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Vietnam's solar challenge: German solutions
Author: Sinco Saigon Post date: 09.08.2021
Vietnam is striving to exploit its abundant solar energy potential, but faces challenges in integrating it into the national power grid. In this article, Saigon Sinco will analyze Germany's successful renewable energy transition, highlighting key lessons and strategies that Vietnam can adopt to overcome similar obstacles and fully unlock the potential of solar energy.
The German Model: Success of Renewable Energy and Lessons Learned
Vietnam's Feed-in Tariff (FIT) policy for renewable energy, supported by Germany's GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), is based on the German model. Thirty years ago, Germany was the first country to introduce FIT to promote the sale of renewable electricity to the national grid. Initially, when the share of wind and solar power generation in Germany was below 0.1%, concerns arose about the impact on grid safety and stability. A group of German power companies issued a joint statement pressuring the government, arguing that renewable energy sources like solar, wind, and hydro should not exceed 4% of electricity production, even under peak generation conditions.
However, reality proved otherwise. Germany is now among the top 5 countries in clean electricity. Wind farms and villages covered in solar panels have become symbols of a new Germany, with tours of clean energy villages becoming popular. By 2018, wind and solar power accounted for 26% of Germany's electricity grid.
Current Challenges Facing Vietnam's Solar Energy Sector
Despite differing opinions, Germany successfully transitioned to clean energy due to public support and consistent government policies. In contrast, Vietnam, while studying the German model, has yet to fully utilize its solar energy potential and harbors concerns about grid stability. Draft Power Plan VIII prioritizes coal-fired power plants over solar, despite the rapid growth of rooftop solar in 2020. The IEA asserts that solar and wind power up to 10% has a negligible impact on grid stability, contradicting current views in Vietnam. This hesitation could lead to reliance on unclean energy sources, causing environmental pollution and issues like power shortages and high electricity prices, as seen with the Hoa Binh hydropower plant and thermal power plants. The IEA also suggests that exceeding 30% solar and wind power is achievable with improved policies and management.
Analyzing the Reasons for and Solutions to Hesitation
The National Renewable Energy Laboratory (NREL) concludes that integrating up to 25% of solar and wind power into the grid is feasible with technical and management solutions alone. Investment in more flexible power sources to support the grid is only truly necessary when clean energy output exceeds 25%, with battery storage being the last resort. Therefore, claiming that high solar power integration is impossible without battery storage is inaccurate.
Even though Canada, a temperate country with lower solar potential than Vietnam, is still heavily investing in solar energy. Last year, my agency, an education department in the Vancouver metropolitan area, donated $25,000 to test a rooftop solar system at a high school. Despite being the warmest area in Canada, solar radiation is less than three-quarters of Vietnam's average.
While the high investment yields low power output, this system will take 25 years to break even when selling electricity to the grid. Yet, we proceed. This is a model for a $50 million plan to install rooftop solar on all 48 schools in the area.
Three main reasons justify this decision:
First, solar power helps achieve a 50% reduction in greenhouse gas emissions by 2030, a target my agency must meet. Currently, most building emissions stem from burning natural gas, which is cheaper for heating. The emission reduction target will be achieved by converting 50% of heating systems from gas to electricity.
Second, besides offsetting increased electricity demand from switching heating systems, rooftop solar reduces reliance on the grid, mitigating electricity price increases.
Third, school solar systems provide a practical, intuitive lesson for the next generation on the importance of clean energy and sustainable development. It's an invisible social benefit, more impactful than theoretical lectures or difficult-to-digest environmental slogans.
Energy Transition Towards a Comprehensive and Sustainable Vision
Solar energy in Vietnam is not merely an economic issue but a solution for sustainable development (economic, social, and environmental). Energy transition requires a comprehensive approach, from source to consumption, demanding the digitization of the power system and long-term, transparent, and equitable policies. Lack of strategy and planning leads to failure. Harnessing clean energy sources depends on the vision of the operators. Saigon Sinco hopes that this article enhances your understanding of effective solar energy transition methods, providing a comprehensive perspective on this energy source.
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