New deployment schemes ‘could unlock solar boom’ in Vietnam

World Bank suggests a new strategy could transform Vietnam into a solar powered metropolis, creating thousands of jobs

Two new deployment schemes for solar projects could accelerate solar energy production and usage in Vietnam.

That’s the suggestion from the World Bank, which says competitive bidding for solar parks and ‘substation-based bidding’, which is competitive bidding based on available capacity at electrical substations, would address curtailment issues as well as improve risk allocation between public and private investors.

The report, based on two years of World Bank support to the Government of Vietnam, claims this could scale up solar production in Vietnam from the current 4.5GW to the tens of GWs range in ten years while creating thousands of new jobs: 25,000 new jobs in project development, services, operations and maintenance annually through 2030 and another 20,000 jobs in manufacturing.

The report comes as Vietnam is considering moving from a feed-in-tariff (FIT) policy to a competitive bidding scheme for solar projects to reduce the cost of solar generation.

“The World Bank’s support contributes to the sustainable and transparent development of renewable energy in Vietnam by harmonising the interests of private investors, the government and customers” said Hoang Tien Dung, General Director of Electricity and Renewable Energy Authority, Ministry of Industry and Trade.

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