VietNamNet Bridge - Investors say they are reluctant to pour money into solar power projects as the selling prices for electricity remain unknown.

“We have arranged $30 million and have bought land in Binh Thuan province. We have got the license and ordered necessary equipment for a 24 MW solar power plant. However, we still have to wait for the government’s decision about the prices at which we can sell solar power to the national grid before making a final decision,” said Diep Bao Canh, general director of Red Sun JSC.

Canh said not only Red Sun but many other investors also have ‘not thrown their troops into battle’ because they still don’t know the government’s decision on the power prices.

Canh said he had heard that ministries and branches were discussing the price levels at 11.2-13.2 cent per kwh and commented that the prices were ‘relatively good’ which are high enough for investors to make profits and would attract more investors to a clean energy sector.

Huynh Kim Tuoc, director of the HCMC Energy Saving Center, said there are optimistic signs about the development of solar energy with the appearance of many investors, namely Thanh Thanh Cong, Song Hong and Hoa Sen Groups. 

Investors say they are reluctant to pour money into solar power projects as the selling prices for electricity remain unknown.

Foreign investors from Thailand and Germany have also shown their interest in the business field, suggesting the projects with the capacity of 30-100 MW for each.

However, Tuoc warned that there is still a long path ahead to turn the ideas into reality as investors still face the lack in the policies related to the solar power development, including the policies on development strategy, power price frame, complicated procedures and land use programming. The difficulties would still be there for 3-5 years more.

Therefore, Tuoc said investors should think of cooperating with owners of industrial zones, factories, hotels and restaurants to develop power projects to be self-sufficient in electricity supply instead of relying on the national grid. 

Gavin Smith, director of Dragon Capital, said the investment fund is considering pouring $15 million worth of capital into 14 solar power projects which have finished feasibility studies.

The projects belong to the program on supporting solar power development in the south, expected to be implemented in HCMC and Dong Nai, Long An and Binh Duong provinces with the total estimated electricity output of 18 million kwh.

Dragon Capital plans to fund many solar power projects as it can see great potential in solar power development in southern provinces. However, Gavin Smith is still anxious about disadvantages, including the low electricity price.

He said Vietnam cannot compare with Thailand and the Philippines as a solar power investment destination. The solar power price in Thailand is 16 cent/kwh.

Kim Chi