Circular 01/2023/TT-BCT repeal a number of provisions of Circular 02/2019/TT-BCT, Circular 18/2020/TT-BCT

CIRCULAR

Repealing a number of provisions of the Minister of Industry and Trade’s Circular No. 02/2019/TT-BCT dated January 15, 2019, providing the development of wind power projects and the model power purchase agreement applicable to wind power projects, and the Minister of Industry and Trade’s Circular No. 18/2020/TT-BCT dated July 17, 2020, on the development of solar power projects and model power purchase and sale contracts applicable to solar power projects

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Pursuant to the Law on Promulgation of Legal Documents dated June 22, 2015, and the Law Amending and Supplementing a Number of Articles of the Law on Promulgation of Legal Documents dated June 18, 2020;

Pursuant to the Electricity Law dated December 03, 2004, and the Law Amending and Supplementing a Number of Articles of the Electricity Law dated November 20, 2012;

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

Pursuant to the Construction Law No. 50/2014/QH13, which is amended and supplemented by the Law No. 03/2016/QH14, the Law No. 35/2018/QH14 and the Law No. 62/2020/QH14;

Pursuant to the National Assembly’s Resolution No. 61/2022/QH15, on continuing to strengthen the effective and efficient implementation of the policies and laws on planning and a number of solutions to remove difficulties, accelerate the formulation of, and improve the quality of, plannings in the 2021-2030 period;

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

Pursuant to the Government’s Decree No. 37/2019/ND-CP dated May 07, 2019, detailing a number of articles of the Planning Law;

Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013, detailing a number of articles of the Electricity Law and the Law Amending and Supplementing a Number of Articles of the Electricity Law;

Pursuant to the Prime Minister's Decision No. 37/2011/QD-TTg dated June 29, 2011, on the mechanism supporting the development of wind power project in Vietnam, which is amended and supplemented under the Prime Minister's Decision No. 39/2018/QD-TTg dated September 10, 2018;

Pursuant to the Prime Minister’s Decision No. 13/2020/QD-TTg dated April 06, 2020, on mechanisms to promote development of solar power in Vietnam;

At the proposal of the Director of the Electricity and Renewable Energy Authority;

The Ministry of Industry and Trade hereby promulgates a Circular repealing a number of provisions of the Minister of Industry and Trade’s Circular No. 02/2019/TT-BCT dated January 15, 2019, providing the development of wind power projects and the model power purchase agreement applicable to wind power projects, and the Minister of Industry and Trade’s Circular No. 18/2020/TT-BCT dated July 17, 2020, on the development of solar power projects and model power purchase and sale contracts applicable to solar power projects.

Article 1. Repealing a number of provisions of the Minister of Industry and Trade’s Circular No. 02/2019/TT-BCT dated January 15, 2019, providing the development of wind power projects and the model power purchase agreement applicable to wind power projects

1. To repeal Clause 3 Article 3.

2. To repeal Article 4, Article 7.

3. To repeal Clause 2 Article 9.

4. To repeal Point c Clause 1 Article 17.

5. To partially repeal Appendix 2 - The model power purchase agreement applicable to wind power projects, which is promulgated together with Circular No. 02/2019/TT-BCT dated January 15, 2019:

a) To repeal the following contents of Clause 2 Article 2:

“2.1. For a project commercially operated from November 1, 2018, to before November 1, 2021

a) The electricity buyer shall purchase the entire electricity outputs from the grid-connected wind power project with the electricity purchase price at the power delivery points as prescribed in Clause 7 Article 1 of Decision No. 39/2018/QD-TTg for the part of the power plant commercially operated before November 1, 2021. For the part of the power plant commercially operated from November 1, 2021 (if any), the electricity purchase price shall be considered and prescribed in the power purchase agreement by both parties as guided by the state agencies competent to electricity price mechanism applicable to this period.

b) The electricity price prescribed in Section a) shall be applied in 20 years, from the commercial operation date of part or the whole plant (depending on the commercial operation date of part or the whole plant which is determined in accordance with Decision No. 39/2018/QD-TTg; Clause 9, Article 1 and Article 4 of this Agreement).

2.2. For projects which have been put into operation before November 1, 2018, power purchase agreements may be re-signed with the electricity buyer so as to enjoy the electricity purchase price prescribed in Clause 7 Article 1 of Decision No. 39/2018/QD-TTg from November 1, 2018, until the signed agreements expire.”.

b) To repeal the following contents of Appendix E:

“On a monthly basis, the electricity buyer shall pay the electricity seller the entire volume of electricity purchased in the month with the electricity price specified in Clause 2 Article 2 according to the following formula:

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

In which:

- Q refers to the total amount of electricity purchased paid by the electricity buyer to the electricity seller (VND);

- F refers to the applicable rate which is the central rate of Vietnamese dong with US dollar as announced by the State Bank of Vietnam on the date the seller issue the invoice (VND/USD).

- t refers to 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 coefficient for adjustment of the electricity purchase price according to the change of VND/USD rate corresponding to 8.5 UScents/kWh or 9.8 UScents/kWh in accordance with Decision No. 37/2011/QD-TTg dated June 29, 2011, on the mechanism supporting the development of wind power project in Vietnam, and Decision No. 39/2018/QD-TTg dated September 10, 2018, of the Prime Minister,  amending a number of articles of Decision No. 37/2011/QD-TTg.

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

Ag = A_G- A_tn

+ Ag: refers to the electricity output actually delivered to the power grids at the power delivery point in the payment month.

+ Atn refers to the electricity output of the turbines being tested during the payment month. It is determined as follows:

Atn = P_dm x C x T_h x G

+ P_dm refers to the rated capacity of 01 turbine.

+ C: refers to the number of turbines being tested in a month.

+ T_h: refers to the number of hours within a month for testing 01 turbine.

+ G: refers to the capacity factor of the turbine within the payment month. It is calculated on the average amount of electric energy produced by all turbines in the month.”.

Article 2. Repealing a number of provisions of the Minister of Industry and Trade’s Circular No. 18/2020/TT-BCT dated July 17, 2020, on the development of solar power projects and model power purchase and sale contracts applicable to solar power projects

1. To repeal Point a Clause 1 Article 4.

2. To repeal the phrase “the prices for purchase and sale of power from rooftop solar power systems must comply with Article 8 of the Prime Minister’s Decision No. 13/2020/QD-TTg of April 6, 2020, on mechanisms to promote the development of solar power in Vietnam.” at Point a Clause 1 Article 5.

3. To repeal the phrase “(not exceeding 1MW and 1.25MWp)” at Point a Clause 2 Article 5.

4. To partially repeal Appendix 1 - The model power purchase and sale contracts applicable to solar power projects, which is promulgated together with Circular No. 18/2020/TT-BCT dated July 17, 2020:

a) To repeal Point a, Point b and Point d Clause 2 Article 2.

b) To repeal the phrase “and terminates after 20 (twenty years) from the commercial operation date.” in Article 6.

c) To repeal the year “2020” in Appendices A, B, C, D, E and G.

5. To repeal Clauses 1 and 2 Article 2 of Appendix 2 - The model power purchase and sale contracts applicable to solar power projects, which is promulgated together with Circular No. 18/2020/TT-BCT dated July 17, 2020.

Article 3. Effect

This Circular takes effect from January 19, 2023.

Article 4. Implementation responsibility

Heads of units affiliated to the Ministry, Chairpersons of People’s Committees of provinces and centrally-run cities, and relevant organizations and individuals shall be responsible for the implementation of this Circular./.