Minister Nguyen Hong Dien said that buying excess rooftop solar power for self-use at a price of 0 VND “is appropriate” to prevent policy profiteering.
In the draft Decree on the mechanism to encourage the development of rooftop solar power that was consulted for comments last week, the Ministry of Industry and Trade kept the proposal that this type of installation in homes and offices for self-use and connection to the national grid would be implemented. cannot be sold or sold at 0 VND. That is, people can sell the surplus, but the State only records the output and does not pay.
At the conference on the afternoon of April 24, Minister of Industry and Trade Nguyen Hong Dien said that the above solution and measures to prevent energy backflow to the national grid are to ensure the prevention of policy profiteering. This regulation is also consistent with the conditions of the current transmission and distribution system. Because, the development of power sources must be harmonious, according to the National Power Development Plan approved in each stage.
“This is to not add pressure to the transmission and distribution system, contributing to reducing electricity supply stress,” he said.
According to Mr. Dien, incentive mechanisms of this type are a breakthrough to remove legal regulations to develop power sources in the context of a number of specialized legal regulations that have not kept up with reality.
Minister of Industry and Trade Nguyen Hong Dien spoke at the conference. Image: Ministry of Industry and Trade
In fact, by the end of 2022, rooftop solar power capacity will be about 9,000 MW, selling price is 8.38 cents per kWh according to Decision 13/2020. However, during this period, many violations occurred in approving additional projects into the planning, according to the conclusion of the Government Inspectorate.
By the end of 2020, there were 7,864 MW of rooftop solar power in operation. This number brings the total energy source capacity to 16,506 MW, 19 times the approved capacity in the adjusted Power Plan VII. This led to the structure of solar power capacity increasing by 1.4% to 23.8%.
Some regulations advised and issued by the Ministry of Industry and Trade at that time were assessed by the Government Inspectorate as “leading to loopholes, inadequacies, and the risk of policy abuse” to develop large capacity systems on agricultural land. , forestry under the farm model. These projects violate planning and land use plans but still enjoy the investment incentive mechanism, which means enjoying a price of 8.38 cents per kWh for 20 years.
At today’s discussion, Mr. To Xuan Bao, Director of the Department of Electricity and Renewable Energy (Ministry of Industry and Trade), said that if not connected to the national grid, there will be no capacity limit. In case of grid connection, agencies, organizations and individuals have the right to generate or not generate excess electricity into the system but pay 0 VND.
A noteworthy point, according to Mr. Bao, when wanting to install self-produced and self-consumed rooftop solar power in both types, people must register with the local Department of Industry and Trade. At the same time, the total capacity in the form of grid connection does not exceed the capacity allocated in the implementation plan of Power Planning VIII (2,600 MW).
According to the Implementation Plan of Electricity Planning VIII, the total installed capacity of rooftop electricity for self-use must not exceed the allocation for each area and region. Specifically, by 2030, the South will develop a maximum of 1,110 MW; The North is 927 MW, the remaining provinces in the Central and Central Highlands (560 MW).
In order to avoid profiteering in the coming period, in today’s dispatch commenting on the draft, Vietnam Electricity Group (EVN) also noted that management agencies need to supplement regulations and sanctions to handle connection cases. Self-produced rooftop solar power is consumed on systems installed before December 31, 2020 and is enjoying FIT prices for profiteering.