Ambitious Solar Vision from Vietnam

• Vietnamese Prime Minister has signed on the country's PDP8 plan for its energy development
• It expects an investment worth $135 billion by 2030 for power generation and transmission grids
• Rooftop solar with self-consumption feature is a significant part of the plan to encourage self-sufficiency

Vietnam is to aim for up to 67.5% to 71.5% renewable energy share in its total energy mix by 2050 under the country's Power Development Plan VIII (PDP8), signed by Prime Minister Pham Minh Chinh to ensure energy security with a significant focus on rooftop solar power.

Approved by the government, the Decision 500/QD-TTg will see power development in the country for the planning period between 2021 and 2030, with a vision to 2050. Development of new power sources and transmission grids is estimated to cost up to $134.7 billion by 2030.

The plan stipulates having 50% of office buildings and 50% of residential spaces to use rooftop solar power on self-consumption basis by 2030, not to be fed into the national grid, to become self-sufficient.

The government also plans to become a net exporter of electricity with the development of new renewable energy sources. By 2030, it targets the country to export between 5 GW to 10 GW electricity.

Oliver Massmann of the international law firm Duane Morris LLP earlier this month referred to a brief report on the review of the PDP8 by the Ministry of Industry and Trade (MOIT). As per this report, Vietnam aims to develop about 40 GW of hydropower. The target for rooftop solar with focus on self-consumption is around 10.35 GW by 2030.

Both solar and wind power are prioritized to be developed for on-site use, not to be connected to the grid.

Massmaan said, "The approval of PDP8 will heavily influence the development of green energies in Vietnam and guide Vietnam toward the objective of reaching net-zero emissions by 2050. PDP8 will also have an impact on the adoption of the use of green energy technologies for both industrial and non-industrial applications."

Vietnam emerged as a star solar market in Southeast Asia when it installed over 4 GW of new PV capacity in 2019 with attractive feed-in-tariffs (FIT) for both ground mounted and rooftop PV projects, however it has been facing grid connection issues to accommodate large amounts of clean energy capacity. After a brief high flight, turning the country into one of the world's largest markets, demand plummeted in 2021, when the government did not extend the very attractive feed-in tariff (see Vietnam To Go Slow With RE In 2022).

At the end of 2022, its total solar PV capacity was over 18.47 GW according to the International Renewable Energy Agency (IRENA).