Vietnam is taking significant steps to embrace a greener future, and the recent rooftop solar power development initiatives are a key part of that strategy. Many Vietnamese organizations and individuals are exploring renewable energy options to reduce costs and environmental impact, but navigating the regulatory landscape can be complex. Decree No. 135/2024/ND-CP offers a crucial framework for self-production and self-consumption, creating both opportunities and changes to existing practices. This article breaks down the key aspects of this decree, its potential impact on the energy market, and what it means for businesses and homeowners looking to harness the power of the sun.
Key points of Decree No. 135/2024/ND-CP
1. Scope and Applicability:
Decree No. 135/2024/ND-CP provides the framework for organizations and individuals in Vietnam engaged in the development of rooftop solar power systems, primarily for self-production and self-consumption. This regulation covers installations that may or may not be connected to the national power grid, and allows for direct electricity sales between renewable energy producers and large consumers, subject to specific government guidelines. This is a significant step forward for sustainable energy development in Vietnam.
2. Guiding Principles for Development:
The decree emphasizes a transparent, equitable, and fair approach to rooftop solar power development, ensuring all stakeholders are treated consistently. Strict adherence to regulations concerning investment, construction practices, environmental protection, safety protocols (including fire safety), is mandated to maintain the stability and reliability of Vietnam’s power system. These principles are vital for the sustainable growth of rooftop solar installations.
3. Incentives and Support:
To encourage adoption, Decree No. 135/2024/ND-CP offers beneficial incentives for organizations and individuals who install rooftop solar power systems for self-production and self-consumption. Notably, a license is not required for electricity generation in certain circumstances, such as systems not connected to the grid, systems employing backflow prevention devices, and installations at individual homes or single-family residences with a capacity under 100kW. Furthermore, businesses can expect preferential tax policies and streamlined administrative processes, simplifying investment and operational activities related to sustainable energy development in Vietnam.
4. Registration and Operational Management:
Rooftop solar systems that are connected to the national grid must undergo a registration and notification process with the relevant authorities. Systems with a capacity exceeding 1,000 kW are required to incorporate monitoring and control systems that comply with technical specifications published by Vietnam Electricity (EVN). This is designed to ensure the safety and stability of the electrical grid and facilitate effective management of rooftop solar power development.
5. Managing Excess Electricity:
The decree establishes specific conditions and mechanisms for the purchase and sale of surplus electricity generated by rooftop solar systems. A cap of 20% of the installed capacity is placed on the amount of excess electricity that can be sold. The purchase price for this excess electricity is linked to the average market electricity price from the previous year. This approach aims to promote rooftop solar power while integrating it responsibly into the broader electricity market.
6. Roles and Responsibilities of Utilities:
Local electric utilities and Vietnam Electricity (EVN) share the responsibility for overseeing the development of rooftop solar power within their respective regions. Their duties include maintaining power system safety and managing payments to those selling excess electricity. EVN is also tasked with providing technical assistance and guidance to organizations and individuals to ensure proper installation and operation of rooftop solar systems in compliance with established regulations, supporting the ongoing growth of sustainable energy development in Vietnam.
Impact on the energy market
Decree No. 135/2024/ND-CP is poised to significantly reshape Vietnam’s renewable energy landscape, particularly driving development of rooftop solar power. This initiative aims to alleviate strain on the national grid, foster new commercial ventures, and enhance environmental consciousness within communities. The changes are expected to accelerate the adoption of distributed generation solutions.
Pham Dang An, Deputy General Director of Vu Phong Energy Group, recently highlighted the key aspects of Decree No. 135/2024/ND-CP in an opinion piece published by Tuoi Tre News on October 25, 2024. The regulation’s emphasis on self-production and self-consumption of rooftop solar power is a significant factor, notably waiving the need for electricity operation permits and removing capacity restrictions for systems equipped with backflow prevention devices. Simplified administrative procedures and preferential tax treatment further incentivize both businesses and households to invest in solar power systems, lowering energy costs and contributing to Vietnam’s broader transition towards green energy. The goal of achieving net-zero emissions and utilizing 100% renewable energy is a driving force behind these changes. Mr. An also underscored the importance of battery energy storage systems (BESS) in optimizing the efficiency of renewable energy systems and reducing the burden on the national power grid. Integration of BESS provides a vital layer of stability and flexibility in managing variable renewable energy sources, crucial for reliable power supply. |
For a detailed understanding of Decree No. 135/2024/ND-CP, customers and partners can access the full document via the link below:
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