Ministry of Industry and Trade clarifies decision to purchase rooftop solar power at 0 VND

The Ministry of Industry and Trade has proposed new regulations for rooftop solar power development that have sparked criticism from experts and the Electricity Regulatory Authority. The draft Decree on the mechanism to encourage self-consumed rooftop solar power suggests that unconnected systems could be developed without limits, but if connected to the grid, individuals can distribute excess output into the system for free. However, this does not allow people to sell excess power or sell it for free, which is economically ineffective.

Rooftop solar capacity currently accounts for over 9% of total capacity in the national electricity system, but its instability due to solar radiation dependency poses challenges for system balance. Storage solutions such as battery packs or backup power sources increase costs for both individuals and the electricity industry. The Ministry of Industry and Trade warns that rooftop solar sources are scattered and small-scale, making data collection and system control difficult. Operating rooftop solar power may affect traditional power plants’ capacity, leading to increased operating costs and wasted resources. This could result in cutting renewable energy sources when traditional sources are minimized to balance the system.

Investors of rooftop solar power sources may end up paying costs to ensure system operation while receiving stable power supply. Despite government incentives to encourage renewable energy, the challenges and costs associated with rooftop solar power development remain significant.

By Samantha Johnson

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