Northern Vietnam Takes Center Stage in Solar Energy Development

The Electricity Regulatory Authority, under Vietnam’s Ministry of Industry and Trade, is proposing changes to the pricing structure for solar and wind energy. The aim is to promote development in the northern regions of the country, taking into account the varying solar radiation intensities across different localities.

The revised proposal will adjust the pricing framework for new solar projects based on the solar radiation intensity of each area, encouraging development in the north where solar radiation is lower compared to the central and southern regions. The state-owned Vietnam Electricity (EVN) will prepare the tariff framework, which will be reviewed and ratified by the Ministry of Industry and Trade.

In cases where there is a significant increase in the number of projects negotiating tariffs, an advisory council will be established to scrutinize the proposed pricing framework. The new pricing mechanism will apply to newly constructed renewable energy projects with new power purchase agreements. The Power Development Plan VIII highlights Vietnam’s substantial potential for solar and wind energy, with ambitious targets set for capacity expansion by 2030 and 2050.