Power demand in Vietnam is surging. This surge has made Vietnam a hot spot for energy investors looking to invest huge amounts in the coming decade. At the same time the government wants to reduce its dependence on fossil fuels by giving more emphasis to the development of solar and wind.
The deployment of rooftop solar PV will also contribute to reducing the need for new thermal power generation to meet base and peaking load requirements, especially in central and southern Vietnam. The results show that HCMC could develop up to 6.4 GW rooftop solar PV capacity alone…
The potential of Vietnam for renewables
With a population of around 100 million and annual GDP growth around 7%, Vietnam has forecasted that power generation will rise from about 47,000 megawatts (MW) currently to 60,000 MW by 2020 and 129,500 MW by 2030 (its electricity sector will be bigger than Britain’s by the mid-2020s).
“One of Vietnam’s priorities is to develop renewable energy sources to gradually reduce its reliance on traditional sources of electricity to protect the environment” – Deputy Minister of Industry and Trade Cao Quoc Hung said in a statement posted on the ministry’s website. Facing a rapid rise in pollution, the Ministry of Industry and Trade has started to offer incentives for renewables, which so far only play a marginal role in Vietnam’s energy sector.
Given the limited fiscal headroom and the reduction in the amounts of highly concessional financing available moving forward, it will be important for Vietnam to start mobilizing other sources of financing for the production of electricity.
International investors (equity and debt) are keen to support energy projects in Vietnam and could serve an effective role in satisfying demand for financing as local capital markets develop.
6-step process to encourage project developers to invest in Vietnam
To make a market for renewables that is attractive enough to encourage project developers to build at the scale required to meet Vietnam’s electricity needs, the government could consider the steps below:
The goal should not be just attracting capital. Capable international developers need to develop large-scale renewables projects. In addition to guaranteeing on-time delivery, thereby reducing the risk to EVN, these experienced developers need to train local installation companies in a wide range of capabilities (such as project development, construction, and operations and maintenance). Teaching Vietnamese installation companies these skills will reduce the capital costs associated with building subsequent renewables plants, lead to job creation in the renewables sector, and give Vietnam a reputation as an attractive place to make a renewable- energy investment.
THE ALECTRIS – ARTELIA VIETNAM END to END PROPOSITION
And the timing of Alectris and Artelia Vietnam joining forces could not have been better. Vietnam is now the leader in Southeast Asia’s solar photovoltaic (PV) market with the largest installed capacity in the region. It is also in a transitional but crucial stage. On the one hand the government is looking to push for greener energy in the mix, on the other hand there are technical and financial issues that have to be sorted out. FiT will need to be decreased to avoid solar becoming a victim of its own success, which would mean that design and construction of new plants will play a pivotal role in the performance (technical and financial) of these plants and ultimately the attractiveness of the industry and foreign investors. And of course, there are already operational plants that need to be managed in an efficient and effective manner. With massive installations also come curtailment problems. The installed capacity in Vietnam’s key provinces has already exceeded the grid capacity therefore curtailment is imperative – and it is imperative that it is managed correctly safeguarding everyone’s interests.
The lifecycle of PV project
Through the joint forces of Artelia Vietnam and Alectris a new, comprehensive END to END service proposition has been developed to meet the needs of the Vietnamese market. It is a proposition that covers the whole lifecycle of a pv project – design – construction and operation offering an end to end service that addresses all the technical parameters for achieving the maximum performance of PV plants. By utilizing digitalization and technology It also provides full transparency thus lowering the barriers to entry for foreign investors.
Artelia Vietnam, a subsidiary of Artelia International, established back in 2006, with local experience in solar in Vietnam since 2012 Its main activities relate to buildings, infrastructure, expertise in water engineering, environment, and energy.
Artelia Group – photovoltaic activity in figures:
- Due diligence studies for PV projects totalling up more than 2GWp (600MWp in Vietnam)
- EPC Management, Owner’s Engineer of PV farms totalling more than 900MWp, including over 15 projects over 20MWp (500MWp in Vietnam, 6 projects)
- Technical assistance and Environmental Impact Assessment of over 20 large scale PV farms
Alectris is a global service provider for the integrated care of solar photovoltaic (PV) energy assets. Present in the mature solar markets in Europe and USA, as well as India, Thailand and the Middle East, with the comprehensive suite of services and products Alectris reduces the risk and delivers maximum financial returns for solar investors and plant owners regardless of site location.
ACTIS ERP – the world’s first Renewable Energy ERP
Powered by ACTIS, the company’s proprietary solar asset management and monitoring platform, Alectris provides a full-service approach to solar asset protection, including solar operations and maintenance, asset management, check-up and diagnostic, engineering and improvement services. Performance excellence is the company’s mission, empowering it to re-define O&M and outperform client expectations.
Alectris & Artelia Vietnam – Philosophy
Our collaboration aims to provide customizable, adaptable, comprehensive and of the highest–quality Operations and Maintenance and Asset Management services meeting your expectations. Your satisfaction is our priority. We ensure that our services don’t cost you money, but make you money.