Despite an existing feed-in tariff (FiT) for deepening biomass energy investment in Vietnam, some experts advise that a new scheme must be paired with other legal incentives to ensure a more significant share in the country’s energy mix.
The Vietnamese government has applied FiT for biomass electricity between 7.03 and 8.47 US cents per kWh since 2020, depending on where the energy is generated.
Matthias Eichelbronner, specialist of the Sustainable Bioenergy Markets (BEM) initiative via the German Development Agency, commented: “That is too low of a price and not enough to encourage the development of biomass electricity.”
He mentioned that many Southeastern countries, such as Thailand and Malaysia, have very good FiT rates for biomass energy. In Germany, the average purchase price of biomass energy is 19 US cents per kWh, even reaching up to 21 cents per kWh. Currently, Germany has a total biomass power capacity of 50 GW.
