The government encourages the development of solar power projects, including rooftop solar power projects. The incentive mechanism for the development of solar power projects was issued by the Government’s Prime Minister in Decision No. 11/2017 / QD-TTg dated April 11, 2017.

Through the receiving and responding system to businesses’ recommendations, The CDI Vietnam E-Commerce Co., Ltd would like to ask, how does the Government have policies for solar projects (made on the roofs of factories , self-employed by the plant, not connected to the national electricity grid)?

Is a foreign investor company can directly contact factories and industrial zones to do projects or must go through processes and procedures to apply for licenses?

Regarding this issue, Department of Electricity and Renewable Energy - Ministry of Industry and Trade replies as follows:

The government encourages the development of solar power projects, including rooftop solar power projects.

The incentive mechanism for the development of solar power projects was issued by the Government’s Prime Minister in Decision No. 11/2017 / QD-TTg dated April 11, 2017.

Regulations on project development, model power purchase agreement for solar power projects are prescribed in Circular No. 16/2017 / TT-BCT dated September 12, 2017 of the Ministry of Industry and Trade.

In the official letter of CDI Vietnam E-Commerce Co., Ltd, the operation and supply of solar power system of the unit has not been clearly stated. In case the electrical grid of industrial park customers is powered by the Company's project being connected to the national electricity system and continue to be connected to the national power grid, if the project is independent and if not connected to the electricity supply grid from the national electricity system of the industrial park, the solar power plant must comply with regulations on electricity safety; If the Company's project supplies electricity to industrial parks and directly matches the national electricity system, the company must comply with the provisions of Circular No. 39/2015 / TT-BCT dated November 18, 2015 of the Ministry of Industry and Trade that regulates the distribution grid and Circular No. 25/2016 / TT-BCT dated November 30, 2016 of the Ministry of Industry and Trade on the electricity transmission system.

According to Article 11 of the Circular No. 16/2014 / TT-BCT dated May 29, 2014 of the Ministry of Industry and Trade on the implementation of electricity selling prices, which stipulates the case of electricity retailers in industrial parks with generator plants. electricity on the spot, combining electricity generation with buying electricity from the national electricity system to retail electricity to electricity users shall elaborate electricity price schemes for electricity consumers in the sending area. Department of Industry and Trade verifies and sends a written opinion to the Ministry of Industry and Trade and submits to the provincial People's Committee for annual approval.

Regarding planning, for rooftop solar power projects with a capacity of less than 1 MW, comply with Clause 1, Article 11 of Circular No. 16/2014 / TT-BCT. For rooftop solar power projects with capacity equal to or greater than 1 MW, comply with Clause 2, Article 11 of Circular 16/2014 / TT-BCT.

Regarding electricity operation licenses, solar power projects with a capacity of equal or greater than 1 MW must be granted electricity operation licenses and comply with the provisions of Circular No. 12/2017 / TT-BCT. July 31, 2017 of the Ministry of Industry and Trade; Solar power projects with installed capacity of less than 1 MW are exempted from electricity activity licenses as prescribed in Article 3 of Circular No. 12/2017 / TT-BCT.