Renewable energy accounts for only 0.1 percent of Ho Chi Minh City’s electricity consumption.
Energy experts from the World Bank proposed a program to help Ho Chi Minh City develop solar power systems at a meeting on Tuesday, Saigon Times reported.
Solar panels are used to produce renewable energy at the photovoltaic park in Europe. Photo by Reuters
To start with, the bank will work with the city to carry out an overall assessment of the benefits of installing solar energy systems on rooftops, provide technical support for local energy experts and find financial resources as well as equipment suppliers to implement the program.
Last year, Vietnam’s largest economic hub consumed about 3,575 MW of electricity, of which renewable energy accounted for 3.96 MW, or 0.1 percent.
The city had set a target of increasing its use of renewable energy to 1.74 percent, equivalent to 96 MW, by 2020.
To reach this goal, Ho Chi Minh City needs the World Bank's program to be launched by 2018 at the latest, Le Van Khoa, the city's vice mayor, has said.
Since 2015, the city has encouraged residents and businesses to invest in solar power systems by granting a subsidy of VND2,000 ($0.1) per kW used for domestic purposes or sold to the national electricity grid.
The city’s Power Corporation is searching for a pricing mechanism from the Vietnamese government to boost the development of solar power projects.
Vietnam is aiming to increase residential solar power usage nationwide from 4.3 percent in 2015 to 50 percent in 2050.