For market watchers observing Vietnam’s energy landscape, the nation’s upcoming electricity development blueprint is set to be the strongest sign yet of how fast the country strives to move towards renewables in the decades ahead.
The highly anticipated Power Development Plan VIII (PDP8), expected after the general elections next month, will reshape Vietnam’s energy market in a bid to reduce its reliance on fossil fuels, ensure energy security, and cut carbon emissions.
But even as Vietnam leads the charge in Southeast Asia’s energy transition, long-standing barriers including policy uncertainties, weaknesses in the country’s market design and transmission capacity risk hurting clean energy growth in the coming years, undermining its development targets.
Arguably the biggest problem looming over the market is the country’s underdeveloped power grid, said Vaibhav Saxena, foreign counsel at Vietnam International Law Firm (VILAF).
The explosive growth in solar power in recent years has put stress on transmission infrastructure, with overloads often forcing, Vietnam Electricity—EVN—to restrict how much power operators can feed into the grid.
Cuts in power delivery result in immediate financial losses for project firms as the state utility only pays for the electricity that its grid can accommodate.
Vietnam’s electricity grid is the elephant in the room.
Giles Cooper, partner, Allens
Saxena said while the PDP8 lists ambitious clean energy targets, the plan’s success …. Read more: https://tinyurl.com/yzz4hdlh
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