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.
With the rapid development of technique, science and technology introduced into the generation of solar power, fossil fuels are gradually replaced with renewable energy. Over 140 years of development, solar power and other renewable energy resources have now met 26.2% of the electricity demand and contributed 2% of the total electricity output in the world.
Solar power, which is considered one of the fastest growing industries in recent decades, has attracted many investors all over the world. Solar farms and rooftop solar power projects are expected to ensure the country’s energy security, reduce pressure on electricity transmission and support the economic development.
In many developed countries, policies on the purchase of electricity produced by enterprises installing rooftop solar power systems have helped these enterprises minimize the costs of electricity for production. In Vietnam, Decision 13/2020/QD-TTg on incentives to promote the solar power development has helped organizations investing in solar power systems not only save costs of energy but also earn revenues from the sale of the spare volume of electricity to power companies.
Owner of a seafood processing plant in Dong Thap Province said the plant consumed a large volume of electricity, ranging from 57 to nearly 2,200 kilowatts-hour for a ton of materials and from 324 to more than 4,400 kilowatts-hour for a ton of products. Of the total, the freezing system consumed the largest volume of electricity, accounting for 70%. However, since the plant was installed with the rooftop solar power system with a capacity of 1.06 megawatts, it has reduced some 20% of its monthly operation costs and saved billions of Vietnam dong of annual costs spent on electricity for production.
Attracting more investors in the future
A report by the Organization for Economic Cooperation and Development (OECD) showed that nearly 20% of the volume of electricity consumed in burning, power provision and transport in the world is renewable energy. This market is bullish as fossil fuels are forecast to become exhausted in the future, which has attracted many enterprises to use clean energy in their operation. The increasing number of investors participating in the renewable energy sector has demonstrated that the energy revolution has received more attention and support.
Together with the fourth industrial revolution with artificial intelligence, robots, Internets of Things, autonomous cars, 3D printing technology and nanotechnology, solar and wind power sources have become symbols for the human progress.
Vietnam is located near the equator and entirely within the tropical belt of the northern hemisphere with high and positive annual average heat radiation level. Therefore, the solar power market has been attractive to both local and foreign investors. According to a report by the Ministry of Industry and Trade, as of December last year, more than 87 solar power projects had been commissioned at their maximum capacities and more than 260 others were waiting for approval.
Thus, renewable energy will lead the investment and development trend in Vietnam in the future. The power volume generated from renewable resources will help strengthen the energy security and ease the pressure on electricity supply in Vietnam.
The support and policies of countries’ leaders are important to make the energy revolution a success and the energy shortage will no longer cause anxiety. SGT
Dr Nguyen Manh Hien, former head of the Energy Institute under the Ministry of Industry and Trade, talks about Vietnam’s energy security.
The investment in renewable energy is increasing as fossil fuels, including coal, petroleum and natural gas, cannot meet the increasing demand for energy in Vietnam and the world as a whole given the rapid population growth.