Renewable energy like wind and solar is considered the positive energy that can help reduce the burden on energy in the context of depleted traditional sources. Although Vietnam has started the exploitation of renewable energy early, so far this form of energy is still quite unfamiliar to most people. The main reason is price.

Mr. Le Tuan Phong, Deputy Director of Ministry of Industry and Trade’s Department of Energy, stressed that wind and solar power still cannot spread because the price is too high. Specifically, solar power costs 5-7 times and wind power costs twice as much as the electricity from the national grid.

Minute exploitation

Every day, the sun generates 3-4.5 kWh/m2 (in winter) and 4.5-6.5 kWh/m2 (in summer). Potential of wind energy in Vietnam, according to the latest estimates of the World Bank, is about 513,360MW (1 MW = 1,000 kW), 200 times as much as the capacity of the Son La Hydropower – the largest hydropower station of Southeast Asia. However, the exploitation of energy from the sun and wind is quite limited, mainly in the form of heat (for water heaters), while power has not been developed.

Solar cells connected to grid

Currently, the only wind power project is Tuy Phong Wind Power Plant in Binh Thuan invested by Vietnam Renewable Energy Company (REVN), with five wind turbines, with the capacity of 1.5 MW/turbine.

In the past, there were many wind power projects but most of them failed due to low feasibility or to problems of investment capital. Although Vietnam is considered to have large wind energy potential and able to develop large-scale wind power, in fact, the wind power industry of Vietnam has just been deployed on a small and scattered scale, which is incompatible with potential.

Solar power in our country is only on household-scale with small output which can not replace electricity from the grid.

The price puzzle

According to Mr. Phong, the government, albeit aware of the exploitation potential of renewable energy, still has to select cheap sources such as hydropower and thermal power plants instead of clean energy because the price of the latter is too high.

Solar cell assembly in Red Sun Company

Currently, 5 units of Tuy Phong wind power plant have connected to the National Grid and been operating well. This is a good sign, but the price is as high as 12.5 cents per kWh while the price of EVN is 5.5 cents per kWh.

The Ministry of Industry and Trade is still researching on solar and wind power, but it is very difficult to develop on a large scale because the price is too high for people with average income. "Solar power costs 40 cents per kWh, equivalent to VND9,000 per kWh, wind power costs about VND3,000 per kWh (average subsidized price of electricity from the grid is about VND1,000 per kWh). Although solar and wind power are clean energy, people can not accept these exorbitant prices” - said Mr. Phong.

According to experts, the high price results from the fact that Vietnam still has to import most of the technologies and equipment. Currently the price of solar cell has been greatly reduced. In 1960, one Wp of solar power cost USD1,000, but now it is only USD4.

Another reason for high electricity price is that renewable electricity has not been connected to the grid. If it is connected, the total investment including cells, charger controllers, DC-AC inverters and accumulators will decrease by as much as 50%. Moreover, selling price of solar power is currently the retail price. If there are subsidies or tax incentives, the situation of renewable energy prices will certainly be improved.

The energy source of the future

Although renewable energy in Vietnam cannot expand on a large scale and suit people’s budget, it can still be developed in small scale to meet the demands of  organizations, individuals or individual sectors.

Wind turbines in Tuy Hoa, Binh Thuan

Survey results have shown that Ho Chi Minh City has about 300,000 roofs on which solar panels can be installed to produce electricity. If each roof has two panels with the capacity of 260W (enough for lighting, TV, and fan), the whole city will have the total capacity of 78 MW of solar power (equivalent to the capacity of Can Don hydropower plant) and generate approximately 105 million kWh of electricity annually.

The investment in solar power is now about VND150,000/W, so the total investment for the above 78 MW is estimated at VND11,700 billion. It is calculated in terms of retail prices. When the project is deployed on a larger scale, price will be much lower. If the electricity is allowed to connect to the National Grid, the price will continue to drop and can be completely affordable. This analysis has shown the feasibility of renewable energy projects in Vietnam.

Investment in solar power is different from one type of consumption to another. Small offices with some people can invest in a solar system with the capacity of 1-3kW at the price of VND120-150 million per kW and the area of the battery array of 8 - 25m2. Offices with many people can install a 10kW system with the price of about VND1 billion, the area of the battery array is approximately 80m2.

A household wishing to use two 14W energy saving compact bulbs, a 21inch TV (110W) and a desk fan (40W) can invest in a system with the capacity of 170Wp at the price of USD1,468. This small system can generate about 0.7 kWh of electrical power per day. A slightly larger system with the capacity of 340Wp at USD2,702 can generate about 1.4 kWh of electricity per day and can be continuously used for 5 hours to power six energy saving compact bulbs, a cassette, a desk fan and a color TV. A much greater system with the capacity of 700Wp at USD5,368 can generate about 2.8 kWh of electricity per day and power four energy saving compact bulbs (in 7 hours), a cassette (in 6 hours) , 2 desk fans (in 7 hours), 1 TV (in 8 hours) and a rice cooker (in 1 hour).

The initial investment cost of a solar system is relatively high, but its life span is often longer than 30 years. According to calculations by experts, consumers can retrieve the capital in about 5 to 7 years, then the electricity will be free to use.

The investment in solar systems is particularly effective for remote areas with sparse population, such as mountainous areas and islands, because using the national grid is very costly when investing in solar power is much more simple and convenient.

With such great advantages, despite the large investment costs and many barriers, in the future, renewable energy will surely grow rapidly and become a friendly and familiar energy source to consumers.

By Minh Duc