Assessing the impact of feed-in tariffs and renewable portfolio standards on the development of solar photovoltaic in Vietnam – opportunities and challenges

Abstract

Vietnam has recently become a leader in solar energy in the Southeast Asia region. This development is boosted by pressing domestic demand for energy as well as international commitment to reducing carbon emissions and combatting climate change. The Government of Vietnam plays a pivotal role in leading this transition to renewable energy by directing the growth through renewable energy policies. Among the policies, feed-in tariffs and renewable portfolio standards are found to be the most influential policies. This paper assesses the effectiveness of these two instruments on the development of solar photovoltaic (PV) in Vietnam. Using regression models and an interview with an industry insider, it is found that the enactment of FIT and RPS has greatly enhanced solar PV capacity. Furthermore, the current policy landscape presents Vietnam with various opportunities to continue this development, but also challenges to overcome, prompting suggestions for future development.