Oliver Massmann

Solar investors are increasingly looking toward the young and promising PV markets of Southeast Asia for new opportunities. The region’s key solar markets—Thailand, the Philippines, Malaysia, Singapore, Indonesia, Vietnam and Myanmar—had a big year in 2016, collectively installing about 1.58 GW of new PV capacity, according to statistics from the International Renewable Energy Agency (IRENA). Including Cambodia and Laos, the region’s cumulative installed PV capacity hit roughly 3.48 GW by the end of December. …

Vietnam

PV investors are increasingly looking at Vietnam. A series of projects have been unveiled since the government’s announcement of a new FIT system earlier this year, including a 100 MW plan announced by India’s Tata Solar in April. …

The country’s framework to support PV deployment is almost complete, with a full PPA template expected by the end of this year. However, Dr. Oliver Massmann—co-general director of Duane Morris Vietnam LLC in Hanoi—is concerned because a recent draft included “mistakes” that could render the agreements unbankable.

Nonetheless, Massmann expects solar to develop rapidly. The involvement of multilateral lenders such as the Asian Development Bank, for example, is starting to attract the interest of local commercial lenders, although access to finance remains an issue. And a number of supportive policies are drawing in unprecedented numbers of prospective foreign investors.

Massmann says investors should consider a build–operate–transfer (BOT) approach in Vietnam, but notes that there are also growing opportunities for equipment suppliers. “Vietnam is an untapped market for solar,” he says. …

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