The Challenge of Feed-In-Tariff (FIT) Policies Applied to the Development of Electricity from Sustainable Resources – Lessons for Vietnam

Tran Thi Lan, Kuaanan Techato, Sopin Jirakiattikul

Abstract


Feed-in-tariff (FIT) policies are valuable tools for enhancing the growth of sustainable energy, which have been applied successfully in many countries. The Ministry of Industry and Trade of Vietnam enacted an FIT policy for wind power in 2011. However, according to the Vietnam Electricity annual report (2016), electricity from renewable resources contributes only 0.4% of the total of 38,553 MW electricity generated and the potential for sustainable energy resources are not being fully exploited. In this paper, the authors give an overview of the current situation of the resources used to generate electricity in Vietnam and the proportions accounted for by sustainable resources, as well as reviewing the existing FIT policies and some limitations of those policies. In addition, the paper investigates seven FIT models according to their theoretical background and considers FIT policies in three successful countries, namely, Thailand, Germany, and Australia. Some lessons are proposed for Vietnam to encourage renewable energy resource development in the future.


Keywords


electricity generation; feed-in-tariff; renewable energy; sustainable energy; Vietnam

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References


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