Struggling with solar power

Rooftop solar panels at Tan Binh Industrial Park, Tan Phu District, Ho Chi Minh City - Photo: QUANG DINH

Foreign direct investment (FDI) giants have repeatedly requested mechanisms for installing and purchasing solar power over the years, but these requests remain unmet. This policy gap cannot be allowed to continue any longer, given the urgent need for solar power installation and emission reduction.

Gone are the days of installing rooftop solar panels to sell electricity at high prices and sit back and collect money. The proportion of renewable energy in the national power grid has reached a high level, and the instability of this power source has posed many challenges to power system regulation.

During this period, businesses are eager to install solar power for their own consumption, not only to reduce electricity bills but, more importantly, to help them reduce carbon emissions. Each megawatt of rooftop solar power installed in Vietnam is estimated to reduce over 1,000 tons of CO2 emissions per year.

Among the effective emission reduction solutions, businesses prioritize installing solar power on the roofs of their headquarters, factories, parking lots, etc., due to its numerous benefits, especially manufacturing and export businesses.

Tariff barriers and mandatory carbon emission reduction requirements are now taking shape as the Carbon Border Adjustment Mechanism (CBAM) is about to come into effect. Domestically, the government has also mandated that certain sectors and businesses must conduct greenhouse gas emission inventories.

Without reducing emissions, businesses will be excluded from global supply chains or forced to spend large sums of money buying carbon credits. This illustrates that using renewable energy is crucial, even vital, for businesses.

The leader of an international retail group lamented that the company aimed to reduce emissions by 20% by 2025, but in Vietnam, factories have yet to install rooftop solar power, leaving this goal unfulfilled.

Many Vietnamese export businesses are also scrambling to reduce emissions because one of the requirements for exporting to Europe and many other major markets is to reduce emissions, but currently many industrial zones prohibit the installation of rooftop solar panels.

Even major players like Lego and Pandora, who have established businesses in Vietnam, use 100% renewable energy but are still waiting for the right mechanisms.

Following the explosive growth of solar power, the period from 2021 to the present has been a policy gap for installation since Decision 13 expired.

After a long wait for the new policy, the draft is still being debated back and forth without a conclusion. Two key issues of concern to businesses remain unanswered: When will rooftop solar power be allowed to be installed? When will direct power purchase agreements (DPPA) be implemented? Many businesses don't even care about selling; their priority is to be able to install and use the solar power system to achieve green certification.

A major issue in addressing the instability of solar power is the need for a battery energy storage system (BESS), but the draft proposals only offer encouragement for such a system.

Meanwhile, energy storage systems have developed significantly worldwide , with some power plants even using 100% electricity from storage systems.

The price of battery storage has also dropped sharply, efficiency has increased, and technology has improved, so this is the time to clearly regulate storage when installing solar power, even making it mandatory for large businesses.

In recent years, foreign businesses have benefited excessively from the renewable energy market, with solar panels, wind turbines, and electrical equipment imported worth tens of billions of USD, and even installation contractors coming from China. New policies must play a role in encouraging the development of domestic businesses in this field.

The early issuance of policies supporting the development of rooftop solar power is a strong desire of businesses, and it is also a crucial support and key factor in helping them overcome the green barrier during this critical period.

Source: https://tuoitre.vn/loay-hoay-dien-mat-troi-20240620094049092.htm