Report No. 262/BC-BCT issued by the Ministry of Industry and Trade (MOIT) regarding the draft decree on the mechanism for encouraging the development of self-produced, self-consumed rooftop solar power

Key adjustments in the Report No. 262/BC-BCT and Draft Decree includes:

(i) Amendment of Article 1 (Scope of regulation): The draft sets provisions for the development of rooftop solar systems installed on buildings such as residential homes, production facilities, industrial zones, industrial clusters, and export processing zones.

(ii) Adjustments to registration and legal procedures: Entities and individuals developing RTS systems not connected to the national grid will not need to register, but must notify and submit design documents to the relevant regulatory authority.

(iii) Policy on excess electricity sale: The draft proposes two options for pricing excess electricity fed into the national grid, with Option 1 (buying electricity at the average market price) receiving strong support from Government Members.

Additionally, agencies like EVN will be responsible for managing, supervising, and guiding RTS development in accordance with the regulations.

This draft is currently under government review and promises to be a significant driver for green and sustainable energy development in Vietnam.

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Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.