German businesses eye on solar energy sector in Vietnam

08:49 | 14/09/2016 Industry

(VEN) - German Industry and Commerce in Vietnam (GIC/AHK Vietnam) in cooperation with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH organized a Vietnamese - German conference “Photovoltaics in Vietnam: Free-Field and Net Metering before Breakthrough”, in Ho Chi Minh City on September 12, 2016, in the context of the “energy solutions – Made in Germany” initiative by the German Federal Ministry for Economic Affairs and Energy (BMWi).

German businesses eye on solar energy sector in Vietnam

Participants comprise all aspects of the solar PV power value chain, including IBC Solar AG, M+W Group GmbH, Droege Energy GmbH, CARERA Solar/Hydro UG, ILF Consulting Engineers GmbH and Syntegra Solar International AG, BMWi, German Solar Association, MoIT from Vietnam, General Department of Energy as well as Science and Technology Department and approximate 150 Vietnamese companies.

The conference released a newly conducted assessment of investment opportunities in Vietnam presenting six detailed solar PV rooftop case studies. The results indicate that the emerging solar market of Vietnam offers attractive business opportunities for German solar companies.

The potential for development of solar energy in Vietnam is huge. Solar resources are expansive with an average solar irradiation of 4-5 kWh/m²/day in most regions of Southern and Central Vietnam and make the country comparable to developed solar markets in the region – including China, Thailand or the Philippines – as well as to mature international solar markets, such as Spain and Italy.

Sonia Lioret, Head of Component- Renewable Energy at GIZ, said that: “The conference is the opportunity for bilateral meetings that subsequently connect German with local companies and investors to discuss opportunities for joint business. Vietnamese and German companies should prepare for their projects now to investing in this sector. From my point of views, the solar energy will develop more in Vietnam”.

The Vietnamese Government has recognized this potential and aims to significantly increase its renewable energy production including the share of solar power. Solar PV power generation capacities shall increase from currently around 7 Megawatt (MW) by the mid of 2016 to 850 MW by 2020, 4,000 MW by 2025 and 12,000 GW by 2030. To reach these targets the Government is currently preparing a solar PV support legislation. First drafts released in 2015 and developed further in the first half of 2016 include a feed-in tariff of 11.2 USct/kWh for large-scale grid-connected free-field PV power plants as well as a net metering credit for excess solar power fed into the grid of 15 USct/kWh for rooftop systems. In addition, there are supplementary instruments in preparation, such as import tax exemptions, land incentives and corporate income tax reductions incentivizing the development of the sector.

According to Rainer Brohm, Renewable Energy Consultant, Vietnam has advantages of benefit of very low price from solar PV. Hence, the potential is huge for German companies who have technology, know- how and experience in tropical markets to find partners, boosting investments and project implementation in this sector.

Germany is leaving the fossil-nuclear age behind, paving the way for photovoltaic (PV) to play a significant role in a future shaped by sustainable power production. On sunny weekdays, PV power can cover 35% of the momentary electricity demand. On weekends and holidays the coverage rate of PV power plants, which make up the greatest outlay, have fallen an average of 14 percent per year- in all, almost 75% since 2006. It would create advantages for end – customers to use small rooftop PV installation.

“We expect a significant development in the solar power sector in Vietnam in the near future due to its advantages. With German technologies and equipment, German experts are willing to support Vietnamese companies in this sector in planning and implementing all PV and renewable projects in Vietnam on purpose of sustainable development.”, said Marko Walde, Chief Representative of GIC Vietnam.

The conference is a part of the one-week trip of six German solar energy companies to Vietnam. A site visit to DBW Garment Factory, one of the latest commercial PV rooftop projects and a best-practice example of German solar PV technology in Vietnam, rounds up the week./.

My Phung