On Vietnam's farms, rising energy costs and the need to respond to climate change have become urgent. Many people say, 'I want to use renewable energy in farming, but I don't know of concrete examples.'
This article focuses on solar sharing (agrivoltaics) and biogas power generation, explaining the realities and potential of their adoption in Vietnamese agriculture.
The Energy Problem Facing Vietnamese Agriculture
Vietnam is one of Southeast Asia's leading agricultural power Vietnam ranks among the world's top producers of coffee, rice, shrimp and more. Yet securing power for farming has remained a challenge for many years.
The electricity costs of irrigation pumps and refrigeration equipment hit farmers' profits directly. The country's overall electricity demand is also rising year by year, and in 2023 power shortages caused frequent blackouts in industrial zones. Stable supply to rural areas remains difficult.
To address this challenge, the Vietnamese government is promoting the spread of renewable energy as a national strategy.
What Is Solar Sharing? Covering the Basics
Solar sharing (agrivoltaics) is a system in which solar panels are installed above farmland so that farming and power generation are carried out at the same time.
The panels are installed 2 to 3 meters above the ground. This secures sunlight for crops while generating power in the surplus space. In Japan, a special exemption for farmland conversion was created in 2013 and adoption advanced, and similar efforts are spreading in Vietnam as well.
| Item | Ordinary Solar Power | Solar Sharing |
|---|---|---|
| Land Use | Power generation only | Farming and power generation combined |
| Impact on Farmland | Farming not possible | Farming can continue |
| Revenue source | Power sales only | Power sales plus produce sales |
| Installation Cost | Lower | Somewhat higher |
Case Studies of Solar Sharing in Vietnam
Ninh Thuan province in central Vietnam has about 2,800 hours of sunshine a year, making it one of the country's most favorable regions. Here, a model in which grape farmers keep farming beneath solar panels while running a power-generation business in parallel is drawing attention.
In the Mekong Delta, cases combining floating solar with aquaculture have also appeared. Installing panels over farming ponds generates power while curbing water evaporation, a two-birds-with-one-stone approach.
As of 2023, Vietnam's installed solar power capacity has reached about 16,000 MW, among the largest in ASEAN. Some of it is installed on agricultural land.
How Biogas Power Generation Works and Its Use in Agriculture
Biogas power generation is a technology that anaerobically ferments livestock manure and agricultural waste to produce methane gas, which is used to generate electricity.
In Vietnam, large-scale pig, cattle and poultry farming is increasing, and waste disposal has become a major environmental problem. A biogas plant is an excellent system that solves this problem while also generating energy.
Main Benefits for Farmers Who Adopt Biogas
- In some cases, self-generation cuts monthly electricity costs by 30-50%
- It leads to lower waste-disposal costs
- The post-fermentation residue (digestate) can be returned to the field as organic fertilizer
- It also helps reduce greenhouse-gas emissions
At a pig farm near Ho Chi Minh City, there is a reported case of cutting annual electricity costs by about 40% after introducing a biogas plant. The initial investment is heavy, but the payback period is roughly five to seven years.
Points of Contact Between Japanese Companies and Vietnam's Renewable Energy
In Japanese agricultural investment into Vietnam, renewable energy is an important theme. JICA has long supported biogas-adoption projects in Vietnam, with a track record of installing thousands of plants nationwide.
For Japanese farm-machinery and equipment makers, too, Vietnam is a promising market. Cases of Japanese companies with solar-sharing technology entering Vietnam are also increasing.
It is also noteworthy from the food importer's perspective. Vietnamese farm products grown with renewable energy can be differentiated as 'green farm products,' matching the rise of sustainable consumption in the Japanese market.
Challenges of Adoption and the Outlook Ahead
| Challenge | Details | Example Measures |
|---|---|---|
| Initial investment cost | Installing panels and plants requires large expenditures | Using government subsidies and international financing |
| Shortage of technical personnel | There are few people who can maintain and manage the equipment | Japan-Vietnam technical cooperation programs |
| Developing the power grid | Transmission infrastructure to rural areas is unstable | Shifting to a self-consumption model |
| Regulations and permits | Procedures for land use and grid connection are complex | Setting up a government one-stop window |
The Vietnamese government has set a target of raising the share of renewables in power generation to 32% or more by 2030. Spreading them into the agricultural sector is one of its important pillars.
Summary
The use of renewable energy in Vietnamese agriculture is still developing. But with the two wheels of solar sharing and biogas power generation, there is ample potential to improve farmers' earnings and reduce environmental impact at the same time.
From the standpoint of technical cooperation with Japan and the food-import business, too, attention to this field is rising. Vietnam's agricultural energy transition is a theme not to be overlooked as a business opportunity.
At VN AGRI, we share the latest information on Vietnamese agriculture.
