Behind-the-meter micro-systems (BTM) in low-cost clean electricity production - Why not?
Currently, climate change is one of the biggest challenges facing humanity, in which Vietnam is one of the most heavily affected countries. The consequences of climate change are seriously affecting the ecosystem and human life. To minimize these impacts, the use of renewable energy, especially solar energy, is considered one of the effective solutions to reduce greenhouse gas emissions and environmental pollution.
On November 30, 11, the Vietnamese National Assembly passed the revised Electricity Law. On March 2024, 3, the Prime Minister issued Decree 3/ND-CP detailing a number of articles of the Electricity Law related to the development of renewable energy and new energy electricity. The birth of the revised Electricity Law and Decree 2025 has opened up a direction for exploiting locally produced electricity at low prices, serving the needs of businesses and electricity consumers, including households. The Behind the Meter Microgrid (BTM) is a solution to realize this idea.
Behind the Meter Microgrid – What is BTM?
Behind the Meter Microgrid (BTM) is a micro-grid system installed behind the electricity meter of a user, usually a business or a household. It is a renewable energy solution that allows users to produce and use their own electricity on-site, instead of relying entirely on the national grid.
Features of BTM
1. Installation location:
The BTM system is installed after the electricity meter, which means it is within the user's ownership and control.
It connects directly to internal power consuming devices, such as factories, offices, or households.
2. Energy source:
BTM often uses renewable energy such as solar power, wind power, or waste-to-energy.
The system may include battery storage, fuel cells, or electric vehicle charging stations to optimize energy use.
3. Function:
Self-generation of electricity: Users can generate electricity on-site to serve internal needs.
Using electricity on site: Electricity is used directly without going through the national grid.
Surplus power generation to the grid: If power production exceeds demand, the surplus can be fed into the national grid.
BTM Development in the World
In many countries around the world, micro-electric systems behind the meter have been strongly developed. This system is installed behind the electricity meter, connected to the national grid. Typically, the system includes stations that produce electricity from renewable energy (solar power, wind power, waste power, etc.), batteries that store electricity, fuel cells, electric vehicle charging stations, etc. and may include cogeneration stations that both generate electricity and provide heat for buildings. Energy in this area is mainly provided internally, the surplus can be sent to the grid.
Source: https://www.power-sonic.com/blog/behind-the-meter-vs-front-of-the-meter/
According to experience from countries that have applied it, the advantages of BTM are as follows:
Cost savings: When the price of electricity produced at the factory site is lower than the price of electricity taken from the grid, it will save costs for business owners.
Compliance with regulations: In some countries or regions, preferential or mandatory regulations have been issued to apply the use of renewable energy.
Ensuring sustainability: Many companies are committed to sustainability goals and corporate social responsibility. Deploying renewable energy plants will reduce carbon emissions and allow businesses to meet their commitments.
Energy independence and energy security: micro-energy systems behind the meter ensure that businesses have good control over their energy supply. In case of power outage, businesses can use their own stored power source.
Some examples of post-meter power system projects of some corporations.
Apple: At Apple's headquarters in California, Apple has installed 17MW of rooftop solar, 4MW of biomass fuel cells and battery storage. Apple claims that its facilities worldwide are XNUMX% powered by renewable energy.
Walmart: The retail giant has been installing solar and wind power stations. Walmart has pledged to use 100% renewable energy by 2035.
IKEA: The furniture retailer plans to install rooftop solar panels in 100% of its retail stores. By 2022, renewable electricity will account for 76% of its total electricity consumption.
Additionally, in remote areas of the world, microgrids are also being built to provide local power when connecting to the grid is too expensive. For example:
In Australia, a 23 MW microgrid system was installed at the Agnew gold mine.
On Calvert Island, Canada, a 122 kW microgrid is deployed to serve the island's residents.
BTM Development in Vietnam
In Vietnam, BTM models have begun to be installed, mainly in the form of grid-connected solar power systems, with or without battery storage. These are financially feasible models that bring profits to businesses and households, comply with Vietnam's greenhouse gas emission reduction policies, and integrate into the world's general trend in the fight against climate change.
Sources: https://cheapea.vn/bo-hoa-luoi-dien-mat-troi/
The system consists of solar panels, grid-connected inverters and with or without batteries to store electricity. For factories or businesses or households that use a lot of electricity during the day but little at night, they can install solar panels without batteries, while for factories or households that use a lot of electricity at night, they can install solar panels with batteries. Both models are profitable for families or businesses.
Cost of electricity produced from solar power: According to our calculations, with the market price of 1kWp from 10 million VND/kWp to 15 million VND/kWp, the cost of producing 1 kWh of solar power in the South is about 1.000 VND/kWh and in the North is about 1.600 VND/kWh.
For households that pay electricity according to the household electricity price, the average household electricity price is about 3.000 VND/kWh. Thus, installing solar power will benefit about 2.000 VND/kWh in the South and about 1.400 VND/kWh in the North. For households that use more than 400 kWh per month (paying more than 1 million VND per month for electricity), the grid electricity price is calculated at 3.302 VND/kWh, the benefit is even greater.
For households paying electricity according to business electricity prices, they usually have to pay a bill of about 3.500 VND/kWh. If they install solar power, they will earn about 2.500 VND/kWh in the South and about 1.900 VND/kWh in the North.
For factories or enterprises that pay electricity according to the production price, the electricity price is usually about 2.000 VND/kWh. Thus, each kWh of solar power will save the factory about 1.000 VND in the South and about 400 VND in the North.
Electricity price through storage: With the current cost of battery storage of about 3 million VND/kWh, the estimated cost of storage is about 1.000 VND/kWh. Thus, the price of electricity taken from battery storage is about 2.000 VND/kWh in the South and about 2.600 VND/kWh in the North. Thus, for households paying electricity according to the price of electricity for living or business, it brings economic benefits.
For large enterprises with larger energy needs such as steel and cement enterprises, larger BTM systems with more components like those of foreign enterprises can be considered.
Grid electricity prices are increasing while solar prices are decreasing. Installing a BTM system not only brings financial benefits but also contributes to reducing greenhouse gas emissions. Each kWh of solar power used will reduce emissions by about 0,66 kg of CO2.
At COP26, Vietnam committed to achieving net zero emissions by 0. This is a big challenge but also an opportunity to restructure the economy towards sustainability, green development, and increased competitiveness. Businesses need to promote emission reduction through the use of sustainable, carbon-free energy at affordable prices.
The micro-grid system behind the meter (BTM) is a solution to help businesses and households produce and use cheap clean electricity themselves, while contributing to reducing greenhouse gas emissions. With great potential for renewable energy, especially solar power, it is hoped that this model will be strongly developed in the near future.