Potential risks from small-scale solar power

Most solar power projects in Vietnam are only small-scale, partly due to unstable policies for developing this energy source.

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According to the revised Power Plan VII, by 2020, electricity production from renewable energy will account for 9.9% of total power capacity, an increase of 4.3% compared to Power Plan VII. Particularly for the solar power sector, by 2030, it must reach 12,000 MW. Many experts believe that this is a target but also a huge challenge for the power industry.

Opportunities are being missed.

At the workshop “Development of solar power in Vietnam – Recent trends and emerging issues”, experts said that currently most solar power projects are only small-scale, investors have not focused on solar power projects because policies related to the development of this energy source are not stable. Along with that, building a reasonable electricity price mechanism will promote investors in this field more strongly.

According to Ms. Hoang Thu Huong, Deputy Director of the Industry Department, Central Economic Committee, the issuance of the solar power price mechanism (in Decision No. 11 of the Government in June and effective from September 2017) shows that the Party and State are very interested in this energy source.

“Renewable energy cannot be an alternative energy source, but placing solar panels on buildings is highly effective and this is also an important, practical energy source that is suitable for the development of energy sources in the future,” said Ms. Huong.

Although solar power in Vietnam is considered to be much more preferential than in other countries, not many investors are interested in investing in high-capacity solar power projects, except for Vietnam Electricity Group. Mr. Rainer Brohm, RB Renewable Energy Consulting Company (Germany) commented: "If we miss the opportunity to develop solar power, it is really a pity for domestic investors, because the potential for developing solar power in Vietnam is very large."

The development of small-scale solar power sources has many potential risks of no longer being "clean electricity", if the storage of electricity using batteries and accumulators is not controlled, it can easily affect the environment.

Removing concerns about the environmental impact of solar panels if investing in large projects in Vietnam, Mr. Rainer Brohm also said that solar panels do not pose the same environmental risks as coal-fired thermal power sources.

“Solar panels have absolutely no impact from photovoltaic cells on the environment or health. There are no emissions that affect the environment when producing and using photovoltaic solar panels,” said Mr. Rainer Brohm.

In the Solar Power Potential Map researched with the support of the World Bank (WB), Vietnam's solar power resources are quite abundant, with a thermal radiation source of about 2056kWh/m2/year, stretching from the Central region to the Mekong Delta region.

However, Mr. Koos Neefjes, a climate change expert (Climate Consciousness Company Limited) said that the Vietnamese Government should quickly seek investment opportunities and should invest in the Solar Energy Center.

“It may be that the use of cheap electricity sources such as hydropower in Vietnam is still widespread, which is also one of the challenges when converting to solar energy - a power source that requires huge investment. In terms of the market, solar power is also a big challenge, so Vietnam needs to find other ways to create a renewable energy market with new directions,” Mr. Koos Neefjes suggested.

Policy mechanisms need to be long-term.

According to the Power Plan VII (adjusted), the desire to have 12,000 MW of electricity by 2030 is very possible, it is no longer a matter of potential. However, to achieve that, according to Mr. Do Duc Tuong, representative of the Energy Program of the United States Agency for International Development in Vietnam (USAID), Vietnam needs to build more long-term incentive mechanisms so that businesses can feel secure in investing.

“The development of a pricing mechanism for solar power is still in the short term, only about 3 years. Many investors are still unclear about what Vietnam’s electricity prices will be like after 2019, whether they will decrease or not? Therefore, investors still want the Government to introduce longer-term electricity pricing policies and mechanisms, shortening registration and licensing procedures… to contribute to the rapid development of the renewable energy industry in Vietnam,” said Mr. Tuong.

Many experts also affirm that currently in many countries around the world, the price of solar power is only about 3 cents/kWh, equal to 1/3 of the preferential price of solar power that Vietnam is offering, which is an opportunity for Vietnam to develop this power source, contributing to reducing the construction of coal-fired thermal power plants.

However, experts also warn that when rapidly investing in large-capacity solar power plants, Vietnam must research and quickly respond to grid connection to ensure the safety of the power system.

The development of small-scale solar power sources also carries many risks of no longer being "clean electricity". If the storage of electricity using batteries and accumulators is not controlled, it can easily affect the environment, such as lead or acid poisoning from battery waste sources and damaged batteries after a period of use.

According to VOV