Solar Power Trading: Deadlock due to lack of clear regulations

VCN - A lack of clear regulations distinguishing rooftop solar PV system and grid-connected solar power system is a problem causing Electricity of Vietnam (EVN) to struggle in buying electricity. This makes many businesses and farms investing in the agricultural sector combined with roofing solar power installation facing difficulties.
solar power trading deadlock due to lack of clear regulations Three main missions for energy development strategy come to life
solar power trading deadlock due to lack of clear regulations Vietnam Energy Summit 2020 attracts investors
solar power trading deadlock due to lack of clear regulations Investors worry about not being able to enjoy the new price of solar power
solar power trading deadlock due to lack of clear regulations
The lack of clear regulations is confusing for both solar PV sellers and buyers. Photo: Nguyen Thanh


Abundant electricity cannot be sold

Mr. Nguyen Van Tien, owner of Tien Tien Organic Agriculture Farm in An Hai commune, Ninh Phuoc district, NinhThuan province, in an application sent to the authorities and EVN said: “In 2018, we set up a farm producing organic vegetables, herbs, livestock and poultry with clean, high quality, international standards to supply to domestic and export markets. However, because of a lack of power for production, we have to invest by ourselves in nearly 3km of 22kV line to bring the grid electricity to the farm for production.”

In response to the policy of developing solar power of the Government and localities, at the same time making use of endless solar resources, increasing economic value for farms and workers, this unit invested in installing photovoltaic panels on the system of factories, nurseries, walkways and sunshades, just to get electricity for irrigation, lighting, processing, packaging, product storage, and have more income from excess electricity output.

Up to now, the whole farm has invested and put into operation 12 solar power projects, but only two projects have been contracted with NinhThuan Power Company under Decision No. 11/2017 / QD- TTg dated 11/4/2017 of the Prime Minister on a mechanism to encourage the development of solar power projects in Vietnam, while 10 projects are only equipped with meters, recording electricity output on the grid.

"Although we have sent many petitions and specific solutions for the power sector, the Ministry of Industry and Trade has not yet signed a power purchase agreement," Mr. Tien said.

Regarding problems in the purchase and sale of rooftop solar power, in a document sent to EVN's leaders, CAS General Trading One Member Limited Company (one of the investors of the rooftop solar project in NinhThuan) said that the enterprise has been delayed in signing power purchase and sale contracts for more than a year, greatly affecting production and business activities of enterprises.

Recently, the company has had a discussion about solving problems in signing rooftop solar power sale and purchase contracts with representatives of EVN's Business Board, but the enterprise has not received specific instructions to sign the contract on electricity trading. The Business Department believes that the concept of "on the roof of a construction work" is not clear, so EVN needs to wait for guidance from the Ministry of Industry and Trade.

“We are trying our best to coordinate with international organizations such as Oxfarm, GreenID, SEACEF, to bring high-tech agricultural models, organic agriculture combined with rooftop solar energy production to produce livestock, poultry, organic vegetables.It is expected that we will conduct a pilot model for fish farming in AnGiang, fish farming combined with vegetable farming in Dong Thap and hi-tech shrimp farming in Bac Lieu in July and August 2020. However, the implementation of these models is being delayed by problems in signing PPA,” the document signed clearly by Ms. Nguyen Pham Cam Tu, Director of the Company.

Confused due to unclear regulations

Currently, NinhThuan Power Company has not been able to sign contracts and pay for electricity purchased from the above solar power systems as the price of electricity purchased from these systems has not been determined whether it is rooftop solar power or solar electricity and ground according to Decision 13/2020 / QD-TTg dated April 6, 2020 of the Prime Minister on mechanisms to encourage the development of solar power in Vietnam.

EVN has issued document No. 4971 / EVN-KD to request the Ministry of Industry and Trade and the Department of Electricity and Renewable Energy (Ministry of Industry and Trade) to guide the handling of problems on distinguishing between the systems of rooftop solar power and grid-connected solar PV.

Regarding this issue, EVN has received recommendations from some solar power investors in NinhThuan province.

Specifically, an organic agricultural farm in Ninh Son district, NinhThuan province, covering over 20 hectares, was granted a business license by the People's Committee of Ninh Phuoc district with the profession of growing agricultural products, animal husbandryfor the domestic market and export.Farm owners are subleasing land and infrastructure to a number of other companies to cultivate, combining with installation of solar power systems with a capacity of less than 1 MW, connecting 22 kV voltages to meet demand, produce and sell electricity to the national grid.

Most systems have photovoltaic panels installed directly on the support frame for the internal road area and on the building frame with a mesh covering the cultivated area. According to investors, the use of roofing sheets is to suit the agricultural production below, reduce water use, and reduce sunlight to suit plants and animals under the roof.

In addition to the above cases, there are also many problems related to solar power systems with similar properties.

EVN stated, according to Article 3 of Decision 13/2020 / QD-TTg: “Rooftop solar power is a solar power system with photovoltaic panels installed on the roof of a building and having capacity not exceeding 1 MW, directly or indirectly connected to the power grid with a voltage of 35 kV or less of the electricity buyers.”

EVN requested the Ministry of Industry and Trade, the Department of Electricity and Renewable Energy to consider and soon guide specific criteria for distinguishing between rooftop solar power systems and grid-connected solar power systems, creating favorable conditions in determining the electricity purchase and sale prices for solar power systems in accordance with the provisions of Decision 13/2020 / QD-TTg of the Prime Minister. At the same time, EVN also petitioned the Ministry of Industry and Trade to assign local Departments of Industry and Trade to inspect and determine the suitability of the criteria for power units to sign PPA with investors.

By Thanh Nguyen/Bui Diep

Related News

Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

VCN - The issuance of Circular 68/2024/TT-BTC by the Ministry of Finance is considered a solution to remove a major bottleneck in upgrading the stock market related to the abolition of the regulation on pre-trading margin requirement for foreign institutional investors.
Public investment disbursement in 7 months lower than same period last year

Public investment disbursement in 7 months lower than same period last year

VCN - According to a report from the Ministry of Finance, the estimated disbursement rate of public investment capital in 2024 of the whole country by the end of July will reach 32.22% of the total plan, lower than the same period in 2023 and some ministries and agencies have a disbursement rate of 0%.
Build a flexible mechanism and "reinforce" governance for state-owned enterprises

Build a flexible mechanism and "reinforce" governance for state-owned enterprises

VCN - State-owned enterprises (SOEs) always need flexible and responsive operating mechanisms as well as adequate legal corridors to remove bottlenecks and free up resources for SOEs in socio-economic development

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version