Opinion & Analysis

The development process for ground-mounted utility scale solar projects in Vietnam is laborious, time-consuming, expensive and still largely difficult to navigate for foreign developers without entering a strategic partnership, in whatever form, with a local Vietnamese counterpart.

‘Dual circulation’ has one thing in common with many other major Chinese policy initiatives in that it’s not immediately apparent from its name as to what it means. First raised during a Politburo meeting in May, President Xi introduced this new strategy at the annual ‘Two Sessions’ later that month. It is clear that China’s leadership intends dual circulation to become an important part not only of China’s policy agenda for the next 12 months but to also feature prominently in the upcoming 14th five-year plan (2021-2025).  

San Francisco has now joined other US cities in banning natural gas in new homes. The move is in stark contrast to the direction of energy policy in Australia, where the Morrison government seems stuck in reverse: spruiking a gas-led economic recovery from the COVID-19 pandemic.

It’s been a busy couple of months in global energy and climate policy. Australia’s largest trading partners – China, South Korea and Japan – have all announced they will reach net-zero emissions by about mid-century. In the United States, the incoming Biden administration has committed to decarbonising its electricity system by 2035.

Soaring fossil fuel prices have caused the scaling back or closure of Australian mines, resulting in production and job losses at a massive scale. More recently with the added consideration of carbon emissions, energy represents both a risk and an opportunity for this sector.

Australia doesn’t yet export renewable energy. But the writing is on the wall: demand for Australia’s fossil fuel exports is likely to dwindle soon, and we must replace it at massive scale.

Cornwall Insight Australia’s Lead Consultant – Market Analysis, Lumi Adisa, compares the lead times of major coal fired power station retirements in the National Energy Market (NEM) and analyses how renewables, particularly solar plus battery storage, are able to replace lost generation in the transition to a two-sided market.

This month’s final thought comes from Violette Mouchaileh, EGM, emerging markets and services with Australian Energy Market Operator (AEMO).

Could a single installation define a brief but explosive period of ambitious PV deployment? The massive 500 MW Dau Tieng solar array – among Southeast Asia’s largest PV installations – makes a strong case for being the most impressive project of Vietnam’s recent solar boom. But the allure of Dau Tieng is about much more than size – it’s about what’s beneath the PV modules.

Southeast Asia, when taken as a whole, is a global laggard in the uptake of renewable energy, but some countries are leading the way, such as Vietnam, the Philippines, and Myanmar. And as ‘Angry Clean Energy Guy’ Assaad W. Razzouk argues, policymakers in the region cannot hold back the tide of solar and wind for much longer.