Vietnam and Germany applaud success of solar power initiative

With the participation of MoIT’s Vice Minister Nguyen Hoang Long and the German Ambassador to Vietnam, Helga Barth, a workshop in Hanoi on January 10 marked the close of the cooperative initiative which served as a significant milestone in the ongoing partnership between the two countries to advance energy sector transformation.

MoIT’s Vice Minister, Germany’s Ambassador to Vietnam, and other high-level representatives celebrate CIRTS' success. Photo: GIZ

GIZ and the Electricity and Renewable Energy Authority carried out the Commercial and Industrial Rooftop Solar project (CIRTS), funded by the German Federal Ministry for Economic Cooperation and Development, which ran from February 2021 until January 2025.

By addressing the main technical, administrative, and regulatory issues of rooftop solar operation and its integration with the grid, CIRTS has contributed to the further development of a stable, cost-effective, and clean power system.

The undertaking provided Vietnam Electricity (EVN) staff with the tools and skills to better manage existing and future rooftop solar integration, reducing solar energy cur­tailment and operating the system cost-effectively.

In particular, EVN has been able to improve the accuracy of solar production forecasting and increase coordination between transmission and distribution system operators.

CIRTS has also developed comprehensive operation and maintenance guidelines that help maintain performance and increase the life­time of rooftop solar installations. The materials will be incorporated into the training courses for technicians of vocational colleges nationwide.

In addition, CIRTS has supported the restart of the rooftop solar mar­ket by carrying out technical analysis as input to further rooftop solar policy development. This has been further promoted with other development partners as part of the preparation of the Just Energy Transition Partnership Resource Mobilisation Plan.

Philipp Munzinger, GIZ Energy Support Programme director, who leads the CIRTS project, said rooftop solar will continue to play a key role in Vietnam’s energy transition.

"Solar power will be the largest clean energy source in Vietnam’s power mix. The goal is to decarbonise the energy system and to establish a resilient, cost-efficient, and clean energy system for the future," said Munzinger. "We can expect that over the next few years, we will see significant further development of the rooftop solar market."

In her keynote remark at the event, Ambassador Barth praised Vietnam’s solar power journey as a story of progress, potential, and partnership.

She explained how expanding solar capacity can achieve multiple objectives, such ensuring low-energy costs, improving energy security, driving sustainable economic growth and a just energy transition, as well as advancing climate action.

"I am confident that through cooperation with Germany, Vietnam’s solar power sector will continue to develop as a driver of innovation and sustainability in the region," said Barth.

Meanwhile, MoIT Vice Minister Nguyen Hoang Long confirmed that Germany is one of Vietnam's most strategic and reliable partners. He expressed Vietnam’s keen interest in continuing the partnership with Germany to ease the country’s energy transition.

The declining cost of solar photovoltaic has made it the world’s most affordable power source, with Vietnam well-positioned for solar expansion due to local production, low labour costs, and abundant solar irradiation.

The installation of approximately 17GW of solar capacity, with more than 100,000 rooftop solar systems making up approximately half of this, has made Vietnam a key player in solar power among ASEAN nations and is contributing to the country's goal of net-zero emissions by 2050.

Experts participate in a panel discussion on the rooftop solar market in Vietnam at the CIRTS' closing event. Photo: GIZ

Recent regulatory developments, such as Decree 80/2024/ND-CP on the Direct Power Purchase Agreement mechanism and Decree 135/2024/ND-CP encouraging rooftop solar self-consumption, aim to further diversify and strengthen the market.

This has been seen as an important step for renewable energy development, but it is accompanied by significant challenges, particularly for EVN as it manages the national grid and maintains stable power distribution.

This has been especially challenging in the central and southern regions, where the deployment of rooftop solar is concentrated.

Solar power practicalities still to be ironed out following legislation change Rooftop solar power initiatives continue to face obstacles in implementation, despite rules on self-produced and self-consumed solar power being built.

Enterprises consider rooftop solar for long-term gain Using a rooftop solar power system is an effective selection for manufacturers to avoid the impact of the retail electricity prices increase on their operation.

Progression made in rooftop solar power development At the end of October, the government issued Decree No.135/2024/ND-CP, which took immediate effect. This decree introduces a legal framework and sets forth clearer procedures, including guidance for legal administration, to facilitate the development of rooftop solar power (RSP) for self-production and self-consumption.