10 GW of Solar PV Project for Vietnam and Indonesia
Vietnam and Indonesia is now both eyeing to build each country 5 GW of solar energy by 2020 to meet green energy targets and to stimulate fledging solar markets, with a number of developers already looking with interest in the region.
To the eyes of the investors, Asian countries are the perfect fit for solar installations, with great solar resources, thereâ€™s a growing need for electrification for Asian solar manufacturers.
Indonesia had already made a pledge of 5 GW of solar PV to be installed over the next 2-3 years in a decree earlier in the year, however, this had been thrown into doubt with the sacking of the countryâ€™s Energy and Mineral Resources Minister Arcandra Tahar. The new report suggests that there is still plenty of political will to see this pledge through, and that Vietnam also wants to put an emphasis on solar development.
The great driver behind these targets is the obligation to build green energy capacity in the countries after the Paris climate agreement, which came into effect on Friday. But there is also a need for increased energy within the countries, and with the reduction in price of solar, it now becomes a much more attractive prospect for the countries.
As of now, there are not so many active solar developers in both countries yet, but a company called German ASEAN Power that is already developing large-scale projects in the two countries, announcing in October that Southeast Asia is its most promising growth region, with more than 150 MW of its projects in development stage in Thailand, Vietnam, Cambodia, Indonesia and the Philippines.
Unexpectedly, foreign companies like Canadian energy company CMX Renewable Energy, Korean solar giant Hanwha and U.S. company First Solar are also applying for a license to build solar plant in Vietnam, all aiming to be one of the front runners in the market. However, there seems to be less activity in the Indonesian market, for now, with little news of large-scale solar developments. A rise in investments in efficient and flexible distributed power solutions, highlighted in a recent Frost & Sullivan report, suggests that there is plenty of potential for developers to take some early steps in the country.