Breakthrough for self-produced, self-consumed solar power
The Ministry of Industry and Trade is seeking comments on the draft decision of the Prime Minister on the mechanism for developing self-use rooftop solar power (SPP) in the direction of self-production and self-consumption. There are many breakthrough regulations to support and encourage individuals and organizations to invest in developing rooftop solar power systems. For example, exemption from electricity operation licenses, electricity business registration certificates, reduction or exemption of certain taxes, fees, loans with preferential interest rates, etc. The capacity of rooftop solar power systems installed according to this draft decision is "unlimited" and in accordance with the policy of Power Plan 8 in Decision 500 signed and issued by the Prime Minister on May 15, 2023.
People hope to soon have instructions to conveniently sell rooftop solar power to neighbors.
As soon as the draft was released, on June 20, many comments were sent to Thanh Nien Newspaper asking for clarification on many regulations that the draft had not mentioned. For example, defining more clearly the source of self-produced and self-consumed electricity. How is the excess electricity "treated" after use? Should it be blocked or still put on the grid for free, or should it be distributed and charged at a certain level...?
Mr. Vo Thuc Dong, Director of Dong Corporation, proposed to immediately add a provision stating that representative office headquarters does not include headquarters with production, business and commercial activities.
"As I understand it, the phrase "not included" in the draft means that representative offices are not allowed to install batteries on the roofs of factories that are currently operating below; not allowed to install on the roofs of supermarkets because they are doing commercial business or on the roofs of poultry, livestock or aquaculture areas? In short, are we allowed to install on the roofs of factories, workshops, warehouses, supermarkets, restaurants, eateries, livestock, poultry, aquaculture areas... according to this draft decision?", Mr. Dong said.
Dr. Tran Van Binh, solar energy expert
Mr. Dong’s question is also the question of many people when reading the draft mechanism for developing self-produced and self-consumed solar power. However, while waiting for a breakthrough mechanism which is expected to take a long time, the urgent issue now is a mechanism for selling electricity between households and in small communities that needs more attention.
A family installs rooftop solar power for use, has excess capacity, and wants to sell to neighbors, what should they do? Up to now, they are still waiting for... a mechanism. While this is an important part of the roadmap for developing a competitive retail electricity market, which according to the plan must be successfully piloted in the period 2021 - 2023.
After 2023, a fully competitive retail electricity market must be implemented. However, in the context of many "hot" issues for the electricity industry such as shortage of supply, full capacity transmission from the south to the north, the "deadline" for the competitive retail electricity market is approaching..., the Ministry of Industry and Trade's delay in issuing a direct electricity purchase and sale mechanism is what makes businesses and people impatient.
Especially for households and businesses that need to buy and sell electricity directly with each other. Many households in the South said that they have excess rooftop solar power capacity, have not sent it to the grid but want to sell or share it with surrounding households in need, but it is still difficult because there is no legal basis for households to apply. This is a valuable source of energy that is wasted in the context of severe electricity shortage in the Northern region.
Quick view 12:00 on June 21: Panoramic news bulletin
Mechanism neglected, power wasted
Energy expert Ha Dang Son, Director of the Center for Energy and Green Growth Research, also commented that the mechanism of "selling electricity to neighbors" is too slow to be implemented, and proposals and amendments to legal regulations are almost non-existent. Therefore, the Ministry of Industry and Trade needs to soon complete the relevant legal basis to accelerate the direct electricity retail mechanism. If the law does not allow it, it is necessary to amend the relevant regulations to build this small-scale electricity retail model.
"The important thing is that there is a policy, but whether or not households are allowed to sell, how to sell, needs to be stated more clearly and quickly. Because currently the Electricity Law does not allow it; if there are regulations, it can be applied immediately in the residential community. Regarding the installation of rooftop solar power that is connected to the grid and sold to Vietnam Electricity Group (EVN), in the past, EVN usually installed two-way connection meters. Now that it is not connected to the grid and sold to neighbors, how is the connection done? Do the amounts of electricity sold to neighbors have to be declared and paid taxes? Are households selling electricity to neighbors required to have an electricity operating license? In my opinion, to encourage the development of solar power in the direction of self-production, self-consumption or sharing, selling to neighbors while the power supply is lacking, the Ministry of Industry and Trade must urgently have a pilot mechanism for retail electricity, complete related legal documents. In which, there are regulations and standards related to fire and explosion, safety... Electricity sales are carried out on the spot, not related to EVN, which does not interfere with EVN's grid and is available, should have been implemented early.
Appearing impatient, Mr. Ha Dang Son emphasized: "Compared to the roadmap, the retail electricity market is being implemented quite slowly. The pilot implementation should have been completed by 2023, but it has been half a year since 2023 and it still hasn't been done. Power Plan 8 is a development orientation, not a legal basis, but the consideration and urging of the implementation of the retail electricity mechanism needs to be done more urgently after there is a clear planning orientation. The pilot is that within the residential community, people can buy and sell electricity with each other...".
In addition, on a larger scale, in a proposal in May, EVN proposed that the Electricity Regulatory Authority (Ministry of Industry and Trade) consider and require customers connected to the grid with a voltage of 110 kV or higher to directly purchase electricity on the electricity market to gradually implement a competitive retail electricity market according to the roadmap approved by the Prime Minister. In reality, the number of customers connected to the grid with a voltage of 110 kV or higher is not large, but accounts for a large output, about 40 - 45% of the national electricity demand. Dr. Tran Van Binh, a solar energy expert, said that if the direct power purchase mechanism (DPPA) is issued, large customers will not need to buy electricity from EVN as it is now, but can buy directly and at many different prices according to the agreement. The price is purchased according to each time frame. In addition, even solar power investors can easily sell to other units and families if they have a need.
"The DPPA mechanism helps to take advantage of the existing power source at rooftop solar power projects of factories that businesses invest in for use, but have excess capacity, not being transmitted to the grid, and can be sold to other units in need; or households that invest in using it, if there is surplus, can also sell it to neighbors, helping to greatly reduce the load on the electricity industry. A mechanism that should have been created sooner and more urgently in the current context, has had policies, opinions from the Government, and many recommendations from EVN but has not yet been created. It seems that this mechanism... is being forgotten", commented Dr. Tran Van Binh.
If the DPPA is piloted in Vietnam, it will be a step to realize Vietnam's international commitments at COP26. The government needs to allow a pilot mechanism that goes beyond the legal framework, taking place on a certain scale and time. Only then can it be replicated, or even amended, the law. The problem is to decide urgently and do it early, the longer it takes, the more difficult it will be for the electricity industry.
Mr. Ha Dang Son, Director of the Center for Energy and Green Growth Research
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