Rooftop Solar: Powering Vietnam’s Green Industrial Zones

The 2nd Technical Working Group on Renewable Energy held its second meeting of 2023 on the afternoon of November 24th, within the Vietnam Energy Partnership Group (VEPG) partnership framework. During the meeting, representatives updated, shared, and discussed various topics related to promoting the development of renewable energy sources and energy transition in Vietnam, including insights into rooftop solar for industrial zones.

• The rooftop solar systems will have a significant role in the development of Ho Chi Minh City’s green economy
• The journey to The Net Zero goal requires a breakthrough

The second meeting of the 2023 Technical Working Group 2 on Renewable Energy was held at the Ministry of Industry and Trade office. Mr. Hung, Pham Nguyen, Deputy Director of the Electricity and Renewable Energy Authority, Ministry of Industry and Trade, and Mr. Santiago Alonso Rodriguez, Head of Development Cooperation, German Embassy co-chaired. The meeting saw both offline and online attendance of delegates from the Ministry of Industry and Trade, the German Embassy, the Swedish Embassy, Finland, international organizations, research institutions, independent experts, private enterprises, universities,…

The second meeting of the 2023 Technical Working Group 2 on Renewable Energy

Throughout the meeting, representatives offered updates and discussions on policies and development directions for renewable energy following Power Development Plan VIII. They also addressed the Offshore Wind Task Force’s operations; Shared experiences, and proposed measures to encourage the development of renewable energy sources such as geothermal and rooftop solar for industrial zones; discussed and agreed on the plan and focus themes for the Technical Working Group 2 for 2024. Mr. An, Pham Dang, Deputy General Director of Vu Phong Energy Group and Director of VP Carbon, presented opportunities, challenges, and recommendations for developing rooftop solar for industrial zones, drawing on the practical experience of Vietnam’s first private enterprise in solar energy and renewable energy since 2009.

Mr. An, Pham Dang believes that the potential for developing rooftop solar for industrial zones in Vietnam is significant. Aside from the advantages of high solar radiation intensity and annual sunshine hours, the widespread development of industrial zones, particularly the trend toward green and sustainable industrial zones, and the increasing adoption of renewable energy by businesses are factors driving demand and development for rooftop solar. Meanwhile, the investment cost of rooftop solar is decreasing, with the average investment return reducing by 30-35% from 2019 to 2020. The popularity of Power Purchase Agreement (PPA) models incorporating various investment funds and major investors also makes rooftop solar more accessible to businesses without the requirement for system investment and operation.

Charing from Mr. An – Deputy General Director of Vu Phong Energy Group, Director of VP Carbon – at the meeting

Developing smart and sustainable industrial zones, focusing on automation solutions, applying smart manufacturing processes, and utilizing renewable energy… will provide enterprises with safety, reliability, and efficiency. This, in turn, helps industrial zones attract large firms, comply with environmental requirements, and meet international standards. Rooftop solar will help businesses save energy and meet international standards. This is especially important as many major international markets tighten regulations and mechanisms for reducing emissions, including indirect emissions from electricity consumption, such as the EU’s Carbon Border Adjustment Mechanism (CBAM)… Developing rooftop solar in industrial zones also helps to increase on-site electricity supply, contributing to the capacity of local and regional power systems, which is helpful as demand for electricity consumption continues to rise.

However, Mr. An, Pham Dang points out that there are still some challenges for rooftop solar in industrial zones, such as legal issues due to policy “gaps” after the expiration of the power purchase mechanism of Decision 13/2020/QD-TTg, investment system costs, and the accessibility of the Power Purchase Agreement (PPA) model for small and medium-sized enterprises,…

As a result, mechanisms and policies for developing rooftop solar for manufacturing plants, particularly in industrial zones, are essential for leveraging the benefits of rooftop solar and contributing to the energy transition. At the same time, there is a need to encourage rooftop solar development for households and corporate headquarters. Furthermore, policies and conditions for direct power purchase agreement (PPA) should be implemented, not just for large-scale renewable energy projects, but also for small and medium-sized projects such as rooftop solar in industrial zones. Constructing renewable energy policies that are stable and long-term will also attract investment funds and foreign private investors to collaborate on developing renewable energy projects in Vietnam.

*Image caption: The rooftop solar power system at Vinamilk’s Mega Factory, implemented by Vu Phong Energy Group.

Vu Phong Energy Group

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