Vietnam’s Rooftop Solar Power: Growth, Challenges & Green Initiatives

The rapid growth of industries and increasing energy demands in Vietnam are prompting businesses to explore sustainable solutions, and rooftop solar power is emerging as a critical piece of that puzzle. Recent discussions, including a recent talkshow featuring experts like Pham Dang (Deputy General Director of Vu Phong Energy Group and Director of VP Carbon), highlight the complexities and opportunities surrounding rooftop solar development. From a period of explosive growth spurred by Decree 13 to the current push for green energy post-pandemic, understanding the evolving landscape is vital for businesses and investors. Join us as we delve into the insights shared by industry leaders and explore the potential of rooftop solar to power Vietnam’s future.

On May 10, 2024, Mr. An, Pham Dang, Deputy General Director of Vu Phong Energy Group and Director of VP Carbon, participated in a talkshow, “Developing rooftop solar power: Which mechanism is suitable?” organized by Vietnam Economic Times/VnEconomy, alongside other industry experts.

The discussion, featuring Mr. An, Nguyen Phuong Mai (Consultant for renewable energy projects in Vietnam), Nguyen Minh Duc (Legal Expert at the Vietnam Chamber of Commerce and Industry – VCCI), and moderator Huong Loan (Journalist at Vietnam Economic Times/VnEconomy), explored the current state of solar power and the development of rooftop solar power in Vietnam. Experts analyzed the potential opportunities and challenges facing the industry.

Speakers at the talkshow discuss the evolving landscape of solar power in Vietnam and the region.

Speaking from the perspective of a company actively involved in renewable energy, particularly solar power, Mr. An highlighted a period of rapid growth following the implementation of Decree 13, when many businesses sought to install rooftop solar panels to sell electricity to EVN.

While the market subsequently slowed, the post-COVID-19 push for a green economy has revitalized the sector. Mr. An stressed that demand for rooftop solar power remains high, especially for factory roofs and industrial zones. “Green production cannot happen without green energy,” he stated.

This demand isn’t limited to Vietnam; similar trends are emerging in Indonesia, Bangladesh, and Cambodia, where self-generation and consumption of solar energy are increasingly critical.

Mr. An explained that adopting rooftop solar power isn’t solely about reducing energy costs but also about enhancing a company’s brand image. Major corporations like Google, Microsoft, and LEGO have made significant commitments to using 100% renewable energy globally.

Mr. An, Director of VP Carbon, shared insights during the talkshow.

As traditional power sources like thermal and hydroelectric power face challenges, encouraging the development of renewable energy sources – including wind and solar, and specifically rooftop solar power – represents a vital solution for addressing current electricity shortages.

“Rooftop solar systems not only help reduce production costs but also provide businesses with certifications for clean energy use and contribute to the government’s commitment to carbon neutrality by 2050, as pledged at COP 26,” Mr. An noted.

For instance, the rooftop solar system at Kim Duc Group’s factory in Long An province, a leading packaging supplier for global retail chains, adheres to international standards and aligns with the British Retail Consortium (BRC)’s social responsibility guidelines. The project operates under a Power Purchase Agreement (PPA) model, representing a collaborative three-party approach.

The 2.22 MWp Kim Duc project contributes significantly to the factory’s energy needs.

Theo VnEconomy

Learn more about Vietnamese developments in rooftop solar power