Decree 80/2024/ND-CP direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers

THE GOVERNMENT ________ No. 80/2024/ND-CP

THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ________________________ Hanoi, July 3, 2024

 

DECREE

Prescribing the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers

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Pursuant to the Law on Government Organization dated June 19, 2015; Law Amending and Supplementing a Number of Articles of the Law on Government Organization and the Law on Organization of Local Government dated November 22, 2019;

Pursuant to the Law on Electricity dated December 14, 2004; the Law dated November 20, 2012 Amending and Supplementing a Number of Articles of the Law on Electricity; the Law dated January 11, 2022 Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Law on Bidding, Law on Electricity, Law on Enterprises, Law on Excise Tax, and Law on Enforcement of Civil Judgments;

Pursuant to the Law on Price dated June 19, 2023;

Pursuant to the Law on Value-Added Tax dated June 03, 2008; the Law on Amending and Supplementing a Number of Articles of the Law on Value-Added Tax dated June 19, 2013; the Law on Amending and Supplementing a Number of Articles of the Laws on Taxes dated November 26, 2014; the Law on Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration dated April 06, 2016;

Pursuant to the National Assembly's Resolution No. 103/2023/QH15 dated November 09, 2023 on the Socio-economic Development Plan for 2024;

At the proposal of the Minister of Industry and Trade;

The Government hereby promulgates the Decree prescribing the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers.

 

Chapter I

GENERAL PROVISIONS

 

Article 1. Scope of regulation

This Decree prescribes the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers through dedicated transmission lines and the National Power Grid.

Article 2. Subjects of application

1. Direct power purchasers and sellers through dedicated transmission lines include:

a) Renewable-energy electricity producers;

b) Large electricity consumers.

2. Entities purchasing and selling electricity directly through the National Power Grid include:

a) Renewable-energy electricity producers using wind or solar energy with a capacity of 10 MW or more connected to the national electric system directly participating in the competitive wholesale electricity market;

b) Consumers who use large amounts of electricity for production purposes purchasing electricity from the Power Corporations or retail electricity providers other than the Power Corporations, connecting to voltage levels of 22 kV or higher;

c) Retail electricity providers in zones and clusters authorized by consumers using large quantity of electricity for production purposes to purchase electric power from the Power Corporations and sign forward contracts with renewable-energy electricity producers (hereinafter referred to as authorized retail electricity providers in zones and clusters).

3. Other entities:

a) Electricity system and market operator;

b) Power transmission providers;

c) Power Corporations under Vietnam Electricity (hereinafter referred to as Power Corporation) and other retail electricity providers;

d) The Vietnam Electricity.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Price offering means the activity of offering and selling electricity by the renewable-energy electricity producer for each generating unit to the spot electricity market and sending the prices to the electricity system and market operator using the price quotation form prescribed by the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

2. The trading interval means a 30-minute period counted from the start of each 30 minutes in a trading day.

3. Payment cycle means the cycle of preparing supporting documents and invoices for transactions on the electricity market within a 1-month period counted from the 1^st day of every month.

4. Connection point means the point prescribed in the connection agreement between the project owner and the electrical grid managing unit in accordance with the master plan approved by the competent authority.

5. Delivered electricity means all electricity delivered by the seller to the purchaser for payment between the seller and the purchaser.

6. Renewable-energy electricity producer means an electricity entity that owns power plants using solar energy, wind energy, small hydropower, biomass, geothermal, ocean waves, tides, ocean currents, and other forms of renewable energy and rooftop solar power systems to which electricity generation licenses are granted or not required in accordance with regulations.

7. Retail electricity providers in industrial parks, economic zones, export processing zones, industrial clusters, hi-tech parks, centralized information technology parks, agricultural zones applying high technology and other similar models prescribed by competent authorities (hereinafter referred to as retail electricity providers in zones and clusters) are electricity entities that are granted electricity operation licenses for electricity retail in such zones and clusters with an electricity output of 200,000 kWh/month or more connected to a voltage level of 22 kV or higher.

8. Electricity system and market operator is the National Load Dispatch Center or other names depending on the level of electricity market development, performing the function of dispatching the national electric system and managing electricity market transactions.

9. Dedicated transmission line means a system consisting of lines, electrical substations and auxiliary equipment dedicated to transmission, which is invested, constructed and operated by a renewable-energy electricity producer for direct sale to large electricity consumers unless otherwise agreed by the parties.

10. Forward contract means a type of contract in which two parties agree and confirm their commitment to purchase or sell electricity output at a pre-determined price at a specific future time.

11. Spot-market power purchase agreement means an agreement applicable to the power purchase and sale of each power plant, which contains the key details prescribed in Appendix I to this Decree.

12. Large electricity consumers mean organizations and individuals who purchase electricity for their own use and do not resell it to other organizations or individuals. They shall comply with regulations of the Ministry of Industry and Trade and adapt to each development period of the electricity system or have the following electricity consumption at the time of submitting dossiers of application to participate in the direct power purchase and sale mechanism:

a) For large electricity consumers currently using electricity: average consumption of 200,000 kWh/month or more (averaged over the most recent 12 months);

b) For new large electricity consumers or consumers with less than 12 months of electricity usage: calculated on registered consumption of 200,000 kWh/month or more.

13. National electrical grid means a system consisting of electricity transmission lines, electricity stations and auxiliary equipment to transmit electricity in the territory of the Socialist Republic of Vietnam, excluding dedicated transmission lines.

14. Year N is the current Georgian calendar year.

15. Year N-1 is the Georgian calendar year immediately preceding the current year.

16. Year N-2 is the Georgian calendar year immediately preceding year N-1.

17. Month M is the current Georgian calendar month.

18. Month M-1 is the Georgian calendar month immediately preceding the current month.

19. Month M-2 is the Georgian calendar month immediately preceding month M-1.

20. The spot electricity market means the market for purchasing and selling electricity in trading intervals implemented by the electricity system and market operator in accordance with regulations at all levels of the competitive electricity market.

21. Power Corporations include Northern Power Corporation, Southern Power Corporation, Central Power Corporation, Hanoi Power Corporation, and Ho Chi Minh City Power Corporation.

Article 4. Direct power purchase and sale mechanism

Direct power purchase and sale means the activity of purchasing, selling and receiving electric power in the 02 following forms:

1. Direct power purchase and sale through a dedicated transmission line means the activity of signing a power purchase agreement and delivering electric power through a dedicated transmission line between a renewable-energy electricity producer and a large electricity consumer in accordance with Chapter II of this Decree.

2. Direct power purchase and sale through the National Power Grid mean the activity of purchasing and selling electric power under forward contracts between renewable-energy electricity producers and large electricity consumers (or authorized retail electricity providers in zones and clusters) and power purchase and sale operations carried out in accordance with Chapter III of this Decree, including:

a) Renewable-energy electricity producers sell all produced electricity into the spot electricity market of the competitive wholesale electricity market;

b) Large electricity consumers or authorized retail electricity providers in zones and clusters sign power purchase agreements with the Power Corporations (or authorized/delegated units) to purchase electricity in whole to meet their demands;

c) Renewable-energy electricity producers and large electricity consumers or authorized retail electricity providers in zones and clusters purchase and sell electricity through forward contracts.

Article 5. General requirements for renewable-energy electricity producers and large electricity consumers

Renewable-energy electricity producers and large electricity consumers must comply with the law regulations on planning and investment (under the responsibility of the electric power source project investors, including compliance with national electricity development master plans and provincial master plans approved by competent authorities); regulations on licensing electricity operations (under the responsibility of the electricity source project owners); regulations on electrical safety, fire safety and explosion prevention in construction, regulations on land, environmental protection, and operation (electricity generation, transmission, and distribution) and safety in electricity use; regulations on power purchase and sale and contracts, and other relevant law regulations.

 

Chapter II

DIRECT POWER PURCHASE AND SALE THROUGH DEDICATED TRANSMISSION LINES

 

Article 6. Principles of direct power purchase and sale through dedicated transmission lines

1. Renewable-energy electricity producers and large electricity consumers prescribed in Article 2 of this Decree shall purchase and sell electricity directly through dedicated transmission lines in accordance with the following principles:

a) A power purchase agreement between the renewable-energy electricity producer and the large electricity consumer in case of direct power purchase through a dedicated transmission line agreed upon by both parties shall be compliant with Article 22 of the Law on Electricity and relevant legal documents and contain the following key details: Subject of the agreement; purposes of use; service standards and quality; rights and obligations of the parties; electricity price, payment method and due date; agreement termination conditions; liability for breach of agreement; term of the agreement; responsibilities for investment, construction, management and operation of the dedicated transmission line; other details agreed upon by both parties;

b) The electricity sale prices shall be agreed by the two parties, unless otherwise prescribed in Clause 4 of this Article.

2. Renewable-energy electricity producers negotiate, agree and sign power purchase agreements regarding the capacity, output, and price for surplus electricity output with Vietnam Electricity (or an authorized unit) in accordance with the law regulations.

3. In addition to direct power purchase and sale operations through dedicated transmission lines prescribed in Clauses 1 and 2 of this Article, large electricity consumers are allowed to purchase and sell electricity with the Power Corporations (or retail electricity provider other than the Power Corporations) in accordance with the regulations.

4. In cases where an electricity entity performs both electricity generation and electricity retail provision within zones and clusters, while simultaneously purchasing electricity from the national electricity system and utilizing other on-site electricity sources to retail electricity to consumers within those zones and clusters, the electricity retail prices for such consumers shall comply with the Regulations on electricity price application issued by the Ministry of Industry and Trade.

Article 7. Obligations of renewable-energy electricity producers

Renewable-energy electricity producers shall comply with Article 39 of the Law on Electricity and the following regulations:

1. They shall be granted electricity generation licenses, unless otherwise such licenses are not required in accordance with regulations. In cases where renewable-energy electricity producers do not purchase electricity from the national electricity system but possess electrical grids for retail purposes, they must apply for electricity retail provision licenses concurrently with their electricity generation licenses in accordance with regulations.

2. During electricity operations, renewable-energy electricity producers shall comply with the Regulations on electricity transmission systems and the Regulations on electricity distribution systems issued by the Ministry of Industry and Trade.

3. Renewable-energy electricity producers shall implement regulations on safety in electricity generation prescribed in Article 54 of the Law on Electricity (amended and supplemented in 2012) and its guiding documents. Renewable-energy electricity producers that invest in electricity transmission or distribution networks to be connected directly to consumers shall implement regulations on safety in electricity transmission and distribution prescribed in Article 55 of the Law on Electricity (amended and supplemented in 2012) and its guiding documents.

4. Renewable-energy electricity producers shall comply with law regulations on investment, construction, electrical safety, land, fire safety, fire and explosion prevention, environmental protection and other relevant law regulations.

Article 8. Obligations of large electricity consumers

Large electricity consumers shall comply with Article 47 of the Law on Electricity and the following regulations:

1. They shall implement regulations on safety in electricity use prescribed in Article 57 of the Law on Electricity (amended and supplemented) and relevant guiding documents.

2. They shall invest in electrical grid infrastructure (applicable in cases where large electricity consumers have electricity stations) in compliance with national technical regulations on electrical safety; and comply with regulations on ensuring safety of high voltage grid safety corridors.

3. They employ an electrical grid management and operation team (applicable in cases where large electricity consumers have electricity stations) that meet electrical safety requirements: Having studied electricity disciplines; Being trained, tested and granted electrical safety cards in accordance with regulations.

 

Chapter III

DIRECT POWER PURCHASE AND SALE ELECTRICITY THROUGH THE NATIONAL ELECTRICAL GRID

 

Section 1

ELECTRICITY SALE BY RENEWABLE-ENERGY ELECTRICITY PRODUCERS THROUGH THE SPOT ELECTRICITY MARKET

 

Article 9. Power purchase agreements between renewable-energy electricity producers and Vietnam Electricity

Vietnam Electricity and renewable-energy electricity producers shall negotiate and sign spot-market power purchase agreements based on the key details prescribed in Appendix I to this Decree.

Article 10. Price offering, mobilization scheduling, payment calculation, payment statement checking and reconciliation

1. Renewable-energy electricity producers shall forecast the capacities of their power plants in each trading interval of the following day in compliance with the regulations on renewable energy forecasting included in the Regulations on electricity transmission systems and the Regulations on electricity distribution systems issued by the Ministry of Industry and Trade, and then make price offers for the entire forecasted capacities of their power plants in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

2. Depending on the day-ahead price quotation and the following trading interval price quotation of the renewable-energy electricity producer, the electricity system and market operator shall compare and reconcile them with the value of forecasted capacities from other independent sources, then make schedules to mobilize power plants in accordance with the Regulations on electricity transmission systems, Regulations on national load dispatch procedures, and Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade and other relevant law regulations.

3. The electricity system and market operator shall prepare a payment statement and calculate revenues of renewable-energy electricity producers on the spot electricity market during the trading interval and payment cycle, and then announce them in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

4. Renewable-energy electricity producers shall check, reconcile and confirm this statement on the electricity market website prescribed by the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

Article 11. Spot full market prices

The spot full market price means the full market price of electricity set in each trading interval of the spot electricity market and is equal to the sum of the system marginal price (SMP) and the capacity add-on price (CAN). In particular, the system marginal price (SMP) and the capacity add-on price (CAN) shall be calculated in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

Article 12. Payments by renewable-energy electricity producers selling electricity on the spot electricity market

The payment by a renewable-energy electricity producer selling electricity on the spot electricity market shall be calculated using the following formula:

Where:

1. Rg: Total market electricity payments in the payment cycle (VND).

2. Q_mq(i): Electricity output measured by the renewable-energy electricity producer in trading interval i (kWh).

3. i: i^th trading interval in the payment cycle.

4. I: Total number of trading intervals in the payment cycle.

5. FMP_(i): Spot full market price in trading interval i (VND/kWh).

Article 13. Process and procedures for payment

1. The renewable-energy electricity producer, the electricity system and market operator, and the Vietnam Electricity (or its authorized unit) shall prepare, publish, reconcile and confirm the spot-market statement in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

2. The renewable-energy electricity producer and the Vietnam Electricity (or its authorized unit) shall perform payment-relevant tasks (preparing a payment dossier, adjusting invoices, making payments, adjusting payments and other tasks) in accordance with the power purchase agreement signed between the two parties.

 

Section 2

POWER PURCHASE AND SALE WITH POWER CORPORATIONS

 

Article 14. General principles

1. Large electricity consumers or authorized retail electricity providers in zones and clusters may purchase electricity from the Power Corporations for all their demands.

2. In cases where the quantity of electric power consumed by large electricity consumers or the quantity of electric power purchased by authorized retail electricity providers in zones and clusters during the trading interval is lower than the output of the renewable-energy electricity producer in such trading interval (converted to delivery points of large electricity consumers or authorized retail electricity providers in zones and clusters), the entire quantity of electric power consumed by the large electricity consumers or purchased by authorized retail electricity providers in zones and clusters must be paid with the following cost components:

a) Cost of power purchase from a Power Corporation at the spot full market price in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade (taking into account power loss on the transmission grid and distribution grid);

b) Cost of using electricity system services, including: electricity transmission, electricity distribution - retail, load dispatch and market trading management, industry administration - management;

c) Cost of compensation for the difference as prescribed in Appendix IV to this Decree.

3. In cases where the quantity of electric power consumed by large electricity consumers or the quantity of electric power purchased by authorized retail electricity providers in zones and clusters during the trading interval is higher than the output of the renewable-energy electricity producer in such trading interval (converted to delivery points of large electricity consumers or authorized retail electricity providers in zones and clusters), payment shall be made as follows:

a) The quantity of electric power consumed by large electricity consumers or the power purchased by authorized retail electricity providers in zones and clusters shall be commensurate with the output of the renewable-energy electricity producer to be paid in accordance with Clause 2 of this Article;

b) The quantity of electric power consumed by large electricity consumers or the quantity of electric power purchased by authorized retail electricity providers in zones and clusters, which is different from the output of the renewable-energy electricity producer, shall be paid at the retail electricity price applicable to consumer groups respective to the subject, purposes of use, voltage level and time of electricity use per day in accordance with the Regulations on application of electricity selling prices issued by the Ministry of Industry and Trade.

Article 15. Power purchase agreements between large electricity consumers or authorized retail electricity providers in zones and clusters with Power Corporations

Large electricity consumers or authorized retail electricity providers in zones and clusters and the Power Corporations (or authorized/delegated units) shall negotiate, agree upon and sign power purchase agreements with the key details prescribed in Appendix II to this Decree and ensure their compliance with Article 22 of the Law on Electricity and other relevant law regulations.

Article 16. Payments between large electricity consumers or authorized retail electricity providers in zones and clusters and the Power Corporations

1. The total cost of power purchase from a Power Corporation incurred by a large electricity consumer or an authorized retail electricity provider in zones and clusters in each payment period of year N under the signed power purchase agreement between the two parties shall be calculated using the following formula:

C_KH = C_TTĐ + C_BL

Where:

a) C_KH: Total cost of power purchase from the Power Corporation incurred by the large electricity consumer or the authorized retail electricity provider in zones and clusters (VND);

b) C_TTĐ: Cost of power purchase from the Power Corporation incurred by the large electricity consumer or the authorized retail electricity provider in zones and clusters (VND) on the market, calculated using the following formula:

C_TTĐ ⁼ C_ĐN + C_DPPA + C_CL

Where:

C_ĐN: Cost of electricity at the full market price (VND), calculated in accordance with Clause 2 of this Article;

C_DPPA: Cost of using electricity system services (VND), calculated in accordance with Clause 4 of this Article;

C_CL: Cost of compensation for the difference as prescribed in Appendix IV to this Decree (VND).

c) C_BL: The cost of power purchase in each trading interval at the retail electricity price prescribed in Clause 3, Article 14 of this Decree (VND), specifically:

Where:

P_BL(i): Applicable retail electricity price in trading interval i issued by the Ministry of Industry and Trade (VND/kWh);

Q_KH(i): Actual quantity of electric power consumed by the large electricity consumer or quantity of electric power purchased by the authorized retail electricity provider in zones and clusters in interval i (kWh);

Q _KHhc(i): Adjusted quantity of electric power consumed by the large electricity consumer or quantity of electric power purchased by the authorized retail electricity provider in zones and clusters in trading interval i (kWh), calculated as follows:

Q _KHhc(i) = MIN (Q_KH(i); Q_m(i))

Where: Q_m(i) is the actual output of the renewable-energy electricity producer converted using the loss coefficient prescribed in Clause 3 of this Article. In cases where a large electricity consumer or authorized retail electricity provider in zones or clusters has a forward contract with multiple renewable-energy electricity producers or a renewable-energy electricity producer has a forward contract with multiple large electricity consumers or authorized retail electricity providers in zones and clusters, the actual output of the renewable-energy electricity producer shall be calculated following the agreed principles as prescribed at Point dd, Clause 1, Article 26 of this Decree.

2. Electricity cost components at the full market price in each payment period of year N (Cđn) shall be calculated using the following formula:

Where:

a) i: i^th trading interval in the payment period (corresponding to the trading interval of the spot electricity market);

b) I: Total number of trading intervals of the payment period;

c) Q_KHhc(i): Adjusted quantity of electric power consumed by the large electricity consumer or quantity of electric power purchased by the authorized retail electricity provider in zones and clusters in trading interval i (kWh), calculated in accordance with Clause 1 of this Article;

d) CFMP_(i): Full market price offered by the Power Corporation on the spot electricity market in trading interval i (VND/kWh), calculated in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade;

dd) K_pp: Conversion coefficient for power loss on the distribution grid of the Power Corporation, calculated in accordance with Clause 3 of this Article.

3. Method for determining conversion coefficient for power loss on distribution grid (K_pp) applicable to the Power Corporation in year N

a) In cases where the large electricity consumer or the authorized retail electricity provider in zones and clusters of large electricity consumers purchases power at the voltage level of between 22kV and under 110kV, K_pp shall be calculated using the following formula:

Where:

L_HV (%): Rate of power loss on the distribution grid at the voltage level of 110kV or higher in year N of the Power Corporation;

L_MV (%): Rate of power loss on the distribution grid at the voltage level of between 22kV and under 110kV in year N of the Power Corporation.

b) In cases where the large electricity consumer or the authorized retail electricity provider in zones and clusters of large electricity consumers purchases power at the voltage level of 110kV or higher, K_pp shall be calculated using the following formula:

Where:

L_HV (%): Rate of power loss on the distribution grid at the voltage level of 110kV or higher in year N of the Power Corporation.

4. Cost of using electrical system services (C_DPPA) shall calculated using the following formula:

Where:

a) i: i^th trading interval in the payment cycle (corresponding to the trading interval of the spot electricity market);

b) I: Total number of trading intervals of the payment cycle;

c) Q_KHhc(i): Adjusted quantity of electric power consumed by the large electricity consumer or quantity of electric power purchased by the authorized retail electricity provider in zones and clusters in trading interval i (kWh);

d) C_DPPAđv: Cost of using electricity system services calculated for one unit of electricity in year N (VND/kWh), including the services: electricity transmission, electricity distribution - retail, load dispatch and market trading management, industry administration - management. It shall be calculated as the sum of costs and budgeted profits of electricity transmission, electricity distribution - retail, load dispatch and market trading management, industry administration - management divided by the total domestic commercial electricity output of the Power Corporations, of which the statistical data used for calculation shall be the respective statistics in the average annual retail electricity price plan of year N developed by Vietnam Electricity and inspected, reviewed and given comments by competent authorities in accordance with the mechanism for adjusting the average retail electricity prices issued by the Prime Minister.

In cases where the average annual retail electricity price plan of year N has not been developed by Vietnam Electricity and inspected, reviewed and given comments by the competent authorities in accordance with the mechanism for adjusting the average retail electricity prices issued by the Prime Minister, the statistical data used to calculate C_DPPAđv shall be statistics resulting from the inspection of electricity generation and trading costs in year N-2 with the budgeted profits of electricity transmission, electricity distribution - retail, load dispatch and market trading management, industry administration - management being calculated as the equity multiplied by the return on equity ratio in the applicable average retail electricity price plan in year N-2. Large electricity consumers or authorized retail electricity providers in zones and clusters and the Power Corporations shall pay the costs of using electricity system services for payment periods incurred from the beginning of the year until the payment period with the C_DPPAđv calculated in accordance with the annual average retail electricity price plan of year N.

5. In addition to power purchase costs incurred in relation to direct power purchase and sale prescribed in this Decree, if other power purchase and sale operations are conducted between large electricity consumers or authorized retail electricity providers in zones and clusters and the Power Corporations, the parties shall negotiate, agree upon and make payments in accordance with the respective contracts and other relevant law regulations.

 

Section 3

POWER PURCHASE AND SALE BETWEEN LARGE ELECTRICITY CONSUMERS OR AUTHORIZED RETAIL ELECTRICITY PROVIDERS IN ZONES AND CLUSTERS WITH RENEWABLE-ENERGY ELECTRICITY PRODUCERS

 

Article 17. Forward contracts

1. Renewable-energy electricity producers and large electricity consumers or authorized retail electricity providers in zones and clusters shall negotiate and sign forward contracts with the key details prescribed in Appendix III to this Decree.

2. The term of the forward contract, the contractual price and the electricity output committed in the forward contract for future trading intervals shall be negotiated and agreed upon by both parties.

Article 18. Payments between large electricity consumers or authorized retail electricity providers in zones and clusters and renewable-energy electricity producers

1. Contractual output and contractual prices shall be negotiated and agreed upon by both parties for trading intervals in the spot electricity market.

2. The reference price is equal to the spot full market price calculated and announced by the electricity system and market operator in accordance with the Regulations on the operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

3. Large electricity consumers or authorized retail electricity providers in zones and clusters and renewable-energy electricity producers shall calculate and pay for contracted electricity output under forward contracts using the difference between the price committed in the contract and the spot full market price (reference price), specifically as follows:

Where:

a) R_c: Revenue of the renewable-energy electricity producer under the forward contract in the payment cycle (VND);

b) i: i^th trading cycle in the payment cycle;

c) I: Total number of trading intervals in the payment cycle;

d) P_c(i): Committed price under the forward contract (VND/kWh);

dd) FMP_(i): Spot full market price in trading interval i (VND/kWh);

e) Q_c(i): Committed electricity output in the forward contract in trading interval i (kWh).

 

Section 4

RESPONSIBILITIES OF UNITS

 

Article 19. The Vietnam Electricity shall:

1. Negotiate and sign power purchase agreements with the renewable-energy electricity producers upon receiving the written requests to sell electric power and relevant documents from the renewable-energy electricity producers.

2. Check the calculations of the expected power loss coefficients in year N (K_pp) by the Power Corporations and announce them before November 30 of year N-1.

3. Calculate the costs and report them to the Ministry of Industry and Trade before announcing the decisions on the costs prescribed in Article 16 of this Decree, including:

a) Cost of using electricity system services for one unit of electricity applicable to consumers of Power Corporations in year N as prescribed at Point d, Clause 4, Article 16 of this Decree before December 15 year N-1.

Update the cost of using electricity system services for one unit of electricity in year N as prescribed at Point d, Clause 4, Article 16 of this Decree within 07 working days from the date the annual average retail electricity price plan in year N is inspected, reviewed and given comments by the competent authorities in accordance with the mechanism for adjusting the average retail electricity prices issued by the Prime Minister in cases where the cost of using electricity system services for one unit of electricity applied to consumers of Power Corporations of year N announced before December 15 of year N-1 is calculated with statistics resulting from the inspection of electricity generation and trading costs in year N-2;

b) Calculate and announce the cost of compensation for the difference in month M-2 (P_CL) before the 30^th day of month M-1.

Article 20. The electricity system and market operator shall:

1. Manage the registration to participate in the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers through the National Power Grid, ensuring that the total renewable energy capacity does not exceed the total renewable energy capacity of each type of electricity source prescribed in the approved National Power Development Plan.

2. Operate the electricity system and electricity market in compliance with the Regulations on electricity transmission systems, Regulations on national load dispatch procedures, and Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade and other relevant law regulations.

3. On a monthly basis, announce the list and quantities of electricity consumed by large electricity consumers participating in the direct power purchase and sale mechanism with renewable-energy electricity producers through the National Power Grid.

4. On a monthly basis, announce the list and electricity outputs of renewable-energy electricity producers participating in the direct power purchase and sale mechanism with large electricity consumers through the National Power Grid.

5. Monitor, detect and report to the Ministry of Industry and Trade arising problems and acts showing signs of violation in the course of implementation of the direct power purchase and sale mechanism.

Article 21. Renewable-energy electricity producers shall:

1. Invest in construction and commercial operation of power plants on schedule as committed in the dossiers of application to participate in direct power purchase and sale.

2. Register to participate in the competitive wholesale electricity market; comply with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

3. Sign power purchase agreements in the electricity market with Vietnam Electricity; negotiate and sign forward agreements with large electricity consumers.

4. Provide information on the implementation situation, arising problems and bottlenecks during the implementation of direct power purchase and sale upon request of competent authorities.

Article 22. Power Corporations shall:

1. Agree and sign power purchase agreements with large electricity consumers participating in direct power purchase and sale within 07 working days from the date of receiving sufficient written requests for power purchase and relevant documents of large electricity consumers.

2. Invest and install electricity metering systems (including the main metering system and backup metering system), and remote metering data collection system at locations of electricity measurement and delivery to large electricity consumers for the purposes of calculation and payment in accordance with regulations, unless otherwise agreed with the large electricity consumers.

3. Calculate the expected power loss coefficients in year N (K_pp) in accordance with Clause 3, Article 16 of this Decree before November 15 of year N-1 and submit them to Vietnam Electricity for inspection and announcement.

4. Provide information on the implementation situation, arising problems and bottlenecks during the implementation upon request of competent authorities.

Article 23. Retail electricity providers in zones and clusters shall:

1. Agree with large electricity consumers on retail costs inside the perimeter fences of industrial parks, economic zones, export processing zones, industrial clusters, hi-tech parks, concentrated information technology parks, agricultural zones applying high technology in accordance with regulations of the Ministry of Industry and Trade within 30 days from the date of receiving written requests and all dossiers enclosed therewith from large electricity consumers.

2. Terminate power purchase agreements signed with large electricity consumers participating in direct power purchase and sale within 07 working days from the date of reaching agreement with the large electricity consumers on retail costs inside the perimeter fences of industrial parks, economic zones, export processing zones, industrial clusters, hi-tech parks, concentrated information technology parks, agricultural zones applying high technology, unless otherwise prescribed in Clause 3 of this Article.

3. In cases where retail electricity providers in zones and clusters are authorized by large electricity consumers in accordance with Point c, Clause 2, Article 2 of this Decree, they shall:

a) Negotiate and sign power purchase agreements with the Power Corporations in accordance with Clause 1, Article 24 of this Decree;

b) Amend and sign power purchase agreements with large electricity consumers to ensure commitments as prescribed at Point a of this Clause;

c) Uniformize retail costs inside the perimeter fences of industrial parks, economic zones, export processing zones, industrial clusters, hi-tech parks, concentrated information technology parks, agricultural zones applying high technology (from master power purchase meters of authorized retail electricity providers in zones and clusters to retail meters of large electricity consumers), costs incurred from forward contracts signed between renewable-energy electricity producers with authorized retail electricity providers in zones and clusters.

Article 24. Obligations of large electricity consumers

1. In cases where large electricity consumers purchase electric power from the Power Corporations:

a) Negotiate and sign power purchase agreement with the Power Corporations and forward contracts with renewable-energy electricity producers;

b) Disclose the principle of allocating actual electricity outputs of renewable-energy electricity producers for large electricity consumers in each trading interval to the electricity system and market operator and the Power Corporations;

c) Provide information on the implementation situation, arising problems and bottlenecks during the implementation upon request of competent authorities.

2. In cases where large electricity consumers authorize retail electricity providers in zones and clusters, the large electricity consumers shall:

a) Agree to amend and sign power purchase agreements with authorized retail electricity providers in zones and clusters to ensure commitments as prescribed in Clause 1 of this Article;

b) Uniformize retail costs inside the perimeter fences of industrial parks, economic zones, export processing zones, industrial clusters, hi-tech parks, concentrated information technology parks, agricultural zones applying high technology (from master power purchase meters of authorized retail electricity providers in zones and clusters to retail meters of large electricity consumers), costs incurred from forward contracts signed between renewable-energy electricity producers with authorized retail electricity providers in zones and clusters.

 

Chapter IV

IMPLEMENTATION PROCESS AND REPORTING REGIME

 

Article 25. Process of direct power purchase and sale through dedicated transmission lines

1. A renewable-energy electricity producer or project owner of a renewable-energy electricity generation project shall implement regulations related to planning, investment, construction, and licensing of electricity operations for the power source and grid project and facilities to sell electric power directly to large electricity consumers in accordance with Article 5 of this Decree.

2. A renewable-energy electricity producer and a large electricity consumer shall negotiate, agree, and sign a power purchase agreement in accordance with Article 6 of this Decree.

3. The large electricity consumer shall send a written report on the signing of the direct power purchase agreement with the renewable-energy electricity producer (enclosed with a copy of the power purchase agreement), either in person or by postal service, to the respective provincial-level People's Committee, and also send a written notice (enclosed with a copy of the power purchase agreement) to the Power Corporation (operating in the respective locality) and another to the electricity system and market operator.

4. The report shall contain the following key details: Notification of the signing of the direct power purchase agreement between the large electricity consumer and the renewable-energy electricity producer; information of the large electricity consumer (location of electricity-consuming facility, purpose of electricity use, current condition of electricity usage (if any), infrastructure for participation in the electricity market, and applicable electricity price ( if any)); current conditions of the renewable-energy electricity producers (type of power plant, capacity, current conditions of the plant, infrastructure for participation in the electricity market and applicable electricity price).

Article 26. Process for participating in direct power purchase and sale through the National Power Grid

1. A large electricity consumer or an authorized retail electricity provider in a zone or cluster, and a renewable-energy electricity producer, as prescribed in Clause 2, Article 2 of this Decree, shall agree to participate in the direct power purchase and sale mechanism through the National Power Grid. The large electricity consumer or the authorized retail electricity provider in a zone or cluster shall then submit a dossier of application to participate in the direct power purchase and sale mechanism to the electricity system and market operator, either in person or by postal services. Such dossier shall comprise:

a) A written request for participation in the direct power purchase and sale mechanism;

b) An in-principle written arrangement between the renewable-energy electricity producer and the large electricity consumer or the authorized retail electricity provider in the zone or cluster on the power purchase and sale under a forward contract as prescribed in Article 17 of this Decree when participating in the direct power purchase and sale mechanism, including information on the expected signing of a forward contract between the two parties, the expected termination of the existing power purchase agreement of the renewable-energy electricity producer to participate in the direct power purchase and sale mechanism;

c) Report on the current conditions of the renewable-energy electricity producers (type of power plant, capacity, current condition of the plant, infrastructure for participation in the electricity market, and current electricity price);

d) Information of the large electricity consumer or the authorized retail electricity provider in the zone or cluster (location of electricity-consuming facility, purpose of electricity use, current condition of electricity usage (if any), infrastructure for participation in the electricity market, and applicable electricity price (if any));

dd) A written agreement on the principle of allocating actual electricity outputs of renewable-energy electricity producers to the large electricity consumer or the authorized retail electricity provider in the zone or cluster in each trading interval (Q_m(i)).

2. A large electricity consumer in an industrial park, economic zone, export processing zone, industrial cluster, hi-tech park, centralized information technology park, agricultural zone applying high technology or an authorized retail electricity provider in a zone or cluster as prescribed in Clause 2, Article 2 of this Decree shall supplement the following documents:

a) A written arrangement with the Power Corporation on responsibility for installing the meter of the large electricity consumer or the authorized retail electricity provider in the zone or cluster directly purchasing electric power, which shall meet the technical conditions as prescribed, and on the expected power purchase costs as prescribed in Article 18 of this Decree;

b) In case of terminating the agreement with the retail electricity provider in the industrial park: A written arrangement with the retail electricity provider in the industrial park on the expected termination of the power purchase agreement signed between the two parties when participating in the direct power purchase and sale mechanism and retail Costs inside the perimeter fence of the industrial park, economic zone, export processing zone, industrial cluster, hi-tech park, concentrated information technology park, or agricultural zone applying high technology (from the master power purchase meter of the retail electricity provider in the zone or cluster to the retail meter of the large electricity consumer);

c) In case of continuing the agreement with the retail electricity provider in the industrial park: A power of attorney of the large electricity consumer and a written arrangement on amending the power purchase agreement with the large electricity consumer so as to participate in the direct power purchase and sale mechanism.

3. Within 05 working days from the time of receiving the dossier of application to participate in the direct power purchase and sale mechanism as prescribed in Clauses 1 and 2 of this Article, the electricity system and market operator shall:

a) Send the dossier to the Power Corporation and the retail electricity provider in the industrial park managing the large electricity consumer, and confirm the dossier of the large electricity consumer or the authorized retail electricity provider in the zone or cluster and the possibility to convert the existing power purchase agreement to the direct power purchase and sale mechanism;

b) Submit a dossier to Vietnam Electricity to confirm the ability to sign a spot-market power purchase agreement with the renewable-energy electricity producer as prescribed in Article 9 of this Decree;

c) Review the validity of the dossier submitted by the large electricity consumer or the authorized retail electricity provider in the zone or cluster as prescribed at Point dd, Clause 1 of this Article. In cases where the actual electricity outputs of renewable-energy electricity producers that have forward contracts with the same large electricity consumer or authorized retail electricity provider in the zone or cluster cannot be calculated, the electricity system and market operator shall guide the large electricity consumer or the authorized retail electricity provider in the zone or cluster to agree with the renewable-energy electricity producers on the principle of allocation.

4. Within 05 working days from the time of receiving the dossier sent by the electricity system and market operator:

a) The Power Corporation and the retail electricity provider in the zone or cluster shall send a written confirmation of the large electricity consumer or the authorized retail electricity provider in the zone or cluster about the readiness and expected time to convert the power purchase agreement with the large electricity consumer or the authorized retail electricity provider in the zone or cluster and send it to the electricity system and market operator;

b) Vietnam Electricity has a written confirmation of readiness and expected time to sign a spot-market power purchase agreement with the renewable-energy electricity producer and sends it to the electricity system and market operator.

5. Within 05 working days from the date of receiving the written responses from the Vietnam Electricity, the Power Corporation, and the retail electricity provider in the zone or cluster and the written agreement on the principle of allocating actual electricity outputs to the large electricity consumer or the authorized retail electricity provider in the zone or cluster, as prescribed at Point dd, Clause 1 of this Article, the electricity system and market operator shall send a written response to the large electricity consumer or the authorized retail electricity provider in the zone or cluster regarding:

Expected time of signing the spot power purchase agreement between Vietnam Electricity and the renewable-energy electricity producer.

Expected time to convert the existing power purchase agreement between the Power Corporation or the authorized retail electricity provider in the zone or cluster with the large electricity consumer.

Expected time to apply the direct power purchase and sale mechanism.

6. Vietnam Electricity, the Power Corporation, the retail electricity provider in the zone or cluster, the renewable-energy electricity producer, and the large electricity consumer or the authorized retail electricity provider in the zone or cluster shall take the initiative to negotiate and sign contracts in accordance with Article 9, Article 15 and Article 17 of this Decree.

7. The renewable-energy electricity producer, the large electricity consumer or the authorized retail electricity provider in the zone or cluster, and relevant entities shall invest and provide infrastructure to meet the conditions for participating in the direct power purchase and sale mechanism and send a written confirmation of fulfillment of the conditions for participating in the direct power purchase and sale mechanism to the electricity system and market operator. Documents attached to such written confirmation include: the electricity producer’s dossier of application to participate in the electricity market and copies of the contracts as prescribed in Article 9, Article 15 and Article 17 of this Decree.

8. The electricity system and market operator shall check the dossier in accordance with Clause 7 of this Article and send a written notice to the renewable-energy electricity producer in accordance with regulations on electricity market operation issued by the Ministry of Industry and Trade and, at the same time, written notices to Vietnam Electricity, the Power Corporation, the retail electricity provider in the zone or cluster and the large electricity consumer or authorized retail electricity provider in the zone or cluster on the official commencement of direct power purchase and sale between the renewable-energy electricity producer and the large electricity consumer or authorized retail electricity provider in the zone or cluster.

Article 27. Suspension, termination, and resumption of participation in the direct power purchase and sale mechanism

1. Suspension of participation in the direct power purchase and sale mechanism

a) The participation in the direct power purchase and sale mechanism by large electricity consumers or authorized retail electricity providers in zones and clusters, and renewable-energy electricity producers shall be suspended in the following cases: The electricity market is suspended in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade; One of the contracts under the direct power purchase and sale mechanism is suspended or expires, thereby affecting the interests of relevant parties; Mechanisms and policies are abused for personal gain; Consumers, who have participated in the direct power purchase and sale mechanism, consume an average quantity of electricity (averaged over 12 consecutive months) of less than 200,000kWh/month.

b) Payment in case of suspension of participation in the direct power purchase and sale mechanism by large electricity consumers or authorized retail electricity providers in zones and clusters, and renewable-energy electricity producers: Large electricity consumers purchase and pay for electricity according to the retail electricity tariff as prescribed by the Ministry of Industry and Trade; Authorized retail electricity providers in zones and clusters purchase electric power from the Power Corporations according to the applicable electricity tariffs; Renewable-energy electricity producers sell electric power to Vietnam Electricity (or its authorized unit), negotiate and agree on the electricity generation price within the renewable energy generation price bracket issued by the Ministry of Industry and Trade, or other applicable electricity price mechanisms.

2. Termination of participation in the direct power purchase and sale mechanism

a) The parties terminate their participation in the direct power purchase and sale mechanism in one of the following cases: The participating parties voluntarily terminate their participation; Mechanisms and policies are abused for personal gain and the consequences are irreparable;

b) In case of termination of participation in the direct power purchase and sale mechanism, renewable-energy electricity producers, large electricity consumers, authorized retail electricity providers in zones and clusters, the Power Corporations shall negotiate and sign power purchase agreements in accordance with applicable regulations.

3. Resumption of participation in the direct power purchase and sale mechanism

a) The parties resume their participation in the mechanism in one of the following cases: Violations have been remedied, which has been confirmed by the competent authorities; Competent authorities decide on the continued operation of the electricity market;

b) In case of resumption, the concerned entities shall continue to perform the signed power purchase agreements.

4. Competence for suspension, termination, and resumption of participation in the direct power purchase and sale mechanism

a) The Minister of Industry and Trade shall decide to suspend and resume the participation in the direct power purchase and sale mechanism of large electricity consumers or authorized retail electricity providers in zones and clusters, and renewable-energy electricity producers based on reports and recommendations of Vietnam Electricity, the electricity system operator, or other relevant authorities and organizations;

b) The Minister of Industry and Trade shall decide to terminate participation in the direct power purchase and sale mechanism of large electricity consumers or authorized retail electricity providers in zones and clusters, and renewable-energy electricity producers after obtaining written opinions from relevant authorities (if any).

Article 28. Reporting regime

1. Reporting regime of direct power purchase and sale through dedicated transmission lines

a) Report on relevant information when commencing the direct power purchase and sale through a dedicated transmission lines

Name of the report: Report on direct power purchase and sale;

Details of the report: Information about the contracting parties (the purchaser and the seller); agreed electricity output; electricity price; other details;

Reporting entity: Large electricity consumers;

Report recipients: Ministry of Industry and Trade, People's Committees of provinces and municipalities (only receive reports from large electricity consumers in the localities under their respective management);

Report-sending method: By postal services;

Reporting deadline: Within 10 days from the date of signing the agreement on direct power purchase and sale through dedicated transmission lines.

b) Report on results of direct power purchase and sale through dedicated transmission line in year N-1

Name of the report: Report on results of direct power purchase and sale through dedicated transmission line in year N-1;

Details of the report: Information about the contracting parties (the purchaser and seller); quantity of electricity purchased and sold during the year; direct power purchase costs for months and the year; difficulties, bottlenecks and proposed solutions;

Reporting entity: Large electricity consumers;

Report recipients: Ministry of Industry and Trade, People’s Committees of provinces or municipalities;

Report-sending method: By postal services;

Reporting deadline: Before January 30 of year N;

Reporting frequency: Annually.

2. Reporting regime of direct power purchase and sale through the National Power Grid

a) Report on results of direct power purchase and sale through the National Power Grid in month M-1

Name of the report: Report on direct power purchase and sale results of the immediately preceding month;

Details of the report: Total number of renewable-energy electricity producers and large electricity consumers or retail electricity providers in zones and clusters authorized to participate in the direct power purchase and sale mechanism; information about the contracting parties (the purchaser and seller); quantity of electricity purchased and sold during the month; direct power purchase costs during the month; difficulties, bottlenecks, and proposed solutions (if any);

Reporting entity: Electricity system and market operator, Power Corporations;

Report recipients: Ministry of Industry and Trade, People's Committees of provinces and municipalities (only receive reports from the Power Corporations in the localities under their respective management);

Report-sending method: Via email or by postal services;

Reporting deadline: Before the 20^th day of month M;

Reporting frequency: Monthly.

b) Report on the implementation situation and results of implementing the direct power purchase and sale mechanism through the National Power Grid nationwide in the preceding quarter

Name of the report: Report on the implementation situation and results of implementing the direct power purchase and sale mechanism through the National Power Grid nationwide in the preceding quarter;

Details of the report: Total number of electricity producers and large electricity consumers or authorized retail electricity providers in the zones and clusters participating in the direct power purchase and sale mechanism; information about the contracting parties (the purchaser and the seller); quantity of electricity purchased and sold during the quarter; direct power purchase costs during the quarter; difficulties, bottlenecks, and proposed solutions (if any);

Reporting entity: Vietnam Electricity;

Report recipient: Ministry of Industry and Trade;

Report-sending method: Via email or by postal services;

Reporting deadline: Before the 30^th day of the first month of the quarter;

Reporting frequency: Quarterly.

c) Report on results of direct power purchase and sale through the National Power Grid in year N-1

Name of the report: Report on the results of implementing the direct power purchase and sale mechanism through the National Power Grid nationwide in year N-1;

Details of the report: Total number of electricity producers and large electricity consumers or authorized retail electricity providers in the zones and clusters participating in the direct power purchase and sale mechanism; information about renewable-energy electricity producers and large electricity consumers; quantity of electricity purchased and sold during the year; direct power purchase costs during the year; difficulties, bottlenecks, and proposed solutions (if any);

Reporting entity: Vietnam Electricity; electricity system and market operator, Power Corporations;

Report recipients: Ministry of Industry and Trade, People's Committees of provinces and municipalities (only receive reports from the Power Corporations in the localities under their respective management);

Report-sending method: Via email or by postal services;

Reporting deadline: Before January 30 of year N;

Reporting frequency: Annually.

 

Chapter V

IMPLEMENTATION PROVISIONS

 

Article 29. Responsibilities for implementation

1. The Ministry of Industry and Trade shall:

a) Take accountability to the Government for implementing uniform State governance over the issues prescribed in this Decree, thereby ensuring national electric energy security and electricity system safety in accordance with the approved power master plan; promptly report to the Prime Minister for consideration and decision on adjustment of power master plans in accordance with the law regulations on planning, depending on the ability to meet technical and technological requirements, the availability of the electricity transmission grid system, and the need to develop types of electric power sources for direct power purchase and sale;

b) Assume the prime responsibility for, and coordinate with ministries in, directing relevant authorities and entities to implement the direct power purchase and sale mechanism; guide, monitor and resolve issues that arise in the course of implementation of the direct power purchase and sale mechanism within their competence;

c) Give comments on the reports and calculations of the costs of using electricity system services for one unit of electricity applied to consumers of Power Corporations in year N, which are reported by Vietnam Electricity in accordance with Clause 4, Article 16 of this Decree;

d) Inspect, monitor and resolve complaints, handle violations in the course of implementation of the direct power purchase and sale mechanism;

dd) Assume the prime responsibility for, and coordinate with ministries in, advising the Prime Minister on measures to terminate participation in the direct power purchase and sale mechanism by large electricity consumers and renewable-energy electricity producers.

2. People’s Committees of provinces and municipalities shall:

a) Be responsible for State governance over the issues prescribed in this Decree within the scope of local management;

b) Direct specialized power authorities to inspect and supervise the performance of power purchase agreements in accordance with this Decree and relevant law regulations;

c) Inspect, monitor and resolve complaints, handle violations in the course of implementation of the direct power purchase and sale mechanism in the localities under their management.

3. The Vietnam Electricity shall:

a) Organize and direct its subordinates to conduct direct power purchase and sale;

b) Guide and direct Power Corporations to draft power purchase agreements between Power Corporations and consumers in accordance with Article 15 of this Decree;

c) Guide Power Corporations on processes for trading, management, payment calculation, agreement and signing with consumers, invoice issuance deadlines, payment deadlines, and payment documents and invoice templates applicable to the group of consumers participating in direct power purchase and sale;

d) Guide Power Corporations on payment of components of direct power purchase and sale service costs (cost of electricity transmission, cost of electricity distribution - retail, cost of load dispatch and market trading management, cost of industry administration - management, cost of auxiliary services for the electricity system, and cost of compensation for the payment difference) for relevant service providers;

dd) Guide Power Corporations on calculating the rates of power loss on the distribution grids at each voltage level as prescribed in Clause 3, Article 16 of this Decree;

e) Evaluate the implementation of the direct power purchase and sale mechanism and implement the reporting regime as prescribed in Article 28 of this Decree.

4. The electricity system and market operator shall guide entities involved in the mechanism of direct power purchase and sale through the National Power Grid in accordance with Article 20 of this Decree.

Article 30. Effect

1. This Decree takes effect from the date of signing for promulgation.

2. In the course of implementation, if the legal documents incorporated by reference in this Decree are amended, supplemented or superseded, the new documents shall prevail.

3. In the course of implementation, if any difficulties or bottlenecks arise, authorities and concerned entities shall report them to the Ministry of Industry and Trade for consideration and propose appropriate amendments and supplements thereto to the Government.

 

ON BEHALF OF THE GOVERNMENT FOR THE PRIME MINISTER DEPUTY PRIME MINISTER     Tran Hong Ha

 

 

Appendix I

KEY DETAILS OF THE SPOT-MARKET POWER PURCHASE AGREEMENT

(Attached to the Government’s Decree No. 80/2024/ND-CP dated July 3, 2024)

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This Appendix prescribes the key details of the spot-market power purchase agreement signed between the renewable-energy electricity producer and Vietnam Electricity. In particular, the price offering, mobilization scheduling, payment calculation, payment statement checking and reconciliation on the spot electricity market shall comply with Articles 9, 10, 11, 12 and 13 of this Decree.

The parties have the right to negotiate and agree on the following terms in accordance with Vietnamese law:

PURSUANT TO:

- The Civil Code No. 91/2015/QH13 dated November 24, 2015 of the National Assembly of the Socialist Republic of Vietnam and documents guiding its implementation;

- The Commercial Law No. 36/2005/QH11 dated June 14, 2005 of the National Assembly of the Socialist Republic of Vietnam and documents guiding its implementation;

- The Law on Electricity dated December 3, 2004; the Law dated November 20, 2012 Amending and Supplementing a Number of Articles of the Law on Electricity; the Law dated January 11, 2022 Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax, and Law on Enforcement of Civil Judgments, and their guiding documents;

- The Government’s Decree No. 80/2024/ND-CP dated July 3, 2024 prescribing the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers;

- Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Ministry of Industry and Trade, prescribing the operation of competitive wholesale electricity market, amending and supplementing a number of articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Ministry of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement; Circular No. 24/2019/TT-BCT dated November 14, 2019 of the Ministry of Industry and Trade on amending and supplementing a number of articles of Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade, prescribing the operation of competitive wholesale electricity market, and amending and supplementing a number of articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement;

- Demands for power purchase and sale of both parties.

Today, on ... dd ... mm, 202..., in ..........................

We are:

Power seller: (name of the renewable-energy electricity producer)

Address: ...................................................................................................

Tel.: ..................... Fax: …………………………………………………

Tax ID No. ...........................................................................................

Account: ................................................. At the bank ...............................

Represented by:  .........................................................................................

Position: ...................................................................................................

(Under the Power of Attorney No. ............ dated dd... mm... yyyy... of ....)

Power Purchaser: Vietnam Electricity

Address: ..........................................................................................

Tel.: ........................................... Fax: ………………………………

Tax ID No. ......................................................................................

Account: ................................................. At the bank ..............................

Represented by:  .......................................................................................

Position: ....................................................................................................

(Under the Power of Attorney No. ............ dated dd... mm... yyyy... of ....)

Unanimously agree to execute a power purchase agreement to purchase and sell electric power on the spot electricity market produced by (name of the renewable-energy electricity producer) invested, built and operated by the power seller at (...) with the following terms and conditions:

Article 1. Definitions

In this Agreement, the terms below are construed as follows:

1. Power Seller: (name of the renewable-energy electricity producer).

2. Power Purchaser: Vietnam Electricity.

3. Party/parties mean the Power Seller, the Power Purchaser or both parties or the successor(s) of the rights and obligations of one party or the parties to this Agreement.

4. Connection point: the location where the Power Seller's line connects to the Power Purchaser's electrical system as agreed in Appendix I.1 of the Agreement.

5. Electricity delivery point: To be determined as the same as the connection point.

6. Electricity system and market operator is the National Load Dispatch Center or other names depending on the level of electricity market development, performing the function of dispatching the national power system and managing electricity market transactions.

7. Capacity add-on price: the price calculated for each trading interval and applied to calculate capacity add-on payments to electricity producers in the electricity market or as prescribed in legal documents on the operation of the Competitive Wholesale Electricity Market promulgated by the Ministry of Industry and Trade.

8. System marginal price: the price for a unit of electricity calculated for each trading interval, applied to calculate energy payments in the electricity market in accordance with legal documents on the operation of the Competitive Wholesale Electricity Market issued by the Ministry of Industry and Trade.

9. Metering System: a system comprising of measurement devices (meters, metering current transformers, metering voltage transformers), auxiliary devices and secondary circuits connecting such devices into a Metering System that measures electricity through the metering location.

10. Main Metering System: the Metering System installed at the metering location as prescribed in Appendix I.2 of the Agreement, from which the measurements are used as the main basis to calculate the delivered quantity of electric power at the electricity delivery point for invoicing purposes.

11. Backup Metering System: A Metering System installed at the metering location as prescribed in Appendix I.2 of the Agreement. Its purpose is to verify the accuracy and reliability of measurements taken by the Main Metering System and to serve as a Backup in cases where the Main Metering System experiences an incident or error.

12. Agreement means this power purchase agreement, including the Appendices and amendments and supplements later signed by authorized representatives of the Parties.

13. Agreement year means the Georgian calendar year of 12 (twelve) months starting from the first day of January to the last day of December of that year, unless the first agreement year starts from the date of commercial operation to the last day of December of that year. The final agreement year starts from the first day of January to the last day of the term of this Agreement.

14. Business days: Gregorian calendar days, excluding Saturdays, Sundays, and public holidays as prescribed by law.

15. Commercial Operation Date: the date on which part or all of the grid-connected solar power plant is ready to sell electricity to the Power Purchaser and meets the conditions of (...) in accordance with regulations.

16. The Power Plant is (...).

17. Regulations on operation of the national power system: Legal documents, procedures prescribing standards for operation of the electric system, conditions and procedures for connection to the power grid, load dispatch and operation of the electric system, electric metering in the electric system.

18. Electricity industry standards and regulations: (...).

19. Emergency means a situation that could disrupt the power supply to the purchaser's large electricity consumers, including any situation that could cause major damage to the national power system, threaten life or property, or affect the technical capability of a power plant.

Article 2. Effect and term of the Agreement

1. Effect of the Agreement

The Agreement takes effect from the date it is duly executed by the authorized representatives of the Parties unless the parties agree otherwise.

2. Term of the Agreement

Unless renewed or terminated earlier in accordance with the terms of this Agreement, the Term of this Agreement shall be from the Effective Date to the end of (...) years from the Commercial Operation Date. Notwithstanding the termination of this Agreement, the provisions hereof shall survive for a period of (...) to allow the parties to complete final invoicing, invoice adjustments, payments, and any outstanding obligations hereunder.

The parties may renew the Term of this Agreement or execute a new agreement in accordance with the law regulations after this Agreement expires.

Article 3. Power purchase and sale

1. Quantity (output) of electric power: As actually measured.

2. The electricity price shall be applied in accordance with Article 11 of this Decree, to be specific: Equal to the spot full market price announced by the electricity system and market operator in accordance with the Regulations on the operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

3. On a monthly basis, the Power Purchaser is obliged to pay the Power Seller amounts including:

- A sum of all electricity market payments as stated in the monthly payment statement (including energy payments and capacity add-on payments), which is calculated and announced by the electricity system and market operator;

- All other payments incurred from late payment interests and correction payments (if any);

- Taxes, fees, and other amounts payable during the month in accordance with relevant law regulations, as agreed upon by the Seller and the Purchaser;

- The Parties negotiate and agree to make payments arising from dispute resolution in accordance with Clause 3 of this Article.

4. The method of calculating electricity payments shall comply with Article 6 of the Agreement.

Article 4. Responsibilities for connection and metering system

1. Responsibility for connection

The seller shall:

a) Agree upon, invest in, manage, and operate the equipment necessary for connecting, transmitting, and delivering electricity to the Purchaser at the Delivery Point, in accordance with the Regulations on electricity transmission systems and the Regulations on electricity distribution systems issued by the Ministry of Industry and Trade, as well as relevant electricity industry technical regulations and standards as outlined in Appendix I.1 of this Agreement;

b) Agree upon, invest in, install, manage, operate, and maintain the equipment comprising the data acquisition and transmission system, relay protection system, and automatic control system of the Power Plant, for integration with the SCADA/EMS between the Power Plant and the electricity system and market operator, to facilitate the operation of the Power Plant within the electricity market, as detailed in Appendix I.4 of this Agreement.

2. Metering System

a) The Seller shall be responsible for the investment, installation, acceptance testing, management, operation, maintenance, and initial and annual periodic validation of the Metering System equipment under its ownership, in compliance with the Regulations on electricity metering in the power system issued by the Ministry of Industry and Trade. The legality of the Metering System must be ensured in accordance with the State's measurement regulations;

b) Where necessary, either Party shall have the right to request additional inspection or extraordinary validation of the Metering System equipment. Unless otherwise agreed in writing, the plan and timing shall be implemented in accordance with the Regulations on electricity metering in the power system issued by the Ministry of Industry and Trade. Each Party shall be responsible for arranging the inspection and validation of the metering equipment under its ownership upon the request of the other Party. If the error of the metering equipment extraordinarily inspected or validated exceeds the permissible limit, the Party owning the equipment shall bear the cost of the extraordinary inspection or validation. If the error of the metering equipment extraordinarily inspected or validated is within the permissible limit, the cost of the inspection or validation shall be borne by the requesting Party;

c) Each Party shall be obligated to notify the other Party in advance of any inspection or validation of the Metering System and to provide the results of such inspection/validation of the metering equipment. Each Party shall be responsible for appointing personnel to witness the inspection, validation, seal removal, sealing, and lead sealing of the meter;

d) In cases where the metering equipment has an error outside the permissible limit in accordance with the Regulations on electricity metering in the power system and the State's measurement equipment validation procedures, each Party shall be responsible for calibrating or replacing the metering equipment under its ownership. In cases where one Party believes that the metering equipment is damaged or not functioning, such Party shall immediately notify the other Party. Each Party shall be obligated to inspect, repair, and replace the metering equipment under its ownership. The inspection, repair, and replacement shall be carried out in the shortest possible time;

dd) The electricity output traded between the Purchaser and the Seller shall be calculated in accordance with the method of electricity delivery and receipt and the Main Metering System as prescribed in Appendix I.2 of this Agreement.

In cases where the Main Metering System malfunctions or the validation results indicate a need for replacement due to an error exceeding the specified accuracy level (positive error), the electricity output traded between the two Parties during the period of the Main Metering System's malfunction or excessive error shall be calculated/adjusted based on the measurements of the Backup Metering System that meets the permissible accuracy level, which will serve as the basis for determining the electricity output for settlement purposes, with the application of the error conversion rule for the Backup equipment to the same permissible error level specified for the Main Metering System, through either the equipment error conversion method or the system error conversion method. In cases where the Backup Metering System also malfunctions or the validation results indicate that the Backup Metering System has an error exceeding the permissible limit, the electricity output traded between the two Parties shall be calculated as follows:

(i) In cases where the Main Metering System is operational but has an error exceeding the specified accuracy level (positive error), the electricity output traded between the Seller and the Purchaser shall be calculated by the measurements of the Main Metering System, converted to the electricity value corresponding to a 0% error level. This conversion shall be based on the largest error of the metering equipment that did not meet the accuracy level, as provided by the testing entity along with a memorandum or as agreed upon by the relevant parties;

(ii) In cases where the Main Metering System malfunctions and is not operational, the Seller and the Purchaser shall, based on the malfunction status and actual errors of the metering systems, and on the basis of written records of the  validating entity and data acknowledged by both the Seller and the Purchaser, agree on a calculation method and calculate the electricity output to be adjusted during the period of inaccurate metering. If the parties cannot agree on the method and the electricity output to be adjusted, the Seller and the Purchaser shall be responsible for resolving the dispute in accordance with law regulations;

(iii) The period for calculating the retroactive electricity billing/refund shall be calculated from the time the error exceeding the accuracy level is detected until the time the metering equipment is replaced. If the aforementioned period cannot be determined, the period for calculating the retroactive electricity billing/refund shall be calculated from 03 consecutive billing months preceding the validation month until the time the metering equipment is replaced.

e) In cases where the metering equipment is burned or damaged, the Seller shall be obligated to replace or repair it in the shortest possible time to ensure that the metering equipment meets technical requirements and resumes normal operation. Any repaired or replaced equipment must be validated in accordance with regulations before being put into use.

Article 5. Dispatching and operating the Power Plant

1. The Seller shall comply with the regulations on dispatching and operating the Power Plant in the national power system in accordance with the Regulations on electricity transmission systems, the Regulations on electricity distribution systems, the Regulations on the operation of the competitive wholesale electricity market, and the National load dispatch procedures issued by the Ministry of Industry and Trade; electricity industry technical regulations and standards and other relevant documents. The Seller is obliged to maintain and operate the Power Plant in accordance with the technical specifications provided in Appendix I.1, Appendix I.3 and Appendix I.4 of the Agreement.

2. The Seller is obliged to install, operate and maintain equipment to synchronize the Power Plant with the national power system. The Seller shall comply with the Regulations on electricity transmission systems and the Regulations on electricity distribution systems issued by the Ministry of Industry and Trade, technical regulations of the electricity industry and regulations on dispatching when synchronizing the Power Plant with the national power system.

3. In cases where the operation of the national power system threatens to cause damage to the main equipment of the Power Plant, or cause injury or harm to personnel or equipment, the Seller shall have the right to disconnect the generating units from the national power system.

Article 6. Invoicing, payments and payment dispute resolution

1. Invoicing

Payment invoices are made in accordance with the law regulations on invoices.

2. Electricity charge payments

a) Payments made by the renewable-energy electricity producer selling electric power on the spot market in accordance with Article 12 of this Decree and other payments under the power purchase agreement between the two parties.

The payment by a renewable-energy electricity producer selling electricity on the spot electricity market shall be calculated using the following formula:

Where:

R_g: Total market electricity payments in the payment cycle (VND).

Q_mq(i): Electricity output measured by the renewable-energy electricity producer in trading interval i (kWh).

i: i^th trading cycle in the payment cycle.

I: Total number of trading intervals in the payment cycle.

FMP_(i): Spot full market price in trading interval i (VND/kWh).

b) In case of suspension of participation in the direct power purchase and sale mechanism, the renewable-energy electricity producer shall negotiate and agree on contractual prices with Vietnam Electricity.

3. Payment disputes

a) In case of disagreement with part or all of the amount stated in the invoice, the Purchaser must provide written notice before the due date of the disputed amount and the reasons for the disagreement. The Purchaser is obligated to pay the undisputed amount in full on or before the due date;

b) Within (...) days from the date of receiving the notice of the disputed amount, the Seller must send a formal written response to the Purchaser. In cases where the two Parties cannot reach an agreement on the disputed amount, either Party may initiate the dispute resolution provisions outlined in this Agreement.

In cases where the dispute arises from information in the payment statement of the electricity system and market operator, the Parties must apply the regulations on electricity market dispute resolution as prescribed in the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

c) In cases where one Party fails to provide written notice of a disputed amount within (...) days from the date of invoicing, such Party shall be deemed to have waived the right to dispute the amount due in the issued invoice.

Article 7. Breach of agreement, compensation for damages and termination of the Agreement

1. Breach of agreement by the Power Seller

a) The Power Seller fails to perform or comply with the Agreement within (...) days from the date of written notice from the Power Purchaser.

In case the power seller has made efforts to remedy the breach within the aforementioned period (...) but the remedy cannot be completed therewithin, the power seller may extend the remedy period up to a maximum of (...) from the date of the written notice of the power seller's breach, unless an extension of the investment schedule is permitted by the competent authority in accordance with applicable regulations. The power seller must continue the remediation of its breach in the shortest time;

b) The power seller denies the validity of part or all of the Agreement.

2. Breach of agreement by the Power Purchaser

a) The Power Purchaser fails to perform or comply with the Agreement within (...) days from the date of written notice from the Power Seller.

In case the Power Purchaser has made reasonable efforts to remedy the breach within the period of (...) day(s) but the remedy cannot be completed therewithin, the Power Purchaser may extend the remedy period up to a maximum of (...) from the date of the written notice of the Power Purchaser's breach. The Power Purchaser must continue the remediation of its breach in the shortest time;

b) The Power Purchaser fails not pay the undisputed payable amount under the Agreement when due and this non-payment continues for more than (...) days without any legitimate reason;

c) The Power Purchaser denies the validity of part or all of the Agreement.

3. Events affecting the performance of the Agreement

a) Events affecting the Purchaser's performance of the Agreement:

(i) The Seller is dissolved (unless the dissolution is for the purpose of merger or consolidation);

(ii) The Seller becomes unable to pay its debts as they become due;

(iii) The Seller enters into a composition or arrangement with creditors or makes a general assignment for the benefit of creditors;

(iv) A court issues a ruling for the commencement of bankruptcy or insolvency proceedings against the Seller;

(v) The Seller materially breaches any of its obligations under this Agreement and fails to remedy such breach within 90 days from the date of receiving written notice from the Purchaser specifying the breach;

(vi) The Seller's operations are suspended under a decision of a competent authority;

(vii) The Seller's participation in the direct power purchase and sale mechanism is suspended under a decision of a competent authority.

b) Events affecting the Seller's performance of the Agreement:

(i) The Purchaser is dissolved (unless the dissolution is for the purpose of merger or consolidation);

(ii) The Purchaser becomes unable to pay its debts as they become due;

(iii) The Purchaser enters into a composition or arrangement with creditors or makes a general assignment for the benefit of creditors;

(iv) A court issues a ruling for the commencement of bankruptcy or insolvency proceedings against the Purchaser;

(v) The Purchaser materially breaches any of its obligations under this Agreement and fails to remedy such breach within 90 days from the date of receiving written notice from the Seller specifying the breach;

(vi) The Purchaser's operations are suspended under a decision of a competent authority.

4. Procedure for remediation and resolution of a breach of agreement

In case of a breach of agreement, the Aggrieved Party shall send a written notice to the Breaching Party. The Breaching Party shall cooperate to resolve the breach of agreement.

5. Indemnity

a) The Breaching Party shall indemnify the Aggrieved Party from and against any losses, damages, or costs incurred by the Aggrieved Party in the course of exercising its rights and fulfilling its obligations under this Agreement as a result of the breach. The calculation of damages shall comply with the Civil Code;

b) In case of any claim for damages, the indemnified party shall promptly send a written notice to the indemnifying party, specifying the nature of the event for which indemnification is sought. The indemnified party's delay in sending a notice does not affect the indemnifying party's indemnification obligation, except to the extent that the indemnifying party actually suffers damage because of the indemnified party's delay in sending such notice.

6. Termination of the Agreement

a) Termination by mutual agreement

The Parties may agree in writing on early termination of this Agreement. If the power plant participates in the competitive electricity market, depending on the electricity market design, the Parties may agree in writing on early termination of this Agreement in accordance with the written instructions of the State authorities so as to sign a new power purchase agreement in accordance with the new regulations.

b) Unilateral termination

- In case of an occurrence of any of the events affecting the performance of the Agreement as prescribed at points (i) a, (ii) a, (iii) a, (iv) a, (v) a, and (vii) a, Clause 3; and points (i) b, (ii) b, (iii) b, (iv) b, and (vi) b, Clause 3 of this Article, and such event continues to affect one Party to the Agreement, the affected party shall have the right to unilaterally terminate this Agreement after 90 days from the date of sending notice to the other Party;

- In case of a force majeure event affecting one Party, and such event continues for 180 days or more, the other Party shall have the right to unilaterally terminate this Agreement after 30 days from the date of sending notice;

- In case of an occurrence of any of the events affecting the performance of the Agreement as prescribed at point (vi) a and point (v) b, Clause 3 of this Article, the affected party shall have the right to unilaterally terminate this Agreement after 30 days from the date of sending notice.

Article 8. Confidentiality of information

The Parties are obligated to keep confidential the information and documents provided by the Power Purchaser (or the Power Seller) in connection with this Agreement and shall not disclose, publicize, or use such documents or information for any purpose other than the performance of their obligations under this Agreement, unless otherwise (...).

Article 9. Miscellaneous

1. Amendments and supplements to the Agreement: All amendments and supplements to the Agreement must be agreed upon by the Parties in writing.

2. Entire agreement: This Agreement constitutes the entire and final agreement between the Parties and supersedes all prior discussions, negotiations, communications, and correspondence relating to the subject matter of this Agreement.

3. Third Parties: This Agreement is for the sole benefit of the two Parties and does not create any rights or obligations for any third party.

4. No joint venture: This Agreement does not constitute a joint venture, partnership, or association between the Parties, nor does it impose any joint venture, partnership, or association-like obligations or liabilities on either Party. Neither Party shall have the right to enter into any contract or act on behalf of the other Party as an agent or representative in fulfilling any obligations to the other Party.

5. Waiver of rights: Either party's waiver of rights under the Contract must be made in writing and signed by an authorized representative of such party. Failure or delay in exercising either party's rights under this Agreement shall not be construed as a waiver of such rights.

6. Performance of surviving obligations: Cancellation, termination or expiration of the Contract does not terminate the performance of the Parties' surviving obligations under the Contract.

7. Applicable law: The interpretation and performance of this Contract shall be governed by Vietnamese law.

8. Severability of the Agreement: In cases where any part of this Agreement is inconsistent with the law or is invalidated by a decision of a competent State authority, the remaining provisions of this Agreement shall remain in full force and effect, provided that the remaining provisions constitute a complete agreement without reference to the invalidated portion.

9. The Renewable Energy Certificate (REC) and carbon credits will belong to the renewable-energy electricity producer.

This Contract is executed into (...) counterparts, of which each Party keeps (...). The purchaser shall send one (01) counterpart hereof to the Electricity Regulatory Authority of Vietnam.

 

REPRESENTATIVE OF THE POWER SELLER

REPRESENTATIVE OF THE POWER PURCHASER

 

Appendix I.1

KEY PARAMETERS OF THE POWER PLANT

(Attached to Contract No.... date... month... year...)

 

Including descriptions, diagrams and general technical specifications, technological operations of the Power Plant.

(Note: In cases where the above technical parameters are based on the preliminary technical design, the main parameters of the Power Plant shall be finalized after the signing of the contract for the procurement of materials and (main) equipment of the Power Plant).

 

Appendix I.2

METERING AND DATA ACQUISITION SYSTEM

(Attached to Contract No.... date...month...year...)

 

1. Installation location and features of the metering system: (...)

2. Technical requirements of the metering system: (...).

3. Metering location:

The Parties agree to use the current metering locations of the Power Plant as follows:

Main metering location: (...),

Backup metering location 1: (...).

Backup metering location 2: (...),

Metering locations for the purposes of operation and reconciliation of electricity market data: (...).

4. Method for calculating the delivered quantity of electric power

1. Delivered quantity of electric power

a) The seller's electricity output in the payment month is calculated using the formula:

A_G =

A_g: The quantity of electricity for which the Purchaser pays to the Seller in the payment month, (kWh).

b) The quantity of electricity the Seller receives from the national power system in the payment month is calculated using the formula:

A_N =

Where:

A_n: Amount of electricity received from the grid at metering points during the month (kWh).

2. During the competitive electricity market phase, the monthly electricity delivery and receipt method shall comply with the regulations on electricity metering in the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

Appendix I.3

OPERATIONAL CHARACTERISTICS AGREEMENT

(Attached to Contract No.... date...month...year...)

 

The parties shall negotiate and agree on the operating characteristics of the Power Plant and relevant regulations.

Appendix I.4

SCADA/EMS, COMMUNICATIONS, PROTECTIVE AND AUTOMATIC RELAY AGREEMENTS

(Attached to Contract No.... date... month... year...)

 

The Parties shall negotiate and reach agreements and agree upon valid addendum/replacements regarding (1) Connection, (2) SCADA Connection, and (3) Protection system.

Appendix I.5

ELECTRICITY PRICE, ELECTRICITY PAYMENT

(Attached to Contract No.... date...month...year...)

 

The electricity price under the spot-market power purchase agreement shall be calculated in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

Appendix II

DETAILS OF THE POWER PURCHASE AGREEMENT BETWEEN THE LARGE ELECTRICITY CONSUMER (OR THE AUTHORIZED RETAIL ELECTRICITY PROVIDER IN THE ZONE OR CLUSTER) AND THE POWER CORPORATION

 

 

 

(Attached to Decree No. 80/2024/ND-CP dated July 3, 2024 of the Government)

^{__________________}

 

This Appendix prescribes details of the power purchase agreement executed between the large electricity consumer (or the authorized retail electricity provider in the zone or cluster) and the Power Corporation. In particular, power purchase and sale as well as payment calculations shall comply with Article 14, Article 15 and Article 16 of this Decree.

The parties have the right to negotiate and agree on the following terms in accordance with Vietnamese law:

Province (Municipality) code

(Urban/ Rural) District code

Contract type code

Contract number

PURSUANT TO:

- The Civil Code No. 91/2015/QH13 dated November 24, 2015 of the National Assembly of the Socialist Republic of Vietnam and documents guiding its implementation;

- The Commercial Law No. 36/2005/QH11 dated June 14, 2005 of the National Assembly of the Socialist Republic of Vietnam and documents guiding its implementation;

- The Law on Electricity dated December 3, 2004; the Law dated November 20, 2012 Amending and Supplementing a Number of Articles of the Law on Electricity; the Law dated January 11, 2022 Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax, and Law on Enforcement of Civil Judgments, and their guiding documents;

- The Government’s Decree No. 80/2024/ND-CP dated July 3, 2024 prescribing the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers;

- Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Ministry of Industry and Trade, prescribing the operation of competitive wholesale electricity market, amending and supplementing a number of articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Ministry of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement; Circular No. 24/2019/TT-BCT dated November 14, 2019 of the Ministry of Industry and Trade on amending and supplementing a number of articles of Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade, prescribing the operation of competitive wholesale electricity market, and amending and supplementing a number of articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement;

- Demands for power purchase and sale of both parties.

Today, on ... dd ... mm, 202..., in ..........................

We are:

A. Power seller: (name of the Power Corporation).

Tax ID No.  ......................................................................................

Address of the head office: .........................................................................................

Bank account No. .......................... opened at then bank: .........................

Email: ................................................................................................

CS Hotline: .................................................................................................

Represented by Mr.(Ms.) ...........................................................................

Position: ......................................................................................................

(Under the Power of Attorney No. ............ dated dd... mm... yyyy... of ....)

Hereinafter referred to as “Party A”

And

B. Power Purchaser: (...).

Tax ID No.  ..........................................................................................

Business/Enterprise Registration: ........................................................

Address of the head office/permanent residence: ................................

Bank account No. .......................... opened at the bank: ..........................

Email: ............................................... Tel.:……………………………

Represented by Mr.(Ms.) ............................................................................

Position: ......................................................................................................

Personal identification number (ID card/PP): .................. dated: …………

granted by: ..................................................................................................

(Under the Power of Attorney No. ............ dated dd... mm... yyyy... of ....)

Hereinafter referred to as “Party B”

“Party A” and “Party B” are hereinafter each individually referred to as “Party” and collectively as “Parties”

The Parties hereby agree to enter into the Agreement under the following terms and conditions:

Article 1. Definitions

For the purposes of this Agreement (unless otherwise described or defined by mutual agreement of the Parties), the following terms shall have the meanings set forth below:

1.1 Metering Equipment Installation/Removal Record means a record, in the form prescribed by Party A, documenting the installation or removal of electricity metering equipment, including technical specifications of such equipment and the meter reading at the time of installation or removal.

1.2 Security measure means a measure to secure the performance of this Agreement as prescribed in Article 3 of this Agreement (to be included in the Agreement if the Parties so agree).

1.3 State authority means any authority or government at any level of Vietnam, or authorized person of such authority, having the power and responsibility to issue administrative documents related to this Agreement or to require the Parties to provide information or perform obligations as prescribed by law.

1.4 Meter means an electricity meter, a device that measures electrical energy by integrating power over time, stores, and displays the measured energy value.

1.5 Supply address means the premises registered by Party B with Party A to which electricity is supplied by Party A and used by Party B under this Agreement.

1.6 Value of collateral means the value of the collateral acknowledged by the Parties in Article 3 of this Agreement (to be included in the Agreement if the Parties so agree).

1.7 Agreement means this Power Purchase Agreement for Non-Residential Purposes, signed by the Parties on (date) of (month)), (year), and any appendices amending or supplementing it from time to time.

1.8 Late payment interest rate means the highest lending interest rate of the bank where Party A holds an account as prescribed in this Agreement at the time the payment obligation arises, which shall be notified by Party A to Party B upon the application of the late payment interest rate as prescribed in this Agreement.

1.9 Payment obligations means part or all of Party B's obligations to pay to Party A any amount incurred out of this Agreement, including but not limited to electricity charge, reactive power charge, late payment interest, damages, default penalty, costs incurred for suspension, termination, and resumption of power supply, and replenishment of deductions from the collateral under this Agreement.

1.10 Laws mean all applicable laws of Vietnam relating to or governing the relationship between Party A and Party B under this Agreement, including any amendments or supplements made from time to time.

1.11 Agreement termination procedure means the procedure applicable to the termination of this Agreement, as prescribed in Article 17 of this Agreement.

1.12 Electricity metering equipment mean those used for measuring the output, electric energy, electric current, voltage, frequency, output coefficients, which include assorted electricity meters and accompanying equipment, accessories.

1.13 Term means the term of this Agreement as defined in Article 3 of this Agreement.

1.14 Payment default means any failure by Party B to fully and/or properly fulfill its payment obligations under this Agreement.

Article 2. Power purchase and sale

2.1. Supply address:

2.2. Power use purpose:

2.3. Voltage level: (...) kV

2.4. Capacity and electricity consumed:

2.5. Power supply connection point:

2.6. Electricity metering:

a) Number of metering points: (...).

Metering Equipment Installation/Removal/Validation Record attached to the Agreement,

b) Location where power quality is determined: (...).

2.7. Record meter readings:

a) Number of periods: (...) period(s)/month         Date of reading: (...).

b) Form of recording meter readings: remote data acquisition.

2.8. Property ownership boundaries:

2.9. Operational management boundaries: Party A and Party B shall each be responsible for the safe operation and management of the electrical works under their respective ownership. In case of a different agreement regarding the operation and management of the electrical works, the two Parties shall execute a separate agreement.

Article 3. Specific arrangements

3.1. Agreement performance security (Yes/No);

a) Value: VND (...);

b) Form (Bank guarantee/Cash deposit):

c) Deadline for Party B to submit to Party A documents confirming/proving the completion of establishing the security measure: within (...) days from the date the Agreement is signed by the Parties (hereinafter referred to as the security confirmation date).

The documents provided by Party B that are valid for confirming/proving the completion of establishing the security measure (including but not limited to an unconditional and irrevocable Bank Guarantee/Guarantee Certificate for the performance of the Agreement) and other documents related to the performance guarantee of the Agreement shall be attached to this Contract.

3.2. Execution and form of notice:

a) The Parties agree that (Power Company/Power Corporation ...), a subsidiary of Party A, established and operating legally under the laws, with specific information as stated in Article 3.3.b, shall represent Party A in executing, managing, and performing this Agreement. Accordingly, payment documents for all payments under this Agreement shall be issued by (Power Company/Power Corporation ...) to Party B, and Party B shall make payments to (Power Company/Power Corporation ...);

b) Address for notice:

(i) Party A: Notices shall be sent to the Designated Entity representing Party A in the management and execution of this Agreement, with the following information:

POWER COMPANY/POWER CORPORATON: (...).

Tax ID: (...).

Bank account No. [•] opened at then bank: (...).

Address: (...).

Email: (...). Phone/SMS: (...). Messaging application: (...).

Customer Services application: (...).

Website: (...).

(ii) Party B: Address: (...).

- Payment:

Email: (...). Phone/SMS: (...). Messaging application: (...).

- Suspension, termination, and reduction of power supply:

Email: (...). Phone/SMS: (...). Messaging application: (...).

- Notification and communications during the performance of the Agreement:

Email: (...). Phone/SMS: (...). Messaging application: (...).

c) Form of notification: notifications will be sent in one of the following forms: electronic mail (email), phone, text message (SMS), messaging application, customer services (CS) application, websites for notification prescribed in Article 3.2.b and other mass media.

3.3. Effect and term of the Agreement:

a) This Agreement takes effect from: (...);

b) This Agreement has a term of: (...), starting from (...) to (...).

3.4. Other specific arrangements: (...).

Article 4. Service standards and quality;

The Parties unanimously agree that power purchase and sale under this Agreement must comply with requirements on electricity quality and service quality for large electricity consumers in accordance with the law regulations.

Article 5. Reactive power procurement

5.1 The Parties agree to apply law regulations to determine the option of reactive power procurement in Article 2.4.c of the Agreement.

5.2 In cases where the Parties choose to procure reactive power in Article 2.4.c, Party B must pay the reactive power charge to Party A, and the procurement of reactive power shall comply with the law regulations. Party B shall pay the reactive power charge in the same billing period as the electricity charges under this Agreement. Party A’s notice of the value of the reactive power charge and the reactive power procurement invoice to Party B shall be sent together with the first payment notice as prescribed in Article 3.2.

5.3 Pursuant to the law regulations and this Agreement, the Parties may agree to (i) stop procuring reactive power and/or (ii) adjust the reactive power procurement in case of changes. Party A shall notify Party B of its acceptance of the arrangements and the proposed solution based on Party B's notice. The notice shall be retained together with and attached to, and become an Appendix to this Agreement as the basis for performance thereof.

Article 6. Electricity metering

6.1 Electricity metering shall be agreed upon by the Parties in accordance with the law regulations. The electricity consumption shall be determined based on the meter readings and the multiplication factor of the metering equipment. The multiplication factor of the metering equipment shall be agreed upon and recorded in the Metering Equipment Installation/Removal Record.

6.2 When installing or removing metering equipment, the Parties shall record all results and necessary information in the Metering Equipment Installation/Removal Record. The Metering Equipment Installation/Removal Record must be signed by representatives of the Parties upon completion of the installation/removal. The Metering Equipment Installation/Removal Record is attached to this Agreement. The Parties shall be responsible for protecting the metering equipment within their respective areas of management. In cases where the metering equipment is lost or damaged, the Parties shall prepare a report to determine the cause and the responsibilities of the relevant Parties for repair, replacement, or compensation.

6.3 Party B shall not arbitrarily dismantle or relocate the meter. Party B must obtain Party A's consent when it needs to relocate the meter and shall bear all costs incurred in the relocation process.

6.4 When replacing the metering equipment, the Parties shall jointly sign a record confirming the technical parameters of the metering equipment and the meter readings.

Article 7. Meter reading recording

Pursuant to the law regulations, the Parties shall agree on the date of recording, the number of recording periods, and the method of recording meter readings as prescribed in Article 2.7 of this Agreement. In cases where the date, the number of recording periods, or the method of recording meter readings changes from those prescribed in Article 2.7 of this Agreement, Party A shall send a notice to Party B (...) days in advance of the change, in the manner prescribed in Article 3.2. The notice shall be retained together with and attached to, and become an Appendix to this Agreement as the basis for performance thereof.

Article 8. Agreement performance security

8.1 Scope of the security: (...).

8.2 Security measure: (...).

8.3 Form and validity of the security: (...).

8.4 Rights and obligations related to the security: (...).

(Applicable in cases where the two parties have agreed and reached a consensus on the performance security in accordance with applicable regulations)

Article 9. Payment calculation:

Electricity payments shall be calculated in accordance with Article 16 of this Decree, specifically as follows:

9.1 In cases where the electricity consumption of the large electricity consumer in a trading interval is lower than the electricity output of the renewable-energy electricity producer in such trading interval (converted to the delivery point of the large electricity consumer), the large electricity consumer shall make monthly electricity payments to Vietnam Electricity using the following formula:

9.1.1 The total monthly electricity payment of the large electricity consumer to Vietnam Electricity shall be calculated by the following formula:

C_kh ⁼ C_ttđ + C_bl

Where:

a) C_kh: Total cost of power purchase from the Power Corporation incurred by the large electricity consumer (VND);

b) C_ttđ: Cost of power purchase from the Power Corporation incurred by the large electricity consumer (VND) on the market, calculated using the following formula:

C_ttđ = C_đn + C_dppa + C_cl

Where:

- C_ĐN: Cost of electricity at the full market price (VND), calculated in accordance with Clause 2 of this Article;

- C_DPPA: Cost of using electricity system services (VND), calculated in accordance with Clause 3 of this Article;

- C_CL: Cost of compensation for the difference (VND), calculated in accordance with Clause 4 of this Article.

c) C_bl: Cost of power purchase in each trading interval at the electricity retail price (VND), calculated as follows:

Where:

- P_BL(i): Applicable retail electricity price in trading interval i issued by the Ministry of Industry and Trade (VND/kWh);

- Q_kh(i): Quantity of electric power actually consumed by the large electricity consumer in interval i (kWh);

- Q_KHhcf(i): Adjusted quantity of electric power consumed by the large electricity consumer in trading interval i (kWh), calculated as follows:

Q_KHhc(i) = MIN (Q_KH(i); Q_m(i))

Where:

+ Q_m(i) is the actual output of the renewable-energy electricity producer converted using the loss coefficient. In cases where a large electricity consumer has a forward contract with multiple renewable-energy electricity producers or a renewable-energy electricity producer has a forward contract with multiple large electricity consumers, the actual output of the electricity producer shall be calculated following the agreed principles as prescribed at Point dd, Clause 1, Article 21 of this Decree.

9.1.2 Electricity cost components at the full market price in each payment period of year N (Cđn) shall be calculated using the following formula:

Where:

a) i: i^th trading interval in the payment period (corresponding to the trading interval of the spot electricity market);

b) I: Total number of trading intervals of month M;

c) Q_KHhc(i): Adjusted quantity of electric power consumed by the large electricity consumer in the trading interval i (kWh), calculated in accordance with Clause 1 of this Article;

d) CFMP_(i): Full market price offered by the Power Corporation on the spot electricity market in trading interval i (VND/kWh), calculated in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade;

dd) K_PP: Conversion coefficient for expected power loss on the distribution grid at the voltage level of the large electricity consumer in year N.

9.1.3 Cost of using electrical system services (C_DPPA) shall be calculated using the following formula:

Where:

a) i: i^th trading interval in the payment cycle (corresponding to the trading interval of the spot electricity market);

b) I: Total number of trading intervals of the payment cycle;

c) Q_KHhc(i): Adjusted quantity of electric power consumed by the large electricity consumer in trading interval i (kWh);

d) C_dppađv: Cost of using electricity system services calculated for one unit of electricity in year N (VND/kWh).

9.1.4 Cost of compensation for the difference in month M (VND) shall be calculated as follows:

Where:

- C_cl: Cost of compensation for the difference in month M (VND);

- P_cl: Cost of compensation for the difference in month M calculated for large electricity consumers per unit of electricity (VND/kWh).

9.2 In cases where the electricity consumption of the large electricity consumer in a trading interval is lower than the electricity output of the electricity producer in such trading interval (converted to the delivery point of the large electricity consumer), the payment shall be made as follows:

9.2.1 The quantity of electric power consumed by the large electricity consumer in commensurate with the output of the electricity producer shall be paid in accordance with Section 9.1 of this Article.

9.2.2 The quantity of electric power consumed by the large electricity consumer, which is different from the output of the electricity producer, shall be paid at the retail electricity price applicable to the large electricity consumer respective to the subject, purposes of use, voltage level and time of electricity use per day in accordance with the Regulations on application of electricity selling prices issued by the Ministry of Industry and Trade.

Article 10. Payments

10.1 Invoices for electricity charges and reactive power charges shall be issued for each the meter reading period as prescribed in Article 2.7 of this Agreement. Party A shall notify Party B of the electricity payment corresponding to the number of meter reading recordings by sending notice as prescribed in Clause 10.2 of this Article.

10.2 Payment:

a) This provision applies to all payments incurred from the Agreement.

b) Payment due date: (...) days from the date of Party A’s first payment notice, in the manner prescribed in Article 3 of this Agreement.

c) Payment method (Automatic debit/Electronic payment/Bank transfer/Collection location/Other): (...).

10.3 The payment obligations shall be fulfilled in Vietnamese dong.

10.4 The method of payment and the payment due date shall be agreed upon by the Parties and prescribed in Article 3.2 of this Agreement.

10.5 Party B shall pay in full the electricity charge and reactive power charge stated in the invoice issued by Party A within the time limit prescribed in Article 3.2. In cases of payment default by Party B under this Article 10.4:

a) In cases where Party B has made a security for performance of this Agreement:

(i) Party A shall send a second payment notice to Party B, in the form prescribed in this Agreement, regarding the payment default upon its occurrence, and shall proceed in accordance with Article 8.7 of this Agreement.

(ii) If the deduction is sufficient to fulfill the payment obligation, within 15 (fifteen) days from the date of Party A’s first payment notice to Party B, Party B shall:

- Pay the default penalty as prescribed in Article 16;

- Replenish the collateral to make up for the deduction.

(iii) If the deduction is not sufficient to fulfill the payment obligation, within 15 (fifteen) days from the date of Party A’s first payment notice to Party B, Party B shall:

- Pay the default penalty as prescribed in Article 16;

- Replenish the collateral to make up for the deduction;

- Pay Party A the difference between the value of the breached payment obligation and the deduction (hereinafter referred to as the shortfall), plus late payment interest on the shortfall;

The late payment interest under this Article shall be calculated as the shortfall multiplied by the late payment interest rate and the number of days overdue. The number of days overdue shall be calculated from the first day following the payment due date prescribed in Article 3.2.b until the date Party B makes full payment or the date Party A suspends the supply of electricity to Party B in accordance with Articles 10.4.c and 11.1.a.

(iv) By the 14^th (fourteenth) day of the period prescribed in Articles 10.4.a.(ii) and 10.4.a.(iii), if Party B still fails to fulfill its payment obligations under this Article, Party A shall send a notice of suspension of electricity supply to Party B.

(v) The notice of suspension of electricity supply must clearly state:

- The expiration of the period prescribed in Article 10.4.a.(ii) and Article 10.4.a.(iii), upon which Party B has not fulfilled its payment obligations, and that Party A will immediately suspend the supply of electricity under this Agreement;

- The specific time of suspension of electricity supply. The time of suspension of electricity supply must satisfy the following conditions: (i) the period prescribed in Article 10.4.a.(ii) and Article 10.4.a.(iii) has expired, and (ii) 24 (twenty-four) hours have passed since the issuance of the notice of suspension of electricity supply.

b) In cases no security for performance of this Agreement is made:

(i) Party A shall send a second payment notice to Party B, in the form prescribed in this Agreement, regarding the payment default immediately upon its occurrence. Party B shall fulfill all payment obligations within 15 (fifteen) days from the date of Party A’s first payment notice to Party B, including:

- The default penalty as prescribed in Article 16;

- Late payment interest for the value of the breached payment obligation;

The late payment interest under this Article shall be calculated as the value of the breached payment obligation multiplied by the late payment interest rate and the number of days overdue. The number of days overdue shall be calculated from the first day following the payment due date prescribed in Article 3.2.b until the date Party B makes full payment or the date Party A suspends the supply of electricity to Party B in accordance with Articles 10.4.c and 11.1.a.

(ii) By the 14^th (fourteenth) day of the period prescribed in Article 10.4.b.(i), if Party B still fails to fulfill its payment obligation, Party A shall send a notice of suspension of electricity supply to Party B. The notice of suspension of electricity supply is similar that prescribed in Article 10.4.a.(v).

c) Party A has the right to immediately suspend the electricity supply in accordance with the notice sent to Party B. Party A is not liable for any damages incurred by Party B or related parties due to the suspension.

The electricity supply will only be resumed after Party B has fulfilled its payment obligations in accordance with this Article.

10.6 Unless the Parties have agreed on prepayment of electricity, if Party B overpays Party A, Party B can request a refund or credit the overpayment towards future payment cycle.

Article 11. Suspension, termination, and reduction of power supply

11.1 The Parties agree that Party A shall have the right to suspend, terminate, or reduce the supply of electricity to Party B upon the occurrence of the following events:

a) As prescribed in Article 10.4 and other provisions of this Agreement;

b) As prescribed by law.

11.2 When the events under Article 11.1 actually occur, the costs for the suspension, termination, or reduction of electricity supply and the costs for resuming the electricity supply shall be calculated in accordance with the law regulations or by agreement between the Parties.

Article 12. Representations and warranties of the Parties

12.1 Each Party represents and warrants that it has the full capacity and functions under applicable law to enter into and perform this Agreement.

12.2 Each Party represents and warrants that it has entered into this Agreement in good faith, honestly, voluntarily, and without any coercion or duress from any party.

12.3 Each Party represents and warrants that the information provided by it for the purpose of entering into this Agreement and recorded herein is complete, accurate, and truthful in all material respects.

12.4 Each Party represents and warrants that it has read and understood the provisions of this Agreement and all relevant laws. The Parties acknowledge that this Agreement is legally binding and enforceable against them...

Article 13. Rights and obligations of Party A

13.1 Rights of Party A:

a) To request Party B to fulfill its payment obligations fully and on time;

b) To access Party B’s management area for the operation, maintenance, repair, and replacement of Party A’s electrical equipment; to inspect and record meter readings; and to contact Party B in accordance with the law regulations;

c) To suspend, terminate, or reduce the supply of electricity in accordance with Article 11 of this Agreement;

d) To be provided by Party B with all necessary information and documents relevant to and in furtherance of the performance of this Agreement;

dd) To regularly monitor the performance of this Agreement;

e) To unilaterally terminate this Agreement in accordance with Article 17;

g) To exercise other rights as prescribed in this Agreement and by law;

h) To resolve incidents and restore power supply within 02 (two) hours of discovering or receiving a notice from Party B of any incident affecting the power grid under Party A’s management. In cases where the incident cannot be resolved within the aforementioned time limit, Party A shall notify Party B of the reason for the delay and the estimated time for power restoration;

i) To resume the supply of electricity after Party B has fulfilled its payment obligations as prescribed in Article 10;

k) To release any guarantees, return any funds, and collateral that Party B has provided as security measures (if any) to Party B upon the expiration of the security period or after Party B has fulfilled all obligations under this Agreement;

l) To check the quality of electricity service and the precision of the metering equipment in accordance with law regulations;

m) To promptly and effectively resolve Party B’s complaints related to the provision and use of electricity services under this Agreement;

n) To re-check the electricity charges at the request of Party B in accordance with Article 14.1.e;

o) To maintain the confidentiality of information and documents obtained during the negotiation and performance of this Agreement;

p) To perform other obligations as prescribed in this Agreement and by law.

13.2 Obligations of Party A:

a) To supply electricity to Party B in a safe and reliable manner;

b) To promptly restore the supply of electricity after any power outage;

c) To perform other obligations as prescribed in this Agreement and by relevant laws.

Article 14. Rights and obligations of Party B

14.1 Rights of Party B:

a) To request Party A’s personnel, when exercising their rights as prescribed in Article 13.1.b, to present their electricity inspector card or staff identification card or other documents as prescribed by law;

b) To request Party A to promptly restore the electricity supply after any power outage;

c) To request Party A to resume electricity supply upon fulfillment of payment obligations;

d) To request Party A to release any guarantees, return any funds, and collateral that Party B has provided as security measures (if any) upon the expiration of the security period or after Party B has fulfilled all obligations under this Agreement;

dd) To request Party A to check the quality of electricity service, the precision of electricity metering equipment, and the payable electricity charges in accordance with the law regulations;

e) To exercise other rights as prescribed in this Agreement and by law.

14.2 Obligations of Party B:

a) To use the electric power for the agreed-upon purposes and within the agreed-upon limits as prescribed in this Agreement;

b) To fully fulfill payment obligations under this Agreement;

c) To promptly reduce electricity consumption or disconnect from the power supply upon receiving a notice from Party A in cases where Party A suspends or reduces the electricity supply in accordance with Article 11 of this Agreement;

d) To notify Party A at least 05 (five) days in advance of any suspension of electricity use in case of such need;

dd) To immediately notify Party A of (i) Party B’s loss of ownership and/or legal right to use the supply address; (ii) any complaints or disputes related to the ownership and/or legal right to use the supply address; and (iii) any revocation of Party B’s licenses, cessation of operations, liquidation decisions, transfer of projects/assets related to the supply address, or declaration of bankruptcy;

e) To promptly notify Party A upon discovering any unusual occurrences that could cause power outages or endanger people or property;

g) To facilitate Party A's inspection of the performance of the Agreement, recording of meter readings, and exercise of other rights and obligations under the Agreement;

h) To ensure that all electrical equipment meets technical standards and electrical safety requirements; to comply with the electricity usage regime as required by the national load dispatch center in accordance with the law regulations;

i) Not to transfer rights and obligations under this Agreement to any other entity without notifying and obtaining Party A’s approval;

k) To maintain the confidentiality of information and documents obtained during the negotiation and performance of this Agreement;

l) To perform other obligations as prescribed in this Agreement and by relevant laws.

Article 15. Breach of agreement

15.1 The following constitute breaches of this Agreement by Party A:

a) Delaying the supply of electricity under the Agreement, unless the delay is caused by the fault of Party B;

b) Failing to maintain the service quality standards as prescribed in Article 4 of the Agreement;

c) Incorrectly recording meter readings; miscalculating electricity charges in the invoice;

d) Delaying or failing to indemnify Party B in accordance with Article 16;

dd) Other actions that breach this Agreement and violate applicable laws, thereby affecting the performance of this Agreement.

15.2 The following constitute breaches of this Agreement by Party B:

a) Delaying the performance of the signed Agreement;

b) Using electricity for purposes other than those prescribed in Article 2.2 of the Agreement;

c) Exceeding the registered power capacity during peak hours;

d) Failing to terminate the Agreement when no longer using electricity;

dd) Breaching payment obligations;

e) Delaying or failing to indemnify Party A in accordance with Article 16;

g) Unauthorized supply of electricity to other individual or institutional electricity users;

h) No longer possessing the legal ownership and/or right to use the supply address;

i) Failing to use electricity for 06 (six) consecutive months without prior notice to Party A;

k) Other actions that breach this Agreement and violate applicable laws, thereby affecting the performance of this Agreement.

15.3 In case of a breach of any obligations, presentations, or warranties under this Agreement by one Party, the breaching party shall cease all breaches and remedy the consequences of the breach within a reasonable timeframe as notified by the Aggrieved Party.

Article 16. Default penalty and indemnity

16.1 The Parties shall be liable for indemnity and penalties for any breaches of this Agreement. The liability for indemnity and penalties shall be governed by this Article, the Agreement, and applicable laws.

16.2 In case of any breach of obligations, the Breaching Party shall be liable for a penalty for such breach. The value of the breached portion of the Agreement shall be determined in accordance with the law regulations.

16.3 During the performance of this Agreement, if any breach by one Party causes damage to the other Party, the Breaching Party shall be liable for fully indemnifying the Aggrieved Party against the damage. The value of the damages shall be determined in accordance with the law regulations.

16.4 Delay in fulfilling the obligation of penalty and indemnity:

a) For penalties due to Party B's breach of the Agreement:

(i) For penalties arising under Article 10.4: If Party B fails to fully pay the penalty within the time limit prescribed in Article 10.4.a.(ii), Article 10.4.a.(iii), or the time limit prescribed in Article 10.4.b.(i), Party B shall be subject to late payment interest on the penalty until the payment obligation is fulfilled.

(ii) For other penalties arising from Party B's breach of the Agreement: Party B must pay the penalty within 15 (fifteen) days from the date of Party A's notice regarding Party B's liability for the penalty. If Party B fails to fully pay the penalty after this deadline, Party B shall be subject to late payment interest on the penalty until the payment obligation is fulfilled.

b) For damages due to Party B's breach of the Agreement:

Party B is obligated to pay Party A the damages incurred within 15 (fifteen) days from the date of Party A’s notice to Party B of the liability for indemnity. In case of late payment of the damages, the Breaching Party shall be subject to late payment interest on the damages until the payment obligation is fulfilled.

c) For damages and penalties due to Party A's breach of the Agreement:

(i) In case of Party A's liability for indemnity and penalty to Party B, Party A shall fully pay the damages and penalty agreed upon by both Parties within 15 (fifteen) days from the date of Party B’s formal notice. If Party A fails to make full payment after the aforementioned deadline, Party B has the right to delay electricity payment with a value not exceeding the amount Party A delays payment until Party A completes the payment, and Party B shall not be liable for any delay in electricity payment for the purposes of this Article;

(ii) If Party A has fully paid Party B the damages and penalty within the time limit prescribed in Article 16.4.c.(i), Party B must fulfill its payment obligations under the Agreement.

Article 17. Termination of the Agreement

17.1 This Agreement shall terminate based on one of the following grounds:

a) The expiration of the term without the Parties agreeing to renew the Agreement or Party B failing to respond in accordance with Article 19.4;

b) The Parties mutually agree on early termination of the Agreement;

c) Party B has the right to unilaterally terminate the Agreement before its expiration if Party A breaches the Agreement and fails to take any remedial measures in accordance with Article 15.3. In this case, Party B is obligated to notify Party A of the intention to terminate the Agreement at least fifteen (15) days before initiating the agreement termination procedure;

d) Party A has the right to unilaterally terminate the Agreement before its expiration in the following cases:

(i) Party B breaches the Agreement and fails to take any remedial measures in accordance with Article 15.3;

(ii) Party B is an organization or household business that ceases operations, has its operating license revoked, is dissolved, transfers assets/projects related to the supply address, becomes insolvent, goes bankrupt, or is subject to criminal prosecution in accordance with the law regulations; or Party B is an individual who is missing, or deceased without a legal successor. Party A has the right to immediately initiate the agreement termination process upon the occurrence of events as prescribed in this provision.

17.2 Agreement termination procedure:

a) Immediately upon the occurrence of the events or the expiration of 15 (fifteen) days from the date of one Party’s notice of the intention to terminate the Agreement as prescribed in Article 17.1, Party A shall proceed with the following:

(i) Immediately notify Party B of the time of electricity disconnection for the purpose of terminating the Agreement;

(ii) Disconnect electricity at the previously notified time;

(iii) Determine the meter reading, the delivered electricity output, and prepare and issue an invoice. The determination shall be conducted at the supply address up to the time of electricity disconnection in accordance with the notification, regardless of whether the electricity is used by Party B or any other party, and the payable electricity charges calculated in accordance with this Agreement shall be borne by Party B;

(iv) The Parties shall complete all payment obligations arising under the Agreement up to the time of electricity disconnection;

(v) Disposal of collateral: The Parties shall summarize the remaining value of the collateral up to the termination of the Agreement and determine the expiration date of the security period, the date of release of the guarantee or return of funds and collateral to Party B. The date of release of the guarantee or return of funds and collateral to Party B may be the day after the end of the security period or after Party B has fulfilled all obligations under this Agreement.

b) After the Parties have fulfilled their obligations under the Agreement:

(i) In the case of termination under Article 17.1.a, the Parties agree that the Agreement shall automatically terminate and there is no need to sign a Written Record of Termination;

(ii) In other cases, Party A shall send Party B a draft Written Record of Termination. Party B confirms its agreement by signing the Written Record of Termination. Within 05 (five) days from the date Party B receives the Written Record of Termination but does not sign it00 and does not send a written explanation to Party A, Party A has the right to understand that Party B has agreed to terminate the Agreement. The Agreement shall terminate in accordance with the Written Record of Termination;

c) In cases due to Party B's fault or other cases where the Parties cannot carry out the agreement termination procedure in accordance with Article 17.2, the Agreement shall be terminated under the decision of the State authority through the dispute resolution process or following the procedure prescribed by law.

Article 18. Dispute resolution

In case of a dispute, the Parties shall negotiate in good faith to find an optimal solution. If the Parties fail to reach an agreement within 90 (ninety) days from the date the dispute arises, either Party may refer the case to the competent People's Court for resolution.

Article 19. Effect and term of the Agreement

19.1 Effect of the Agreement

a) The effective date of the Agreement shall be agreed upon by the Parties. In cases where the Parties agree to apply the security measures under Article 3.1, the effective date of the Agreement shall be (i) the date of confirmation of the security under Article 3.1.c or (ii) the date of acceptance of power connection, whichever occurs earlier;

b) Pursuant to Article 19.1.a, the Parties agree and acknowledge the effective date of the Agreement as stated in Article 3.3.a.

19.2 Term of the Agreement:

a) The term of the Agreement shall be agreed upon by the Parties but shall not exceed the period during which Party B has the ownership and/or legal right to use the supply address. The determination of Party B's ownership and legal right to use the supply address shall be based on the documents provided by Party B or as requested by Party A. These documents shall be attached to the Agreement;

b) Pursuant to Article 19.2.a, the Parties agree and acknowledge the term of the Agreement as stated in Article 3.4.b.

19.3 The term may be adjusted or renewed by agreement between the Parties and must be prescribed in an appendix attached to the Agreement.

19.4 Party A shall notify Party B of the expiration of the Agreement at least 30 (thirty) days before the expiration date so that the Parties can negotiate a renewal, execute a new Agreement, or terminate the Agreement. Party B shall respond regarding the renewal, execution of a new Agreement, or termination of the Agreement within (...) days from the date of Party A’s notice. Party A shall immediately stop selling electricity from the expiration date if no response is received from Party B.

19.5 In the case prescribed in Article 19.4, the Parties agree on the renewal of the Agreement:

 a) The Parties shall sign an appendix on renewal of the Agreement or sign a new power purchase agreement before the expiration date of this Agreement;

b) In cases where a security measure is applied, the Parties are obligated to complete the extension of the security period of the security measure or complete the application of a new security measure, ensuring compliance with the validity of the Agreement and the renewal term or in accordance with the validity and term of the new power purchase agreement as prescribed in the Agreement. In this case, the Parties shall base on the extension period, the term of the new power purchase agreement, and the output of electric power calculated in accordance with Article 8.3 for each case to determine the actual value of the collateral for the performance of the Agreement for the extension period or the value of the collateral for the performance of the new power purchase agreement.

Article 20. Miscellaneous

20.1 Notices and communications

a) Any notice given under this Agreement must be in writing and sent to the relevant individual or organization at the address prescribed in Article 3.2.b (or other address or recipient as notified by each Party to the other Party in each case) by the methods prescribed in Article 3.2.c;

b) Pursuant to this provision, the Parties agree and acknowledge the form of notice and the address for sending notices as prescribed in Article 3.2.

20.2 Any amendments or supplements to this Agreement shall be made by signing an addendum or as notified by Party A.

20.3 The interpretation and performance of this Agreement shall be governed by the law regulations. In case of any conflict between the provisions of this Agreement and the law regulations, the Parties agree to apply the law regulations to govern that matter.

20.4 In cases where any provision of this Agreement is invalid or unenforceable, that provision shall be null and void and shall not affect the validity of the remaining provisions of this Agreement. In such case, this Agreement shall be construed and interpreted in accordance with the remaining provisions of this Agreement. The Parties shall, in a spirit of cooperation and goodwill, endeavor to replace the invalid or unenforceable provision with another valid and enforceable one, with content most consistent with the replaced provision.

20.5 The negotiation and execution of this Agreement shall be conducted in a spirit of goodwill and honesty. This Agreement is the result of negotiations between the Parties and shall not be construed that any ambiguous provision shall be interpreted in favor of or against any Party.

20.6 The Agreement is executed in Vietnamese language. In the course of performing this Agreement, if Party B needs to translate this Agreement into a language other than Vietnamese, in case of any inconsistency between the translation and the original Vietnamese version, the original Vietnamese version shall prevail.

 

REPRESENTATIVE OF PARTY A

REPRESENTATIVE OF PARTY B

Appendix III

KEY DETAILS OF A FORWARD CONTRACT

(Attached to Decree No. 80/2024/ND-CP dated July 3, 2024 of the Government)

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The forward contract is executed between the renewable-energy electricity producer and the large electricity consumer (or the authorized retail electricity provider in the zone or cluster). The term of the contract, the contractual price, committed electricity output, and payment calculation shall comply with those prescribed in Article 17 or Article 18 of this Decree.

The parties have the right to negotiate and agree on the following terms in accordance with Vietnamese law.

PURSUANT TO:

- The Civil Code No. 91/2015/QH13 dated November 24, 2015 of the National Assembly of the Socialist Republic of Vietnam and documents guiding its implementation;

- The Commercial Law No. 36/2005/QH11 dated June 14, 2005 of the National Assembly of the Socialist Republic of Vietnam and documents guiding its implementation;

- The Law on Electricity dated December 3, 2004; the Law dated November 20, 2012 Amending and Supplementing a Number of Articles of the Law on Electricity; the Law dated January 11, 2022 Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax, and Law on Enforcement of Civil Judgments, and their guiding documents;

- The Government’s Decree No. 80/2024/ND-CP dated July 3, 2024 prescribing the direct power purchase and sale mechanism between renewable-energy electricity producers and large electricity consumers;

- Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Ministry of Industry and Trade, prescribing the operation of competitive wholesale electricity market, amending and supplementing a number of articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Ministry of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement; Circular No. 24/2019/TT-BCT dated November 14, 2019 of the Ministry of Industry and Trade on amending and supplementing a number of articles of Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade, prescribing the operation of competitive wholesale electricity market, and amending and supplementing a number of articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement;

- Demands for power purchase and sale of both parties.

Today, on ... dd ... mm, 202..., in ..........................

We are:

Power seller: (name of the renewable-energy electricity producer)

Address: ..................................................................................................

Tel.: ………………………………Fax:…………………

Tax ID No.………………………….………………………….

Account: ................................................. at the bank:…………………

Represented by: ………………………….………………………….

Position:………………………….………………………….

(Under the Power of Attorney No. ............ dated dd... mm... yyyy... of ....)

Power Purchaser: (Name of the large electricity consumer)

Address: ..................................................................................................

Tel.: ………………………………Fax:…………………

Tax ID No.………………………….………………………….

Account:…………………………. opened at the bank:…………………

Represented by: ………………………….………………………….

Position:………………………….………………………….

(Under the Power of Attorney No. ............ dated dd... mm... yyyy... of ....)

We unanimously agree to sign a Forward Contract with the following terms and conditions:

Article 1. Definitions

In this Contract, the terms below are construed as follows:

1. Power Seller: (name of the renewable-energy electricity producer), eligible to participate in the direct electricity trading mechanism in accordance with regulations.

2. Power Purchaser: (name of the large electricity consumer), eligible to participate in the direct electricity trading mechanism in accordance with regulations.

3. Party/parties mean the Power Seller, the Power Purchaser or both parties or the successor(s) of the rights and obligations of one party or the parties to this Contract.

4. Commercial Operation Date: the date on which part or all of the grid-connected solar power plant is ready to sell electricity to the Power Purchaser and meets the conditions of ... in accordance with regulations.

5. The Power Plant is (...).

6. Contract means this power purchase agreement, including the Appendices and amendments and supplements later signed by authorized representatives of the Parties.

7. The spot full market price means the full market price of electricity set in each trading interval of the spot electricity market and is equal to the sum of the system marginal price (SMP) and the capacity add-on price (CAN). In particular, the system marginal price (SMP) and the capacity add-on price (CAN) shall be calculated in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.

8. Contract year means the Georgian calendar year of 12 (twelve) months starting from the first day of January to the last day of December of that year, unless the first agreement year starts from the date of commercial operation to the last day of December of that year. The final agreement year starts from the first day of January to the last day of the term of this Contract.

9. Regulations on operation of the national power system: Legal documents, procedures prescribing standards for operation of the electric system, conditions and procedures for connection to the power grid, load dispatch and operation of the electric system, electric metering in the electric system.

10. Electricity industry standards and regulations: (...).

11. Emergency means a situation that could disrupt the power supply to the purchaser's large electricity consumers, including any situation that could cause major damage to the national power system, threaten life or property, or affect the technical capability of a power plant.

Article 2. Effect and term of the Contract

1. Effect of the Contract

The agreement takes effect from the date it is duly executed by the authorized representatives of the Parties unless the parties agree otherwise.

2. Term of the Contract

Unless renewed or terminated earlier in accordance with the terms of this Contract, the Term of this Contract shall be from the Effective Date to the end of (...) years from the Commercial Operation Date. Notwithstanding the termination of this Contract, the provisions hereof shall survive for a period of (...) to allow the parties to complete final invoicing, invoice adjustments, payments, and any outstanding obligations hereunder.

The parties may renew the Term of this Contract or execute a new agreement in accordance with the law regulations after this Contract expires.

Article 3. Output, price and payment method

1. Full Market Price FMP(i) means the price calculated for 01 kWh of electricity traded on the spot electricity market in trading interval i, calculated and announced by the electricity system and market operator in accordance with the Regulations on operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade;

2. Contractual price (VND/kWh) means a fixed price for 01 kWh of electricity agreed upon by the renewable-energy electricity producer and the large electricity consumer in the Forward Contract applicable to the committed output between the parties;

The large electricity consumer commits to pay the renewable-energy electricity producer with the contractual electricity output at the following price: (...).

[The two parties shall mutually agree on the contractual price applicable to trading interval i, day D, month T, year N in the future].

3. Contractual electricity output

[The two parties mutually agree on the contractual electricity output for trading interval i, day D, month T, year N in the future].

In cases where a group of large electricity consumers purchase electricity from renewable-energy power plants, the parties shall agree on the allocation of total electricity output from power plants to large electricity consumers in each trading interval and shall be responsible for using this allocation data in the process of determining electricity output for payment with renewable-energy electricity producers and with the Power Corporation.

4. Payment formula:

The large electricity consumer and the renewable-energy electricity producer shall calculate and pay for contracted electricity output under the Forward Contract using the difference between the price committed in the contract and the spot full market price (reference price), specifically as follows:

R_c: Revenue of the renewable-energy electricity producer under the forward contract in the payment cycle (VND);

i: i^th trading cycle in the payment cycle;

I: Total number of trading intervals in the payment cycle.

P_c(i): Committed price under the forward contract (VND/kWh);

FMP_(i): Spot full market price in trading interval i (VND/kWh).

Q_c(i): Committed electricity output in the forward contract in trading interval i (kWh).

5. Invoice: (...).

Article 4. Dispute resolution

Article 5. Breach of agreement, compensation for damages and termination of the Contract

Article 6. Confidentiality of information

Article 7. Miscellaneous

1. Amendments and supplements to the Contract: All amendments and supplements to the Contract must be agreed upon by the Parties in writing.

2. Entire agreement: This Contract constitutes the entire and final agreement between the Parties and supersedes all prior discussions, negotiations, communications, and correspondence relating to the subject matter of this Contract.

3. Third Parties: This Contract is for the sole benefit of the two Parties and does not create any rights or obligations for any third party.

4. No joint venture: This Contract does not constitute a joint venture, partnership, or association between the Parties, nor does it impose any joint venture, partnership, or association-like obligations or liabilities on either Party. Neither Party shall have the right to enter into any contract or act on behalf of the other Party as an agent or representative in fulfilling any obligations to the other Party.

5. Waiver of rights: Either party's waiver of rights under the Contract must be made in writing and signed by an authorized representative of such party. Failure or delay in exercising either party's rights under this Contract shall not be construed as a waiver of such rights.

6. Performance of surviving obligations: Cancellation, termination or expiration of the Contract does not terminate the performance of the Parties' surviving obligations under the Contract.

7. Applicable law: The interpretation and performance of this Contract shall be governed by Vietnamese law.

8. Severability of the Contract: In cases where any part of this Contract is inconsistent with the law or is invalidated by a decision of a competent State authority, the remaining provisions of this Contract shall remain in full force and effect, provided that the remaining provisions constitute a complete agreement without reference to the invalidated portion.

9. The Renewable Energy Certificate (REC) and carbon credits will be transferred by the renewable-energy electricity producer to the large electricity consumer.

This Contract is executed into (...) counterparts of which each Party keeps (...). The purchaser shall send one (01) counterpart hereof to the Electricity Regulatory Authority of Vietnam.

 

REPRESENTATIVE OF PARTY A

REPRESENTATIVE OF PARTY B

Appendix IV

COMPENSATION FOR PAYMENT DIFFERENCE IN MONTH M
(Attached to the Government’s Decree No. 80/2024/ND-CP dated July 3, 2024)

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This Appendix guides the calculation of the cost of compensation for the difference in month M (VND) prescribed at Point b, Clause 1, Article 16 of this Decree, specifically as follows:

1. Cost of compensation for the difference in month M (VND) shall be calculated as follows:

Where:

C_cl: Cost of compensation for the difference in month M (VND);

i: i^th trading cycle in the payment cycle;

I: Total number of trading intervals in the payment cycle.

Q_KHhc(i): Adjusted quantity of electric power consumed by the large electricity consumer or quantity of electric power purchased by the authorized retail electricity provider in zones and clusters in trading interval i (kWh);

P_CL: Cost of compensation for the difference in month M calculated for large electricity consumers or the authorized retail electricity providers in zones and clusters per unit of electricity (VND/kWh).

2. Cost of compensation for the difference in month M (P_CL) calculated for large electricity consumers or the authorized retail electricity providers in zones and clusters per unit of electricity shall be calculated on actual data of month M-2 applied to month M using following formula:

PCL = P_CLTTBOT + P_CLTTGT + P_CLTTSMHP + P_DVPT + P_CLTTK

Where:

a) P_CLTTBOT: The difference in payment of BOT components related to BOT power plants in month M-2 (VND/kWh), calculated as follows:

Where:

^: Total costs EVN paid for BOT power plants in month M-2 under PPAs guaranteed by the Government (VND);

R_ttdj: Calculated as the product of the total output of all BOT power plants and the wholesale electricity market price in trading interval j for all BOT power plants in month M-2 (VND).

j: j^th trading interval of month M-2;

k: Total number of trading intervals in month M-2.

A_month: Total commercial electricity output of the entire system in month M-2 (kWh).

b) P_CLTTGT: The component payment difference to power plants indirectly participating in the electricity market, including renewable-energy power plants, power plants selling surplus electricity and importing electricity (VND/kWh), calculated as follows:

Where:

: Total costs paid for power plants indirectly participating in the electricity market, including renewable-energy power plants, power plants selling surplus electricity and importing electricity (VND) in month M-2 under term-based PPAs with electricity prices regulated and supervised by the Government and the Ministry of Industry and Trade (VND);

R_ttđj: Calculated as the product of the total output of all power plants indirectly participating in the electricity market and the wholesale electricity market price in trading interval j for all power plants indirectly participating in the electricity market in month M-2 (VND).

c) P_CLTTSMHP: The difference in payment of components related to Strategic Multi-Purpose Hydropower Plants (SMHP) in the month (VND/kWh), calculated as follows:

Where:

: SMHP's expected electricity production cost for month M-2, calculated at the electricity retail price plan of year N reported to the Ministry of Industry and Trade annually (VND);

R_ttđj: Calculated as the product of the total output of all SMHPs and the wholesale electricity market price in trading interval j for all SMHPs in month M-2 (VND);

d) P_DVPT: The charges of auxiliary services for the power system calculated per unit of electricity (VND/kWh). It is determined from the charge of frequency control reserve service purchased on the spot electricity market, the charge of fast-start, operating reserve that must run to ensure power system security, voltage control, and black-start services procured under ancillary service contracts in month M-2, applied to large electricity consumers purchasing electricity in month M, and is calculated as follows:

P_DVPT = K_PP X [P_DVPT(đt) + P_DVPT(hđ)]

Where:

- K_pp: Conversion coefficient for power loss on the distribution grid of the Power Corporation, calculated in accordance with Clause 3, Article 16 of this Decree;

- P_DVPT(đt) means the cost of frequency control reserve service per unit of electricity (VND/kWh), calculated using the following formula:

Where:

A_month: Total commercial electricity output of the entire system in month M-2 (kWh);

R_g(j): The charge of the frequency control service in each trading interval i month M-2 of the electricity producer determined and announced in accordance with the Regulations on operation of the competitive wholesale electricity market (VND);

I: The total number of trading intervals in month M-2 of the electricity producer providing the frequency control reserve service;

i: The trading interval during which the frequency control reserve service is provided;

g: The electricity producer providing the frequency control reserve service;

G: The total number of electricity producers providing the frequency control reserve service in month M-2.

- P_DVPT(hđ): The charge of fast-start, operating reserve that must run to ensure electric system security, voltage control and black-start services procured under ancillary service contracts calculated per unit of electricity in accordance with Point c of this Clause (VND/kWh).

Where:

g: An electricity producer that signs a contract to provide auxiliary services in the electric system;

G: The total number of electricity producers signing contracts to provide auxiliary services in the electric system;

i: The trading interval during which electricity producer g providing auxiliary services for the electric system;

I: The total number of trading intervals during which electricity producer g providing auxiliary services for the electric system in month M-2;

A_month: Total commercial electricity output of the entire system in month M-2 (kWh);

R_c(g): The revenue under the signed contract to provide auxiliary services for the electric system of electricity producer g in month M-2, calculated under the signed auxiliary service contract and provided by Vietnam Electricity (via the Electric Power Trading Company) for the electricity system and market operator for calculation (VND);

Q_mi(g): The output measured by electricity producer g providing auxiliary services in the trading interval i, month M-2 (kWh);

FMP_i: The full market price applied to the electricity producer in trading interval i, calculated in accordance with the Circular prescribing the operation of the competitive wholesale electricity market (VND/kwh).

dd) P_CLTTK: The difference in other payments per unit of electricity (VND/kWh) due to allowable costs that have not been included in the electricity price, including any unallocated revaluation exchange rate differences, calculated and allocated to the current retail electricity price. In case of an adjustment to the electricity selling price in year N in accordance with the regulations on the mechanism for adjusting the average retail electricity tariff issued by the Prime Minister, such payment difference shall be updated in accordance with the respective data in the adjusted electricity price plan of year N, applied from the time the electricity selling price for year N is adjusted.

Where:

C_CLTTK: Other payment difference costs (VND).

Appendix V

REPORT FORMS

(Attached to the Government’s Decree No. 80/2024/ND-CP dated July 3, 2024)

^{___________________}

 

Report forms prescribed in Article 28 of this Decree include:

Form No. 01: Report on relevant information when commencing the direct power purchase and sale through a dedicated transmission line.

Form No. 02: Report on results of direct power purchase and sale through dedicated transmission line in year N-1.

Form No. 03: Report on results of direct power purchase and sale through the National Power Grid in month M-1.

Form No. 04: Report on the implementation situation and results of implementing the direct power purchase and sale mechanism through the National Power Grid nationwide in the preceding quarter.

Form No. 05: Report on the results of implementing the direct power purchase and sale mechanism through the National Power Grid nationwide in year N-1.

Form No. 01

IMMEDIATE SUPERIOR AUTHORITY (if any) (NAME OF THE LARGE ELECTRICITY CONSUMER THAT MAKES THE REPORT) ____________ No. …/…….

THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ____________________ …, dd ... mm ... yy ...

 

REPORT¹

On relevant information when commencing the direct power purchase and sale through a dedicated transmission line

^{_______________}

Respectfully addressed to:
	- The Ministry of Industry and Trade - People’s Committee of the province or municipality (where the large electricity consumer is located).

 

Details of the report:

1. Information about the direct power purchase agreement (the purchaser and the seller).

2. Negotiable power output.

3. Electricity prices.

4. Other relevant information.

5.

 

Recipients: - As mentioned above; - …..

LEADER (Signature and seal)

^{__________________}

¹ Reporting deadline: Within 10 days from the date of signing the agreement on direct power purchase and sale through dedicated transmission lines.

Form No. 02

IMMEDIATE SUPERIOR AUTHORITY (if any) (NAME OF THE LARGE ELECTRICITY CONSUMER THAT MAKES THE REPORT) ____________ No. …/…….

THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ____________________ …, dd ... mm ... yy ...

 

REPORT¹

On results of direct power purchase and sale through dedicated transmission line in year N-1²

^{_______________}

Respectfully addressed to:
	- The Ministry of Industry and Trade; - People’s Committee of the province or municipality (where the consumer is located).

 

Details of the report:

1. Information about the direct power purchase agreement (the purchaser and the seller).

2. Quantity of electric power purchased and sold during the year.

3. Costs of power purchase during the year.

4. Difficulties and bottlenecks.

5. Proposed solutions and recommendations (if any).

 

Recipients: - As mentioned above; - …..

LEADER (Signature and seal)

^{__________________}

¹ Reporting deadline: Before January 30 of year N.

² Year N-1 is the Georgian calendar year immediately preceding the current year (year N).

Form No. 03

IMMEDIATE SUPERIOR AUTHORITY (if any) NAME OF THE REPORTING ENTITY ____________ No. …/…….

THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ____________________ …, dd ... mm ... yy ...

 

REPORT¹

On results of direct power purchase and sale through the National Power Grid in month M-1²

^{_______________}

Respectfully addressed to: Report recipients.

 

A. Details of the report from the electricity system and market operator to the Ministry of Industry and Trade:

1. Total number of renewable-energy electricity producers and large electricity consumers (or authorized retail electricity providers in zones and clusters) participating in the direct power purchase and sale mechanism.

2. Output and revenue of the renewable-energy electricity producer in the electricity market.

3. Difficulties and bottlenecks.

4. Proposed solutions and recommendations (if any).

B. Details of the Power Corporation's report to the Ministry of Industry and Trade and the People’s Committee of the province or municipality (where the Power Corporation is located):

1. Quantities of electric power and costs of power purchase incurred by the large electricity consumers (or the authorized retail electricity providers in zones and clusters) according to the electricity market and retail electricity tariffs.

2. Difficulties and bottlenecks.

3. Proposed solutions and recommendations (if any).

 

Recipients: - As mentioned above; - …..

LEADER (Signature and seal)

^{__________________}

¹ Reporting deadline: Before the 20^th day of month M.

² Month M-1 is the Georgian calendar month immediately preceding the current month (month M).

Form No. 04

IMMEDIATE SUPERIOR AUTHORITY (if any) (NAME OF THE REPORTING ENTITY) ____________ No. …/…….

THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ____________________ …, dd ... mm ... yy ...

 

REPORT¹
on results of direct power purchase and sale through the National Power Grid in the immediately preceding quarter

^{________________}

Respectfully addressed to: The Minister of Industry and Trade.

 

1. Total number of renewable-energy electricity producers and large electricity consumers (or authorized retail electricity providers in zones and clusters) participating in the direct power purchase and sale mechanism.

2. Information about the direct power purchase agreement (the purchaser and the seller)

3. Quantity of electric power purchased and sold during the quarter

4. Output and revenue of the renewable-energy electricity producers in the electricity market.

5. Quantities of electric power and costs of power purchase incurred by the large electricity consumers (or the authorized retail electricity providers in zones and clusters) according to the electricity market and retail electricity tariffs.

6. Difficulties and bottlenecks.

7. Proposed solutions and recommendations (if any).

 

Recipients: - As mentioned above; - …..

LEADER (Signature and seal)

^{_______________________}

¹ Reporting deadline: Before the 30^th day of the first month of the quarter.

Form No. 05

IMMEDIATE SUPERIOR AUTHORITY (if any) (NAME OF THE REPORTING ENTITY) ____________ No. …/…….

THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ____________________ …, dd ... mm ... yy ...

 

REPORT¹

Results of direct power purchase and sale through the National Power Grid in year N-1²

^{_______________}

Respectfully addressed to: Report recipients.

 

A. Details of the report from the electricity system and market operator to the Ministry of Industry and Trade:

1. Total number of renewable-energy electricity producers and large electricity consumers (or authorized retail electricity providers in zones and clusters) participating in the direct power purchase and sale mechanism.

2. Output and revenue of the renewable-energy electricity producer in the electricity market.

3. Difficulties and bottlenecks.

4. Proposed solutions and recommendations (if any).

B. Details of the Power Corporation's report to the Ministry of Industry and Trade and the People’s Committee of the province or municipality (where the Power Corporation is located):

1. Information about the large electricity consumer participating in the direct power purchase and sale mechanism.

2. Quantities of electric power and costs of power purchase incurred by the large electricity consumers (or the authorized retail electricity providers in zones and clusters) according to the electricity market and retail electricity tariffs.

3. Difficulties and bottlenecks.

4. Proposed solutions and recommendations (if any).

C. Details of the Vietnam Electricity’s report to the Ministry of Industry and Trade:

1. Total number of renewable-energy electricity producers and large electricity consumers (or authorized retail electricity providers in zones and clusters) participating in the direct power purchase and sale mechanism.

2. Output and revenue of the renewable-energy electricity producers in the electricity market.

3. Quantities of electric power and costs of power purchase incurred by the large electricity consumers (or the authorized retail electricity providers in zones and clusters) according to the electricity market and retail electricity tariffs.

4. Difficulties and bottlenecks.

5. Proposed solutions and recommendations (if any).

 

Recipients: - As mentioned above; - …..

LEADER (Signature and seal)

^{_______________________}

¹ Reporting deadline: Before January 30 of year N.

² Year N-1 is the Georgian calendar year immediately preceding the current year (year N).