Why are Hai Duong businesses indifferent to solar power?
Proactively installing solar power systems helps businesses be proactive in production, contributing to reducing the load on the power grid during the dry season. However, due to many difficulties, most businesses remain indifferent.
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The effect is clear
In 2020, Hai Duong Clean Water Trading Joint Stock Company invested 1.2 billion VND to install a solar power system consisting of 144 panels with a capacity of 50 KWp at Clean Water Trading Branch No. 1 in Viet Hoa Ward (Hai Duong City). The entire roof of the water tank was used by the unit to install solar panels with an area of over 180m2.2. The average electricity output from the solar power system on hot days can reach 200kW, serving to run pumps and filter water. “After a period of use, we see clear efficiency. We can use clean energy, renewable energy, and at the same time, during peak periods, it will help reduce the load on the power grid. Especially, it reduces the monthly electricity bill of the branch”, said Mr. Vu Ba Long, Director of Clean Water Business Branch No. 1.
ThaiHD One Member Co., Ltd. (Hai Duong City) also invested about 480 million VND to install 130 solar panels with a total capacity of 28 KWp. ThaiHD is a service business, in the summer it has to pump and filter the water system in swimming pools, so it consumes a lot of electricity. Due to the nature of its business mainly operating in the summer, the unit makes the most of solar energy. According to the company's statistics, in the summer months with such a battery system, the unit earns about 4 million VND in electricity bills/month, deducting the amount of electricity consumed, the company saves 2-3 million VND in electricity bills. "I find that investing in a solar power system is initially costly but the results are very large, especially for businesses that use a lot of electricity like us," said Mr. Cao Van Thai, Director of ThaiHD One Member Co., Ltd.
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According to statistics from Hai Duong Electricity One Member Co., Ltd., the unit currently purchases solar power from 526 customers, with an average output to the grid of over 1.4 million kWh/month.
…but difficult to replicate
During the dry season, when the power supply in the North is facing many difficulties, solar power is considered a useful solution to offset the load on the power supply from hydroelectricity or thermal power. However, in reality, many businesses are still not really interested.
One of the reasons why businesses are not interested is that the regulations on licensing procedures for businesses are quite complicated, especially for units that want to connect to the common power grid system managed by the electricity unit. For businesses, investing in a solar power system that meets the demand requires billions of dong, even tens of billions of dong. Meanwhile, the amount of electricity collected from the solar panel system that the units do not use up cannot be stored and must be sent to the grid at a price of 0 dong.
On the other hand, solar power systems in the North can only be effective on sunny days. Having to spend a large amount of money to install a battery system but not being able to sell electricity and using it for a short period of time during the year, many businesses are still hesitant to invest. For some export businesses, they really need green certificates so they need to invest in solar power systems, but with many barriers as present, it has not encouraged businesses to participate.
During the dry season of 2023, when the electricity supply for production and daily life of Vietnam Electricity Group is seriously lacking, the Ministry of Industry and Trade has proposed to the Prime Minister on the mechanism to encourage the development of solar power for enterprises to use themselves without selling electricity. Accordingly, the Ministry of Industry and Trade proposed mechanisms such as exemption from electricity operation licenses, electricity business registration certificates, priority in budget allocation; exemption or reduction of taxes and fees; preferential loans... The State Bank has measures to reduce lending interest rates; or design a preferential interest rate loan package, giving priority to the Northern region. The Ministry of Finance prioritizes budget allocation to support the development of rooftop solar power installed at offices; research on exemption and reduction of taxes and fees... However, up to now, these contents are only being completed by the Ministry of Industry and Trade and submitted to the Prime Minister.
If these new mechanisms are approved by the Government, they will contribute to promoting businesses and units to invest in solar power systems, taking advantage of green energy sources in production and business.