Vietnamese solar industry must increase investment in asset management to protect future performance
Improvements to projects built under fast paced tariff programme only discernible through better asset management
Vietnam has recently become a hotspot for solar projects in Asia, with 2019 seeing an unprecedented boom of 4.5GW added to the grid, driven by favourable FiT rates. However, with the uplift in demand leading to grid congestion challenges, some projects have been subject to long curtailment periods, leading to lower levels of bankability than originally forecast.
And, as a consequence of developing solar farms under a fixed timeline of tariff support, some projects have subsequently found to be underperforming during operations. Compounding the challenge, there is currently limited adoption of performance monitoring processes or software that would provide owners, operators and investors with a true picture of why there may be shortfalls in production.
In order, therefore, for momentum in Vietnam and other emerging markets to be sustained in the long term, Alectris is calling for further investment to help develop a domestic O&M industry to support both existing and new projects.
In the longer term, with the shift by the Vietnamese Government to PV auctions, there is a wider opportunity for the market to offer a blueprint for solar development under two different models.
Constantinos Peonides, Director of Business Development at Alectris, said: "Though the shift to an auction system will help remove pressure on developers and EPCs in building projects with long-term viability, there is concern that underperformance from existing projects may cause investors to think twice about investing in the market in future."
Alectris, providing consultancy services for 120MW in the region, have recently signed an MOU with Artelia Vietnam to deliver end-to-end operations and maintenance services for solar assets throughout Vietnam.
Alectris delivers asset care innovation for the global solar industry. It provides the integrated suite of operations, maintenance and asset management services, award-winning software ACTIS ERP, and retrofit technologies.
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