Decree No. 135/2024/ND-CP introduces new mechanisms to promote the development of self-generated and self-consumed rooftop solar power

 

Decree 135 allows electricity consumers to self-generate rooftop solar power for self-consumption. Although electricity consumers, especially those in specialized zones and clusters, may prefer to purchase electricity from power developers under the direct power purchase agreement (DPPA) mechanism stipulated in Decree No. 80/2024/ND-CP, they may consider the self-generation and self-consumption mechanism under this Decree 135 in the future, when they can operate their rooftop solar power system.

Note: DPPA stands for Direct Power Purchase Agreement, allowing consumers to purchase electricity directly from renewable energy generators.

Decree 135 also opens up new opportunities for power developers to support the development of rooftop solar power through their services as contractors for electricity consumers and their role as electricity sellers in generating and selling electricity under the DPPA mechanism.

The main points of Decree 135:

1. Scope of Application:

Decree 135 regulates the mechanism for developing rooftop solar power for self-generation and self-consumption on the roofs of construction works, including industrial parks, industrial clusters, export processing zones, hi-tech parks, economic zones, production facilities, and business establishments.

2. Development Principles:

Construction works installing RSP systems must comply with the law on investment, construction, land, environment, safety, and fire prevention and fighting.

- RSP systems must comply with the law on electrical safety, investment, construction, environment, and fire prevention and fighting.

- Used or imported photovoltaic panels and DC-to-AC converters must not be used in the investment and construction of RSP systems.

- General incentives: Self-generated, self-consumed RSP is entitled to tax incentives as prescribed by tax laws and benefits from simplified administrative procedures in development. Decree 135 also clarifies that owners of construction works installing RSP systems are not required to adjust or supplement the planning of energy land and functions. The installation of battery energy storage systems (BESS) is also encouraged to ensure the safe and stable operation of the power system.

3. Rooftop Solar Power Development Models:

Self-generated, self-consumed RSP systems can be connected or not connected to the national grid. If the excess electricity output of an RSP system connected to the national grid is sold to Vietnam Electricity (EVN), the electricity sales must not exceed 20% of the actual installed capacity of this RSP system. There are different requirements for the development of RSP systems, depending on whether they are connected to the national grid and whether there is excess electricity output to be sold to EVN.

(i) Self-generated, self-consumed RSP systems not connected to the national grid: RSP systems not connected to the national grid are exempt from electricity activity licenses and have no capacity limit. Before installation, the investor must notify the provincial Department of Industry and Trade and relevant electricity units of the installed capacity and installation location of the RSP system and notify the provincial state management agency for construction and fire prevention and fighting of the installation of the RSP system.

(ii) Self-generated, self-consumed RSP systems connected to the national grid:

- Decree 135 requires that the installed capacity of the RSP system must be less than or equal to the total installed capacity of the existing load (based on electricity consumption in the last 12 months).

+ Installed capacity under 100kW: The investor must notify the provincial Department of Industry and Trade, relevant electricity units, and the provincial state management agency for construction and fire prevention and fighting of the installation.

+ Installed capacity from 100kW or more: The investor must ensure that the equipment connected to the system for data collection, monitoring, and control meets the technical requirements published by EVN.

+ Installed capacity from 100kW to under 1,000kW: The investor must notify the installation (and submit the design dossier) to the provincial Department of Industry and Trade, the provincial state management agency for construction and fire prevention and fighting, and relevant electricity units. If this RSP system falls within the local allocated capacity in the Power Development Plan (PDP) and the PDP implementation plan, it is allowed to sell electricity to EVN with the output sold not exceeding 20% of the actual installed capacity of this RSP system.

+ Installed capacity from 1,000kW or more: The investor must carry out the procedures for registering for the Certificate of Registration for the development of self-generated, self-consumed RSP issued by the provincial Department of Industry and Trade.

+ Installed capacity from 1,000kW or more and selling electricity with the output sold not exceeding 20% of the excess electricity output to the national grid: The investor must carry out planning procedures for the RSP system to be approved in the PDP (except for cases falling within the local allocated capacity in the PDP and the PDP implementation plan), and must apply for an electricity activity license as prescribed by law.

- No capacity limit and exemption from electricity activity license: The development of self-generated, self-consumed rooftop solar power is exempt from electricity activity licenses and has no capacity limit if the RSP system is equipped with an anti-reverse current device to prevent electricity generation to the national grid or is not connected to the national grid.

 

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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