Electricity is sold with a fee, why pay 0 VND?

Safe for management?

According to the Minister of Industry and Trade, both of the above policies are “absolutely not contradictory”. In the current period, with the conditions of the transmission and distribution system, balancing the power structure, preventing reverse generation and the solution of purchasing electricity generated on the grid at a price of 0 VND is appropriate, ensuring to prevent the phenomenon of backhaul. policy benefits. In addition, the mechanism to encourage self-produced rooftop solar power is a breakthrough in efforts to remove legal barriers for power source development in the context of a number of specialized legal regulations that have not yet been established. keep up with reality.

“If not connected or linked to the national power system, priority will be given to unlimited capacity development. If connected or linked to the national power system, the total capacity developed across the country will not be exceeds 2,600 MW (according to the Planning and Implementation Plan of Electricity Planning 8), but also does not allow electricity trading in this case. This does not cause additional pressure on the transmission and distribution system, contributing reduce stress in electricity supply,” Minister Nguyen Hong Dien emphasized.

The phrase “taking advantage of policy” is in the conclusion of the Government Inspectorate related to loopholes, inadequacies, shortcomings, and previous violations in the issuance of documents guiding implementation and advising on mechanisms. Encourage the development of rooftop solar power by the Ministry of Industry and Trade. This leads to many large-capacity solar power projects being invested in agricultural and forestry land under the farm model, violating planning and land use plans but still enjoying investment incentive mechanisms. investment, which means enjoying a price of 8.38 cents per kWh for 20 years.

In fact, the total solar power capacity by 2020 approved in the adjusted Power Plan 7 is 850 MW. However, by the end of 2020, the total invested grid-connected solar power capacity reached 8,642 MW, 10 times higher than the approved capacity and more than double the planned capacity by 2025. In addition, in During this period, rooftop solar power sources also developed strongly with a total capacity of 7,864 MW, bringing the total energy source capacity to 16,506 MW, 19 times the approved capacity in the adjusted Power Plan 7. This led to the solar power capacity structure increasing by 1.4% to 23.8%.

“In terms of management, this 0 VND proposal from the Ministry of Industry and Trade is a move to “correct” previous incorrect proposals and violations of planning. Vietnam Electricity Group (EVN) once recommended not recommending Encourage investment in solar power projects at all costs, because investment encouragement must be synchronized with the transmission and distribution grid, but the Ministry did not accept this recommendation in the past policy, choosing the solution of buying excess electricity from investors at a price of 0 VND is a safe way for the management agency, but in return, this policy will cause a huge waste of opportunities to develop renewable electricity In the context of the huge risk of electricity shortages, electricity must be imported from abroad and sources must be purchased at high prices to supplement the shortage…”, an energy expert commented.

Going against market principles

Energy expert Ngo Duc Lam, former Deputy Director of the Institute of Energy (Ministry of Industry and Trade), expressed concern with the concept of buying electricity at 0 VND to prevent policy profiteering by the Ministry of Industry and Trade. He analyzed: During the period 2018 – 2020, when Power Plan 7 was almost “bankrupt”, unable to keep up with energy development needs, thermal power sources were not put into operation in time, and there was a serious electricity shortage, so the method The project chosen to overcome the electricity shortage is to use wind power and solar power. That’s why there is a FIT price policy, which means buying at a higher price than normal to encourage wind and solar power investors to develop sources. However, by the end of 2020, the FIT price policy will no longer be applied, many renewable power projects cannot enjoy the FIT price in time.

“At that period, the massive investment and taking advantage of preferential policies to gain profits… the shortcomings belonged to both investors, management agencies and localities,” Mr. Lam said and said that now, prices FIT no longer exists, so it cannot be called policy profiteering. Because the output of solar power development is included in Power Plan 8. Self-produced rooftop solar power is controlled in the plan to 2,600 MW by 2030 and is enough, so the number set in planning is not very meaningful. That’s why there is the “8 point” plan, which is to develop unlimited rooftop solar power but still have to self-produce and self-consume.

“We are gradually building a market for buying and selling electricity. In buying and selling, there must be payment. It’s better not to connect to the grid, not to receive the source from investors, then that’s it. If you receive the source, sell it, then return it to the house.” Invest 0 VND?”, Dr. Ngo Duc Lam expressed his opinion.

In addition, in the context of the pressure of lack of resources, forced to mobilize sources from coal power, gas power, and diesel power at peak times… at high prices, Mr. Lam said that the price of solar power has been gradually decreasing. Thus, renewable energy sources need to be prioritized. Furthermore, according to Power Plan 8, most source development projects must borrow capital to do it, while solar power is a private investment capital, the state does not spend any money but collects taxes. buy at good price…

“We encourage the socialization of the electricity industry, why refuse rooftop solar power? This is an energy source that can exploit capital from the people very well and is necessary. How to orient the manager to look at the problem There is something wrong here, insisting on building a rooftop solar power mechanism that must be self-consumed, not allowed to be sold to neighbors without sending it to the grid, and to send it to the grid must accept that there is no money Also argue that if you sell, you must follow the Electricity Law… Remember that the law is ours, the important thing is whether you want to change it or not. In the past, when the law could not be amended, many temporary policies were still needed, if necessary It can be immediately presented to the Government so that the Government can submit it to the National Assembly Standing Committee for approval to apply in a certain period,” Mr. Lam was frustrated.

Dr. Nguyen Quoc Viet, Deputy Director of the Institute of Economic and Policy Research (VEPR), also agreed that investing in rooftop solar power without being sold or priced at 0 VND is unfair and goes against market principles. . “It’s called encouragement, but the policy is built in a way that doesn’t encourage it. Because it’s very difficult to attract people and businesses to invest in rooftop solar power just for use. If there’s a surplus, it’s necessary to record the output for investors. Used when there is no sun. Excess output can be sent to the grid and deducted from monthly electricity consumption at a certain rate The roof does not transmit to the grid, it is shared (sold) with neighbors, so it should be applied in the context of severe electricity shortages in the Northern region that have been forecast,” Mr. Viet proposed.