Solar Energy in Vietnam

Solar Energy in Vietnam

A great incentive for investment has been observed for solar power and Energy in Vietnam. The solar energy is been given great focus and the renewable energy sources are starting to become very popular in many countries especially Vietnam.

After knowing the benefits, advantages and importance of sources of energy such as solar energy along with facing an increased demand for the electric supply for the development of economy we also observe an increased consumption of electricity of 15 %. Recently Vietnam has given a great focus to study, support, and encourages the national and foreign investors for investing more and more in the renewable energy projects.

The creation of new and renewable energy sources was introduced in the project for the development of national energy strategy for up to the year 2020 with an ongoing vision to go up to 2050. Through this strategy various specific goals were targeted in order to increase the amount of new and renewable energy sources to 3 percent of the entire commercial electrical power which would improve by 5 percent till 2020 and would reach 11 percent up till 2050. In order to gain these targets it is also important to provide a direction for the development of the sources along with various policies and national/ government support to gain more and more investors. This direction is reflected through different legislations (Do, 2009).

Benefits for investing in Solar power in Vietnam

Based on the current legislation that lies for Vietnam, the investors that are interested to provide funds for the development of solar energy in Vietnam they are at liberty for the highest incentives in every related aspect to solar energy projects. This includes land and water surface lease fees and conditions, value added tax, land site clearance, corporate income, export and import duties along with the depreciation of set assets among others. Furthermore, the power projects of solar energy are thought as a fresh investment based on the clean development procedure of the country. Hence, the investors are supported financially by the government with the Protection fund of Environment for Vietnam on the divergence between the sales price of electric power and the actual input costs as settled to in the statement to give the power that is generated by the solar energy sources.

Along with gaining different incentives that investors would also have to face some challenges when they are investing in renewable energy sources project. Firstly, Vietnam has yet not conducted any surveys or studies on the potential that it has for solar energy projects. But, with the necessary efforts the lack of information would be covered by the assessments that would be conducted in this matter that would allow more opportunities for investment. Vietnam also is strived to have a cohesive legalized governing policy that is related to the solar energy projects. These types of policies would be stipulated differently in different statutes. In some of the aspects, conflicting regulations and rules have occurred due to different ...