Vietnam has taken a significant step towards advancing renewable energy by issuing Decree No. 135/2024/NĐ-CP on October 22, 2024. This policy reflects the government’s commitment to supporting solar power, particularly through the promotion of self-produced and self-consumed rooftop solar systems. The initiative demonstrates Vietnam’s efforts to reduce dependency on traditional energy sources, enhance energy security, and contribute to global climate change mitigation.
Key Highlights of Decree No. 135/2024/NĐ-CP
(The online conference of the Ministry of Industry and Trade on Decree 35/2024/ND-CP)
The decree introduces comprehensive measures to encourage the adoption of rooftop solar power systems, focusing on the principles of sustainability and accessibility. Its provisions include:
1. Encouraging Self-Consumption:
Individuals and organizations are encouraged to install solar panels on rooftops of buildings such as residential homes, office complexes, factories, industrial parks, and shopping centers. This allows them to generate electricity primarily for their own use, reducing their reliance on the national grid.
2. Sale of Excess Energy:
The policy enables entities with rooftop solar systems to sell surplus electricity back to the grid. Vietnam Electricity (EVN), the state-owned utility, is appointed as the sole purchaser of this excess power. This arrangement provides an additional financial incentive for those investing in solar power systems.
3. Supportive Financial Mechanisms:
To accelerate adoption, the decree outlines a series of financial and regulatory support mechanisms. These include favorable pricing for electricity sold back to EVN, tax incentives, and access to low-interest loans to fund the installation of rooftop solar systems.
Supporting Vietnam’s Renewable Energy Goals
This decree is part of Vietnam’s broader strategy to meet its renewable energy targets, as outlined in its National Power Development Plan VIII. Vietnam aims to shift its energy mix towards renewable sources, striving to achieve 50% of its electricity generation from renewables by 2045.
Solar energy has already become a cornerstone of Vietnam’s renewable energy sector. The country experienced a solar boom in recent years, with installed capacity skyrocketing from 86 MW in 2018 to over 17.6 GW by 2021. This growth has positioned Vietnam as a leader in solar power within the ASEAN region.
Complementary Policies Driving Renewable Energy
Decree No. 135/2024/NĐ-CP aligns with other policies fostering renewable energy development in Vietnam:
- Direct Power Purchase Agreement (DPPA):
Launched earlier in 2024, the DPPA framework allows large corporations to directly procure renewable energy from independent power producers. This policy encourages private sector investment in clean energy projects.
- Sustainable Industrial Growth:
By integrating solar power into industrial zones and large-scale commercial operations, Vietnam is taking steps to build a green economy that aligns with its sustainability goals.
A Step Towards Sustainability
The adoption of rooftop solar systems offers multiple benefits, including reducing greenhouse gas emissions, decreasing electricity costs for consumers, and minimizing grid overloads. By leveraging the financial and regulatory frameworks introduced in Decree No. 135/2024/NĐ-CP, Vietnam is laying the groundwork for widespread solar power adoption across urban and rural areas alike.
Vietnam’s proactive approach to renewable energy, underscored by Decree No. 135/2024/NĐ-CP, highlights its leadership in the global energy transition. By supporting solar power development, the government is fostering an environment where individuals, businesses, and industries can contribute to a cleaner, greener future. This initiative not only boosts Vietnam’s energy independence but also reinforces its commitment to environmental sustainability, setting a powerful example for other nations.
For more information on Vietnam’s renewable energy policies and opportunities, visit ACP’s website.
