The rooftop solar power projects expect to be strongly developed

The rooftop solar power projects expect to be strongly developed - 

According to the Decision 13/2020/QD-TTg (Decision 13), dated April 6, 2020 of the Prime Minister, on the incentive mechanism for solar power development in Vietnam officially coming into effect from the May 22, 2020 instead of Decision 11/2017/QD-TTg expiring on June 30, 2019, the rooftop solar power projects in coming time expect to be developed very strongly.

The Decision 13 regulates that the Electricity Corporations would sign power purchase agreements (PPA) and electricity payment for the rooftop solar power projects, for which the meter readings have been set up in order to start electricity delivery and electricity payment from July 01, 2019.

In Decision 13, a rooftop solar power project is defined as a system of solar PV panels with a total capacity not exceeded 1 MW (or 1,2 MWp) set up on the building roof and directly or indirectly connected to electricity grid of the voltage from 35 kV down.

While waiting for a Circular to guide implementing Prime Minister Decision 13, on May 21, 2020, the Ministry of Industry and Trade issued Document No. 3641/BCT-ĐL which allows temporary using Standardized PPA prescribed in Circular No. 05/2019/ TT-BCT of MOIT dated March 11, 2019 with adjusting power purchase prices in accordance with Decision 13 to sign PPA with the investors of rooftop solar power projects putting into operation after June 30, 2019.

Thus, from May 23, 2020, Electricity of Vietnam (EVN) can sign PPA and pay electricity bills to customers. After issuing the Circular for guiding Decision 13, the EVN will sign a new PPA by regulations Contract in the Circular 13.

The electricity payment with the electricity price regulated in Clause 2, Article 8 of Decision No. 13/2020 / QD-TTg (the electricity price is applicable for 20 years from the date of the project operation and meter readings confirming), implemented as follows:

Firstly, from July 1, 2019 to December 31, 2019, the electricity price (excluding VAT) is 1,913 VND/kWh (equivalent to 8.38 US cents/kWh multiplied by the VND-US$ central exchange rate announced by the State Bank of Vietnam for December 31, 2018 as VND 22,825 / USD).

Secondly, from January 1, 2020 to December 31, 2020, the electricity price (excluding VAT) is 1,940 VND / kWh (equivalent to 8.38 US cents / kWh multiplied by VND-US$ central rate of VND and USD announced by the State Bank of Vietnam for December 31, 2019 as VND 23,155 / USD).

Thirdly, from 2021 and subsequent years, the electricity price (excluding VAT) will be determined for every year by VND (accounting units of VND without rounding), equivalent to 8.38 UScents/kWh multiplied by VND-US$ central rate announced by the State Bank of Vietnam for the last day of the previous year.

When taking officially effect the Decision 13 will become an "impulse" for rooftop solar power development with a lot of benefits for investors and communication.

In 04 first months of 2020, there were added 5,254 rooftop solar power projects with a total capacity of 178.66 MWp and generation to the power grid of 131.1 GWh. At present, there are in the whole country 27,631 rooftop solar power projects with a total capacity of 562.8 MWp.

In the first four months of 2020, an additional 5,254 rooftop solar power projects have been sold to EVN with a total installed capacity of 178.66 MWp, generating electricity output of 137.1 million kWh.

Up to now, the whole country has developed 27,631 rooftop solar power projects with a total installed capacity of 562.8 MWp.

The benefits of rooftop solar PV are clear as follows:

1 / Reducing monthly electricity cost due to electricity generation being used directly during peak hours or reducing electricity consumption with high-level prices.

2 / Increasing income by selling unused electricity output to EVN.

3 / No need of the land for installing.

4 /Reducing the pressure on investment in transmission grids due to these projects being connected to the existing low-voltage or medium-voltage grids.

5 / Effective heat resistance for the project.

6 / Contributing to environmental protection.

Clearly defining, the common interests of the society, people and businesses, EVN was and is implementing and deploying many activities for supporting and encouraging rooftop solar power by simplifying registration procedures, providing rooftop solar PV online registration services.

Currently, the routine and procedure for connecting and purchasing rooftop solar PV is very simple: After rooftop solar PV installation, the investor, wishing to sell electricity just needs to contact the Customer Service Center of the Electricity Company for free of charge controlling condition for grid connection, installing 2-way meter and signing PPA.

EVN is continuing to establish and complete the website to create favorable conditions for all people and businesses to learn about and approach every information relevant with rooftop solar PV on IT application and EVN Customer Care Switchboard.

With the huge potential of rooftop solar power development in Vietnam, EVN has clearly defined supporting rooftop solar power development as one of the important guidelines as it is an efficient power supply, realistic solution for meeting growing electricity demand.


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