Newest guidance on electricity trading of the surplus of self-produced, self-consumed rooftop solar power in Vietnam

Newest guidance on electricity trading of the surplus of self-produced, self-consumed rooftop solar power in Vietnam (Image from Internet)

On October 22, 2024, the Government of Vietnam issued Decree 135/2024/ND-CP stipulating mechanisms, and policies to encourage the development of self-produced, self-consumed rooftop solar power in Vietnam.

1. Guidance on electricity trading of the surplus of self-produced, self-consumed rooftop solar power in Vietnam

According to the provisions of Article 18 Decree 135/2024/ND-CP, the electricity trading of the surplus of self-produced, self-consumed rooftop solar power in Vietnam is conducted as follows:

- Organizations and individuals submit dossiers for selling power from self-produced, self-consumed rooftop solar power which include:

+ A written request to sell power, technical documents about solar photovoltaic panels, conversion devices from direct current to alternating current;

+ Power transmission line; ex-factory certificate, equipment quality certificate (certified copy);

+ Registration certificate for development for subjects as prescribed in Decree 135/2024/ND-CP or a document from the Department of Industry and Trade confirming capacity within the local planning and allocation plan;

+ Completion dossier for construction works according to construction law;

+ Acceptance approval documents (if any) from authorized governmental agencies related to construction, fire safety, and environmental regulations.

- The parties conduct technical inspections, install electric meters to measure electricity output, and lock the meter readings. Subsequently, the parties sign power purchase contracts and activate, put the self-produced, self-consumed rooftop solar power into operation. The deadline for the excess power buyer to sign the contract is 5 business days from the date of receipt of the document and power sale dossier from the excess power seller.

- The parties involved in buying and selling excess power sign a power purchase agreement.

- The term of the power purchase agreement is 5 years from the date the self-produced, self-consumed rooftop solar power is put into operation. After this period, the extension of the agreement or the signing of a new agreement will comply with current legal regulations.

2. Regulations on Electricity Trading on the Electricity Market in Vietnam

Electricity trading on the electricity market is specifically regulated in Article 20 of the Electricity Law 2004 as follows:

- Participants in the electricity market include:

+ Electricity generating units;

+ Electricity wholesaling units;

+ Electricity retailing units;

+ Electricity using customers.

- Electricity trading on the electricity market is carried out in the following two forms:

+ Trading through a term contract between the power seller and the power buyer;

+ Spot trading between the power seller and the power buyer through the market transaction operation unit.

- The market transaction operation unit is responsible for harmonizing, coordinating electricity trading activities and auxiliary services in the electricity market.

3. Regulations on Term Electricity Purchase Agreements in Vietnam

Term electricity purchase agreements must be documented in writing and include the following contents:

- Contract parties;

- Purpose of use;

- Service standards and quality;

- Rights and obligations of the parties;

- Electricity pricing, payment methods, and period;

- Conditions for contract termination;

- Liability for contract violations;

- Contract duration;

- Other contents agreed upon by the parties.

(According to Article 22 Electricity Law 2004)

More details can be found in Decree 135/2024/ND-CP which comes into force in Vietnam fromOctober 22, 2024.

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