In the past 3 years, solar and wind power have really thrived in Vietnam. From zero, wind power and solar power have continuously made records.
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In the end of January 2021, the investors were reeling with meetings to push their wind power projects on schedule, so as to meet the deadline for applying the FIT price to wind power. This preferential price will be applied to only one part or all of the factories having commercial operation dates before November 1, 2021 and for 20 years from the date of commercial operation. Thus, there is only less than 1 year left.
On September 10, 2018, the Prime Minister issued Decision 39/2018/QD-TTg on amending and supplementing a number of articles of Decision 37. Accordingly, the increased wind power price (VAT excluded) is adjusted as follows: Inland wind power is 1,927 VND/kWh, equivalent to 8.5 UScent/kWh; Offshore wind power is 2,223 VND/kWh, equivalent to 9.8 UScent/kWh.
In reality, in the past 3 years, solar and wind power have really boomed in Vietnam. From zero, wind power and solar power keep setting records. The growth numbers of this “God-given wind power sources” have not ceased to increase yet.
From North to South, from Lang Son to Cape Ca Mau, from mainland to offshore faraway, renewable energy is still a key word for many investors. Many large corporations in the world are also coming to Vietnam to explore this potential market. The growth was beyond expectation. The heat seems to exceed the forecasting capabilities of the policy-making agencies.
The published announcement of the Vietnam Electricity (EVN) shows that as of December 31, 2020, the total installed capacity of solar power across the country reached about 19,400 MWp (in which roof solar power accounts for nearly 9,300 MWp), approximately 16,500 MW – accounting for about 25% of the total installed capacity of the national power system.
According to the statistics, the total output of solar power generated nationwide in 2020 will be 10.6 billion kWh (in which 1.16 billion kWh is roof solar power), accounting for about 4.3% of the total output mobilized from the whole national electricity system.
As for wind power projects, due to the difficulty in the investment, the additional planning and operation data are still limited. The total capacity of the windfarm power source is about 500 MW, but thousands of MW are still rushing for completion. Hundreds of trillion dong of domestic and foreign private investment capital have been poured into solar and wind power, adding a considerable amount of electricity to the national power system.
Risk identification
Regarding the boom in Vietnam’s renewable energy, BloombergNEF – an energy research organization wrote: Vietnam’s story in particular shows that small markets are not only advancing rapidly in the transition to clean energy, but they are also no longer small. Rooftop solar power companies managed to install nearly 9 GW of capacity, including 6 GW in December and 4.6 GW in the last week of the year. These numbers three folded what BNEF had expected at the beginning of the year and the amount of new capacity is enough to make Vietnam the third largest solar energy market in the world.
Solar and wind “farms” are appearing everywhere
“The development of solar power and wind power over the past time can be considered an achievement or not?”. This question posed by a reporter to many people who understand this type of energy. However, there are very different responses. The investors and the environmentalists still confirm that renewable development should be developed as much as possible by mobilizing the power of the private sector. However, it is said that the “scorching” development of this power source also has two sides.
In the end of 2020 and the beginning of 2021, many renewable energy investors have to confront the state of capacity cutoff to the grid due to excessive generation at some points (from 10am to 2pm, especially on weekends and holiday). Previously, many solar power projects had to face the reduced capacity due to overloaded grid.
The National Load Dispatch Center warned “The available capacity of the power source cannot be fully mobilized”. Including renewable energy sources such as wind and solar power during low load hours at noon, weekends or holidays, as well as New Year and Lunar New Year holidays 2021.
Many projects can not generate all the power to the grid. The risk of loss is inevitable. The financial plan is on the verge of collapse. It has been said that, in the context of excessive electricity at some points, why not use 100% of wind or solar power.
Experts answered “it’s impossible”, because of the instability of these power sources. Either a cloud or a rain might cause this power source to suddenly drop to zero. Then, the electrical system will face a risk, for it is unable to promptly mobilize backup power to the grid if thousands of MW suddenly “collapse”. The sudden drop in frequency will cause traditional power plants to be affected, stop working, or even create a chain of “collapse” reaction. The power grid will be in the state of “grid discharge”, resulting in widespread power outages.
“The sudden drop in capacity will affect the power system in general, not just the transmission system,” said a power specialist.
On the other hand, the fact that many investors face the risk of loss when pouring money into renewable energy is also something policy makers need to care about. Because after all, it is also the resource of society. Therefore, it is necessary to calculate to develop renewable energy at an appropriate level, to ensure the interests of the State, the investors and the electricity consumers.
According to the Ministry of Industry and Trade, the total capacity of solar power projects has been added to the planning of over 10,000 MW (8,000 MW is expected to be operational before 2020 and 2,000 MW after 2020). That is not to mention the total registered, but not yet added capacity of 25,000 MW (12,300 MW is expected to be operational before 2020 and 12,900 MW after 2020).
Source: Vietnamnet.vn
