On 14 October 2024, the Ministry of Industry and Trade delivered Report No. 262/BC-BCT (“Report 262”) to the Government regarding the draft Decree on mechanism and encouragement with regard to the development of self-production and self-consumption rooftop solar (“RTS”) power (“Decree”). According to the Report 262, following the Government’s opinion on the latest draft of the Draft Decree, the following provisions are agreed to be included in the final draft:
- Scope of application: The Decree will apply to the development of rooftop solar systems installed on buildings such as residential homes, production facilities, industrial zones, industrial clusters, and export processing zones. Accordingly, this can mean that the Government do not want to include RTS projects being implemented after December 2020 not being complied with the prevailing regulations.
- Administrative procedures: Entities developing RTS systems not being connected to the grid will not be required to register their projects, however, they are still required to notify and submit design documents regarding their RTS systems to the relevant authority.
- Sale of excess electricity: Report 262 presents two proposed two options while the first option whereby developers can sell at the average market price is strongly supported by the Government.
While there are still controversy regarding the capacity development for RTS projects under 1MW, it is highly expected by relevant stakeholders that the Decree will be officially issued in the next few days. We will keep you posted with the progress.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
