Roof Solar Power in Industrial Parks: Challenges and Opportunities for Vietnam

Businesses struggle to integrate rooftop solar power

The development of rooftop solar power in industrial parks is facing challenges, with many factories struggling to connect and sign contracts due to a lack of mechanisms and support. For example, Mr. Nguyen Vu Chien, Deputy Head of the Industrial Park Management Board of Nam Dinh province, mentioned that while the province has industrial parks that meet green export and rooftop solar power requirements, many factories struggled to connect and sign contracts. The temporary suspension of connections by power companies after the solar power incentive mechanism expired in late 2020 created difficulties for businesses in finding alternative solutions.

Investment costs were another obstacle, with the production of 1 MW of electricity requiring about 13 billion VND. Additionally, the shorter hot season in the North and lower heat radiation led to concerns among businesses about recovering capital and reducing profits compared to the high initial investment costs. Textile and garment enterprises faced similar challenges, with the need for green production certificates for exports to Europe requiring rooftop solar power installations. However, the lack of mechanisms and support hindered their ability to connect to this energy source.

According to statistics from the Ministry of Industry and Trade, by the end of 2022, rooftop solar power capacity would reach about 9,000 MW with a selling price of 8.38 cents per kWh. However, nearly 1,000 rooftop power systems with a capacity of 400 MW remained connected to the grid waiting to be added to planning by the end of July 2023, highlighting the need for clearer mechanisms. Experts suggested that the State provide clear policies on output, installed capacity, investment procedures, and planning for rooftop solar power to support industrial parks in Vietnam.

Dr. Nguyen Quoc Viet and others emphasized the importance of decentralized management, specific instructions on standards and methods for building rooftop solar power systems

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