Rooftop Solar Power: Balancing the System and Economics
The Ministry of Industry and Trade is advising against connecting rooftop solar power systems to the grid unless they are self-produced and self-consumed, as it may incur system operating costs. In its draft Decree on the mechanism to encourage self-consumed rooftop solar power, the ministry had proposed that unconnected systems could be developed without limits. If connected to the grid, individuals can distribute excess output for free. However, experts criticize these regulations for not being attractive enough to encourage investment. People are not allowed to sell excess power or sell it for free, which is economically ineffective.
The Electricity Regulatory Authority takes a cautious stance on rooftop solar power and believes it should only be used for on-site consumption to avoid system imbalance and unnecessary costs. Rooftop solar capacity currently accounts for over 9% of total capacity in the national electricity system. However, its instability due to solar radiation dependency poses challenges for system balance. Storage solutions such as battery packs or backup power sources increase costs for both individuals and the electricity industry.
The Ministry of Industry and Trade warns that rooftop solar sources are scattered and small-scale, making data collection and system control difficult. Operating rooftop solar power may affect traditional power plants’ capacity, leading to increased operating costs and wasted resources. This could result in cutting renewable energy sources when traditional sources are minimized to balance the system. Overall, rooftop solar power development brings concerns about system costs and the need for traditional power sources to meet renewable energy uncertainties. Investors of rooftop solar power sources may end up paying costs to ensure system operation while receiving stable power supply despite government incentives to encourage renewable energy.
