Vietnam Solar Competitive Bidding Strategy and Framework
Solar power generation is an increasingly attractive option for Vietnam thanks to recent cost reductions, fast construction timelines, and the contribution solar power can make to ensuring energy security and environmental sustainability. Aiming to...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/949491579274083006/Vietnam-Solar-Competitive-Bidding-Strategy-and-Framework http://hdl.handle.net/10986/33255 |
| Summary: | Solar power generation is an
increasingly attractive option for Vietnam thanks to recent
cost reductions, fast construction timelines, and the
contribution solar power can make to ensuring energy
security and environmental sustainability. Aiming to scale
up solar generation in a sustainable and affordable manner,
the Government of Vietnam plans to shift from the
feed-in-tariff (FIT) to a competitive bidding mechanism.
With the support of the World Bank, the Government of
Vietnam is designing the program based on the present
strategy developed with input from several ministries, the
private sector, and development partners. The strategy
presents recommendations to the Government of Vietnam aiming
to provide a clear path to develop a sustainable solar
program. As part of a carefully designed strategy, decisions
must be made in the following areas: (i) the roles and
responsibilities of the various public and private parties,
(ii) whether changes need to be made to the existing laws
and regulations, (iii) the types of deployment schemes that
are best suited to Vietnam’s circumstances, and (iv) what
risks the Government of Vietnam will internalize and what
mitigation instruments it might offer IPPs. The
clarification of these points prior to the selection of an
IPP will help speed up the IPP selection process, reduce the
chances of procurement failure, and provide a long-term
vision for deploying solar projects. From the independent
power Producers’ (IPPs) perspective, a clear government
strategy reduces perceived risks related to a weak or
inadequate legal framework, unclear selection process, or
other development concerns. |
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