The meeting was connected by online television to five Power Corporations and four Power Companies (Ninh Thuan, Binh Thuan, Dak Lak, Dak Nong) where rooftop solar power projects are being strongly developed.
EVN makes all information public and transparent
Reporting at the meeting, Mr. Vo Quang Lam - Deputy General Director of EVN said that the biggest problem now was the definition of construction works and the basis for determining the type of RSP. There were a lot of solar power projects of nearly 1MWp implemented in agricultural farm model, but there were no specific instructions from the authorities to determine whether it was an RSP type or not.
Besides, determination of "photovoltaic panels installed on the roof" according to Decision No. 13/2020/QD-TTg was also facing difficulties due to the diversified forms of "roofs" (corrugated iron roof, plastic roof, sheet lighting, plastic canvas, etc.), the way of roofing (above/below the purlins, etc), while the regulations on determining the roof were not so specific.
Therefore, power corporations have faced difficulties in determining it to apply correctly the electricity purchase and sale price in accordance with Decision No. 13/2020/QD-TTg.
Deputy Minister of Industry and Trade Hoang Quoc Vuong (standing) speaking and directing at the meeting
Besides, there are now many rooftop solar power systems invested in clusters of 3-8MW (each project <1MW) at the same location, by one investor and connected at one point or more points, etc. It also makes it difficult for the electricity sector in certifying these solar PV systems to sign PPAs.
Not to mention that different local regulations on tax administration, invoices for non-business entities (households, offices, schools, etc.); construction management, land site, etc., also caused confusion for power companies.
EVN's General Director Tran Dinh Nhan said that in June and July 2020, EVN issued two documents (No. 3773/EVN-TTD dated 30 June 2020 and No. 4972/EVN-KD dated 23 July 2020), reported to the Ministry of Industry and Trade (MOIT) on difficulties and problems with of RSP development. While waiting for the guidance from MOIT, EVN has instructed power units to make it open and transparent for all procedures, connection procedures, electricity purchase and sale agreements, the ability to release capacity of each transformer substation, each area, etc., so that investors can know about the information.
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- As of 31 July 2020: there were 42,694 RSP systems installed, with a total capacity of 917MW.
- Total production of RSP back fed to the grid from 1 January 2020 to 31 July 2020: 309 million kWh.
- From 1 January 2020 to 31 July 2020, EVN had paid to customers a total amount of more than VND232 billion.
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The main goal of RSP development is for on-site consumption, so with new RSP systems of below 1MW, it is recommended that MOIT consider allowing power companies to sign connection agreements only for areas that are capable of releasing capacity, to limit investors from concentrating on one area.
EVN proposed to MOIT to soon promulgate guidance on specific defining criteria to distinguish between RSP systems and grid-connected solar power (GSP) systems, creating favorable conditions in determining electricity purchase and sale prices for solar power systems in accordance with Decision No. 13/2020/QD-TTg of the Prime Minister.
Guiding documents soon to be issued
Deputy Minister of MOIT Hoang Quoc Vuong said that Decision No. 11/2017/QD-TTg and Decision No. 13/2020/QD-TTg of the Prime Minister on mechanisms to encourage the development of solar power projects in Vietnam to promptly develop RSP capacity in a short time. In which, in Decision No. 13/2020/QD-TTg, the policy of RSP price is 8.38 Uscent/kWh, higher than the price of GSP (7.09 Uscent/kWh) to encourage the development of RSP, to save land resources, to meet local consumption needs. Up to now, the above objectives have been basically achieved. In a short period of time, Vietnam has developed rapidly RSP systems. Projects are mounted on the roofs of households, industrial parks, and agricultural farms, partly meeting the demand for power on-site.
RSP systems put into operation will contribute to solving difficulties with power supply in the coming time. However, in the process of RSP development, there have appeared difficulties and problems. After this meeting, the MOIT will review the difficulties and problems, then soon issue a guiding document for EVN and its units to implement Decision No. 13/2020/QD-TTg, as well as Circular No. 18/2020/TT-BCT of the MOIT.
Deputy Minister Hoang Quoc Vuong also agreed that, for new RSP projects, agreements would only made for connection to systems that were capable of releasing capacity. For projects that had been implemented and were not contrary to the Decision No. 13 of the Prime Minister, proper conditions shall be created for investors’ implementation.