Vietnam eyes adding 4GW solar capacity by 2025

Capacity for ground-mounted and floating solar is expected to boost growth.

The government in Vietnam is eyeing a 4GW production of solar capacity by 2025, and aims to increase it further to 12GW by the year 2030, according to Fitch Solutions.

In line with Vietnam’s commitment to meet surging power demand, Fitch forecasts that Vietnam’s renewables market will register a robust growth in the next ten years, with the possibility of hitting 7.7GW by 2028.

Fitch sees that the new feed-in-tariffs set at US$70.9 and US$76.9 per megawatt hour (MWh) for the two solar sub-segments in Vietnam – ground-mounted and floating solar capacity will remain high, and assist in attracting investors as auctions push prices down substantially in most alternative solar markets.

Furthermore, a new Direct Power Purchase Agreement (DPPA) is expected to drive additional growth for the sector. The DPPA, which is set to be launched in 2019, will introduce a new scheme allowing renewable energy producers to sell and deliver electricity directly to corporate customers.