The photo voltaic venture in Vietnam
Picture: Sungrow
Vietnam’s MIOT launched a brand new pricing framework for photo voltaic and wind initiatives on January 7.
The initiatives didn’t get an influence tariff in Vietnam’s first and second feed-in-tariff (FIT) rounds and needed to promote energy to state-owned EVN by energy buy agreements, based on on the new worth ceiling. EVN at the moment has a monopoly on the transmission, distribution, wholesale and retail of electrical energy, being the only real purchaser within the Vietnamese market.
The brand new choice lowers the value ceiling for ground-mounted photo voltaic initiatives from $0.0709/kWh to $0.0502/kWh, a 29% discount. The ceiling worth for onshore wind decreased by 21%, from $0.085/kWh to $0.0672/kWh.
“My interpretation is that the low new ceiling is a approach to kill these initiatives as a result of giant will increase in photo voltaic capability will not be wished in the mean time,” stated Moritz Sticher, senior adviser on the consulting agency Berlin-based Apricum. pv journal. “As a result of excessive improvement and land prices, such tariffs make these initiatives financially unviable.”
In accordance with a simulation mannequin for a 100 MW ground-mounted photo voltaic plant, the brand new worth ceiling will scale back the online current worth (NPV) of the asset from $160 billion to $503 billion. The inner charge of return (IRR) will lower from 10.7% to six.2%. The information was modeled by Mai Nguyen, funding banking senior affiliate at Saigon Hanoi Securities (SHS).
Vietnam has lengthy been engaged on a pilot scheme that might, for the primary time, open its electrical energy market to bilateral PPAs. It’s formally set to run between 2022 and 2024, with expectations now pointing to the primary quarter of this yr. There was no official affirmation from the Vietnamese authorities to this point. In accordance with the most recent Apricum knowledge, the nation has put in about 18.47 GW of photo voltaic capability.
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