What does Vietnam's Solar Policy update mean for energy storage?

Vietnam’s solar policy update highlights growing role of energy storage. (Photo: iStock) Vietnam’s Ministry of Industry and Trade (MOIT) has announced a new round of feed-in tariffs (FIT) for solar power, introducing location-based pricing and, for the first time, incorporating energy storage systems.

How is solar energy regulated in Vietnam?

Vietnam’s solar power sector is governed by a number of key regulations and policies aimed at promoting the development of renewable energy while managing the challenges associated with rapid growth.

Could Vietnam replace fixed feed-in tariffs with standardized auctions?

As global costs for solar, wind, and battery storage systems fall, Vietnam could replace fixed feed-in tariffs (FiTs) with standardized competitive auctions to procure clean energy at the lowest cost.

What are the conditions for solar storage in Vietnam?

Conditions for systems with storage include a minimum storage capacity of 10% of the solar plant’s installed capacity, a charge/discharge time of 2 hours, and at least 5% of total generation used for charging the storage system. Overall, projects with storage receive higher FIT rates. Previously, Vietnam’s FiTs were relatively low.

Why did Vietnam cut subsidised electricity prices?

REUTERS/Kham/ File Photo Purchase Licensing Rights HANOI, May 22 (Reuters) - Vietnam's state power utility has cut previously agreed subsidised prices it pays for electricity from some solar and wind farms which now risk defaulting on their debts with banks, according to an investors' petition seen by Reuters.

How will Vietnam's new energy storage scheme help investors?

Supa Waisayarat, Vietnam’s adversary consultant at Thailand’s Super Energy Corporation, noted that the new scheme supports the adoption of storage and provides developers and investors with more transparent pricing, which could encourage more power purchase agreements (PPAs) and improve financing confidence.