Usage of rooftop solar power systems for self-production and self-consumption (“RTS”) is a policy adopted by many countries worldwide that aims to reduce reliance on the national power grid and effectively utilize the significant solar potential in countries such as Vietnam. Accordingly, the Government has issued Decree No. 135/2024/ND-CP (“Decree 135”), which sets out mechanisms and policies to promote the development of RTS. Decree 135 takes effect from 22 October 2024.
In this article, BLawyers Vietnam provides updates about new policies for investors developing the RTS system based on recent guidance issued by Vietnamese government authorities, as follows:
1. 03 administrative procedures for installation and construction of RTS
On 18 November 2024, the Ministry of Industry and Trade issued Decision No. 3056/QD-BCT (“Decision 3056”) announcing new administrative procedures in the electricity sector under its management authority. Decision 3056 provides regulations on three administrative procedures for the development of RTS as stipulated in Decree 135, including:
- Procedure for issuing a registration certificate for the development of RTS connected to the national grid: Organizations and individuals developing RTS connected to the national grid with a capacity of 1,000 kW or more are required to comply. The processing time is 10 days from the date of receipt of a complete and valid application.
- Procedure for amending or supplementing the registration certificate for the development of RTS connected to the national grid: The applicable entities are the same as those in Item 1.(i), and the processing time is also 10 days from the date of receipt of a complete and valid application.
- Procedure for notifying the development of the RTS connected to the national grid: Organizations and individuals developing RTS connected to the national grid with a capacity of less than 1,000 kW are required to comply and there is no specific processing time stipulated.
All three procedures are handled by the Department of Industry and Trade in each province and centrally governed city and are not subject to any fees or charges.
2. Technical requirements for connecting the RTS to EVN’s management system
On 31 December 2024, Vietnam Electricity (EVN) issued Decision No. 1570/QD-EVN (“Decision 1570”) announcing the technical requirements for connecting RTS to EVN’s data collection, monitoring and control System and metering data System, as follows:
- Technical requirements for connecting monitoring and control information of RTS: Investors must connect RTS to the Power Company’s monitoring and control system via telecommunications networks or the Internet, using monitoring and control signals based on the Modbus TCP or IEC60870-5-104 protocol.
- Technical requirements for connecting metering data collection of RTS: Investors must install meters on the power lines connected to the national grid and integrate RTS with the Power Company’s metering data collection system via telecommunications networks or the Internet, using metering data collection signals based on the IEC62056 protocol.
- Data transmission speed requirements: The transmission channel from the investor’s RTS to the Power Company must ensure a transmission speed of at least 64 kbps and a latency of no more than 125 ms.
Individuals and organizations investing in RTS connected to the national grid should pay attention to the installation and connection conditions with the Power Company to ensure the efficiency of the RTS operation, as well as the management and operation of RTS when integrated with the national grid.
3. Purchase price for electricity produced by RTS
On 03 January 2025, EVN issued Official Letter No. 78/EVN-KD+TCKT (“Official Letter 78”) regarding the announcement of the purchase price for electricity produced by RTS in 2025. Official Letter 78 specifies the purchase price for electricity produced by RTS as follows:
- For RTS that began operation and had meter readings confirmed between 01 June 2017 and 30 June 2019: the electricity purchase price (excluding VAT) in 2025 is VND2,275 /kWh;
- For the RTS that began operation and had meter readings confirmed between 01 July 2019 and 31 December 2020: the electricity purchase price (excluding VAT) in 2025 is VND2,039 /kWh.
Note that the purchase of surplus electricity generated from RTS for self-production and self-consumption is not governed by Official Letter 78.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.
Date: 20 February 2025
Writer: Chau Dang
