State utility to halt payment for rooftop solar projects with incomplete legal documents

Southern Power Corporation (EVNSPC), a unit of state utility Vietnam Electricity, will pause the payment for rooftop solar power projects with incomplete legal documents from April 1, the firm announced early this week.

EVNSPC added that it will suspend contracts and disconnect the projects from the grid from June 30 unless requested files are provided. The firm asked investors to deliver these files by March 31.

Besides, any projects and systems not meeting conditions to enjoy the government's incentives will be disconnected from the grid and see electricity sales suspended until EVN clarifies the issues, EVNSPC noted.

The government's incentives for rooftop solar power projects are stipulated per the Prime Minister's Decision 13/2020. This decision expired on December 31, 2020 and EVN only approved projects, which had already entered commercial operation by that date, until further instructions are available.

In 2022, 53,910 rooftop solar power customers in 21 southern cities and provinces provided 6,621 million kWh to the grid monthly, according to EVNSPC.

The installation capacity of rooftop solar power as of February 15 was estimated at 7,660 megawatts, or 9.65% of the total of all power sources, according to EVN National Load Dispatch Center.

The rooftop solar power sector in Vietnam is facing many legal loopholes. Due to the instability of solar power, rooftop solar power systems have to connect to the national grid to ensure stable operation. However, the legal framework on connecting rooftop solar power systems to the grid under EVN managment is not yet available.

Furthermore, loose control of rooftop solar power can negatively affect the national load in terms of utilizing different power sources, EVN complained in a report sent to the Prime Minister last year.

The utility added that the number of projects with incomplete documents is only a minor part of all rooftop solar projects.