Vietnam will soon lead Southeast Asia in renewable energy development, Germany’s “Energiezukunft” (Future of Energy) highlighted in its latest article, describing the country’s energy transition as very impressive.
Vietnam is experiencing a solar boom, with 11.6 GW of power of this kind added to the national grid last year, according to the International Renewable Energy Agency.
Only 105 MW of solar electricity was installed in the country in 2018, and the figure rose to 5 GW in only a year later, and even to 16.5GW in 2020, the article said, adding this is a considerable increase as compared to other nations at the same time.
As demand for energy in Vietnam is forecast to hike dramatically in the coming years, major energy companies have invested heavily in solar energy plants.
The “Energiezukunft” attributed Vietnam’s success to a special market mechanism, which drew much interest from investors. Under the purchasing power at fixed prices, investors would sell the renewable energy they create to the grid at a fixed price – one that would more than cover the cost of investing in renewable energy facilities.