Tashkent, Uzbekistan (UzDaily.com) -- Experts from the Institute for Forecasting and Macroeconomic Research (IPMI) analyzed the experience of energy system reforms in Vietnam and other developing countries.

In the energy sector of Vietnam in 2017, the share of solar energy was almost non-existent. The Vietnamese government supported the sector in the reform process by purchasing electricity generated by large solar farms at an increased tariff (9 cents per 1 kWh). This led to the creation of 5 GW of solar power in 2019 instead of the planned 850 MW.

Vietnam’s solar energy efficiency reforms have not gone smoothly. The fact that almost all new facilities were located in the Sunny southeastern part of the country caused an excessive load on the local network. From time to time, the Vietnam Electric Power Company has encountered problems with the purchase of electricity produced in excess.

In 2020, almost a quarter of Vietnam’s electricity was generated by solar installations. By this period, more than one hundred thousand solar panels with a capacity of 9.3 GW had been installed in the country. This is equivalent to the capacity of six coal-fired power plants.

Attracting investment in Vietnam’s renewable energy sector has been very successful. For example, in 2021, solar power capacity reached 17.6 GW. This prevented the release of an average of 14,000 tons of carbon dioxide into the environment. According to the World Coal Association, even the most modern coal-fired power plants release 800 tons of CO2 to generate one GWh of electricity.

The secret of success in solar power generation in the country is associated with "feed-in" tariffs valid for 20 years for projects built and launched in a short time under the incentive program.

Indonesia has also carried out reforms aimed at the efficient use of solar energy. In particular, in 2015, the largest solar power plant in the country at that time was launched, and the cost of production was 25 cents per kWh. It was a very high cost. As a result of the development of the industry, a large number of new solar power plants were commissioned by 2022, which made it possible to sign contracts for the purchase of solar energy at a price of 6 cents per kWh.

In 2012, there were no major rooftop solar projects in India that contributed to this goal. But by 2022, solar power plants with an additional capacity of 14 GW were put into operation. In the future, India intends to increase the share of solar energy in total electricity generation to 23 percent (333.5 GW) by 2032.

Today, the widespread use of new technologies and materials in the energy sector is becoming cheaper and more massive, which leads to a significant reduction in the cost of solar energy production.

The experience of these countries shows that the increase in the use of renewable energy sources (RES) is achieved through the adoption of development programs, the reduction of administrative barriers, the creation of conditions for RES, including by ending subsidies for energy generated from fossil fuels, as well as facilitating the connection to a common power grid and reduce administrative red tape.