Trading mechanism for solar and wind power in the competitive electricity market in Vietnam

Abstract

Developing renewable energy to respond to climate change and ensure energy security has become an urgent requirement on a global scale, with the most important role belonging to governments. In Vietnam, incentive mechanisms for purchasing and selling solar and wind power have been an important driving force in promoting the growth of these energy sources in the national electricity supply structure. However, rapid development in scale has come at the cost of many limitations: manufacturers’ capacity is not guaranteed, production efficiency is low, and market transparency and stability are not high. That reality requires changes in the current solar and wind power trading mechanisms. This research uses a combination of qualitative research methods, with a focus on ex-post policy analysis and positive policy analysis methods. From there, the study evaluates the limitations of the solar and wind power trading mechanism in the competitive electricity market and proposes solutions for improving it. Research results show that the current Feed-in Tariffs trading mechanism is not suitable for becoming the main long-term mechanism of the competitive electricity market; therefore, there needs to be a roadmap to replace it with the mechanism of Direct Power Purchase Agreement and competitive tendering.

Keywords

• điện gió
• điện mặt trời
• feed-in tariffs
• năng lượng tái tạo