HCMCity (VNA) – The development of wind and solar power has not matchedits great potential, especially in the central and southern regions, expertssaid at a recent conference.

Speakingat the conference on renewable energy and roof-top solar power held on July 9in HCM City, Deputy Minister of Industry and Trade Hoang Quoc Vuong pointed to manybarriers that have hindered solar and wind power development.

Infrastructurefor the energy transmission grid, for instance, has not kept pace withrenewable energy projects.

Asa result, several projects in Ninh Thuan and Binh Thuan cannot generate 100percent of capacity at certain time, the Deputy Minister said.

Roof-topsolar power also has high initial costs, and while products and servicesrelated to roof-top solar power are available, they have no specific technicalstandards. This has affected the interest of investors in such projects.

Vuongnoted that the Government has created preferential policies that offerfavourable conditions for investors to exploit the potential of renewableenergy for sustainable socio-economic development.

Theministry has also set up action programmes, which have been submitted to thePrime Minister for approval, that would be the legal basis for implementationof such projects, Vuong added.

Sincethe issuance of the governmental decision on preferential policies for solarpower development in April 2017, around 4,500 MW of power has been connected tothe grid.

Nearly500 MW of roof-top solar power and more than 400 MW of wind power systems areoperating. About 3,000 MW of solar power and 2,000 MW of wind power systems areunder construction and are expected to be operating by the end of this year.

Thesesolar and wind power systems will reduce pressure on the national electricitysystem and help set up a renewable energy market in the country, contributingto local socio-economic development, Deputy Minister Vuong said.

VoQuang Lam, deputy General Director of Vietnam Electricity (EVN), said thatenergy demand continues to grow. The demand in the 2016-20 period increased by0.3 percent to 11.3 percent per year. From 2021 to 2030, it is estimated to riseby 8 percent to 8.5 percent each year.

Accordingto the Electricity and Renewable Energy Authority, the country will lack 12,690MW of power by 2023.

Ashortage of power could occur in the southern region, with 3.7 billion kWh in2021, increasing to nearly 10 billion kWh in 2022 and 12 billion kWh in 2023./.