On April 24, the Ministry of Industry and Trade organized a workshop to give comments on the draft Decree on direct electricity purchase and sale between power generation units and customers (DPPA) and the Draft Decree on development incentive mechanism. Solar power installed on the roofs of houses, offices, and industrial parks.
Propose 2 trading methods
Mr. Tran Viet Hoa – Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) said that recently, many investors, international organizations and electricity customers have expressed interest in participating in the mechanism. DPPA and hope that the Vietnamese Government will soon issue this mechanism with the expectation of achieving global sustainable development goals in accordance with general world trends.
With the draft DPPA, the Ministry proposes two methods: trading through private lines (not through the power grid) and through the national grid.
Specifically, if you buy and sell electricity through private lines, there will be no restrictions on the type of electricity generation and participating customers. However, must comply with current laws on planning, investment, and regulations on licensing electricity activities; regulations on electrical safety, fire prevention, operation and safety in using electricity; regulations on electricity sales and contracts and other related legal regulations…
As for buying and selling electricity directly through the national grid, the conditions for participation are renewable energy generators (solar power, wind power) with a capacity of 10MW or more and large electricity customers with supply connections. voltage from 22kV or higher, with average monthly consumption of 500,000 kWh.
Regarding the mechanism where the power generator will sell directly through its own line, Mr. Kim Yong Sup – Deputy General Director of Samsung Vietnam Complex wants to have clearer and more specific instructions for immediate implementation, without any problems. and don’t have to wait for new instructions.
With the electricity trading mechanism through generation to the national grid, he hopes the Ministry of Industry and Trade will consider calculating prices to ensure fairness and competition between electricity generating units and customers.
According to Ms. Virginia Foote, Member of the Board of Directors of the Electricity and Energy Working Group, Vietnam Business Forum (VBF), currently large companies belonging to VBF as well as industrial parks and manufacturing plants have the need to access renewable energy sources and clean energy. Therefore, VBF is ready to contribute comments to promote the process of issuing Decrees.
“We will send a written comment to the Ministry of Industry and Trade. If the draft Decree is approved, and the Decree is issued, it will promote production and business activities of enterprises, thereby promoting the attraction of foreign investment into Vietnam,” said Ms. Virginia Foote.
Emphasizing that the implementation of the draft Decree is important to businesses, the representative of the US-ASEAN Business Council in Vietnam said that there should be no further delay, because it will affect water attraction. outside of the Government. The Ministry of Industry and Trade needs to issue it as soon as possible to help foreign investors feel secure, especially businesses with new investment plans.
“This promotes renewable energy and mobilizes private investment in the sector. We recommend early promulgation, on the principle of creating openness for participating parties, avoiding the inclusion of too detailed content. Promulgation does not have to be too perfectionistic and it is the first time doing it so you can do it and learn from experience,” this representative said.
Meanwhile, Mr. Aguin Toru, Chief International Representative of Japan Bank in Vietnam (JBIC) said that there should be an estimated time for issuance to help businesses prepare better. With DPPA, the first step JBIC must focus on is solar power and wind power; Phase 2 is biomass power, halogen…
“We recommend that regarding waste electricity, customers using electricity in industrial parks transmitted through their own system will be able to participate in the DPPA component sooner. For companies that need specific investment plans in the near future, it is necessary to have an estimated time for issuance to help businesses prepare better,” Mr. Aguin Toru emphasized.
Excess generation to the grid at a price of 0 VND is appropriate
Minister of Industry and Trade Nguyen Hong Dien emphasized the direct electricity trading mechanism between renewable energy generators and large electricity users (DPPA mechanism) in case of using the national grid system, the output The customer’s amount will be paid in two components.
In particular, the customer’s consumption output met by the renewable energy generator will be paid according to the market mechanism; The remaining electricity consumption will be paid according to current regulations.
The two policies on DPPA and encouraging the development of self-consumed rooftop solar power are completely consistent and not in conflict. It should be noted that if the phrase “self-produced and consumed” is removed, it will completely change the nature and not comply with the provisions of law and the planning and electricity development plan recently approved by competent authorities.
In particular, the Minister requested media agencies to convey messages about the essence of the concept of “self-consumed rooftop sun” so that society can understand, share and comply with the provisions of the law. Develop harmonious power sources according to approved power plans in each period, without causing additional pressure on the transmission and distribution system, contributing to reducing stress in power supply.
Therefore, in the current period, the solution of 0 VND price in case of surplus rooftop solar power and sending it to the national grid is appropriate, ensuring the prevention of policy profiteering.
Minister Nguyen Hong Dien said that mechanisms to encourage self-produced rooftop solar power are a breakthrough in efforts to remove legal barriers for power source development in the context of a number of regulations. Specialized laws have not kept up with reality.
Regarding recommendations on the DPPA mechanism, Mr. Dien hopes that businesses and associations will recognize the fact that this mechanism has no precedent in Vietnam, so they will need to be cautious from the pilot.
| According to Mr. To Xuan Bao – Director of the Department of Electricity and Renewable Energy, electricity demand increases every year, from 8-10%. Vietnam has committed to the international community to achieve carbon neutrality by 2050. Therefore, in the energy sector, it must both develop very strongly in terms of sources and transform strongly in structure, towards green production. . Vietnam is also a highly open economy, relying on import and export, requiring rapid transformation to adapt to the increasing needs of importing countries. Therefore, in the development path, shown in the Power Plan VIII to 2030, vision to 2050, the goal is to reduce fossil-based power sources, strongly increase renewable energy sources and other energy sources. Low emission, environmentally friendly. Mr. Bao also emphasized the policy of promulgating incentive mechanisms and policies to attract investment, develop clean power sources, develop smart grid systems, and electricity storage devices; Gradually develop and perfect the electricity market on all three levels (electricity generation, competitive electricity wholesale and competitive electricity retail). |
Excess rooftop solar power: Transmitted to the grid for 0 VND, no chargeRooftop solar power can only be used for self-use and cannot be sold to other individuals or organizations. If not used up, the electricity output sent to the grid will only be recorded at a price of 0 VND and no payment will be made.
Tags: Rooftop solar power costs VND avoid policy profiteering
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