Setting the mechanisms for supporting development of Solar Power Projects

Setting the mechanisms for supporting development of Solar Power  Projects - 

On Jan 5, Deputy Prime Minister (DPM) Hoang Trung Hai chaired a meeting with the concerned ministries and agencies for  directing to set the mechanisms for supporting development of solar power projects (SPP) - a sector now being encouraged in investment to solve the clean energy problem and sustainable development.

At the meeting, DPM pointed out, to carry out the viewpoint of the Party and development objective of the Government in energy development strategy and power development planning of the country as giving priority and encouraging available renewable energy sources, increasing the renewable energy power from a negligible rate up to 5.6% and 9.4% in 2020 and 2030.

According to the forecast of the Power Master Planning VII, the electricity demand of the country will increase averagely by the growth rates of nearly 10% in 2016-2020 and 7.2 - 8.1% in 2021-2030.

Studying the potential reserves and fuel supply possibility capacity for electricity generation has showed the existing primary energy sources will be maximally exploited and insufficiently supplied for electricity demand forecast after 2020, when Vietnam would become a large energy import (dependent) country.

Ministry of Industry and Trade informed total capacity of power generation from the renewable energy sources in Vietnam at present is 1,300 MW, among that there is a considerable number of SPPs distributed and not yet connected to the national electricity network for trade due to a obstacle by the high investment costs and electricity prices, and not yet a special price mechanism to attract investment.

The studies have showed Vietnam is a country of the high potential for developing SPPs with a 1400-3000 hour/year total sunlight time and about 230-250 kcal/cm2 average radiation increasing to the south direction.

According to the regulations of the Government, solar PV is a new and clean technology with the particular characteristics, especially encouraged in investment. However, in order to concretize this incentive and prior policy, it is necessary to issue a legal status for transparency of investment procedures, promotion of activities for SPP development in coming time.

DPM Hoang Trung Hai directed the Ministry of Industry and Trade in collaboration with the concerned ministries and agencies to make a draft decision of the Prime Minister for the clear regulations on planning, investing and developing SPPs and connecting these projects to the power system.

This draft decision would be improved soon and submitted to the Prime Minister for consideration and decision in the coming time.

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