Ministry of Industry and Trade proposes 3 mechanisms to encourage development of rooftop solar power

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**Workshop chaired by Minister of Industry and Trade Nguyen Hong Dien.** Representatives of several departments under the Ministry of Industry and Trade attended the workshop, including: **Department of Electricity and Renewable Energy, Department of Electricity Regulation, Department of Industrial Safety and Environmental Engineering, Department of Energy Conservation, Department of Legal Affairs, Office of the Ministry;** representatives from Electricity of Vietnam (EVN) Group and its member companies. In addition, the workshop was attended by leaders of energy policy research associations and institutes, as well as experts in the field of **solar rooftop power (SRTP).**

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Minister of Industry and Trade Nguyen Hong Dien chaired the workshop on May 4

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**In his speech at the workshop, Mr. To Xuan Bao, Director of the Department of Electricity Regulation and Renewable Energy, said that the Ministry of Industry and Trade is currently studying and collecting feedback to finalize the Draft Decree on self-produced, self-consumed solar power.**

**In terms of its scope, this Decree governs the development of solar power systems installed on the rooftops of construction works for self-production and self-consumption, and not for sale to other organizations or individuals.**

**The Decree also specifies that the applicable subjects are agencies, organizations and individuals managing and participating in the development of solar power in Vietnam in the form of self-production and self-consumption, and other related organizations and individuals.** The rooftops of existing construction works include: **houses, offices, industrial zones, industrial clusters, production facilities, and business establishments that have been invested in and built in accordance with the provisions of law.**

**The following cases are not covered by this Decree:** Solar rooftop power systems implemented under Clause 11, Article 5 of Resolution No. 98/2023/QH15 dated June 24, 2023 of the National Assembly on piloting a number of special mechanisms and policies for the development of Ho Chi Minh City; solar rooftop power systems implemented under the direct power purchase and sale mechanism.

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Mr. To Xuan Bao, Director of the Department of Electricity and Renewable Energy, speaking

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**In terms of policy, this Decree stipulates that if solar rooftop power systems are connected to the national power grid, the agency, organization or individual has the right to choose whether or not to transmit any surplus electricity produced (if any) by the self-produced, self-consumed solar rooftop system to the national power grid.** If they choose to transmit the surplus electricity to the power grid, the electricity supplier will record the electricity output at a non-uniform price.** This content is implemented in accordance with the requirements of Power Plan VIII.**

**SRTP systems not connected to the national power grid.** In this regard, the Draft Decree stipulates that self-produced, self-consumed SRTP should be prioritized for development without any capacity restrictions.** This content is implemented in accordance with the requirements of Power Plan VIII.**

**It is noteworthy that this Decree also stipulates the mechanism for encouraging self-produced, self-consumed SRTP, which includes:**

**Firstly, technical incentives:** Self-produced, self-consumed SRTP systems connected to the national power grid (to ensure the quality of electricity, the stable operation of SRTP equipment, and the purchase of electricity from the grid when SRTP systems cannot meet demand during periods of weak solar radiation or at night), with a total additional capacity by 2030 of approximately 2,600 MW; encouraging organizations and individuals to combine self-produced, self-consumed SRTP systems with investment, installation and operation of electricity storage systems to take the initiative in production, business and electricity consumption activities.

**Secondly,** legal incentives:** Self-produced, self-consumed SRTP systems are exempt from electricity operating licenses.** Self-produced, self-consumed SRTP systems with a capacity that falls within the plan for implementing the national power development plan are considered to be in accordance with the Electricity Law.** Construction works with installed self-produced, self-consumed SRTP systems are not required to adjust or supplement energy land and functions in accordance with the provisions of law on electricity, land and construction.

**Thirdly, administrative incentives:** In order to simplify administrative procedures when agencies, organizations and individuals implement SRTP development, it is proposed that applications and procedures be handled through a one-stop mechanism as prescribed in this Draft Decree.** Priority should be given to allocating the budget for the development of self-produced, self-consumed SRTP systems installed at the headquarters of administrative agencies, public service units, and the headquarters of agencies and units identified as public assets.**

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Overview of the workshop

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**The Draft Decree prescribes the registration forms for organizations and individuals wishing to register for the development of self-produced, self-consumed SRTP systems, as well as the registration procedures.**

**The Ministry of Industry and Trade will continue to study and draft regulations on the simplest procedures for organizations and individuals to implement, while ensuring the management of relevant agencies in the process of developing self-produced, self-consumed SRTP.**

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