Solar power panels on the roof of the factory: Saving should be a priority

​Installing the solar power panels on the roofs is a solution that both saves electricity, saves monthly electricity bills, and contributes to reducing greenhouse gas emissions. The Government's mechanism to encourage the development of solar power in recent years also aims at this goal.

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Solar Power on the Roof Project carried out in a factory in Tam Phuoc Industrial Zone, Bien Hoa City

However, many projects that put commercial and business purposes on the top have resulted in consequences: overloading so the system must reduce the capacity, lack of legal basis for contract suspension, even legal violations. Installing solar panels to have the greener production requires specific and consistent incentives and policies.

The legal formalities are “incomplete"

Saitex Co., Ltd. has 6 factories located in Dong Nai Province. In 2020, the company signed a contract with a partner to install the solar panel system but could not proceed because the Industrial Zone (IZ) does not have an electricity business in the Environmental Impact Assessment Report. After that, the company made a written proposal and was approved by the Department of Industry and Trade to invest in the project for the purpose of serving the plant's production, not selling electricity. However, up to now, the company is still waiting for instructions on construction procedures and environment to deploy the project.

Similarly, companies of Ajnomoto (Branch in Long Thanh Industrial Zone), Chien Vietnam (Tam Phuoc Industrial Zone) also have written petitions to the Ministry of Natural Resources and Environment to support legal procedures to implement the solar panel system project for the purpose of using use on-site, not selling electricity, but the written response is to ask the company to compare it with the Law on Environmental Protection 2020, the circulars and decrees guiding the implementation of the Law to group projects and carry out procedures according to the provisions of the Law on Environmental Protection.

In fact, in Dong Nai Province, there is a local electricity shortage in Giang Dien Industrial Zone, affecting the attraction of investment in new projects and expanding the scale of existing projects. In the future, many industrial projects will continue to be invested according to the industrial development approval of the Prime Minister. In the context of increasing electricity demand, high prices for industrial production, and slow progress of power supply projects due to difficulties in site clearance, investing in solar panels installed on the roof is an effective solution.

According to Ms. Duong Thi Xuan Nuong, Deputy Head of Dong Nai Industrial Zones Authority, Dong Nai currently has 7 out of 32 Industrial Zones allowed to attract the investment in electricity production and distribution. They are Industrial Zones of An Phuoc, Long Duc (Long Thanh District); Nhon Trach 3, Ong Keo (Ho Chi Minh City); Ho Nai, Bau Xeo (Trang Bom District); and Loteco (Bien Hoa City). Solar power production is a renewable energy industry, clean and inexhaustible energy, which is encouraged to invest and enjoy investment incentives under the decision of the Government and the Law on Environmental Protection. However, the province currently has only 7 Industrial Zones with electricity production and distribution industries. This is one of the difficulties for Industrial Zones that want to attract investment in this industry" - a petition to the Ministry of Natural Resources and Environment No. 1256/KCNDN-DT dated April 27, 2022 of the Dong Nai Industrial Zones Authority regarding the attraction of solar power projects in the Industrial Zones indicated.

For enterprises, installing solar power system to consume (not to sell or redistribute to other units), according to the guidance of the Ministry of Natural Resources and Environment, they do not have to carry out additional procedures for business lines and operational objectives, but those enterprises must carry out environmental and construction procedures according to regulations. However, up to now, the Ministry of Natural Resources and Environment has not provided guidance on environmental records. Dong Nai Industrial Zone Authority compares regulations and guides the Industrial Park Infrastructure investor to coordinate with the Solar Power project owner to self-identify and send a document to the agency approving the environmental impact assessment report to confirm if this industry has the wastewater generation or not, whether environmental permit procedures are required or not.

Savings, instead of making money

Mr. Thai Thanh Phong, Deputy Director of the Department of Industry and Trade said that the mechanism to encourage the development of solar PV is understood as households, organizations and businesses taking advantage of the roof to install the solar PV system to reduce pressure on electricity supply and save money. Save monthly electricity costs and contribute to environmental protection. Excess electricity is purchased by the electricity company at a price set by the State. That is the policy only, but the documents, detailed regulations and implementation guidelines have not kept up; Many investors have considered this as a possibility of making money, so they borrow money to do it. As a result, the "explosion" of the solar PV system; the process of reviewing and inspecting many projects that have been operated but do not have enough legal documents, even legal violations have happened.

Mr. Nguyen Anh Tuan, Director of Loc Phat Dong Nai Co., Ltd. said that now all businesses are facing difficulties when implementing solar PV projects. The State should have specific, clear, and simple instructions for businesses to implement. “Solar photovoltaic industry is a new field, processes and procedures are too complicated and constantly changing. Without the guidance from the central to the province, businesses will not be able to implement and achieve the goal of developing renewable energy "- Mr. Tuan added. At the meeting to solve the problem of solar power project in May, Ms. Nguyen Thi Hoang, Vice Chairperson of the Provincial People's Committee said that now many businesses want to install solar PV to reduce production costs, to obtain a "green" certificate to increase the competitiveness of products and expand export markets. The many Industrial Zone want to attract the power generation industry to proactively supply, in line with the model of an ecological Industrial Zone with industrial symbiotic services, but the incomplete legal procedure is a barrier. In the past time, the province and several businesses have written recommendations to ministries and branches, but each Ministry has different instructions. In order to have a basis to solve the shortcomings for the invested project, and at the same time create conditions for enterprises and Industrial Zones to install and consume the solar power, it is necessary to continue to recommend the barrier removal.

On that basis, last June, Ms. Nguyen Thi Hoang, Vice Chairperson of the Provincial People's Committee signed a document to the Ministry of Industry and Trade proposing instructions to remove 5 contents: the electricity industry determines the legal basis to request the investor to add documents for the invested project; For the questions like Solar PV system under 1MW is a conditional industry or not, what are those conditions; the solar PV project on the roof of an agricultural farm factory but has not yet converted the land use purpose; how to rent out the roof of the enterprise's factory to invest in a solar PV project to apply for a construction permit; order and procedures for organizations and individuals to install solar PV after December 31, 2020 for use, not for sale. The Ministry of Industry and Trade has not yet answered in writing.