Norway’s Norsk Solar and Vietnam’s Copper Mountain Energy Solar (CME Solar) have signed an agreement to jointly advance renewable energy initiatives in Vietnam, the Norwegian firm announced Monday.
The move marked a milestone in the promotion of sustainable energy solutions in Vietnam as also a shared commitment to combatting climate change and reducing carbon emissions, it said.
The cooperation will focus on identifying and assessing key solar power project opportunities in Vietnam with emphasis on commercial solar installations and large-scale solar farms. The two firms aim to streamline project development processes, increase efficiency and ensure successful implementation of their ventures.
The Norwegian firm noted that Vietnam has emerged as a regional leader in renewable energy adoption, with solar power playing a pivotal role in diversifying its energy mix and reducing the reliance on coal and fossil fuels.
Norsk Solar is a major power company in Norway that develops, builds, owns and operates on-site solar power plants for corporate and industrial off-takers, with strong track records and presence in Norway, South Africa, Brazil and Vietnam.
In March 2021, Norsk Solar and the Vietnam unit of Thailand's major retailer Central Retail signed an agreement for installation of 11-MW rooftop solar system at the latter's shopping centers. In December 2021, Norsk Solar completed the establishment of the first rooftop solar system for Central Retail's facility in the northern province of Quang Ninh.
In recent news, the Ministry of Industry and Trade said it was against extending rooftop solar power development incentives to other groups before first priority recipients - households and public offices - are covered. In a report on promoting rooftop solar power sent to Prime Minister Pham Minh Chinh, the ministry said the list of beneficiaries can be expanded after the first two groups are covered.
Vietnam expects renewable energy to make up 50.3% of the total capacity generated by 2030, as outlined in the National Power Development Plan for 2021-2030 with vision extended to 2050 (PDP VIII). The plan was approved by Prime Minister Pham Minh Chinh on May 15 via Decision No. 500/QD-TTg.
Under the plan, coal will account for 20.5% of total power generated by 2030, down from almost 29% in 2020. Gas will make up 21.8%, up from 10.2%. Renewable sources (including hydroelectricity, solar and wind power, and biomass) will account for 50.3%, with contributions from hydroelectricity alone dropping to 20% from 30%.
Under the PDP VIII, by 2030, half the office buildings and homes in the country would be powered by rooftop solar panels, but this source would not be connected to the national grid.
In May, HCMC-based CME Solar and Japan’s Sumitomo Forestry Group established a joint venture to expand the rooftop solar market in Vietnam. The companies said that the primary goal of the joint venture was to drive adoption of rooftop solar energy systems across Vietnam towards delivering cutting-edge solutions that meet the country's increasing energy demands while adhering to the highest ESG standards.
Vietnam's incredible potential for solar energy and its growing demand for sustainable solutions makes the country a key market for rooftop solar development, the Japanese firm said.