Solar SunShot’s local manufacturing boost timed well for exports to Asia

Delegates attending the Australia-Vietnam Green Economy Summit in Ho Chi Minh City this week heard the timing couldn’t be better for Australian businesses to tap into opportunities arising from the green economy transition underway in the Asia Pacific region, and more specifically Vietnam.

Vietnam is targeting 47% of renewables in its electricity grid by 2030, and its recently approved National Power Development Plan confirms the country’s commitment to decarbonisation by significantly diversifying its energy sources and its transmission via new grid infrastructure.

Leigh Howard, Chief Executive Officer of the federal government-backed Asialink Business, said Vietnam’s clean energy transition is a “golden opportunity” for Australian businesses.

“[They] are well positioned to capitalise on the growing opportunities in Vietnam’s decarbonisation journey, especially in the realms of clean energy and sustainable infrastructure,” he said.

“We have a rare opportunity to utilise Australian expertise and capabilities to reshape our economic ties in the sector through investment, the export of equipment, technology and services, and the development of future skills and knowledge.”

Vietnam is already a strong export market for Australia but Howard said it is incumbent upon Australian businesses to familiarise themselves with the intricacies of the market to ensure they can maximise new growth opportunities.

“I strongly encourage businesses to build their understanding of Vietnam’s current market landscape so they are equipped to seize the opportunities on offer,” he said.

Tindo Solar Chief Executive Richard Petterson, who attended the summit in Ho Chi Minh City, said Australia’s innovation in renewable energy has much to offer Vietnam and the broader Southeast Asia region.

“Solar represents a substantial opportunity for Australian companies,” he said.

“Our experts show that there are global markets for Australian-made panels, and with short-term government support to scale, we are confident we can expand our manufacturing footprint. In doing so, we can reduce our cost of production and provide panels to even more customers at home and overseas, and ensure Australia enjoys more of the economic benefits of the energy transition.”

Tindo has been exporting solar panels manufactured at its Adelaide facility to Vietnam since 2019 with the latest shipment delivered earlier this year.

The company’s South Australian facility is capable of producing 360,000 panels annually but Tindo has voiced plans to construct a $100 million factory that would have the capacity to produce 2 million panels per year.

The company said a “significant proportion of that capacity is earmarked for exports to neighbouring countries hungry to diversify their renewables supply chains.”

“This brings export revenue back to Australia, supporting jobs and economic growth,” Petterson said.

Australia’s Assistant Energy Minister Jenny McAllister said the federal government’s recently announced Solar Sunshot initiative will act as a catalyst for new clean energy industries and help Australian businesses connect to new global supply chains.

“We are laying the foundation for Australia to become a renewable energy superpower, building export-scale clean energy industries,” she said.

McAllister said Australian energy technology companies, including Energy Exemplar, Village Energy, Gentrack and PowerLedger are already pursuing opportunities in Vietnam.

‘We have battery technology companies, like Thorion Energy or Magellan Power, establishing partnerships to explore the potential to combine Australian technology with Vietnamese manufacturing prowess,” she said.

“And it the resources sector there are opportunities for Australia’s technologically advanced companies to bring their experiences to support Vietnamese mining and processing.”