Scaling-Up Rooftop Solar in Vietnam

Project Summary:

This KGGTF grant helped Vietnam scale up solar through an assessment of grid integration and regulatory requirements that will inform future World Bank-funded projects, including a citywide rooftop PV pilot program in Danang or Ho Chi Minh City and solar PV plants that can accommodate up to 50 and 100 MW, operated by the government and public-private partnerships. A Geographic Information System and right-of-access analysis of rooftop surfaces in Danang and Ho Chi Minh City were a critical step in identifying a pilot project location. Vietnamese officials partnered with Korean counterparts for a knowledge exchange that showcases state-of-the-art metering and grid integration solutions. Another key component was to set the framework for private-public partnerships for solar PV that can be replicated throughout the country. KGGTF funding will also help kick-start a prefeasibility study for future PV production plants. Together the city rooftop pilot project combined with utility-scale PV generation offered Vietnam its first systematic, system-wide approach to making solar a reliable, competitive, and inclusive renewable energy source.

List of Activities:

• Preparation of a city-scale roof-top PV program in Danang and/or HCMC. Implementation Entity: Danang/HCMC Department of Industry and Trade

• Resource assessment and rooftop identification in Danang and/or HCMC
• Capacity Building and support to EVNCPC and/or EVNHCMC to assess grid and metering upgrades required to integrate rooftop solar generation into the main electricity grid
• Structuring of Public-Private Partnership
• Transaction Advisory Services to Implement PPP Structure
• Preparation of a small size utility scale ground mounted PV electricity generation pilot public project (25-50 MW) implemented by Genco (EVN)
  -  Preparation of prefeasibility study with Genco
• Assessment/Evaluation of technical, operational and financial aspects

• Preparation of a large size utility scale solar PV through a Public-Private Partnership to be developed jointly by EVN and a private developer
  -      Resource Assessment, Siting recommendations and Ground measurement

• Structuring Public-Private Partnership transaction advisory services
• Technical Assistance to improve regulatory framework

Outcomes:

Output 1:

• Assessment report on grid and metering upgrades required to integrate rooftop solar generation into the main electricity grid
• Knowledge Exchange with Korea on state-of-the-art grid and metering solutions for grid integration of rooftop solar generation

Output 2:

• Green growth consideration in policy, concept, and strategy

Outcomes:

The activities related to resource measurement, siting, grid upgrades and regulation proposed under this project all aimed at facilitating the efficient deployment, scale-up and dispatch of solar PV generation. By supporting the diversification of the energy mix, deploying a mix of distributed and utility scale generation capacity, and assessing the need for grid investments over the coming years, the proposed activities helped increase the resilience of the physical infrastructure with regard to extreme weather events and other climate change related disasters, and the broader resilience of the sector against the high volatility of fuel prices on international markets and the dependency on fuel import. Furthermore, by building government capacity at the local and national level, and by supporting EVN in gaining experience with variable renewable energy generation, the proposed activities helped increase the institutional capacity in Vietnam to develop and implement renewable energy policies and projects, thereby setting the country on a path to green growth. The activities were designed to increase competition and private sector investment in the sector. Hedging the country’s exposure to international coal prices by developing indigenous generation, whether solar PV, wind, biomass, or hydro – and doing this in a cost-effective way - will be an important step for Vietnam in order to remain competitive in the future.

Collaboration with K-Partners and Others:

• WBG internal partners:
   Public-Private Infrastructure Advisory Facility (PPIAF) on structuring the Public-Private Partnerships ESMAP’s VRE Grid Integration Support Program on providing technical assistance related to grid integration to EVNs generation, transmission and distribution companies.
• World Bank-IFC team carrying out activities under the Sustainable Urban Energy and Emissions Planning program (SUEEP) of Energizing Green Growth in Da Nang City.
• K-Partners:
  Hanwha Group, SolarPark Korea, Korea Telecom Group and Shinsung Solar Energy Co, are already active in the solar PV generation sector in Vietnam and could potentially benefit from a growing solar PV market in the country.
• The Korea Institute of Energy Research, Korea Electrotechnology Research Institute, and Korea Institute of Industrial Technology have engaged in technical and policy discussions with Vietnamese energy sector stakeholders
• Other external partners:
  Vietnam’s Ministry of Industry and Trade, Directorate of Energy (MOIT/GDE), city level Department of Industry and Trade (DOIT) in Danang and Ho Chi Minh City, the Ministry of Planning and Investment, EVN and the regulatory body ERAV on project preparation discussions and scoping of technical assistance.
  European Union, USAID, the Asian Development Bank, the Spanish Agency for International Development (AECID), Agence Française de Développement (AFD), the German Federal Enterprise for International Cooperation (GiZ) and the Danish International Development Agency (DANIDA) to seek complementarity between bilateral efforts, minimize potential overlaps and explore potential synergies and options for joint work
  Spanish public research institution: Centre for Energy, Environment and Technology (CIEMAT), and Spanish National Renewable Energy Centre (CENER) in order to obtain high resolution solar measurements for Vietnam.