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Underlying drivers and barriers for solar photovoltaics diffusion: The case of Vietnam

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  • Do, Thang Nam
  • Burke, Paul J.
  • Baldwin, Kenneth G.H.
  • Nguyen, Chinh The

Abstract

Vietnam experienced a solar photovoltaic (PV) installation boom in the first half of 2019, with installed capacity increasing to 4,450 MW. This saw Vietnam overtake Thailand to have the largest installed solar PV capacity in Southeast Asia. This paper investigates the underlying drivers of Vietnam's solar boom, barriers to further solar adoption, and suitable strategies for the next stage of solar adoption. Forty-six semi-structured interviews were conducted with experts from government agencies, international organizations, non-governmental organizations, universities, research institutions, and industry. A generous feed-in tariff (FIT) of US$93.5/MWh for new projects, together with supporting policies such as tax exemptions, are found to be the key proximate drivers of Vietnam's solar PV boom. Underlying drivers include the government's desire to enhance energy self-sufficiency and the public's demand for local environmental quality. Limited transmission grid capacity and complex administrative procedures are among the key barriers. Looking forward, Vietnam has substantial potential to continue to scale up solar PV, with market-based mechanisms able to play a large role in this process. Vietnam's case is relevant for broader energy transition discussions.

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  • Do, Thang Nam & Burke, Paul J. & Baldwin, Kenneth G.H. & Nguyen, Chinh The, 2020. "Underlying drivers and barriers for solar photovoltaics diffusion: The case of Vietnam," Energy Policy, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:enepol:v:144:y:2020:i:c:s0301421520303037
    DOI: 10.1016/j.enpol.2020.111561
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    5. Junlakarn, Siripha & Kittner, Noah & Tongsopit, Sopitsuda & Saelim, Supawan, 2021. "A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    6. Chia-Nan Wang & Yu-Chi Chung & Fajar Dwi Wibowo & Thanh-Tuan Dang & Ngoc-Ai-Thy Nguyen, 2023. "Site Selection of Solar Power Plants Using Hybrid MCDM Models: A Case Study in Indonesia," Energies, MDPI, vol. 16(10), pages 1-24, May.
    7. Dina Azhgaliyeva & Ranjeeta Mishra, 2022. "Feed‐in tariffs for financing renewable energy in Southeast Asia," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(3), May.
    8. Andreas Klasen & Roseline Wanjiru & Jenni Henderson & Josh Phillips, 2022. "Export finance and the green transition," Global Policy, London School of Economics and Political Science, vol. 13(5), pages 710-720, November.
    9. Anh Quynh Tang & Takeshi Mizunoya, 2021. "A Study on Selecting Greenhouse Gas Reduction Options: A Simulation Analysis for Vietnam," Sustainability, MDPI, vol. 13(24), pages 1-22, December.
    10. A. K. Pandey & B. Kalidasan & R. Reji Kumar & Saidur Rahman & V. V. Tyagi & Krismadinata & Zafar Said & P. Abdul Salam & Dranreb Earl Juanico & Jamal Uddin Ahamed & Kamal Sharma & M. Samykano & S. K. , 2022. "Solar Energy Utilization Techniques, Policies, Potentials, Progresses, Challenges and Recommendations in ASEAN Countries," Sustainability, MDPI, vol. 14(18), pages 1-26, September.
    11. Wang, Chao & Huang, Xia & Hu, Xiaoqian & Zhao, Longfeng & Liu, Chao & Ghadimi, Pezhman, 2021. "Trade characteristics, competition patterns and COVID-19 related shock propagation in the global solar photovoltaic cell trade," Applied Energy, Elsevier, vol. 290(C).
    12. Bai, Wuliyasu & Zhang, Long & Lu, Shengfang & Ren, Jingzheng & Zhou, Zhiqiao, 2023. "Sustainable energy transition in Southeast Asia: Energy status analysis, comprehensive evaluation and influential factor identification," Energy, Elsevier, vol. 284(C).
    13. Paul J. Burke & Thang N. Do, 2021. "Greening Asia's Economic Development," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(1), pages 22-39, January.
    14. Le, Thai-Ha & Han, Phoumin & Le, Ha-Chi & Bui, Manh-Tien, 2023. "Electricity market development in Vietnam: Historical trends and future outlooks," Utilities Policy, Elsevier, vol. 81(C).
    15. Bekirsky, N. & Hoicka, C.E. & Brisbois, M.C. & Ramirez Camargo, L., 2022. "Many actors amongst multiple renewables: A systematic review of actor involvement in complementarity of renewable energy sources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).

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