Vietnam’s National Load Dispatch Center (NLDC) has decided against approving any solar or wind energy facilities in 2022, highlighting difficulties in the country’s grid infrastructure to accommodate new renewable energy additions.
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So what?
Vietnam has seen massive growth in the solar sector in the last 3-4 years, driven greatly by the country’s favourable feed-in tariff policies. However, these developments have strained the country’s transmission and grid infrastructure, with the government cutting down on the feed-in-tariff policies.
These developments demonstrate the hurdles and difficulties that will be part of the renewable energy transition in many nations. Grid transmission acts as a bottleneck to energy transmission and consequently to energy finance, slowing the pace of the transition and maintaining the dependence on traditional carbon-intensive energy sources like coal.
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