Vientiane energy storage related reward and subsidy policy

Does Vietnam have a good renewables policy framework?

Despite its success, Vietnam's renewables policy framework has not been flawless. A notable limitation has been the use of short FIT windows with high levels of uncertainty over the FIT regime for new projects in the post-expiration period of any particular FIT regime.

How has Vietnam benefited from solar & wind power development?

Vietnam has orchestrated the first stage of its solar and wind power development using FITs and a supportive overall investment environment. Government incentives and enabling policies that have boosted energy availability while avoiding upward pressure on electricity prices have gained public support.

How much do fossil fuel subsidies cost in Vietnam?

Fossil fuel subsidies per capita in 2019 in Vietnam equaled only US$3 compared with US$8 in Thailand, US$57 in Malaysia, and US$71 in Indonesia (International Energy Agency, 2021). Vietnam has also been doing relatively well with respect to the pace of fossil fuel subsidy reductions.

Why is Vietnam a good place to invest in solar and wind power?

Vietnam has led the uptake of solar and wind power capacity in ASEAN sinces 2019. Government commitment and public support are found to be key drivers. Feed-in tariffs can strongly incentivize industry take-off. Policy certainty and preparation of transmission systems are important.

How can local governments improve energy policy in Vietnam?

To do this, strong support from local governments has been needed, as they are often in charge of collecting land lease revenue. Recent reforms toward more decentralization in Vietnamese administrative systems have tended to increase local governments' roles in energy policymaking.

What is Vietnam's new Electricity Law?

We explore Vietnam’s new Electricity Law, which will be effective from February 1, 2025, with a focus on supporting clean energy development.