data from the Asian Development Bank released in August, Vietnam emerged as Southeast Asia’s largest solar photovoltaic supplier, capturing 5% of global supply.
This achievement solidifies Vietnam’s position as a key player in the global renewable energy landscape and underscores its potential to drive sustainable energy transitions across the region.
Let’s put our eyes on the market potential and projections
Vietnam’s photovoltaic market is poised for exponential growth, with national electricity demand projected to reach 90,000 megawatts by 2025 and 130,000 megawatts by 2030. The country’s GDP is expected to grow at an annual rate of 6.5%-7.5% from 2022 to 2030, driving a corresponding 7% annual growth in electricity demand. With abundant solar energy resources, annual sunshine hours ranging from 2,000 to 2,500, and attractive investment opportunities, Vietnam’s PV market is forecasted to experience significant expansion in the coming years.
Government commitment and policies in Vietnam
Generous support policies, such as feed-in tariff subsidies and tax exemptions, have played a pivotal role in incentivizing the adoption of solar energy technologies in Vietnam. These measures have encouraged investment in solar infrastructure and accelerated the photovoltaic industry’s growth in the country’s southern regions.
The Vietnamese government’s proactive stance towards renewable energy is evident through its stable and supportive policy environment. Ambitious targets outlined in the National Green Growth Strategy 2021 ~ 2030 and Vision 2050 underscore the government’s commitment to renewable energy development, attracting increased investor interest in photovoltaic projects.
Investment Landscape and Opportunities
Vietnam leads ASEAN in completed and reserve PV projects, attracting major developers.
In February 2021, Vietnam announced its 8th draft power plan (PDP VIII), aiming to increase renewable energy development targets by nearly 70% to 45 GW by 2030, with 20 GW allocated to photovoltaics. The government’s commitment to renewable energy, strategic location, and conducive investment environment make Vietnam an appealing market for PV investment.
Final Words on this article 2,600 Sunshine Hours A Year – Vietnam’s Solar Revolution Gets The Favor Of Gods:
Vietnam is a beacon of progress in renewable energy, spearheading the region’s transition towards a sustainable future. With its impressive installed capacity, favorable natural resources, and supportive government policies, Vietnam has firmly established itself as a leading player in the global photovoltaic market.
2023 passed and 2024 started. This spring, as an experienced R&D and Manufacturing supplier of solar inverters, Donnergy is sincerely looking for chances for win-win cooperation with overseas clients worldwide. We did a lot of market research and planned 9 global solar expos. Donnergy is not a big solar brand for now, but in the past 2 years, we indeed made heavy investments in R&D of various solar inverter series and ESS product series.
