German Ambassador to Việt Nam Helga Margarete. — Photo courtesy of GIZ

Khánh Dương

HÀ NỘI — There is still immense potential for continued and close cooperation between Việt Nam and Germany in the energy sector as both nations face similar challenges and opportunities in their energy transitions, said German Ambassador to Việt Nam Helga Margarete.

Assessing Việt Nam’s potential in developing solar energy, she said Việt Nam is perfectly positioned to capitalise on its abundant solar energy resources.

“Across the country, the potential for cost-efficient solar power generation remains enormous, but the growing share of variable renewable energy sources has to go hand in hand with the development of smart grid and storage,” she said.

Sharing Germany’s experience in solar energy growth, she said it's crucial to create attractive incentives and reliable framework conditions for the investors.

Germany was the first country to implement long term feed in tariff for solar power on a large scale. This policy laid the foundation for the development of a dynamic solar power market over the year, she said.

“Germany has reached a share of 58 per cent of total power generation," she told Việt Nam News.

"Solar capacity now exceeds 80 gigawatts and has become the cheapest source of electricity and a significant job creator. Almost everyone has solar on their roof, so it's very popular also in the population.

“As we all know, solar energy is a significant job creator. The industry employs over five million people worldwide in 2022 this underscores its vital contribution to economic growth and the global green transition.

"Therefore, in our view, expanding solar capacity can achieve and balance multiple objectives, advancing climate action among them, and ensuring low energy costs and enhancing energy.”

Solar panels at Phong Phú Solar Farm in Tuy Phong District, Bình Thuận Province. Việt Nam boasts huge potential for cost-efficient solar power generation, according to the ambassador. — VNS Photo Khánh Dương

Regarding the potential of energy cooperation between the two countries, she said Germany is a long standing and close partner of Việt Nam collaborating for over 15 years in the field of renewable energies.

The ambassador said: “But you have more sun, more solar potential than we have. We can exchange knowledge and expertise in areas such as grid modernisation, policy, design and technology. We can unlock a brighter and more sustainable future for generations to come.

“We are committed to supporting Việt Nam in addressing shared challenges such as integration, sustainable financing mechanisms and establishing a circular economy for solar equipment. Together, we can ensure that Việt Nam’s solar power sector becomes a driver for innovation and sustainability in the region.”

Việt Nam’s solar power journey is a story providing potential and more sustainable future for generations to come, she added.

Philipp Munzinger, Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for International Cooperation – GIZ)’s Energy Support Programme Director, said roof top solar will continue to play a key role in Việt Nam’s energy transition with high socio-economic benefits. However, less than 1 per cent of the estimated roofs currently in Việt Nam have rooftop solar.

Solar power will be the largest clean energy source in Việt Nam’s power mix in the future to decarbonise the energy system and to establish a resilient, cost-efficient and clean energy system for the future, he told Việt Nam News.

He said: “We can expect that over the next years, we will have further development of rooftop solar in the market.

"Due to the continuously falling costs of solar panels and battery storage, we can expect that an increasing number of households and commercial entities will make use of the roofs to generate their own clean power.”

As the generation of solar power is getting cheaper and cheaper, it's getting more economically attractive, not only for households, but also for commercial building owners, he added.

Philipp said: “We also do hope that the Government is acting as a pioneer in the future and will install rooftop systems on public office buildings, as stipulated in the National Power Development Plan VIII. This can send a strong signal also to the market if the Government promotes rooftop solar on their own building facilities.”

The installation of approximately 17GW of solar capacity since 2020 has made Việt Nam the front-runner on solar power among ASEAN nations. More than 100,000 rooftop solar systems mark about 50 per cent of this capacity, already defining a cornerstone of Việt Nam’s power system towards net zero emissions in 2050.

Recent regulatory developments, such as Decree 80/2024/NĐ-CP on the Direct Power Purchase Agreement Mechanism and Decree 135/2024/NĐ-CP promoting rooftop solar self-consumption, aim to further diversify and strengthen the rooftop solar market.

From early 2021 to early 2025, the GIZ and the Electricity and Renewable Energy Authority under the Ministry of Industry and Trade have implemented the Commercial and Industrial Rooftop Solar project (CIRTS).

The project focuses on creating favourable conditions for the sustainable development of rooftop solar in Việt Nam including strengthening CIRTS partners – the Ministry of Industry and Trade and Vietnam Electricity – in the integration of rooftop solar into the electricity grid. — VNS