SOLAR ELECTRICITY INSTALLATION: GUIDELINES FOR IMPLEMENTATION OF POWER PURCHASE AND SELL TO EVN

Electricity of Vietnam (EVN) has issued an official document guiding the registration of selling rooftop solar power has helped promote the solar power business to the next advanced step of development.

Individuals and businesses investing in solar business now have the output for idle produced electricity by selling for EVN, shortening the capital return time and bringing noticeable profit for investors.

1. Conditions for solar power projects in the goal of selling for EVN

Every rooftop solar power projects or those attached to construction ones, owned by individuals or enterprises are permitted to join electricity sales if they satisfy the conditions of EVN.

• Quality conditions or rooftop solar projects

EVN will send experts to examine the quality of the rooftop solar projects. Investors must satisfy the regulations from technical documents, solar panels, inverters, factory certificate/ quality declaration from suppliers, test records and technical parameters, to how the actual system is operating, according to EVN. When those meet the standards applied by EVN, investors will receive the approval of EVN to join the solar power sales contract. Therefore, a solar partner which has reputations, experiences and good prices is the key choice for investors.

• Capacity conditions of rooftop solar projects

For each area, it will be allowed to grid connected solar power, if it follows very clear regulations such as: The total installed capacity of projects connected to the medium and low voltage grid must ensure it must not exceed the rated capacity of the medium and low voltage distribution lines and transformers in that area.

Therefore, whenever investors want to connect their solar project, they should contact and check up with local energy distributors, to determine the most suitable capacity of the project. In this time when rooftop solar power projects are not quite popular and the risk of overload is low, the installation should be welcomed and allowed by local distributors. Details as follow:

• Solar power projects with installed capacity < 03 kWp: Connect to low voltage grid with single-phase or three-phase depending on the available status.
• Solar power projects with installed capacity ≥ 03 kWp: Connecting to low voltage grid by three-phase. If the investor is an electricity user connected to the low-voltage grid by single-phase, it is allowed for the project with an installed capacity of ≥ 03 kWp to connect to the grid with single-phase if the power grid meets the conditions of safety and stable operation.
• In case the total installed capacity of rooftop solar projects is larger than the rated capacity of the line, low-voltage distribution transformer, the power plant will issue a written notice on the overload capacity of the lines, low-voltage distribution transformers and an agreement with the investor to reduce the installed capacity of the project or to build a line, a step-up transformer to be connected to the nearest medium-voltage grid.

2. Guidelines to the process of solar power sales to EVN

• Where to make application for solar power sales to EVN

The local area power distributors are now governing the registry process and making sale contracts with solar power suppliers. Investors can come to the local power distributor to register.

3. How to evaluate the sale price of electricity produced by rooftop solar projects

Rooftop solar power projects are implemented with a mechanism of buying and selling electricity in the direction of delivery and receipt of two-way electricity meters. Electricity will be bought back by EVN at the price of 8.38 UScents/kWh multiplied by the central exchange rate of Vietnam Dong to US Dollar announced by the State Bank of Vietnam (VAT excluded). This number will change each year based on the exchange rate between the Vietnamese Dong and the US Dollar. According to actual figures, this number is 1,940đ in 2020.

4. Payment method of EVN for rooftop solar power purchasing

Pursuant to the Model Power Purchase Agreement applicable to grid-connected solar power projects, promulgated together with the Minister of Industry and Trade’s Circular No. 18/2020/TT-BCT dated July 17, 2020 stipulating the development for projects and sample power purchase and sale contracts applicable to solar power projects, EVN will pay for solar power installation projects as follows:

First, every month (or according to the indexing cycle agreed upon by the two parties), EVN and the electricity seller together read the meter readings on the agreed date to determine the amount of electricity delivered and received in the month.

The electricity seller will record the meter readings according to the prescribed form certified by the representative of EVN and send the results of the meter readings together with the invoice in writing (or by fax, by a copy sent via email and concurrently with the invoice) to EVN within 10 (ten) working days after reading the meter readings.

At the same time, during that time, the electricity seller needs to prepare a payment document: Before the 5th (year) of every month, the electricity seller sends a notice of electricity payment together with the payment record of the preceding month. for EVN.

Within 05 (five) working days from the date of receipt of payment documents from the electricity seller, EVN must check the payment records and notify the electricity seller in writing if any errors are detected. After the above time limit, if EVN does not give comments, the payment dossier is considered to have been approved.

Within 03 (three) working days from the date the payment documents are accepted, the electricity seller issues and sends payment invoices to EVN. This payment invoice must be made according to regulations of the Ministry of Finance.

Within 25 (twenty-five) working days from the date of receipt of valid and accurate payment invoices from the electricity seller, EVN is obliged to pay the electricity sellers the entire amount stated in the payment invoices. pay electricity by bank transfer.

In case EVN fails to make payment within the above time limit, EVN is responsible for paying late penalty interest for the late payment. Late payment penalty interest is calculated on the total amount of late payment multiplied (x) by the average inter-bank transaction interest rate at the date of invoice payment or the previous day (if any), divided by (:) 365 days multiplied by (x) with the number of days of late payment.

In case EVN does not read the meter readings together as prescribed above, based on the payment documents in accordance with current regulations provided by the electricity seller, EVN still has to perform the payment obligation to the electricity seller. the seller of electricity delivered and received according to regulations.