Solar self-users seeking parity

The Department of Natural Resources and Environment of Vung Tau city in the south at the end of June sent an official letter asking the provincial authorities for guidance on environmental procedures for rooftop solar power projects. Specifically, it asked if investors had to carry out procedures for these documents, and if so, how to go about it.

The move came after a warning was issued from Electricity of Vietnam (EVN) to require investors to provide relevant documents, including environmental records. If not, the state-run group will stop paying electricity bills for the output generated for projects.

Recently, 28 rooftop solar power investors in the southern province of Binh Duong submitted a petition to the Ministry of Industry and Trade (MoIT) as well as the provincial People’s Committee, asking to remove difficulties with related projects because they have not been paid for electricity since March 31.

According to the investors, they have been funding rooftop solar power systems since 2020, and have made great efforts to complete schemes on schedule, despite the harsh restrictions and material shortages during that time. Currently, the systems are operating in a stable manner and generating clean electricity for the country.

However, Binh Duong Power Company announced the suspension of payments to investors because the rooftop solar power system has not added missing documents, including construction safety records and fire prevention records.

Dao Du Duong, head of the representative office of the Vietnam Clean Energy Association in Ho Chi Minh City, said, “If businesses invest in rooftop solar power projects by themselves, the ability to recover capital is very difficult.”

He explained that due to specific legal mechanisms and regulations, EVN is temporarily not implementing the agreement to connect these self-using rooftop solar power systems and waiting for instructions from the MoIT.

“The benefits of solar power are quite clear. However, in the implementation process, there are many obstacles, such as the regulations on installation conditions for solar power being still unclear, and lack of consistency. On top of that, there are no clear instructions on issues such as fire protection,” added Duong.

Meanwhile, in other provinces such as Binh Thuan, Duong noted that various rooftop solar projects do not always have to go through the same environmental procedures.

EVN and its members have received recommendations from a number of both local and foreign investors requesting to connect the rooftop solar power system for self-consumption on the spot, without generating electricity on the grid.

According to the state-run utility, the proposed systems will be installed under the management of the investor, not under the management of power companies. Therefore, if it is not approved, it may cause a negative reaction, Duong said.