Promoting the use of green energy

On October 22, 2024, the Government issued Decree No. 135/2024/ND-CP stipulating mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power. Thus, after nearly four years of the Quang Ninh Power Company ceasing to accept requests for grid connection and signing electricity purchase and sale contracts from rooftop solar power systems, Decree No. 135 /2024/ND-CP has resolved many obstacles to the development of this green energy source.

The solar-powered water heating system at Mr. Dao Quang Tuan's household (Ha Long City). Photo provided by the company.

Faced with nationwide electricity shortages, in 2019, the Ministry of Industry and Trade officially issued Circular No. 05/2019/TT-BCT on the development of solar energy. This brings many practical benefits, helping households reduce electricity bills, especially during the day when electricity consumption is high. Energy-intensive devices such as air coolers and water pumps can be powered by solar energy, saving energy and reducing the burden on the national power grid. Besides saving money, rooftop solar power also provides households with an additional source of income.

Recognizing the benefits of rooftop solar power, in 2019-2020, many households, businesses, and agencies in the province installed rooftop solar power systems and connected them to the grid managed by Quang Ninh Power Company. Mr. Dao Quang Tuan (Zone 7, Cao Xanh Ward, Ha Long City) said: "In February 2020, my family decided to install rooftop solar power. After many years of use, I find this energy source very effective. With an investment of 170 million VND to install a 10.8kWp rooftop solar power system, my family has reduced our monthly electricity bill by two-thirds."

The solar-powered water heating system at the Saigon Ha Long Hotel. Photo: Do Hung.

The attractive buyback price for rooftop solar power has motivated many families and businesses to invest in this model. However, due to the expiration of the electricity purchase price regulations in Decision No. 13/2020 (dated April 6, 2020) of the Prime Minister on the mechanism to encourage the development of solar power in Vietnam on December 31, 2020, all rooftop solar power systems are unable to generate surplus solar power for the grid and cannot sell electricity to the power sector. The main reason is that the state and management agencies are concerned about the safety of the power system, so they have temporarily suspended acceptance to study safe and sustainable policies for rooftop solar power. In accordance with Decision No. 13/2020, Quang Ninh Power Company has stopped accepting requests for grid connection and signing electricity purchase and sale contracts from rooftop solar power systems developed after December 31, 2020. By the end of 2020, the entire company had signed 304 rooftop solar power purchase agreements with a total capacity of over 3,676kWp. Of these, 2 customers had installed capacities exceeding 100kWp; 302 customers had installed capacities under 100kWp. The total electricity purchased from these rooftop solar projects was nearly 1,800,000kWh, equivalent to nearly 3.6 billion VND.

According to the Vietnam Electricity Group's assessment, due to electricity demand increasing by approximately 12-13% per year, the country will need to increase its capacity by 2,200-2,500 MW by 2025. One of the solutions prioritized by the Government to ensure sufficient electricity for 2025 is to create favorable conditions for people to develop rooftop solar power. On October 22, 2024, the Government issued Decree No. 135/2024/ND-CP with notable new points, allowing organizations and individuals to install and use self-produced and self-consumed solar power without needing an electricity operation license in the following cases: not connecting to the national power grid; capacity under 100 kW; and installation of equipment to prevent reverse power flow into the national power grid. At the same time, it allows unlimited installation capacity under certain conditions. For households with an electrical system connected to the national grid, if the electricity produced is not fully consumed, it can be sold back to the national grid, but not exceeding 20% of the actual installed capacity (capacity under kW).

The government has introduced many preferential policies to support households in installing solar power systems, such as exempting import taxes on equipment and providing preferential loan packages, helping to reduce initial costs and making solar power more accessible to more people. According to many experts, the new policies from Decree No. 135/2024/ND-CP contribute to promoting the development of solar power and creating a foundation for a future of green energy use.

To implement the Decree, on December 4, 2024, the Provincial People's Committee announced newly issued administrative procedures in the electricity sector under the jurisdiction of the Department of Industry and Trade. These procedures include specific regulations on applicable subjects, development principles, prohibited acts, registration and issuance of development certificates, and the process and required documents for developing rooftop solar power sources.

Mr. Dao Duy Linh, Head of the Energy Management Department (Department of Industry and Trade), said: From December 4, 2024 to the present, the Department has granted registration certificates for the development of self-produced, self-consumed rooftop solar power to 3 enterprises in industrial parks that meet the legal requirements, with a total capacity of nearly 50MW. According to the investors' plans in the industrial parks, it is expected that by the end of 2025, the Department will issue registration certificates for the development of self-produced, self-consumed rooftop solar power with a total capacity of approximately 25MW. This will contribute to creating favorable conditions for manufacturing enterprises in the province to export goods to the EU, ensuring compliance with the European Green Deal and the Carbon Border Adjustment Mechanism (CBAM). Besides issuing certificates for rooftop solar power development, the Department also coordinates with relevant units and localities to promote awareness and encourage individuals and households to install rooftop solar power. This contributes to increasing the proportion of renewable, clean, and green energy sources in the province...

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