Renewable energy development needs investment incentives

10:52 | 12/03/2018 Energy

(VEN) - Renewable energy development in the world is going strong and Vietnam is a prime candidate to join this trend. However the state needs to adopt favorable mechanisms to attract more investment.

renewable energy development needs investment incentives

Pham Hong Son, general director of General Electric (GE), said renewable energy depends on natural conditions and Vietnam has major potential for renewable energy development, especially wind and solar power. It is estimated that the capacity of onshore wind power in Vietnam could reach tens of thousands of MW.

Vietnam can learn from the experience of Japan, China, Australia and Thailand in renewable energy development. Over the past three to five years, technologies have changed dramatically, and equipment costs have dropped, providing good conditions for Vietnam to develop renewable energy.

Dang Van Thanh, chairman of the Thanh Thanh Cong Group (TTC), said renewable energy is a current trend of development internationally, given the threat of climate change. Vietnam has more than 3,000 km of coastline and being near the equator has a large volume of radiation from the sun – a very important factor for enterprises interested in producing solar energy, he said.

These are the two opportunities for the country to develop its renewable energy from the wind and the sun. This is a good time for companies interested in renewable energy development in Vietnam as economic development is always accompanied by growth in energy demand, Thanh said.

Renewable energy development in Vietnam has not met its potential. Pham Hong Son said it would be a waste if Vietnam cannot make the most of its renewable energy sources by encouraging foreign investors.

The price mechanism is still the biggest obstacle in renewable energy development. “We hope the prime minister and the Ministry of Industry and Trade will make appropriate adjustments to encourage domestic and foreign investors to participate in renewable energy development,” Pham Hong Son said.

According to Dang Van Thanh, TTC has a long-term plan for renewable energy, aiming to bring its overall capacity from solar power plants to 1,000MW by June 30, 2019. In 2018, TTC is expected to start solar power projects in the provinces of Ben Tre, Tay Ninh, Long An, Binh Thuan and Ninh Thuan.

One of the goals of Vietnam’s power sector is to promote the development of renewable energy in order to ensure energy security and meet the country’s socioeconomic development requirements.

Quynh Nga & Lan Anh