From boom to balance in Vietnam''s clean energy transition
With global costs for solar, wind, and battery storage systems continuing to fall, Vietnam could replace fixed FiTs with transparent auctions, enabling clean energy
Contrastingly, solar and wind power's lower capital requirements and faster development timelines are well-suited to meeting Vietnam's near-term energy needs. These projects can be implemented within months and with high certainty, unlike gas projects, which typically take four to five years to complete once financed.
The rapid, subsidy-driven expansion has exposed gaps in planning and financial sustainability – laying the groundwork that is now reshaping the sector's trajectory. The state utility Vietnam Electricity (EVN) is now under financial strain due to the tariffs it set, which were as high as USD9.35 cents per kilowatt hour (¢/kWh).
As global costs for solar, wind, and battery storage systems fall, Vietnam could replace fixed feed-in tariffs (FiTs) with standardized competitive auctions to procure clean energy at the lowest cost.
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