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Net-metering policy for solar rooftop scale-up

Net-metering policy for solar rooftop scale-up

State 

completed

Date 

1 June, 2017 to 15 November, 2017

Country 

Vietnam

Region 

Southeast Asia

Summary

A large potential for solar power generation exists in Vietnam, although the installed capacity for solar power generation in 2015 was only 6 to 7 MW. In the Vietnam National Power Development Plan for the period 2011-2020 towards 2030, revised in March 2016, solar energy is targeted to reach 850 MW of installed capacity in 2020, 4,000 MW in 2025 and 12,000 MW in 2030, based on both centralised and distributed systems. However, existing regulations in Vietnam still need to be adapted in order to support solar power sector development to achieve the expected targets.

These targets for solar energy are set in order to support the power system to meet rapidly growing energy demand, which has increased from 8.6 TWh in 1990 to 164 TWh in 2015, representing a 12 to 15% increase per year. This trend is expected to continue, or even increase, and represents a main challenge for the country in the coming years.

Within this context, the government of Vietnam has shown a particular interest in the promotion of solar rooftops. The rationale is that these installations can contribute to reducing peak load power demand and allow for co-financing options with the participation of small private investors.

Based on its experience with a similar project in Kenya, the EUEI PDF supported the Electricity Regulatory Authority of Vietnam (ERAV) of the Ministry of Industry and Trade (MoIT) in designing the first net-metering scheme in Vietnam with a focus on solar rooftop installations. In addition to the scheme, the EUEI PDF ensured that a gender-balanced selection of key personnel from the Electricity Regulatory Authority of Vietnam, the Ministry and the main utility Vietnam Electricity had the capacity to implement the regulation.

The implementation of a net-metering scheme has simplify energy exchange transactions and facilitate the opening of the renewable energy sector to small and medium-sized entrepreneurs who have the ability to reach a large share of the country’s population, thereby expanding the solar rooftop market size.

The use of solar rooftops has contributed to Vietnam’s Nationally Determined Contributions (NDCs) under the Paris Agreement on climate change by reducing peak load power demand and related greenhouse gas (GHG) emissions. In this way, the project contributed to the Sustainable Development Goals 7, 11 and 13.

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