The World Bank recently announced the plan in Hanoi at a seminar organized by Vietnam’s Ministry of Industry and Trade and Germany’s GIZ, reports the state-run Vietnam Investment Review. The international financial institution has not yet revealed how much solar capacity will be up for grabs under the plan.
It plans to set a floor price of $0.0935/kWh for the trial auctions, with the aim of launching the pilot phase before the country’s current feed-in tariff (FIT) rates expire in June 2019. In April, the Vietnamese government announced a new 20-year FIT rate of VND 2,086 ($0.091)/kWh to support the development of utility-scale PV projects.
Anticipation of the FIT launch has prompted a number of PV developers to announce new projects since the start of this year. In May, Power Generation Corp. 3 — a unit of utility Electricity of Vietnam — revealed plans to build 350 MW of solar in Ninh Thuận province. In June, Vietnam’s TTC Group revealed that it was seeking funds to develop 1 GW of solar capacity at up to 20 locations throughout the country.
In August, Thien Tan Investment and Construction started building a 19.2 MW solar project in Quang Nam province. Hanwha and BCG Bang Duong Energy also recently announced plans to jointly invest $100 million in the construction of a 100 MW project in Long An province, with construction to start next year. And earlier this month, South Korea’s Dohwa Engineering started building a 49.5 MW solar installation in central Vietnam’s Quang Binh province, by late 2018.