Which solar power takes prominence?

Decision No. 13/2020/QD-TTg of the Prime Minister on the incentive mechanism for solar power development in Vietnam officially takes effect from 22 May 2020. After Decision No. 13 coming into effect, which solar power model will take prominence in Vietnam?

Preferential tariff

One of the important contents that power consumers and people are interested in is the tariff of rooftop solar power (RSP) after 30 June 2019. Based on the content of Decision No. 13, the power corporations will sign electricity purchase and payment contracts for the RSP projects that have confirmed the meter readings to start handing-over and receiving power and paying electricity charge from 1 July 2019.

Accordingly, the criterion for identifying an RSP project: which is a solar power system with photovoltaic panels installed on the roof of a construction site and having a capacity not exceeding 1MW (or no more than 1.2MWp), connected directly or indirectly into the grid with voltage level of 35kV or lower.

While awaiting the the promulgation of a Circular guiding on the implementation of Decision No. 13 of the Prime Minister, the Ministry of Industry and Trade issued Document No. 3641/BCT-ĐL of 21 May 2020, which allows temporary use of standardized power trading contracts as prescribed in Circular No. 05/2019/TT-BCT dated 11 March 2019 of the Ministry of Industry and Trade adjusting electricity trading prices in accordance with Decision No. 13 to sign electricity trading contracts with The RSP investor has been put into operation after 30 June 2019. 

According to Mr. Nguyen Quoc Dung – Heade of Business Department - Vietnam Electricity (EVN), from 23 May 2020, EVN can carry out signing the contracts and payment of electricity bills to customers. After the circular guiding the implementation of Decision No. 13 has been issued, EVN will sign a new contract as prescribed. The payment is made in accordance with Clause 2, Article 8, Decision No. 13 (electricity purchase price is applied for 20 years from the date the project is put into generation and the meter index is confirmed). Specifically, from 1 July 2019 to 31 December 2019, the electricity purchase price (excluding VAT) is 1,913 VND/kWh (equivalent to 8.38 UScents/kWh). From 1 January 2020 to 31 December 2020, the electricity purchase price (excluding VAT) is VND 1,940/kWh (equivalent to 8.38 US cents/kWh). From 2021 and subsequent years, the electricity purchase price (excluding VAT) is determined for each year. 

According to Mr. Dao Du Duong - Deputy Head of Representative Office of Vietnam Clean Energy Association in Ho Chi Minh City, Decision No. 13 is considered as the "key" to untie the bottleneck on the prices of solar energy and create opportunities for people, businesses in RSP investment.

RSP system in Ba Ria - Vung Tau province

The opportunity to promote RSP development

Decision No. 13 of the Prime Minister officially came into effect as a "push" to create momentum for the RSP development. With many benefits for investors as well as the community, the recent RSP installation has been of great interest to the people and businesses.

Phung Thi Vinh's family (Dong Da, Hanoi) currently installs and uses the SMB system with a capacity of 2.67kWp. According to Ms. Vinh, in the past, in the hot summer months (June, July and August), household electricity costs were from VND 1.2 to 1.5 million per month, after using the system. DMTM, electricity costs have decreased 40-50%, only nearly 700 thousand. In addition, the excess electricity was received by the Electricity industry, recorded the output and paid for the family.

In early 2020, Sam Sam Co., Ltd. has signed a contract with the Central Electrical Equipment Manufacturing Center to deploy the installation of the TMN system for the Company with a capacity of 990kWp. Up to now, the project has been basically completed and prepared to operate electricity generation before December 31, 2020. It is expected that, on average, the system will supply 1,585GWh of electricity annually into the national electricity system.

Mr. Dao Du Duong said that the investment in solar power generation brings practical benefits such as, significantly reducing the monthly electricity bill, and the unused output of solar PV is sent back to the grid and sold to the electricity industry. ĐMTMN also contributes to reducing the roof heat, reducing the use of air conditioners for the attic and increasing the beauty and value of the building because of its environmental friendliness ... With current electricity prices, water Calculating the payback period of each average RSP project from 4 to 5 years.

At the recent meeting with power corporations on resolving problems related to the development of SEA, Mr. Tran Dinh Nhan - General Director of EVN said that it is necessary to focus on removing difficulties, obstacles and promoting. ĐMTMN. EVN will create favorable conditions for the development of solar power sources in an appropriate manner, bringing efficiency to investors and suitability of grid clearance. At the same time, the development of the new RSP will contribute to the generation of on-site power supply, ensuring electricity supply when the Vietnamese electricity system has no backup source.

EVN's departments and functional departments need to promulgate specific guidelines on implementation of environmental protection to power units, which agree on views, showing how to work clearly, publicly and transparently of EVN. In the process of contacting customers, Electricity employees must show attitudes to be attentive, listen, and support customers to develop rooftop solar PV..

In the coming time, SEA will be a trend of sustainable energy development encouraged by the Government, contributing to creating more clean energy sources, towards the goal of developing green and sustainable energy. EVN and its units will continue to promote the propaganda of the benefits of RSP installation, and at the same time, create favorable conditions for customers in the installation of meters, grid connection of the RSP system, signing purchase and sale contracts. electricity, with the goal of accompanying, supporting suppliers to serve customers in the best way. 

According to EVN's report, as of June 7, 2020, ĐMTMN has nationwide:

- More than 31,100 MTR systems,

- Total installed capacity is over 640 MWp,

- Output generated to the grid more than 145 million kWh,

- Total amount of electricity sold by customers to EVN: More than VND 300 billion.


  • 15/07/2020 02:54
  • evn.com.vn