CIRCULAR

Annulment of certain regulations of Circular No. 02/2019/TT-BCT dated January 15, 2019 of the Minister of Industry and Trade providing for WIND POWER PROJECT DEVELOPMENT AND POWER PURCHASE AGREEMENT TEmplate FOR PROJECTS THEREOF and Circular No. 18/2020/TT-BCT dated July 17, 2020 of the Minister of Industry and Trade on SOLAR POWER PROJECT DEVELOPMENT AND POWER PURCHASE AGREEMENT Template FOR PROJECTS THEREOF

Pursuant to Law on Promulgation of Legislative Documents dated June 22, 2015; The Law on amendments to certain Articles of Law on Promulgation of Legislative Documents dated June 18, 2020;

Pursuant to Electricity Law No. 28/2004/QH11 dated December 03, 2004; Law on amending some articles of the Electricity Law dated November 20, 2012;

Pursuant to the Law on Planning dated November 24, 2017;

Pursuant to Law on Construction No. 50/2014/QH13 amended by Law No. 03/2016/QH14, Law No. 35/2018/QH14, Law No. 40/2019/QH14 and Law No. 62/2020/QH14;

Pursuant to Resolution No. 61/2022/QH15 of the National Assembly on continuing to strengthen the effect and efficiency of policies and laws on planning and a number of solutions to remove difficulties, speed up the formulation and improve the quality of planning for the 2021-2030 period;

Pursuant to Decree No. 96/2022/ND-CP dated November 29, 2022 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

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Pursuant to Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government of Vietnam elaborating implementation of certain Articles of the Law on Electricity and the Law on amendments to certain Articles of the Law on Electricity;

Pursuant to Decision No. 37/2011/QD-TTg dated June 29, 2011 of the Prime Minister on the mechanism for supporting the development of wind power projects in Vietnam and the Decision No. 39/2018/QD-TTg dated September 10, 2018 of the Prime Minister;

Pursuant to Decision No. 13/2020/QD-TTg dated April 6, 2020 of Prime Minister on incentive mechanisms for development of solar power projects in Vietnam; At the request of Director General of Electricity and Renewable Energy Authority,

The Prime Minister of Industry and Trade promulgates a Circular on annulment of certain regulations of Circular No. 02/2019/TT-BCT dated January 15, 2019 of the Minister of Industry and Trade providing for wind power project development and power purchase agreement template for projects thereof and Circular No. 18/2020/TT-BCT dated July 17, 2020 of the Minister of Industry and Trade on solar power project development and power purchase agreement template for projects thereof.

Article 1. Certain regulations of Circular No. 02/2019/TT-BCT dated January 15, 2019 of the Minister of Industry and Trade providing for wind power project development and power purchase agreement template for projects thereof shall be annulled

1. Annulment of Clause 3 Article 3.

2. Annulment of Clause 4 Article 7.

3. Annulment of Clause 2 Article 9.

4. Annulment of Point c Clause 1 Article 17.

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a) Annulment of the following contents stated in Clause 2 of Article 2:

“2.1. For projects of which the commercial operation date is from November 01, 2018 to before November 01, 2021

a) The Buyer shall buy all electricity generated by the grid-connected wind power project at the price given at the electricity delivery point specified in clause 7, Article 7 of the Decision No. 39/2018/QD-TTg with regards to the power plants commercially operate before November 01, 2021. For the power plant commercially operate from November 01, 2021 (if any), the electricity purchase price shall be considered and included in the Power Purchase Agreement by both parties after receiving the guidelines from the competent regulatory agencies on electricity price mechanism for this stage.

b) The electricity purchase price specified in Section a) shall be applied for 20 years from the commercial operation day of a partial or the whole power plant (depending on the commercial operation day thereof which is determined in the Decision No. 39/2018/QD-TTg; and clause 9, Article 1 and Article 4 hereof).

2.2. Projects which are brought into operation before November 01, 2018 may re-sign the Power Purchase Agreement with the Buyer, in order to apply the electricity purchase price at the electricity delivery point specified in clause 7, Article 1, Decision No. 39/2018/QD-TTg from November 01, 2018 to the end of termination date of the Power Purchase Agreement which has been signed.”.

b) Annulment of the following contents stated in Appendix E:

“The Buyer pays the Seller the entire electricity purchased on a monthly basis at the price specified in clause 2, Article 2 as the following formula:

Q = k*F*A_g*(1+t)

Where:

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- F is the foreign exchange rate of dong/USD announced by State Bank of Vietnam at the time the Seller issues the invoice (dong/USD).

- t is the value-added tax rate (%).

- k is 0,085 (for onshore wind power projects) or 0,098 (for offshore wind power projects), it is the adjustment coefficient of electricity buying price in relation with the foreign exchange rate fluctuations dong/USD, equivalent to 8,5 US cents/kWh or 9,8 US cents/kWh under provisions of the Decision No. 37/2011/QDD-TTg dated June 29, 2011 on mechanism for supporting the wind power projects in Vietnam and the Decision No. 39/2018/QD-TTg dated September 10, 2018 of the Prime Minister on amendments to some articles of the Decision No. 37/2011/QD-TTg.

- _- A_g is the monthly purchased electricity (kWh), in which, the monthly purchasing electricity of the power plant without a turbine being tested is determined as the power output delivered to the power grids at the delivery point and during the payment month. If the power plant has a tested turbine, the monthly purchasing electricity shall be determined as follows:

A_g = A_G - A_TN

+ A_G: Actual amount of electricity delivered to the power grid at the delivery point during the payment month.

+A_TN: Electricity generation of the turbines being tested during the payment month. It is determined as follows:

A_TN = P_dm x C x T_h x G

+ P_dm: Rated power of 01 turbine.

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+ T_h: Number of hours of testing of 01 turbine in the month.

+ G: Power factor of the turbine within the payment month. Such factor is calculated as the average power generated of all turbines within a month.”.

Article 2. Certain regulations of Circular No. 18/2020/TT-BCT dated July 17, 2020 of the Minister of Industry and Trade providing for solar power project development and power purchase agreement for projects thereof shall be annulled

1. Annulment of Point a Clause 1 Article 4.

2. Annulment of the phrase “Electricity sale price of rooftop solar power systems shall comply with Article 8 of Decision No. 13/2020/QD-TTg dated April 6, 2020 of Prime Minister approving incentive mechanisms for development of solar power in Vietnam.” stated at Point a Clause 1 of Article 5.

3. Annulment of the phrase “no more than 1 NW and 1,25 MWp)” stated at Point a Clause 2 of Article 5.

4. Annulment of a part of Appendix 1 - Power purchase agreement template for Grid-connected solar power projects enclosed with Circular No. 18/2020/TT-BCT dated July 17, 2020:

a) Annulment of Points a, b and d Clause 2 of Article 2.

b) Annulment of the phrase “and terminates after 20 years from the commercial operation date.” stated in Article 6.

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5. Annulment of Clause 1 and Clause 2 of Appendix 2 - Power purchase agreement template for rooftop solar power projects enclosed with Circular No. 18/2020/TT-BCT dated July 17, 2020.

Article 3. Entry into force

This Circular comes into force from January 19, 2023.

Article 4. Responsibilities for implementation

Heads of units affiliated to Ministries, the People’s Committees of provinces and central-affiliated cities and relative organizations and individuals are responsible for implementation of this Circular./.

PP. MINISTER
DEPUTY MINISTER




Dang Hoang An