1.

Investor motives for participating in the solar market

Vietnam's fast-growing economy is putting a strain on its energy supply. Although it continues to
rely on traditional energy sources such as coal, hydroelectricity, and gas to generate power and
maintain national energy security, Vietnam is working to develop a more balanced energy
structure in the long run. through the development of renewable energy sources. Solar energy is
particularly advantageous at a time when the cost of technology equipment is falling and the
global trend toward renewable energy is growing.
Vietnam is regarded as a country with significant solar power potential, comparable to nations in
the region with established solar markets, such as China, Thailand, and the Philippines, as well
as conventional markets, such as Italy and Spain. In Vietnam, the yearly average solar radiation
is around 4-5 kWh/m2/day, and the total number of sunshine hours is around 1,600-2,700 hours
per year.
Solar power provides the advantages of being ecologically benign, reducing environmental
damage, and allowing for flexibility in the design of energy gathering areas and electrical
capacity. It may be mounted on a roof, a farm, or a body of water. Does not need a stable
foundation, is simple to maintain, and detects issues quickly.
The National Power Development Plan for the period 2011-2020 with a vision to 2030 (Power
Master Plan VII) also specifies the priority of increasing solar energy power sources, which will
grow installed capacity from 6 to 7 MW in 2017 to approximately 850 MW by 2020 and about
12,000 MW by 2030, equivalent to 1.6 percent and 3.3 percent of total power capacity.
The Vietnamese government has adopted several favorable policies to attract investment in the
solar energy sector to attain this goal. The Government of Vietnam announced Decision No.
11/2017/QD-TTg on solar power development in April 2017, with an electricity purchase price
of 9.35 US cents per kWh. The Ministry of Industry and Trade released Circular 16/2017/TT-
BCT in September 2017, outlining the project development laws and the Model Power Purchase
Agreement that apply to solar power projects in Vietnam. The adoption of the new energy
purchase price and the Model Power Purchase Agreement has established a legal foundation for
attracting private investment into Vietnam's solar power market.
The solar power business in Vietnam is quickly attracting significant investors because of
favorable legislation and the benefits that solar electricity provides. Many domestic and
international businesses are working on plans to create solar power plants in Vietnam.

2. Externalities
Positive Externalities
 Low running costs and high efficiency
When homes switch to solar panels, they will save a large amount of money on energy supply
system maintenance and upkeep.
  Supply that is infinite, sustainable, and renewable
Solar power is endless; the surplus is enough to meet humanity's energy demands for future
generations. The sun can still deliver energy to humankind for another 6.5 billion years,
according to NASA projections.
 Environmentally friendly
According to the latest evolutionary tendency in the struggle to cleanse the world, the most
promising field is solar energy, which plays a major role in defending the natural world from
global warming.
 Application widely
Solar power was recently named the "universal energy" indicating the ease with which solar
power is integrated into the household power system alongside the grid
Negative Externalities
 Initial installation costs are high.
There is a belief that solar power is an expensive energy source; this is possibly the most
contentious topic surrounding the utilization of this resource. Because storing solar energy in
homes involves a considerable initial investment.
 Instability
There is a major force fact: there is no sunshine at night, overcast or rainy days, thus the main
electricity supply is not solar energy.
 Mild pollution of the environment
Although solar power is more environmentally friendly compared to the production of other
energy kinds, some technical procedures for the manufacture of solar panels also include
emissions of greenhouse gasses.
 Uses several costly and uncommon ingredients
The fabrication of thin foil solar panels calls for the use of CdTe or CIGS - relatively rare and
costly chemicals, leading to an increase in price.
 Energy density is low.
The average power density measured in W/m2, which is represented by the volume of electricity
obtainable from a units area of an energy source, is a key characteristic of a solar energy source.
The solar power index is 170 W/m2 — greater than other sources of renewable energy.

3. Market Failure
Many CEOs of solar power companies argue that they "sit on a fire," because every day,
according to the timescales, the plant may generate up to 100 percent of its production potential.
As the number of solar rooftop projects increases, the fall in the demand for energy is a result of
the negative effects of the Covid-19 outbreak. Most solar power companies have been concerned
that industries would be further curtailed. Further decline will then weigh the financial strain on
the company.
-According to analysts, the "extra power" is caused by the boom of the solar plants and the
sluggish rise in energy consumption caused by the Covis-19 outbreak.
In addition to this, the national demand for power was lower than projected due to the effects of
the Covid 19 pandemic. EVN solves the excess electricity problem, many renewable energy
facilities are compelled to lower capacity at low load periods, the system's power consumption
reduces.

The aim of 850 MW of solar energy in 2020, and of 1.200 MW by 2030, is specified in Plan VII.
In particular. In actuality, however, the solar electricity installed around the country has
multiplied its zoning.
In addition, this Department has also included several huge solar plants with a big capacity,
which is considerably greater than predicted in the updated power program VII. The size has also
been increased. In the meanwhile, the calculation and updating structure of the national power
system's energy source structure has not been executed entirely and promptly.
The Ministry of Industry and Trade has also failed to implement effective and timely regulatory
mechanisms to prevent a wave of the large investment that has followed the rise of solar power,
particularly overinvestment in an area that creates transmission problems, electricity, release the
capacity of power plants, have an impact on the national power system's functioning, and have
an impact on investors' interests.
Solar cells are built from silicon crystals, including metals like plumb, copper and aluminium
with protection enveloped in thick plastic. Sorting and treating garbage costs a great deal, not to
mention chemicals that are hazardous to the environment in the recycling process.