Conference Agenda

The global energy transition is an irreversible trend, however, its progress has been hindered by technical, environmental, energy efficiency challenges, as well as economic and social challenges. The approach that promotes decentralization by empowering households to adopt distributed energy resource solutions helps mitigate the high capital costs associated with large-scale projects, yet it raises concerns about equity and a just energy transition. For energy transition to be inclusive and subsidies do not disproportionately benefit wealthier households, understanding the determinants of energy transition in the residential power sector thus provides a valuable lesson to guide sustainable governance and facilitate the transition to electricity systems that are both efficient and equitable. In Vietnam, despite significant advancements in the generation and accessibility of national grid electricity, the monopolistic structure of country’s electricity market constrains supply-side access. Households accept residential tariffs, reliability, and the power mix determined by the state-owned Vietnam Electricity with limited ability to bargain for the competitive price or improved service. Given the high ratio of electricity consumption relative to average national income per capita, Vietnamese households staying reliant on conventional grid electricity exposes them to further financial strain due to rising costs associated with conventional power generation. In this study, we examine just energy transition in Vietnam by analyzing how distributional justice, reflected in the choice to invest in and demand for residential solar electricity, is predicted by perceived affordability and reliability of grid electricity and socioeconomic differences among households. In addition to contributing to the growing economic literature on distributed energy resources in emerging economies, this study provides evidence-bas ed policy insights by highlighting two findings that remained little explored in the residential renewable energy transition. First, for households unlikely to invest in residential solar power technology, policy must (i) address potential disparities in electricity access across different household groups, and (ii) enhance the quality of service for those reliant on grid electricity. Second, for households willing to adopt residential solar power technology, policy design should ensure that consumption of residential solar electricity should be encouraged and households adopting solar technology should not be adversely affected by disparities in policies targeting utility-scale solar projects.