Indonesia & Vietnam makes their step for solar revolution in Southeast Asia
Vietnam and Indonesia are looking for teaming up with Thailand in blazing a trail in using solar energy in Southeast Asia to battle climate change.
Countries around the world are now in the move in fighting carbon emissions from coal-fired stations with the historic Paris climate accord coming into force after it was signed last year.
Indonesia and Vietnam aim to each have annual solar power capacity of at least 5 gigawatts (GW) from 2020, up from close to nothing now, officials from both governments told Reuters.
That level of output would have placed the countries among the top 15 solar producers in the world in 2015 data from the International Renewable Energy Agency (IRENA), and would account for close to 9 percent of expected power generation in Indonesia and Vietnam at the turn of the next decade.
The regional push towards solar will add momentum to global growth in the technology and could benefit companies such as Canadaâ€™s CMX Renewable Energy Inc, as well as South Koreaâ€™s Shinsung Solar Energy and Hanwha Q Cells Korea Corp.
Vietnamâ€™s Vice Minister of Industry and Trade, Hoang Quoc Vuong aid on the sidelines of an industry conference last week â€œit will come very quickly as it takes a short time for construction.â€
However, with initial costs traditionally seen as a big deterrent to solar projects, both Indonesia and Vietnam will be offering opportunities for subsidies via so-called feed-in tariffs (FIT), allowing producers to lock in sales of renewable energy at fixed prices for a few years.
â€œIf we promote solar, there has to be subsidy,â€ said the Vietnam official.
â€œFeed-in tariffs have been issued so that the (5 GW) target can be achieved,â€ said Maritje Hutapea, director of various kinds of energy at the Renewable Energy Directorate General under Indonesiaâ€™s Energy Ministry.
Franceâ€™s Engie is in talks with state power company PLN for two solar projects of 200 MW.