If there is a single example of an inspiring renewable energy transition, it is Vietnam. For just a couple of years, it became one of the clean energy leaders in the world. Vietnam has seen some of the largest growth of Renewable Energy in Asia most of its total RE capacity growth has been from solar power and hydropower.
Vietnam’s potential in the solar power sector
The past decade turned Vietnam from an energy exporter to an energy importer, threatening its energy independence. However, the country’s plans are to change that by capitalizing on its renewable energy potential.
Vietnam’s proactive approach and innovative spirit, paired with its strong ties with clean energy leaders like Sweden and Germany, allow it to speed up its renewable energy transition while also open up opportunities to foreign investors.
A few years back, the world was nervously waiting to learn what direction Vietnam and the region would take their energy plans to. In hindsight Vietnam made all the right moves. Its remarkable reorientation and the willingness to implement fundamental reforms further proved that developing markets have a lot to gain from a renewable energy transition.
A Bright Future Awaits
In recent years, Vietnam has been capitalizing on the potential of a diversified energy mix, exploiting renewable sources including biomass, solar and wind power, and hydroelectricity. Following Vietnam’s recent net-zero pledge by 2050 at the Conference of the Parties (COP26), Vietnam has been making significant progress in renewable energy adoption.
At the start of 2021, the government released a draft of the eighth national power development plan (PDP 8) for 2021, with a vision to 2045. This plan outlines the country’s targets for renewable energy to become the primary source, with an upper limit of 18.6 gigawatts (GW) of solar and 18.0 GW of wind by 2030, with respect to no new coal plants planned for the next years.
Tech South has longstanding relationships with renewable energy-focused investor groups and traditional financial institutions. They can invest directly in your Organization’s solar project.
Customer Owned Systems The ownership of a solar energy system affords certain tax benefits and other incentives which serve to reduce the up-front capital cost and accelerate the payback period for an investment in solar.
Customer Owned Systems: The ownership of a solar energy system affords certain tax benefits and other incentives which serve to reduce the up-front capital cost and accelerate the payback period for an investment in solar. Tech South can model your energy cost structure and help your organization determine the wattage
Third-Party Owned Systems ( ESCO Solution – Engery Service Company):
- Power Purchase Agreements (PPAs): By simply agreeing to purchase the power generated by the system for the expected life of the equipment, your organization benefits by purchasing clean power at a fixed rate per kWh, thereby hedging against price volatility and inflation of grid-supplied electricity without the investment of capital.
- As per the agreement terms, after 25 years, will hand over the solar power system and your organization will continue using it for the next 5 years.
- This could be a popular energy-saving co-operation and investment model in the world, which the project developer and investor , the beneficiary company (your organization), and the community all gain benefits.
- Co-operative deals like the one with ESCO on solar power project development help companies produce green energy from empty rooftop area, making profits without investment, managing risks, and saving on power usage costs.
When the solar power system begins to operate, besides saving on the initial investment, your organization could also save at least 5% of cost per kWh and contribute to reducing greenhouse gas emissions after each product to fall in line with the standards set by “the green brand “.
Climate change involves a market failure in that firms and households do not always face a cost to reflect the impact their actions have on the climate from emitting greenhouse gases. The International Monetary Fund (IMF) has said that:
“Carbon pricing is the most powerful and efficient, because it allows firms and households to find the lowest-cost ways of reducing energy use and shifting toward cleaner alternatives”.
One of Carbon Taxe’s requirements is to limit the reduction of greenhouse gas emissions in the production process, thus installing the solar power system is an effective and easily measurable solution. More importantly, the companies are also building a green and environmentally friendly image – one of the priority benchmarks in partner selection and brand evaluation in many places around the world.
TECH SOUTH CO.,LTD
🏢Address: 58/17 Nguyen Gia Thieu Street, 12 Ward, Vung Tau city, Ba Ria – Vung Tau Provine, Vietnam