In between climate change and environment pollution nowaday, consuming green energy is always cared for and prioritized for developing the world, including Vietnam. Not to mention the huge economic benefit from renewable energy is very attractive to investors, so they rush into finding locations for their green energy investment.
1. The reality of the solar energy industry flooded by foreign investors
Vietnam has attracted many domestic and foreign investors in the solar energy industry. The projects with average capacity from 20 MW to 300 MW have been installed mostly in the Middle and the Southern Provinces.
Many foreign investors have built solar projects in Thua Thien – Hue, Ha Tinh, Hau Giang. Between them, the Tuy Phong solar project (Binh Thuan) of DooSung Vina Limited Company with a scale of 66 million USD, a capacity of 30 MW. EGAT (Thailand) is targeting another project in Binh Dinh, and the AirCraft company from Germany is researching a project in Quang Tri.
The British companies are advising Vietnam to balance the economic development goal and the energy security, to avoid the power shortage in the future. They also hope Vietnam will prolong the fixed electricity purchase and sale price mechanism (FIT price) for the green energy.
So to say, based on convenient natural conditions, many preferential decrees built to support the reasonable purchase and sale price mechanism, Vietnam has become a great place for solar power projects. This is attracting foreign investors to “rush” to invest.
2. Why foreign investors value Vietnam as a potential market for the solar power industry?
Suitable natural conditions
Vietnam has its geological location near the equator, high sunshine hours, good light density, which are extremely favorable natural conditions for solar power projects.
Vietnam is a developing country with an abundant, highly skilled but reasonable cost labor source, which is attracting many foreign investors.
In addition, the private solar power business model in Vietnam has only bloomed recently. There are still many markets and opportunities for investors to participate.
Realizing that, foreign investors are tending to seek, purchase and invest in clean energy projects in Vietnam more and more.
Encouraged and supported by the government
Vietnam is currently on the track of economic, social and scientific – technical development. The demand for energy in the present and in the future is enormous. Grabbed the fact, investors have been expanding renewable energy power projects, especially solar power with long-term benefits in both the economy and society.
Solar projects in Vietnam are gradually expanding in scale and increasing capacity to meet the energy needs of a dynamic country. Therefore, it can be said that the development potential of renewable energy projects is extremely large and has no limit
In addition, the investment in renewable energy power projects is also very supported and encouraged by the government, making this field grow strongly with reasonable and open policies. The foreign investors in the field of clean energy electricity have more opportunities and benefits from this market.
3. What are the benefits of investing in clean solar energy in Vietnam?
Profit from solar electric sale
Currently, renewable energy power projects are implemented with the mechanism of electricity purchase and sale in the direction of delivery and receipt of two-way electricity meters. According to actual data, this figure is 8.38 UScents applied to rooftop solar projects with commercial operation period from July 1, 2019 to December 31, 2020 and 9.35 UScents applied to rooftop solar projects with commercial operation time from June 30, 2019 or earlier.
These numbers are very attractive with investors. So to say this price is very profitable for the investors, also the reason why foreign investors currently rush into this industry.
The big and promising future benefits from clean energy
Creating a new clean living environment is a wise investment. Inventing and using clean energy sources help protect the environment, improve life value.
Using clean energy also helps reduce wastes and improve hygiene. It brings economic benefit for investors by not only reducing the production costs, but also making profit through electricity sale mechanisms.