In light of our earlier analysis of Decree 135/2024, we have further observations regarding the Decree's lack of clarity. This post is written by Le Thanh Nhat.

Firstly, the Decree lacks a clear definition of “self-generation and self-consumption rooftop solar power” (Self-Consumption RSP). This is crucial as only surplus power from Self-Consumption RSP systems may be sold to EVN, Vietnam's national electricity provider. Unfortunately, Decree 135/2024 only offers the rather ambiguous definitions for “self-generation and self-consumption power” and “rooftop solar power” (which are arguably the two ‘components’ of Self-Consumption RSP) separately, without clarifying their integration.

Moreover, Decree 135/2024 introduces two types of Self-Consumption RSP: those connected to the national power system and those not connected. Both definitions focus on the system's connection status to the national power system but fail to address the “self-generation and self-consumption” aspect adequately:

By combining the provided definition of “self-generation and self-consumption power” and “rooftop solar power” (which should be turned into the definition of a “rooftop solar power system” instead) one might deduce the following hypothetical definition of Self-Consumption RSP:

“Self-generation and self-consumption rooftop solar power means power generated by an organisation or individual from a [rooftop solar power system], and consumed by the same organisation or individual mainly for the needs of said organisation or individual.”

However, this hypothetical definition still inherits the Decree's ambiguities presented in the ‘component’ definitions as discussed above.

Another critical issue is the unclear applicable subjects of the registration requirements for Grid-Connected Self-Consumption RSP development. While Article 7.1 mandates notification or registration for developers of Grid-Connected Self-Consumption, Article 11 simply states that developers of Grid-Connected Self-Consumption RSP must prepare the dossier for registration of development of Grid-Connected Self-Consumption RSP. Their conflicting wording leads to different interpretations of the detailed provisions regarding notification and registration requirements. To be specific:

·       Articles 7.5 and 7.6 require notification for systems under 1,000 kW; and

·       Article 9.2 conditions the issuance of certification of development registration (giấy chứng nhận đăng ký phát triển in Vietnamese) on compliance with Article 9.3, which set out some requirements for systems of 1,000 kW or more.

Based on the wording of Article 7.1, one might infer that developers of Grid-Connected Self-Consumption would be subject to the notification requirements if their system is under 1,000 kW, and subject to the registration requirements if their system is 1,000kW or more.

Conversely, based on the wording of Article 11, one might infer that all developers of Grid-Connected Self-Consumption RSP are subject to the requirement of development registration regardless of their system’s capacity and they (i) must comply with the notification requirements under Articles 7.5 and 7.6 if their system are under 1,000kW; or (ii) must fulfil the requirements under Article 9.3, if their system are 1,000kW or more.

The Ministry of Industry and Trade’s Report no. 262/BC-BCT dated 14 October 2024 pertaining to the drafting of Decree 135/2024 (Report 262/2024) suggests that the former interpretation might be more in line with the intention of the drafter. With that being said, since the final version of Decree 135/2024 has different wording from those suggested under Part II.3 of Report 262/2024 (which is not legally effective), we are uncertain whether the intention of the drafter regarding development registration requirement still remains the same for the final and official draft of Decree 135/2024.