New regulation confirms EVN’s monopoly on surplus rooftop solar energy purchases. (Photo: EVN)

The Vietnamese government has announced a new draft for the development of rooftop solar energy, which categorizes grid-connected installations into three development models. The draft also specifies that surplus energy can only be sold to the state-owned Vietnam Electricity (EVN).

Additionally, to ensure energy security and economic growth, Vietnam plans to include nuclear and hydrogen energy in its National Power Development Plan (PDP8).

Rooftop solar energy framework divides into 3 categories

The Ministry of Industry and Trade of Vietnam submitted an initial draft earlier this year and, after gathering feedback from the public and relevant stakeholders, has revised it to prioritize self-produced and self-consumed and off-grid rooftop solar systems. These systems will have no capacity limits and do not require registration; they only need to notify local electricity regulatory bodies and submit design documents. In contrast, larger grid-connected projects will face stricter requirements.

According to the draft, rooftop solar projects connected to the national grid will be categorized based on installation capacity as follows:

• Under 100 kW: Households and individual users have no total capacity limits and do not need approval, but to ensure equipment safety, fire prevention and explosion prevention, and construction standards.
   
• 100 kW to 1,000 kW: These systems will be subject to post-installation review and EVN will oversee system construction and electricity output to ensure safety.
   
• Above 1,000 kW: These projects must obtain a complete electricity operation license.

The draft indicates that organizations and individuals investing in self-produced and self-consumed rooftop solar energy can sell up to 20% of their installed capacity, with EVN designated as the sole buyer. Prices may follow the average market electricity price from the previous year or be mutually agreed upon by the buyer and seller. Last year, the average market electricity price in Vietnam was 1,091.9 VND (about 0.049 USD) per kilowatt-hour, with purchase agreements valid for five years.

The revised draft also expands eligibility for installations to include not just residences and office buildings, but also industrial parks, export processing zones, high-tech parks, economic zones, production facilities, and commercial establishments.

According to Dezan Shira & Associates, if the legislation is successfully implemented, it will significantly accelerate Vietnam's transition to green energy. There will be opportunities for foreign investors in areas such as rooftop solar infrastructure, construction and maintenance, energy storage and grid solutions, solar system software, and equipment leasing and financing.

Vietnam's PDP8 plans to include nuclear energy

As for PDP8, which was approved last May, the Vietnamese government estimates that the total installed electricity generation capacity will increase from 80 GW to 150 GW. However, progress on offshore wind and liquefied natural gas development has lagged, prompting the government to consider modifying the plan to enhance solar and wind energy capacities and incorporate nuclear and hydrogen energy.

Reuters reports that government documents indicate Vietnam is contemplating reviving its nuclear power development to ensure energy security while supporting economic growth. Officials have stated that discussions are ongoing with countries such as South Korea, Canada, and Russia regarding small modular reactors (SMRs), potentially resuming previously halted nuclear power plant construction efforts due to the Fukushima disaster in Japan.

Source: Vietnam Net、Vietnam Briefing、Vietnam Law Newspaper、Reuters