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Midterm report the current impact of solar power on sustainable development in vietnam from 2018 to 2023

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Tiêu đề The Current Impact Of Solar Power On Sustainable Development In Vietnam From 2018 To 2023
Tác giả Pham Quynh Anh, Nguyễn Quynh Anh, Trinh Thai Linh, Vũ Huyền Linh, Đỗ Trung Kiờn, Phạm Bỏ Gia Nhất, Phan Yến Nhi, Lõm Kiến Quốc, Lờ Thị Hồng Trang, Dao Minh Tuan
Người hướng dẫn Dr. Mai Nguyen Ngoc, Dr. Pham Huong Giang
Trường học Foreign Trade University
Chuyên ngành Environmental Economics
Thể loại Midterm report
Năm xuất bản 2024
Thành phố Hanoi
Định dạng
Số trang 57
Dung lượng 5,49 MB

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  • 2.2. Research objectives 8 3. Object and Scope of the research (8)
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  • CHAPTER 3: IMPACT OF SOLAR POWER ON SUSTAINABLE DEVELOPMENT (35)
  • CHAPTER 4: PROPOSED SOLUTIONS AND RECOMMENDA TIONS (48)
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Nội dung

ABSTRACT Following the current trend of environmental economic development, countries in the world are gradually using renewable energy to move towards sustainable development, especiall

Research objectives 8 3 Object and Scope of the research

This paper explores the importance of solar energy for Vietnam's sustainable development across social, economic, and environmental dimensions, while also addressing future energy needs It provides a comprehensive analysis of solar energy in Vietnam from 2018 to 2023, highlighting its characteristics and comparing it with other renewable resources to showcase its advantages and limitations The study evaluates the global and national development of solar energy, assessing Vietnam's growth potential and the challenges it encounters By analyzing relevant data, the research tests the hypothesis that solar energy can effectively meet the country's future energy demands.

3 Object and Scope of the research

Object of the research 9 3.2 ẹcope of the r€S€AFCH 0 HT cọ nọ HT Họ 4 0040508 08 9 NỈ is n ẽ

This article examines the current state of solar energy in Vietnam and its significant influence on the country's sustainable development over the last five years It also discusses the strategies and policies implemented to improve Vietnam's social, environmental, and economic sustainability.

Vietnam is selected as the focus of this study due to the authors' firsthand experience with its distinct socio-economic, environmental, and energy dynamics This familiarity facilitates efficient data collection, precise analysis, and enhanced understanding of the influence of solar power on the country's sustainable development goals Additionally, Vietnam has emerged as a regional leader in solar energy development in recent years.

2023), making it a compelling case study for sustainable energy transitions

Our analysis focuses on the period from 2018 to 2023, coinciding with the implementation of Vietnam's favorable Feed-in Tariff (FiT) policy, which significantly enhanced solar energy generation Introduced under Decision 11/2017/QD-TTg, the FiT guaranteed a purchase price of 9.35 U.S cents per kilowatt-hour (kWh) for solar projects operational by June 2019, leading to substantial growth in solar energy production in subsequent years (Our World In Data, 2024) This timeframe allows us to thoroughly examine the development of solar energy in Vietnam and its impact on the country's sustainability.

Our research employs a qualitative approach to provide in-depth insights into Vietnam's experiences and challenges in the solar power and sustainable development sectors We prioritize the collection of secondary data from published research, books, reports, and articles, utilizing search engines like Google Scholar Additionally, we compile statistical data presented in charts and graphs to support our findings.

This article utilizes data from credible sources, including official Vietnamese government websites and international organizations, to explore the intricate relationship between solar energy development and sustainable growth in Vietnam By employing various methodologies such as data synthesis, systematization, classification, comparison, analysis, and evaluation, the research provides a comprehensive understanding of the country's energy transition.

THEORETICAL BACKGROUND Go HH HH HH như 11 1 Literature review 11 2 Theoretical framework, .cccccccssssscssssccsessessessessssssssssssssnesssscesssncssesasessessscesenesesees 15 2.1 Solar energy 15 2.1.1 Installed capacity of solar energy 15 2.1.2 Application of solar energy 19 2.1.3 Classifications of solar energy cscssssssssssssssssssnssessccssncsccsscscsnsescsnescsessesennases 21 2.2 Sustainable development ccsscssscssecsssssseecscecsssssseecseesssessseesscesseesssesssseesesenees 22 2.2.1 De finrition .ccsccscssssssssssnssnscesnscencecsnssecsnseesenseesenssenssecsesusesensanancaessensnnanseeess 22 2.2.2 Sustainable development with regards to the social aSp€CÍ .ô- 23

Sustainable development with regards to the economical aspect 0000+8 24 2.2.4, Sustainable development with regards to the environmental aspect

The growth of the solar energy industry has led to the emergence of numerous new occupations, creating a demand for a diverse workforce in areas such as installation, operation, maintenance, manufacturing, distribution, sales, and research and development A study of 20 countries, which account for 80% of global solar jobs, predicts that the sector will generate over 24 million jobs by 2030, a significant increase from seven million in 2012 This surge in employment is expected to result in approximately one in two jobs within the energy sector being created by this expansion.

The renewable energy sector is increasingly drawing investment and creating jobs, driven by the consistently high costs of fossil fuels As solar energy gains traction across various industries, it opens up additional employment opportunities A recent study conducted in a major oil-dependent country revealed that the economic benefits of deploying solar energy surpass the individual returns from fossil fuel exports, including oil and natural gas.

Developing economies that adopt solar energy can achieve significant financial, economic, and social advantages, as it offers a more stable investment compared to volatile fossil fuels Utilizing the net present value (NPV) method allows for a thorough cost-benefit analysis that surpasses traditional welfare measurements A recent study presents an economy-wide approach to assess the net benefits of solar energy, highlighting the importance of considering various evaluation methods.

24 devised to provide a deeper comprehension of the macroeconomic advantages of switching to solar energy, including GDP fluctuations, national benefits, trade balances, and long-term external competitiveness (Schulte et al, 2022)

Sustainable development emphasizes a balanced integration of economic, social, and environmental factors, playing a crucial role in the well-being of humanity and the health of our planet.

The environmental perspective on sustainable development emphasizes the stability of biological and physical systems, highlighting the importance of subsystems vital for global ecosystem stability (Perrings 1991) A key focus is the protection of biological diversity, which encompasses all elements of the biosphere, including human-made environments like cities The priority lies in maintaining the resilience and adaptability of these systems to change, rather than striving for a static, "ideal" state.

In order to obtain sustainable development in the environment dimension, several principles need to be taken into consideration Environment and economic activities are two sides of a coin

Environmental sustainability involves the responsible use of natural resources to protect the quality of the human living environment This encompasses the preservation of clean land, water, and air, along with the safeguarding of geographical spaces and natural landscapes Regular assessments and verifications based on national or international standards are essential to uphold these environmental qualities Key aspects of environmental sustainability include developing a sustainable development strategy that promotes growth while minimizing negative impacts on the ecosystem.

Protecting biodiversity and the atmosphere is crucial for environmental health Implementing strategies to control and reduce greenhouse gas emissions is essential for climate stabilization It is important to enhance the protection and management of ecosystems that are vulnerable to external impacts Additionally, reducing emissions and addressing pollution in air, water, soil, and food is vital for promoting environmental restoration and improvement in affected areas.

The world has witnessed rapid changes in the capacity of solar panels in the last few years, promising a bright future for the transformation of solar energy worldwide

In 2023, the global solar energy sector has achieved remarkable growth, with solar photovoltaic installations reaching a capacity of 1.6 terawatts, marking an 87% increase in new installations compared to previous years This rapid expansion is primarily driven by significant developments in countries like China, the United States, and India China leads the world with over 393 GW of installed solar capacity, accounting for nearly 37% of global installations The United States follows with approximately 113 GW, while India has emerged as a key player, contributing over 63 GW to the total global capacity.

Despite impressive global solar installation numbers, adoption remains concentrated in developed regions, leaving many emerging economies significantly behind A report by SolarPower Europe highlights that while global solar installations nearly doubled in 2023, growth has outpaced many emerging markets Key challenges such as limited access to finance, political instability, and inadequate infrastructure hinder these regions from fully engaging in the solar energy revolution.

26 is a cause for concern, as it will prolong the energy inequality between developed and developing nations, and transition to renewable energy sources where their implementation is urgently needed

Solar power has significantly outpaced nuclear energy, boasting an installed capacity of over 1.6 TW compared to nuclear's 390 GW, solidifying its role as a leading renewable energy source This shift reflects a growing global preference for solar energy due to its lower costs, scalability, and environmental advantages, as more countries transition towards sustainable energy solutions.

Technological advancements and economies of scale are significantly reducing solar energy production costs, with average costs for solar photovoltaic installations dropping by 67% since 2014 This trend positions solar energy as one of the most affordable sources of energy generation (Pourasl, Berenji & Khojasteh Nezhad, 2023) Despite rising inflationary pressures, the cost of solar continues to decline, and this reduction is expected to accelerate in the coming years.

2050, solar PV is expected to meet about 25% of the total electricity needs in the world, with an installed capacity as high as 8.5 TW (Pourasl, Barenji & Khojasteh Nezhad, 2023)

Achieving ambitious solar energy targets necessitates significant investment and supportive policies, particularly in developing countries that lag in solar adoption While large-scale solar markets are advancing rapidly in China, the U.S., and Europe, regions like Africa, Southeast Asia, and much of Latin America remain largely untapped For instance, despite its abundant solar resources, Africa only added 12.6 GW of capacity in 2022, highlighting the need to address structural and financial challenges for a successful global energy transition.

In conclusion, 2023 was a record year in terms of global solar energy installed at nearly 1.6 TW However, growth concentrated in developed countries taken together and the

The challenges faced by emerging economies raise concerns about the continuous deployment of solar energy Addressing the existing disparities in current pathways is crucial for realizing solar energy's full potential as the primary source of global electricity by the middle of the century.

The global capacity of solar power is set to grow rapidly, with an expected addition of approximately 593 GW of new capacity by the end of this year, marking a 29% increase over 2023 This growth follows a remarkable 87% rise in 2023, driven by decreasing costs of solar technology and its emergence as the most affordable source of electricity worldwide.

In 2024, China leads the world by contributing 56% of global solar capacity additions, having installed 334 GW by July, surpassing its previous annual record The United States follows with a 20 GW increase in the first half of 2024, marking a 55% rise from last year India is projected to reach 23 GW by the end of 2024, reflecting a 77% year-over-year surge Other countries experiencing significant growth include Germany, Brazil, and emerging markets such as Pakistan, Saudi Arabia, and Southeast Asia With ongoing investments and supportive policies, global solar capacity could rise to 6,000 GW by 2030, although more conservative estimates suggest a range of 4,000 to 5,000 GW Regardless, solar power is poised to play a crucial role in achieving global climate objectives.

Currenf SIfUafOH co TY HT HT T0 00 804.0 804 100014 8 004.04 9108 08 26 1 Global reality 26 2 Vietnam reality 29 2.1 Vietnam realify In DF€S€nf fẽIT€S s0 2a 01 0 1 9H TY ng vn 29 2.2 Vietnam natural and resourCes DOf€IHAÌ se s01 ng 1v 31 2 Vietnam difficulties mm accessing and disseminating solar energy

1 Regarding the betterment of societal factors

Solar energy is a crucial component of sustainable development in Vietnam, significantly impacting environmental goals and contributing to energy security, poverty alleviation, job creation, public health, and education By promoting the transition to renewable energy sources, solar power plays a vital role in fostering an inclusive and equitable approach to sustainable socio-economic development.

Energy Security and Clean Energy Access

Vietnam's rapid economic growth has led to a significant increase in energy demand, primarily met by fossil fuels like coal and oil However, solar energy has emerged as a transformative alternative, enhancing the country's energy mix and security By 2019, Vietnam's installed solar capacity surged to 5 GW, a remarkable rise from previous years, with 4.5 GW allocated for grid-connected plants and 0.4 GW for rooftop systems This shift has enabled the provision of clean, affordable electricity to rural and remote areas, reducing reliance on imported energy and bolstering overall energy resilience.

The growth of solar energy in Vietnam has mitigated the risk of energy shortages and supports Sustainable Development Goal 7 by providing affordable, reliable, and sustainable energy for all (The United Nations in Viet Nam, 2023) As solar power becomes increasingly prevalent, Vietnam is reducing its dependence on fossil fuels while progressing towards its ambitious renewable energy targets.

IMPACT OF SOLAR POWER ON SUSTAINABLE DEVELOPMENT

1 Regarding the betterment of societal factors

Solar energy is a crucial component of sustainable development in Vietnam, impacting environmental goals and contributing significantly to energy security, poverty alleviation, job creation, public health, and education As the country shifts towards renewable energy sources, solar power plays a vital role in promoting an inclusive and equitable approach to sustainable socio-economic growth.

Energy Security and Clean Energy Access

Vietnam's rapid economic growth has led to a significant increase in energy demand, primarily met by fossil fuels like coal and oil However, solar energy has emerged as a transformative alternative, enhancing the country's energy mix and security By 2019, Vietnam's installed solar capacity surged to 5 GW, a remarkable rise from previous years, with 4.5 GW allocated for grid-connected plants and 0.4 GW for rooftop systems This shift has enabled the provision of clean, affordable electricity to rural and remote areas, reducing reliance on imported energy and bolstering overall energy resilience.

The growth of solar energy in Vietnam has mitigated the risk of energy shortages and supports Sustainable Development Goal 7 by providing affordable, reliable, and sustainable energy for all (The United Nations in Viet Nam, 2023) As solar power becomes increasingly prevalent, Vietnam is expected to decrease its dependence on fossil fuels while progressing towards its ambitious renewable energy goals.

The advancement of solar energy, especially in underdeveloped areas, presents significant economic opportunities As of late 2019, more than 22,000 rooftop solar systems had been installed, leading to various advantages in construction, installation, and maintenance.

The surge of projects in rural provinces like Ninh Thuan and Binh Thuan has significantly boosted local economic development, creating more job opportunities for residents and effectively reducing poverty This growth has also led to greater diversification within regional economies (ASEAN Centre for Energy, 2024).

The installation of rooftop solar panels in households significantly reduces energy costs, allowing families to allocate savings towards improving their living standards This initiative supports Sustainable Development Goal 1, No Poverty, by alleviating the financial strain of energy expenses on low-income households, thereby increasing their access to essential resources such as education, healthcare, and other basic needs (ASEAN Centre for Energy, 2024).

The solar energy sector significantly enhances public health by mitigating the negative impacts of fossil fuel energy generation In Vietnam, transitioning from coal and other polluting energy sources to solar power not only reduces carbon emissions but also improves air quality, leading to healthier living environments In 2018, solar energy accounted for less than 1% of the energy mix, but Vietnam is increasingly focused on lowering its carbon footprint through expanded solar capacity This shift directly contributes to better public health, as air pollution is a major factor in respiratory and cardiovascular diseases, particularly in urban areas with high industrial pollution Thus, the growth of solar energy supports Sustainable Development Goal 3 by improving environmental conditions that affect health.

Solar energy plays a crucial role in enhancing educational outcomes by providing reliable electricity to schools, particularly in rural areas that lack access to the national grid With consistent power supply, these schools can implement modern educational technologies, leading to improved quality of education This is especially important in remote regions where inadequate infrastructure restricts access to essential services.

Solar energy projects have significantly advanced gender equity by providing women with opportunities to develop technical and managerial skills essential for implementing these initiatives Training rural women in the installation and maintenance of solar systems has not only equipped them with valuable skills but also fostered financial independence (The United Nations in Viet Nam, 2023) (UNICEF Viet Nam, 2022) This empowerment aligns with Sustainable Development Goal 5, which aims to achieve gender equality and reduce employment and income disparities between genders, particularly in rural communities.

Vietnam's expansion of solar energy is integral to its sustainable development strategy, driven by the government's commitment to the UN Sustainable Development Goals (SDGs) This focus on clean energy, poverty reduction, and climate action serves as a catalyst for renewable energy projects Solar energy plays a crucial role in reducing greenhouse gas emissions, supporting SDG 13, or Climate Action, by providing a lower-carbon alternative to coal and other fossil fuels.

The solar sector in the country is gaining international recognition as it diligently pursues its ambitious renewable energy targets for 2030 Solar power is set to play a significant role in the national energy mix, facilitating a transition to a sustainable and resilient energy future.

In summary, solar energy plays a crucial role in Vietnam's sustainable development by enhancing energy security and fostering poverty reduction, job creation, public health, and women's empowerment It serves as a pathway to create a fair and inclusive society, aligning with the country's Sustainable Development Goals (SDGs) for a greener and more resilient economy With increased investment and government backing, solar power is set to significantly address environmental challenges and drive socio-economic transformation in the years ahead.

2 Regarding the growth of economical factors

Solar power offers significant economic benefits in Vietnam by serving as an alternative to electricity from Vietnam Electricity (EVN) This transition can lower monthly energy costs, allowing households to allocate surplus funds to other expenses and providing backup power during emergencies Additionally, excess energy can be sold back to EVN, further stimulating economic growth Currently, EVN charges 2834 VND (approximately 0.128 USD) per kWh In Ho Chi Minh City, households can save an average of 4217 kWh annually, translating to about 539.8 USD, which accounts for roughly 99.4% of their total energy consumption.

Da Nang follows with 4141 kWh saved and 530 USD, equating to a 97.6% satisfaction rate

Ha Noi ranks third in energy savings, achieving a reduction of 3,892 kWh and a financial benefit of $498.1, alongside a satisfaction rate of 91.7% Excess power generated can be sold at a rate of 1,943 VND (approximately $0.088) per kWh, calculated from the difference between generated power and household demand This indicates that solar power not only serves as a sustainable energy source but also has the potential to generate income and contribute to economic growth.

According to "The Development of Solar Electric Power in Vietnam: Economy and Policy Analysis" by Tue Duy Nguyen, Hieu Trung Ho Le, and Ha Manh Bui, a table presented in the study highlights the advantages of electricity sales in 2021 This analysis was conducted by multiplying the standard electricity price set by EVN with the surplus power generated by households.

Table 2 - Benefits of electricity selling in 2021

Months HCM City (USD) Da Nang city Ha Noi city (USD)

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43 Chilan, J C H., Torres, 8 G P., Machuca, B I F., Cordova, A J T., Pérez, C A M., & Gamez, M R (2018) Social impact of renewable energy sources in the province of Loja: Ecuador International journal of physical sciences and engineering, 2(1), 13-25

44 Bongoza, S., Mzitshi, Z A., & Zhou, L Socioeconomic Impacts of Solar Renewable Energy in Rural Communities: Case of Mkhamela Village at Ingquza Hill Local Municipality, Eastern Cape Province, South Africa

The study by Moreno-Leiva et al (2017) evaluates the potential of solar power in copper production in Chile, focusing on its global warming impact through a life-cycle assessment The research highlights the environmental benefits of integrating renewable energy sources in the mining sector, aiming to reduce carbon emissions and promote sustainable practices in copper manufacturing.

46.Umer, M., Abas, N., Rauf, S., Saleem, M S., & Dilshad, S (2024) GHG Emissions Estimation and Assessment of Pakistan's Power Sector: A Roadmap Towards Low Carbon Future Results in Engineering, 102354

I don't know!

48.Primary energy consumption by source (n.d.) Our World mm Data https://ourworldindata.org/grapher/primary-energy-source-bar

49 TEA (2023), CO2 Emissions in 2022, IEA, Paris https://www.ica.org/reports/co2- emissions-in-2022

50 EREA&DEA Vietnam Energy Outlook Report 2019; Vietnam Ministry of Industry and Trade: Hanoi, Vietnam, 2019

5l.Energy consumption by source (n.d.) Our World in Data https://ourworldindata.org/grapher/energy-consumption-by-source-and-country? stackModesolute&country=~VNM

52.Solargis (nd) Global Solar Atlas The World Bank Group https://globalsolaratlas info/

53 Renewable energy manufacturing: Opportunities for Southeast Asia (2023, August

54.Solar power generation (2024, May 8) Our World in Data https://ourworldindata.org/grapher/solar-energy-consumption? tab=chart&time 10 latest&country=~VNM

55.Le, V D., Tai, L T., Rangaraju, S., & Nguyen, K V (2023) The potential for solar energy in Vietnam A study conducted to determine whether solar energy is still ResearchGate

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