With the economy constantly developing in recent years, along with a population of more than 97 million people, the energy demand of Vietnamese people is constantly increasing and this is an opportunity to make Vietnam as one of the countries promoting clean energy consumption.

The challenges

Although the future of the renewable energy industry in Vietnam is extremely potential, at the present, this industry is also facing many challenges.

1. Vietnam should clarify regulations in the renewable energy sector

At the moment, we are facing many difficulties with the current legal frameworks for renewable energy in Vietnam. Regulations in the renewable energy sector need to be stricter and clearer as there were some projects that fail to comply with construction standards or commissioning deadlines.

2. Grid safety issues in Vietnam

Vietnam should balance the amount of renewable electricity entering the grid with the existing generation capacity. At the same time, it is extremely important to have a proper master plan to attract foreign investors to invest in Vietnam long term.

3. Promote onsite self-consumption in Vietnam

At GreenYellow, we hope that onsite self-consumption will be promoted more in Vietnam. If you need a green energy supply, one of the most common possibilities is to install solar panels on the roof of your factories or on your carports, and it opens the opportunity to get cheaper electricity and green energy source.

4. Balance grid load and demand during the day

Balance of the grid load and demand has been already implemented in many EU countries and around the world and this is one of the matters that EVN or the Vietnamese government may need to balance the grid in a stable way.

The opportunities

“The energy market in the Philippines, Indonesia, and Thailand, which are also the countries where we conduct many investment activities, has been basically formed. However, as for the Vietnamese market, there are many opportunities for innovation and development and we want to become a first-mover advantage in many segments.”, said by Mr. Sebastien Prioux, General Director of GreenYellow Vietnam.

Vietnam has a very high demand for energy, especially the demand of electricity for production chains. In addition, GreenYellow sees a great opportunity to develop in Vietnam in this early stage, right now, GreenYellow Vietnam is working closely with key partners and local authorities to strengthen relationships and make investing in the renewable energy sector in Vietnam more favorable.

In early November 2021, Vietnam’s Prime Minister Pham Minh Chinh stated that Vietnam is strongly committed to achieving “zero” net emissions by 2050 and Vietnam will only achieve this goal if there are strong commitments from both sides in the process of grid improvement, grid stabilization and renewable energy management. At the same time, private operators need to commit to a number of rules to assist grid regulators such as production forecasts for all major power generation sources.