Vietnam is struggling to fully utilize the potential of renewable energy because of policy roadblocks even though power shortages are expected in upcoming years.
In the central province of Ninh Thuan, one of the solar power hotspots in the country, nine of 15 operating solar projects are running at just 30-60 percent of their maximum capacity, according to the province’s Department of Industry and Trade.
The reason for this is that Vietnam’s transmission lines are not capable of loading a surge in output from renewable plants. As many as 91 solar farms began operating in the country last year after the government offered an attractive incentive tariff rate, causing some transmission lines to operate at up to 360 percent of their safe capacity limit.
The government targets to have an addition of 12,500 MW in solar power capacity and 7,200 MW of wind power by 2025.
The industry ministry has warned of power shortages between 2021 and 2025, with the most severe shortage of 5 billion kWh in 2023, as construction of new thermal and gas-fired plants fall behind schedule.