Renewable energy output is being reduced even as Vietnam is seeing blackouts as power consumption is off the charts.

The government this month requested the Ministry of Industry and Trade to review and re-submit the Power Development Plan VIII as the scheme is geared towards speeding up establishment of a competitive electricity market.

In the most recent heat wave in northern Vietnam, electricity consumption has set "historic peaks".

As one of the fastest-developing countries in solar thanks to the current feed-in tariff, Vietnam’s billion-dollar solar panel market is mostly dominated by foreign investors and depending on imports.

Vietnam, a global phenomenon in renewable energy development, has risen to the top of the region in terms of renewable energy, particularly solar power, in a short period of time. 

Wind and solar power are sustainable energy sources that are prioritized for development.

Vietnam, a rising star in Asia in solar power development, is to slash feed-in tariffs for rooftop solar installations this month, 

Sharing the same fate as solar power, sales of wind power in Vietnam are expected to be difficult because of "severe excess electricity" at some point in time.

The Feed-in-Tariff (FIT) of over VND2,000 per kwh, or 9.35 cent, has encouraged many investors to pour money into solar power. However, they have fallen into a dilemma because of unforeseeable problems.

The proportion of solar and wind power projects in the entire national electricity system is expected to increase, requiring thorough preparation because of the instability of these power sources, experts have said.

Vietnam has been witnessing a solar and wind power boom for three years, becoming one of the hottest markets in the world.

Since wind and solar power projects cannot provide all the electricity output to the national grid, building an energy storage system is being considered.

Although Vietnam began to develop solar power plants just about three years ago, the initially achieved capacities have been outstanding. 

Many wind and solar power projects are awaiting approval to be added to the list of projects to be developed under the national power development plan.

Nguyen Duc Ninh, Director of the National Power Regulation Centre, has said Vietnam will cut its renewable electricity capacity due to oversupply.

At present, the cost of solar power panels has cooled down, so shortly, the MoIT would suggest the purchasing price of solar power without using feed-in tariffs (FITs).

Over 100,000 rooftop solar power works with total capacity of 9,300 MW were connected to the national grid by December 31, 2020.

The Vietnam Electricity Group (EVN) on December 26 announced that it would stop purchasing electricity from rooftop solar power projects developed after December 31 until the prime minister issues a new decision.

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.