To finalize the concept of 'self-production, self-consumption' for rooftop solar power in Vietnam

To finalize the concept of 'self-production, self-consumption' for rooftop solar power in Vietnam (Internet image)

To finalize the concept of 'self-production, self-consumption' for rooftop solar power in Vietnam

The Office of the Government of Vietnam issued Notice 387/TB-VPCP on August 16, 2024, regarding the conclusion of Deputy Prime Minister Tran Hong Ha on the development and issuance of the Decree stipulating mechanisms and policies to encourage the development of self-generated, self-consumed rooftop solar.

In recent times, the Prime Minister and Deputy Prime Minister of the Government of Vietnam have issued numerous and decisive directives on developing the Decree stipulating mechanisms and policies to encourage the development of self-generated, self-consumed rooftop solar, with the spirit of only moving forward and not delaying time, milestones, or objectives. To ensure the decree is of high quality, feasible upon implementation, appropriate to the new context, meets the people's expectations, and reduces the state's power generation investment pressure, the Deputy Prime Minister requests the Ministry of Industry and Trade to:

- Perfect the concept of “self-generated, self-consumed” rooftop solar***,* including the addition of a ratio of surplus electricity sales to clarify the content of self-generated, self-consumed solar power, with the primary purpose of serving on-site consumption needs of residents and businesses. In cases where surplus electricity is sold to the grid, the amount should not exceed 20% of the total capacity.

- Regarding procedures and paperwork: For residents, households, and office areas, research the direction of categorizing them into a specific group to have suitable policies in alignment with the spirit of encouraging self-generated, self-consumed rooftop solar, aiming to minimize administrative procedures. Equipment should be installed on existing structures, applying post-inspection to replace pre-inspection, and notify relevant authorities of the amount of electricity fed into the grid.

In cases where self-generated, self-consumed rooftop solar with an installed capacity of over 100 kW but below 1 MW chooses to connect and sell surplus electricity to the national power system, registration with the local power unit for remote control connectivity is required.

For organizations and individuals with an installed capacity of 1 MW or above that connect and register to sell surplus electricity to the national power system, business registration as per the regulation is required.

- For households, agencies, and offices selling surplus electricity to the national grid, management agencies need regulations for the acceptance of metering systems and the collection of metering data remotely, on-site monitoring, and control systems, and connection with data collection, monitoring, and control systems of the distribution control level. Additionally, research digital transformation management, monitoring, and control methods for rooftop solar sources when the load is not used on Saturdays, Sundays, or holidays to ensure safe operation of the power system.

- Regarding Battery Storage: For cases investing in rooftop solar for use with an installed energy storage system, 100% of surplus electricity can be purchased, and research to allow electricity purchase according to specific time-based pricing.

- The Ministry of Industry and Trade, Vietnam Electricity Group, Northern Electricity Corporation, Energy Institute, and related agencies should research and calculate demand load, transmission capability ensuring control, and system and network safety, at local regions when mobilizing self-generated, self-consumed rooftop solar connected to the national power system. Propose to increase capacity for rooftop solar (currently, the Northern region only mobilizes about 2.5% while the safe transmission capacity is up to 25%-30% as reported by EVN. Therefore, it is necessary to immediately adjust the capacity scale for the Northern region up to 7000 MW and re-evaluate the mobilization capability for Ho Chi Minh City). Submit to the Prime Minister in September 2024 to review and decide on adjustments to the national electricity development planning for rooftop solar energy.

- The Ministry of Industry and Trade should study, absorb the opinions at the meeting, and the directives of the Deputy Prime Minister to perfect the Decree stipulating mechanisms and policies to encourage the development of self-generated, self-consumed rooftop solar, in accordance with the Law on Promulgation of Legal Documents and policies of the Communist Party, Electricity Law, the Resolutions of the National Assembly and the Standing Committee of the National Assembly, relevant legal provisions, and complete submission to the Government before August 22, 2024, and be responsible for the content of the Draft Decree per clause 1, Article 7 of the Law on Promulgation of Legal Documents, proposing the Government Members' opinions on the entire draft Decree and specific contents:

+ For cases where surplus electricity is sold to the grid, the amount should not exceed 20% of the total capacity.

+ Based on technical and technological capabilities, the ability of the transmission grid to respond, the demand for developing power types participating in direct electricity purchase and sale, promptly report to the Prime Minister of Vietnam to review and decide on adjustment of electricity planning as per the regulations of the planning law.

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