Representatives from several units under the Ministry of Industry and Trade participated in the Technical Consultation Workshop on the Government’s Draft Decree on Mechanisms and Policies to Encourage Self-Produced, Self-Consumed Solar Rooftop Power, including: the Department of Electricity and Renewable Energy, the Department of Electricity Regulation, the Department of Industrial Safety and Environmental Protection, the Department of Energy Efficiency, the Legal Department, and the Ministry Office; representatives of Electricity of Vietnam (EVN) and its member companies.
Additionally, the Workshop was attended by leaders of energy policy research institutes and associations, as well as experts in the field of solar rooftop power.
Overview of the Technical Consultation Workshop on the Government’s Draft Decree on Mechanisms and Policies to Encourage Self-Produced, Self-Consumed Solar Rooftop Power. Photo: Can Dung
Researching, addressing feedback to complete the Draft
In summarizing the status of developing the Decree on mechanisms and policies to encourage the development of self-produced, self-consumed solar rooftop power, Mr. To Xuan Bao, Director of the Department of Electricity and Renewable Energy ( Ministry of Industry and Trade ), said: In carrying out the tasks assigned by the Government, the Prime Minister issued Notice No. 165/TB-VPCP on April 16, 2024, and Notice No. 183/TB-VPCP on April 25, 2024, on the development of a decree on mechanisms and policies to encourage the development of self-produced, self-consumed solar rooftop power.
The Ministry of Industry and Trade established the Drafting Committee and the Editorial Board for the Decree on self-produced, self-consumed solar rooftop power under Decision No. 822/QD-BCT.
On April 15, 2024, the Ministry of Industry and Trade posted the full text of the Draft Decree on regulations on mechanisms and policies to encourage the development of self-produced, self-consumed solar rooftop power on the Ministry’s electronic portal to solicit public feedback.
Subsequently, the Ministry sought feedback from agencies, departments, and sectors in Official Letter No. 2639/BCT-DL dated April 19, 2024, and urged agencies and organizations to provide feedback in Official Letter No. 2833/BCT-DL dated April 26, 2024.
On April 25, 2024, the Ministry of Industry and Trade held a meeting of the Drafting Committee and Editorial Board to develop the Government’s Decree on mechanisms and policies to encourage the development of self-produced, self-consumed solar rooftop power. Prior to that, on April 24, 2024, the Ministry of Industry and Trade organized a workshop on DPPA mechanisms, self-produced, self-consumed solar rooftop power to consult international organizations and organizations, and experts on these mechanisms.
Mr. To Xuan Bao, Director of the Department of Electricity and Renewable Energy (Ministry of Industry and Trade). Photo: Can Dung
The Ministry of Industry and Trade is currently researching and addressing feedback to finalize the Draft Decree on self-produced, self-consumed solar rooftop power. This Decree stipulates the development of solar power systems installed on the roofs of buildings for the purpose of self-production and self-consumption, not for sale to other organizations or individuals.
Regarding the subjects of application, the 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 roofs of existing buildings include: residential houses, government offices, industrial parks, industrial clusters, production facilities, and business establishments that have been invested in and constructed in accordance with legal regulations.
Cases not covered by this Decree are as follows: Rooftop solar power systems implemented in accordance with 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 developing Ho Chi Minh City. Rooftop solar power systems implemented under the direct power purchase and sale mechanism.
Many heartfelt and responsible contributions
The workshop received numerous comments from economic and energy experts, leaders of energy policy research institutes and associations, on the Draft Decree on regulations on mechanisms and policies to encourage the development of self-produced, self-consumed solar rooftop power.
Agreeing with the provisions of the Draft Decree, Mr. Nguyen Anh Tuan, Vice Chairman of the Energy Association, said that while it is not yet possible to calculate all the benefits, costs, and consequences of households with self-produced, self-consumed solar power selling electricity to the grid, EVN agrees with the Ministry of Industry and Trade on the provision “recording electricity output at a price of 0 VND”. That provision includes: “Recording” means that the value of that social asset is recognized as a contribution (or adverse impact) to the electricity supplier, so it is necessary to have specific calculations on the “benefits and harms” of this electricity output.
Mr. Nguyen Anh Tuan, Vice Chairman of the Energy Association. Photo: Can Dung
For example, the benefits include reduced investment in new sources, reduced transmission and distribution costs, and reduced greenhouse gas emissions. The disadvantages include having to reduce or shut down power plants that are economically efficient, increased dispatching costs, and voltage regulation under load, due to excess power input at low points during the day and no power generation at peak times in the afternoon. The recorded value, for the time being, may be allowed by the Government to be included in the investment costs for providing electricity to remote and isolated areas, and shall not be considered as profit for the electricity supplier. Clear explanations are needed to avoid misinterpretation and agitation against the policy.
“ Regarding the “0 VND price”, it is cautious, temporary, and prevents policy profiteering while there is no practical experience in its application.
Therefore, it is recommended that the Decree include a provision on the period of application of this 0 VND price (for example: the three-year period 2024-2027) ”, Mr. Tuan emphasized.
Mr. Tuan added that the Ministry of Industry and Trade should continue to conduct research and assess the full range of technical, legal, economic, and social benefits and costs so that in the later stages, a reasonable price can be set. At that time, the state can set a high, low, or negative price, depending on the time and geographical area.
Welcoming the Ministry of Industry and Trade’s spirit of seeking feedback, openness, and accountability, and respecting public opinion, economic expert, Dr. Nguyen Minh Phong affirmed the advantages and correctness of the Draft Decree in 3 points: Firstly , encouraging the production of solar power in general and self-produced, self-consumed power in particular – in line with the spirit of Electricity Plan VIII. Secondly , respecting technical and management factors
