Energy service companies (ESCOs) are facing numerous risks since the regulatory framework for their sector is both incomplete and patchy, according to industry insiders.

A researcher on renewable energy, Dr Vo Viet Cuong, from the Electrical and Electronic Engineering Faculty under the HCM City University of Technology and Education, has noted that there is no absolutely clean energy.

Most of the components used to make solar panels are recyclable. Expired solar panels will not be a danger if there are reasonable regulations and good technologies.

Both ‘dirty energy’ (coal-fired thermopower and hydropower) and ‘clean energy’ (wind and solar power) have advantages and disadvantages.

According to the Electricity of Vietnam (EVN), the total capacity of rooftop solar power projects in southern provinces now makes up 60 percent of its total solar power capacity nationwide.

Tens of solar power projects are awaiting to be added to the list of power generation projects to be developed. Meanwhile, ministries are still discussing the new pricing mechanism after the preferential FIT expires.

APV, or Agriculture Photovoltaic system, is becoming increasingly popular around the world. It could be a feasible model in Vietnam if the government sets a reasonable legal framework to develop it.

The Ministry of Industry and Trade has not yet confirmed the complete withdrawal from use of coal-fired thermal power, but is designing a roadmap to reduce the proportion of this kind of power for the nation’s electricity output.

Under a scenario described in the eighth national power development master plan (Plan 8), which is now being compiled, Vietnam would not build more coal-fired thermopower plants from 2026 to 2030.

As of August 23, 45,299 rooftop solar power projects had become operational with total capacity of 1,029 MWp, according to the Electricidty of Vietnam (EVN).

Covid-19 and the slow implementation of power transmission projects may make it impossible for solar power projects to connect to the national grid by the end of the year.

A policy allowing investors to bid on solar power prices is being developed by the Vietnamese Ministry of Industry and Trade (MOIT). It is expected to be submitted to the Prime Minister this August and applied this year.

As current policies are unclear, many solar farm project developers cannot sign contracts on selling electricity to the Electricity of Vietnam (EVN).

Existing legal loopholes have been exploited by many investors taking advantage of incentives given to rooftop solar power projects.

Many solar power plants have managed to get hooked to the power grid early to enjoy the high electricity prices, thus overloading the grid.

As wind and solar power project developers now can enjoy a high FIT (feed in tariff) price, investors are registering more projects to resell for profit.

The total capacity of solar power projects registered by investors has become nearly 10 times higher than the targeted level.

Investment of billions of dollars into renewable energy has been a frequent topic of discussion at recent shareholders’ meetings of power companies.

With the rising prices of electricity pushing many enterprises and households to install rooftop solar panels that partly help reduce electricity bills, the cap on solar power capacity is hindering the process.

The first solar panel, which was invented by French physician Alexandre Edmond Becquerel in 1839, has become a significant watershed for the energy sector in the future.