Renewable energy is a fast-growing sector in Asian countries, broadly, and Vietnam could benefit from investment in the sector.
Over the last decade, there has been rapid growth in Vietnam’s energy industry. The demand for electricity in Vietnam has significantly increased in line with its overall economic growth. According to the Vietnam National Load Dispatch Centre data, the average daily electricity consumption was 615 million kWh per day in the first few months of 2020, an increase by 7.5 percent compared with 2019. The Vietnamese renewable energy market has risen gradually. In Vietnam, renewable energy projects will be regulated in terms of power development plans, the power purchasers and power purchase agreement execution process, and approvals and consents from the relevant authorities.
The Vietnamese renewable energy industry is appealing to foreign investors as demand for electricity is high. However, its current FITs is set to expire in November 2021 and Vietnam proposed to extend its feed-in tariff scheme a further two years to the end of 2023, and the country plans an auction program which would make Vietnam a price-competitive wind power place for wind renewable energy projects.
This article was written by Thoi Nguyen
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