In the first half of this year, the PV market in Vietnam and Ukraine was in a good position. The developers cooperated with local banks and the project was progressing smoothly. BNEF adjusted its forecasts for the PV market in these countries and judged the installed capacity of the United States and Egypt in 2018.

June 30 is the deadline for Vietnam's on-grid tariff policy. BNEF and other market institutions are expected to have a pre-emptive tide. However, the Vietnamese market has risen much more than the expected 2.3-2.6 GW. According to the report of the Vietnam National Electric Power Corporation (EVN), the total installed capacity of 82 projects connected to the grid before the deadline is 4.46GW, which is five times the target of Vietnam's 2020 850MW solar system. In addition, 13 projects with a total scale of 630MW solar systems are expected to be connected to the grid by the end of this year.

The solar panel heat in Vietnam is achieved with the support of local and regional banks. While international financial institutions are cautious about the Vietnamese market due to feed-in tariff subsidies, project quality and lack of international arbitration clauses in contracts, local banks have provided financing for solar projects. Local banks involved in financing PV projects include Vietnam Shengwang Commercial Bank, Vietnam Agricultural and Rural Development Bank and Vietnam Investment Development Bank. According to reports, EVN works around the clock in May and June, allowing as many projects as possible to achieve grid-connected power generation.

The scale of grid-connected PV projects in Vietnam has now surpassed the grid consumption space of some provinces, including Ningshun, Pingshun and Anjiang. Two wind power projects and 22 solar system projects have a high rate of 65%. Due to the fixed electricity price policy, the project can only get the electricity fee corresponding to the actual grid power. The abandonment of electricity makes the project costly.

After the prosperity, it is a depression. As the Vietnamese government is not eager to introduce new mechanisms, BNEF has adjusted Vietnam's new installed capacity forecast for 2020 from 1,000 MW to 500 MW solar system. The Vietnamese government has announced several drafts of the next PV feed-in tariff subsidy program, but has not announced the final policy.

There is also a boom in solar panels installations in Ukraine. According to the National Energy and Utilities Regulatory Commission of Ukraine, the installed capacity in the first quarter is expected to reach 684MW. The country's policy and approval environment is relatively transparent, which is conducive to developers' investment. We have adjusted the installed forecast for 2019 from 0.9-1.5GW to 2.5-3.5GW. Ukraine's current 150 Euro/MWh feed-in tariff will continue until the end of this year, with a subsidy period of ten years. However, if the developer can accept the low price of 112 Euro/MWh, some projects can be extended to 2020. Whenever the grid is connected, subsidies will be issued until 2029, so developers have the incentive to build as soon as possible. The Ukrainian government is likely to switch to the PV bidding mechanism from 2020, with an annual scale of about 300 MW, so we expect this year's PV heat to ebb in 2020. Ukraine's goal is to achieve renewable energy (including hydropower) accounting for 11% of total electricity use by the end of 2020. According to the Ministry of Energy and Coal, renewable energy generation accounts for 9% of total electricity consumption in 2018.