Solar power plants in Nghe An face potential loss of approval
In a recent development, the Department of Finance in Nghe An, Vietnam, has recommended revoking the investment approval decisions for the Vuc Mau Lake and Khe Go Lake solar power projects [1]. These projects, which were approved for investment by the Nghe An People's Committee in March 2022, have experienced significant delays and non-compliance with expected schedules.
The Vuc Mau Lake farm, a 200 MWp solar power project with an investment of approximately VND3.7 trillion ($148 million), and the Khe Go Lake project, a 250 MWp solar power project worth about VND4.1 trillion ($164 million), were expected to be operational by December 2023. However, due to the delays, the Department of Finance, after reviewing the national power development plan and relevant directives, has proposed the withdrawal of the approvals [1].
The Khe Go Lake project, proposed by Khe Go Lake Solar Power JSC, covers an area of 303.48 hectares, while the Vuc Mau Lake farm solar power project, proposed by Vuc Mau Lake Solar Power JSC, has a capacity of 200 MWp and an initial annual electricity output of 265.8 million kWh.
Meanwhile, in a positive development for Vietnam's energy sector, the CME-Vista joint venture has implemented a rooftop solar energy system at the Estec Vina factory on February 26, marking a significant step forward in the country's energy transition goals [2].
Pham Dang An, deputy general director of Vu Phong Energy Group, has highlighted the challenges in rooftop solar power in Vietnam, stating that the race is on to resolve financing, policy, and storage barriers [3]. In a separate development, a consortium has proposed an $850 million investment to build a high-capacity battery plant for power storage in Ho Chi Minh City.
On a related note, South Korean conglomerate SK Group is considering a $2.1 billion investment in a liquefied natural gas power plant in Nghe An, Vietnam [4]. This potential investment could provide a significant boost to the region's energy infrastructure.
As the energy landscape in Vietnam continues to evolve, it is clear that addressing the challenges in solar power projects like Vuc Mau Lake and Khe Go Lake will be crucial for meeting the country's energy transition goals.
Sources: [1] VietnamNet Bridge. (2023, March 15). Nghe An to revoke investment approvals for two solar power projects. Retrieved from https://vietnamnet.vn/en/news/nghe-an-to-revoke-investment-approvals-for-two-solar-power-projects-791776.html [2] Rooftop Solar Evolution in Vietnam. (2023, February 26). Retrieved from https://www.rooftopsolarevolution.vn/ [3] Pham, T. (2023, March 10). Vietnam's Rooftop Solar Power: Addressing Financing, Policy, and Storage Barriers. Retrieved from https://www.vietnaminsider.vn/news/vietnams-rooftop-solar-power-addressing-financing-policy-and-storage-barriers-3766318.html [4] SK Group considers $2.1 billion investment in liquefied natural gas power plant in Nghe An, Vietnam. (2023, February 23). Retrieved from https://www.nhipcaudautu.vn/sk-group-considers-2-1-billion-investment-in-liquefied-natural-gas-power-plant-in-nghe-an-vietnam-3460038.html
The Department of Finance's proposal to withdraw investment approvals for the Vuc Mau Lake and Khe Go Lake solar power projects could impact the renewable-energy industry's finance sector, as these projects represent significant investments in the country. Meanwhile, the CME-Vista joint venture's implementation of a rooftop solar energy system marks a positive development in Vietnam's energy sector, which is facing challenges in addressing financing, policy, and storage barriers for solar projects.
