VietNamNet Bridge - Tran Dinh Nhan, general director of Electricity of Vietnam (EVN), said that only 1,800 households have installed rooftop solar power systems in the last two years, with total capacity of 30 MW, a small figure compared with the potential. 


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Nhan said people are still reluctant to develop rooftop solar power because of the unclear policy on the sale of solar power to EVN and the high initial investment capital.

Moreover, power companies still cannot sign contracts with households on purchasing solar power because there is no regulation on the payment methods. 

However, the Ministry of Industry and Trade (MOIT) and EVN have both vowed to develop solar power, as it will help save money on the transmission network, including transmission lines and transformer stations, and ease the burden on the system that runs the distribution network.

MOIT and EVN have both vowed to develop solar power, as it will help save money on the transmission network, including transmission lines and transformer stations, and ease the burden on the system that runs the distribution network.

Nguyen Ninh Hai from the MOIT’s New & Renewable Energy Division said the government has released Decision 02 that gives answers to the existing problems.

However, in order to see solar power boom as expected, more encouragement is needed. EVN’s deputy general director Dinh Quang Tri has asked the government to partially prop up investment capital for households to install solar panels.

He has also proposed setting up a mechanism for third-party investors, and urged MOIT to release the circular that amends regulations of the current Circular 16, so as to pave the way for EVN to sign contracts with households.

To date, EVN has signed many agreements on electricity purchase from households, but has had no official contracts.

Tri said that KfW, a German bank, has approved 14 million euros worth of aid to develop solar power in Vietnam. EVN is negotiating with KfW and seeking the government’s permission to use the money to stimulate rooftop solar power usage.

If things go as planned, households that install rooftop solar power systems would receive VND2-6 million, depending on the capacity of the systems.

MOIT is also drafting a policy on encouraging rooftop solar power, and is planning to set up four price levels for solar power purchases, applied to four “radiation“ zones.

The highest price of VND2,486 per kwh would be applied to Zone 1 (northern provinces), while the lowest, VND1,803 per kwh, would be applied to Zone 4 (such as Ninh Thuan, Binh Thuan and Khanh Hoa provinces).

The current solar power price is VND2,086, or 9.35 cents per kwh.

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