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MINISTRY OF INDUSTRY AND TRADE
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 44/2015/TT-BCT
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Hanoi, 09 December 2015
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CIRCULAR
PROVIDING
FOR DEVELOPMENT OF AVOIDABLE COST TARIFF AND SAMPLE OF ELECTRICITY SALE CONTRACT
APPLICABLE TO BIOMASS POWER PROJECTS
Pursuant to the Electricity Law No. 28/2004 / QH11 dated
03/12/ 2004; the Law amending and supplementing some articles of the
Electricity Law dated 20/11/2012;
Pursuant to Decree No. 95/2012/ND-CP dated 12/11/ 2012 of
the Government defining the functions, duties, power and organizational
structure of the Ministry of Industry and Trade;
Pursuant to Decision No. 24/2014/QD-TTg dated 24/3/2014 of
the Prime Minister on mechanism of development assistance of biomass power
project in Vietnam;
At the request of the General Director of General
Directorate of Energy,
The Minister of Industry and Trade issues this Circular
providing for the project development, the avoidable cost tariff and the sample
of electricity sale Contract applicable to biomass power projects.
Chapter 1
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Article 1. Scope of application
This Circular provides for the project development, the
avoidable cost tariff applicable to biomass power projects and sample of
electricity sale Contract applicable to biomass power (referred to as sample of
electricity sale Contract).
Article 2. Subjects of application
This Circular applies to:
1. Investors of biomass power projects;
2. Unit managing and operating biomass power works;
3. Electricity buyer;
4. Organizations developing the biomass power projects for
business;
5. Other relevant organizations and individuals;
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DEVELOPMENT OF BIOMASS
POWER PROJECTS
Article 3. Adding and adjusting the
biomass power projects in the biomass energy use and development planning
1. The owners of biomass power projects shall prepare
dossier to propose the biomass power projects in accordance with law on
investment and construction of works and it to the People’s Committee of
provinces and centrally-run cities (referred to as provincial People’s
Committee) where the projects are located. Based on the proposal for projects,
the provincial People’s Committee shall prepare dossier to request the addition
of projects in the biomass energy use and development planning (referred to as
Dossier for planning addition) in accordance with provisions in Article 4 of
this Circular and send it to the Ministry of Industry and Trade.
2. Where the dossier is not complete or valid, within 05
(five) working days after receiving the dossier, the Ministry of Industry and
Trade (the General Directorate of Energy) shall require the dossier addition in
writing.
3. The General Directorate of Energy shall verify the
Dossier for planning addition within 30 (thirty) working days after receiving
valid dossier. In case of necessity, the General Directorate of Energy is
permitted to hire consultants and critics serving assessment. Based on the
assessment result, the General Directorate of Energy shall make a report to the
Minister of Industry and Trade to consider, approve or submit it to the Prime
Minister for approval.
Article 4. Dossier for addition of
project in the biomass energy use and development planning
The dossier for addition of project in the biomass energy
use and development planning includes:
1. The report of Chairman of People’s Committee at
provincial level to request the addition of project in the biomass energy use
and development planning.
2. Basic information about the investor: Documents of legal
status, business registration, key personnel, experience in project
implementation, financial and technical capacity particularly the list of
completed projects must be declared (including electricity and engineering
projects, if any).
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a) Type of biomass and supply capacity;
b) The necessity for investment in project development, favorable
and difficult conditions, regulation on exploitation and use of national
natural resources (if any);
c) Project description: location, scale and area of works
construction, works items of project; contents of sector planning and
construction planning of locality;
d) Brief presentation of implementation solutions: The
technical and technological plan and capacity; technical infrastructure
connection plan; equipment installation plan; implementation progress and form
of project management; general plan about relocation compensation and technical
infrastructure building assistance plan (if any) and cost plan;
dd) Assessment of environmental impact, solutions to fire
prevention and fighting and requirements for security and national defense;
e) Total investment of project; capital arrangement
capability, capital and financing capability based on the progress; analysis
and assessment of economic, financial and social effects of projects.
4. Opinions of the regional Power Corporation or power
transmission unit (if connected to the transmission power system) about the Dossier
for planning addition.
Article 5. Project of investment and
development of grid-connected biomass power
1. The investor only prepares the project of investment in
biomass power under biomass energy use and development planning and electricity
development planning. The content of biomass power investment project is made
under the current regulations on management of works construction and in
accordance with the provisions in Clause 3 of this Article.
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3. The content of biomass power investment project shall
comply with regulation of law on management of works construction investment
with the following additional main contents:
a) Assessment of effect of connection plan of biomass power
project on the area power system;
b) Plan and scheme of cost and techniques for dismantlement
and handling of equipment of the biomass power plant after the completion of
project.
Article 6. Requirements for
environmental protection
The investment and development of biomass power projects
must comply with the provisions of the Law on environmental protection and
other relevant legal normative documents.
Article 7. Assistance to off-grid
biomass power projects
1. Principles to consider the assistance to off-grid biomass
power projects
a) Economic, social and environmental efficiency assurance;
b) Project with completed investment shall be put into
operation;
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- Where the installed capacity is greater than the actual
required capacity of area power grid, the actual generation power output of the
previous year and the power output planned to be generated in the following
years are used as a basis for identifying the assisted unit price. For other
projects, the generation power output is taken by the actual generation output
or estimated generation output in the approved investment projects, take the
greater number;
- The total project investment is taken by the total
investment in the approved investment project;
- The depreciation
expense in accordance with current regulations of law.
2. Order to register the assistance of electricity price for
the projects of off-grid biomass power projects.
a) The investor of off-grid biomass power projects shall
prepare the Dossier for assistance to electricity price for the off-grid
biomass power projects and send it directly or by post to the General
Directorate of Energy. The number of dossier: 10 (ten) and 01 (one) CD/DVD/USB
containing soft file of Dossier and other attached documents;
b) Within 30 (thirty) days after receiving all valid
dossier, the General Directorate of Energy shall verify such dossier and report
to the Minister of Industry and Trade for submission to the Prime Minister for
consideration and approval. In case of necessity, the General Directorate of
Energy is permitted to hire consultants and critics serving assessment.
Where the dossier is not complete or valid, within 05 (five)
working days after receiving the dossier for assistance to electricity price
for off-grid biomass power project, the General Directorate of Energy shall
inform in writing to the investors to require the addition of dossier or
re-prepare their dossier.
3. The dossier includes:
a) The written request for assistance to electricity price
for the off-grid biomass power project;
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c) Operation plan and business plan;
d) Plan and scheme of cost and technique for dismantlement
and handling of equipment of biomass power plant after the completion of
project;
dd) Opinions of the provincial-level People’s Committee
about the content of Dossier for assistance.
Chapter III
AVOIDABLE COST TARIFF
AND SAMPLE OF ELECTRICITY SALE CONTRACT APPLICABLE TO GRID-CONNECTED BIOMASS
POWER PROJECTS
Article 8. Order to develop, approve
and announce the avoidable cost tariff applicable to biomass power projects
1. Before 31/10 of each year, the unit operating the power
system and electricity market shall preside over and coordinate with the Buyer
and the Seller and other power plants to update the database, calculate the
avoidable costs of the national power system (avoidable costs) specified in
Decision No. 24/2014/QD-TTg dated 24/3/2014 of the Prime Minister on mechanism
of development assistance to the biomass power projects in Vietnam for the
subsequent years by the method specified in Appendix II issued with this
Circular for submission to the Electricity Regulatory Authority.
2. Before 30/11 of each year, the Electricity Regulatory Authority
shall coordinate with the General Directorate of Energy to assess the input
parameters and the result of calculation of annual avoidable costs prepared by
the unit operating the power system and electricity market for submission to
the Minister of Industry and Trade for review and approval. In case of
necessity, the Electricity Regulatory Authority can consult the relevant
organizations or individuals during the assessment.
3. Before 20/12 of each year, the General Directorate of
Energy shall:
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b) Within 02 (two) days after the tariff applicable the
biomass power projects has been issued, the General Directorate of Energy shall
announce it for the subsequent year on its website and of the Ministry of
Industry and Trade.
5. Where the tariff applicable to the biomass power projects
has not yet announced, the tariff of the previous year shall be temporarily
used until the tariff applicable to the new biomass power projects is
announced. The difference due to calculation under the old tariff and new
tariff shall be refunded to each other by the parties in the first payment upon
application of new tariff.
Article 9. Application of avoidable
cost tariff to the biomass power projects
The avoidable cost tariff is applicable to the
grid-connected biomass power projects except for the following cases:
1. Thermal power co-generation projects.
2. Power generation project using bagasse with back pressure
for sugar plants.
Article 10. Application of sample of
electricity sale Contract to the biomass power projects
1. The use of sample of electricity sale Contract to the
biomass power projects applicable to the biomass power projects in electricity
sale between the biomass power projects and the Buyer.
2. The content of sample of electricity sale Contract for
the grid-connected biomass power projects specified in Appendix III issued with
this Circular.
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Chapter IV
IMPLEMENTATION
PROVISION
Article 11. Responsibility of state
management bodies
1. Responsibility of the General Directorate of Energy:
a) Disseminates, guides and inspects the compliance with
this Circular;
b) Assists the electricity Seller and the Buyer to settle
the problems in the sample of electricity sale Contract as required by either
Party.
2. The Electricity Regulatory Authority shall direct and
guide the unit operating the power system and electricity market to calculate
the avoidable costs in accordance with the provisions in Appendix II issued
with this Circular.
3. The provincial People’s Committee shall monitor,
supervise and inspect the development of biomass power projects at localities
according to the approved biomass energy use and development planning and in
accordance with the provisions in this Circular.
Article 12. Responsibility of relevant
organizations and individuals
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2. The electricity seller (the generating unit) shall:
a) Make agreement and sign the Contract with the Buyer under
the sample of electricity sale Contract and under the avoidable cost tariff;
b) Install meters in accordance with current regulations to
measure the used electricity for payment of electricity bill;
c) Sell all power on busbar of plant to the Buyer upon
application of avoidable cost tariff;
d) Send 01 (one) signed electricity sale Contract to the
General Directorate of Energy within 30 (thirty) days from the date of signing;
dd) Comply with regulation on operation of power system,
transmission power system and power distribution system issued by the Ministry
of Industry and Trade.
3. The Buyer shall:
a) Make agreement and sign the Contract with the Seller
under the sample of electricity sale Contract and under the avoidable cost
tariff if the Seller meets the conditions specified in Article 5 of this
Circular and other relevant laws;
b) Comply with regulation on operation of power system,
transmission power system and power distribution system issued by the Ministry
of Industry and Trade.
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Article 13. Transitional provision
For the electricity sale Contracts signed before the
effective date of this Circular, both parties shall have to reach an agreement
and sign amendment addendum in accordance with the provisions of this Circular.
Article 14. Effect
1. This Circular takes effect from 25/01/2016.
2. Any difficulty or problem arising during the course of
implementation should be promptly reported to the Ministry of Industry and
Trade for amendment and addition accordingly./.
FOR THE MINISTER
DEPUTY MINISTER
Hoang Quoc Vuong
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APPENDIX I
AVOIDABLE
COST TARIFF APPLICABLE TO THE BIOMASS POWER PROJECTS
(Issued with Circular No. 44/2015/TT-BCT dated 09/12/2015 by the Minister of
Industry and Trade)
Table 1. Avoidable cost tariff
Price component
Cost (dong/ kWh)
(US$ Cent/ kWh) Equivalent (US$
Cent/ kWh)
A.
Avoidable power costs
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A.1.
Avoidable generation power costs
A.2.
Avoidable transmission loss costs
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Northern region
A.2.2
Central region
A.2.3
Southern region
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B.
Avoidable generation capacity costs
C.
Avoidable carbon tax costs*
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Local employment benefits *
Total (P)
PMB
Northern region = k1*(A.1+A.2.1)+k2*B+C+D
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PMT
Central region = k1*(A.1+A.2.2)+k2*B+C+D
PMN
Southern region = k1*(A.1+A.2.3)+k2*B+C+D)
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* Applicable upon regulated by law.
- k1, k2: Valuable adjustment coefficient <=1 reviewed
and submitted by the General Directorate of Energy to the Ministry of Industry
and Trade annually.
- The avoidable cost tariff is VAT excluded. The Buyer must
make payment of this tax in accordance with the current regulations of law.
APPENDIX II
METHOD
TO CALCULATE THE AVOIDABLE COSTS OF THE NATIONAL POWER SYSTEM
(Issued with Circular No. 44/2015/TT-BCT dated 09/12/2015 by the Minister of
Industry and Trade)
1. The avoidable generation power costs and the avoidable
generation capacity costs
The avoidable generation power costs and the avoidable
generation capacity costs are calculated based on the method of coal power
plant with assumed import. Accordingly, the electricity Buyer shall avoid
building a coal power plant with assumed import by purchasing electricity from
the biomass power plant. Then, the fixed costs of the assumed power plant are
deemed as the avoidable capacity costs and the variable costs are deemed as the
avoidable power costs.
Some main information of power plant using the assumed
imported coal:
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Symbol
Unit
Value
Note
Installed capacity
P
MW
600
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n
Year
30
Investment unit cost
SĐT IUC
USD/kW
1,700
Annually adjusted
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T
Hour/year
7,000
Annually adjusted
Costs of operation and maintenance
CO&M
%
3
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Ccoal
USD/ton
100
Annually adjusted
Low calorific value of coal
LHV
Kcal/kg
5,377
Formosa Refer to the imported coal of Formosa plant
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kcoal
%
2%
Used in case the price of fuel is used to calculate the
tariff based on the average price of fuel of thermal power plants using the
imported coal in the system in the year when the data is taken to calculate
the tariff. Because the year when the data is taken for calculation is from
01/07 of year N-2 to 30/6 of year N-1 while the avoidable cost tariff is
issued to be applicable to year N, therefore it is necessary to have the
price slippage coefficient of fuel to be able to estimate the fuel price for
year N. Where the fuel price is taken at market price, there is no need to
consider the fuel price slippage coefficient.
- The avoidable generation power costs (LCOEV) and
the avoidable generation capacity costs (LCOEF) are defined by the converted
power production costs of the thermal power plant using the imported coal
(LCOE) replaced by the biomass power plant and defined by the following formula:
LCOE = LCOEV + LCOEF
In which:
LCOE: Converted power production costs [USD/kWh];
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LCOEF: Avoidable capacity costs [USD/kWh].
- The avoidable generation power costs (LCOEV)
are the variable costs of the thermal power plant using the imported coal,
including the costs of fuel and the variable costs of operation and maintenance
defined by the following formula:
In which:
LCOEV:
Avoidable generation power costs [USD/kWh];
At:
Total costs O&M and fuel in year t [USD] defined under
item a;
Mt,el:
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i:
Financial discount rate [%] defined under item e;
n:
Economic life of the power plant, n = 30 years;
t:
Year in economic life of the plant [1, 2, ... n].
- The avoidable generation capacity costs (LCOEF)
are the fixed costs of the thermal plant using the imported coal, including the
total investment cost during the time of construction and costs of
dismantlement in the year after the last year of life circle of the plant (n+1)
defined by the following formula:
In which:
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Avoidable capacity costs [USD/kWh];
Io:
Total investment costs during the time of plant building
(USD) defined under item c;
D:
Costs of dismantlement [USD] defined under item d;
Mt,el:
Power output produced in year t [MWh] defined under item
c;
i:
Financial discount rate [%] defined under item g;
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Economic life of thermal power plant, n = 30 years;
t:
Year in economic life of the plant [1, 2, ... n].
The calculation parameters of costs of converted power
production of power plant using the imported coal as follows:
a) At: Total costs O&M and fuel in year t
defined by the following formula :
At = Ct,O&M
+ Ct,fuel
In which:
+ Ct,O&M: Costs of operation and maintenance
of year t, the first year is calculated by 3% of costs of Engineering
Procuring Construction (EPC); the additional inflation coefficient is
assumed to be 80% of the total initial investment in construction (excluding
insurance and loan interest during the construction period) of the plant
Ct,O&M = 3% . 80%. I.
(1 + klp)t-l
...
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Total initial construction investment (excluding the
insurance and interest during construction) [USD] is defined under item dd;
klp:
Inflation rate klp = 7%/year
n:
Economic life of thermal power plant, n = 30 years;
t:
Year in economic life of the plant [1, 2, ... n].
+ Ct,fuel:
Fuel costs of year t is defined by the following formula
...
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In which:
+ ht: performance of year t of the
plant. This performance is annually calculated based on the crude performance
defined under Decision No. 78/2013/QD-TTg dated 25/12/2013 of the Prime
Minister on issuing the List and roadmap in which the means and equipment using
the energy must be removed and the generating units with low performance must
not be newly built taking into account the performance under the load, increase
and reduction in loss, reduction in loss due to climate change and performance
reduction coefficient due to increasingly older equipment. Therefore, the
performance of operation years of the plant is calculated as follows:
Operation year
1
2
3
4
5
6
...
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8
9
10
Plant performance
37.8%
39.9%
40.8%
40.8%
41.8%
...
...
...
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41.7%
42.7%
42.7%
43.0%
Operation year
11
12
13
14
...
...
...
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16
17
18
19
20
Plant performance
43.0%
43.0%
42.9%
...
...
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42.,8%
42.8%
42.7%
42.7%
42.6%
42.0%
Operational year
21
22
...
...
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24
25
26
27
28
29
30
Plant performance
41.9%
...
...
...
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41.8%
41.8%
40.6%
40.6%
40.5%
39.7%
39.6%
39.6%
+ LHV: Lower heating value. LHV = 5,377kcal/kg = 6.2535kWh/kg.
...
...
...
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+ kcoal: Coal price slippage coefficient is 2%/
year
b) Mt,el: The power output produced in year t of
coal power plant using the imported coal is defined as follows:
Mt,el = P . T
In which:
P: Capacity of coal power plant [MW], P = 600MW;
T: Average number of operating hours of the plant [hour/year]
T = 7.000 hours/year (see Item e).
c) I0: Total investment costs during the time of
construction of thermal power plant are the total accumulated investment costs
by each construction year during the time of construction including the total
initial construction investment, insurance and banking loan interest during the
time of construction are standardized according to the following calculation
order:
...
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In which:
I:
Total initial construction investment (excluding insurance
and interest during the time of construction) [USD] is defined under item dd;
I1, 2, 3, m:
Total investment costs of construction year 1, 2, 3, …, m
(insurance and loan during the time of construction);
m:
Total number of construction years (year), m = 4 years;
...
...
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Interest during the time of construction [%/year], kxd
= 6%/year;
kbh:
Insurance costs during the time of construction [%/year],
kbh = 0,2%/year.
d) D: costs of dismantlement in the year after the last year
of life circle of the plant (n+1) defined by the following formula:
In which:
Dn+1:
Costs of dismantlement in the year n+1 are defined by 1%
of the total initial construction investment (I) taking into account the
inflation rate;
Dn+1 = 1%. I. (1+klp)n;
...
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Inflation rate klp = 7%/year;
I:
Total works construction investment (excluding insurance
and interest during the time of construction) [USD] is defined under item dd;
i:
Financial discount rate [%] defined under item g;
n:
t:
dd) Total initial construction investment (excluding the
insurance and interest during construction) [USD] is defined by the following
formula:
I = IUC x P
...
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P: Capacity of coal power plant [kW];
IUC: Investment unit cost of thermal power plant using the
imported coal [USD/kW];
The investment unit cost of base year defines the ground for
reasonable investment unit cost of thermal power plant using the imported coal.
The investment unit cost of the year of tariff formulation
is calculated based on the investment unit cost of base year and equipment
price index (MPV) of the base year and the year of tariff formulation. Assuming
the base year is 2014 and the year of tariff formulation is 2015, the
investment unit cost for the year 2015 is calculated as follows:
Unit
Value
Note
Investment unit cost of base year, C2014
...
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1700
Equipment price index of base year, MUV2014
106.34
Equipment price index of base year, (MUV2014)
announced by the World Bank on its website www.worldbank.org
MUV of year 2015, MUV2015
106.65
...
...
...
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Investment unit cost adjusted for year 2015, C2015
$/kW
1705
C2015 = C2014 [MUV2015/MUV2014]
e) T: The average annual number of operating hours for the
life of project is defined based on the average number of operating hour of
thermal power plants using the imported coal in the year in which the data is
taken for calculation of tariff; the average number of operating hours shall be
taken under the current regulations;
T = 7000 hours/year
g) i(%): Financial discount rate: Application of weighted average cost of capital (WACC) defined under the current regulations and by the following formula:
In which:
...
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k: Interest
In which:
+ Interest of loan kdebt is calculated by the
following formula:
kdeb = Insurance of loan + Interest of Government
bond of 10 years
= 3.70% + 6/17% = 9/87%
Insurance of loan
3.70%
http://data.worldbank.org/indicator/FR.INR.RISK
Interest of Government bond (10 years)
...
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http://asianbondsonline.adb.org/vietnam.php
+ Interest of owner’s equity kequity is
calculated by the following formula:
kequity = Interest of loan + Insurance of market
risk (owner’s equity)
= 9,87% + 8,80% = 18,67%
Interest of loan
9.87%
Insurance of market risk (owner’s equity)
8.80%
...
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Tax: business income tax (Tax = 22%) and is changed when the
law on business income tax is amended.
h) US dollar exchange rate of the year in which the tariff
calculation data is taken is averaged by day and by the close US dollar sold
exchange rate of the Head office of Joint Stock Commercial Bank for
Foreign Trade of Vietnam.
2. The avoidable transmission loss costs
The formula to calculate the average avoidable power transmission
loss costs of three northern, central and southern regions is as follows:
In which:
TB,Avg,
TT.Avg, TN,Avg
...
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The average avoidable power transmission loss costs of
three northern, central and southern regions
TB,j, TT,j,
TN,j
:
The price of average avoidable power transmission loss
costs of three northern, central and southern regions by each hour, season
defined according to the components of avoidable power transmission loss
costs of the avoidable cost tariff for small scale hydropower plants annually
calculated by the national power system dispatching Center in accordance with
the provisions in Circular No. 32/2014/TT-BCT dated9/10/2014 or the replacing
documents.
tj
:
The proportion of power produced by season and hour in
year (%) in accordance with the provisions in Circular No. 57/2014/TT-BCT
dated 19/12/2014 of the Minister of Industry and Trade defining the method,
order of formulation and issue of power generation price framework or the
replacing documents.
3. The avoidable carbon tax costs
...
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4. Employment benefits at locality.
To be applicable upon regulations of law.
APPENDIX III
SAMPLE
OF ELECTRICITY SALE CONTRACT APPLICABLE TO BIOMASS POWER PROJECTS
(Issued with Circular No. 44/2015/TT-BCT dated 09/12/2015 by the Minister of
Industry and Trade)
TABLE OF CONTENTS
Article 1. Definition
Article 2. Electricity delivery, sale and operation
Article 3. Connection, metering and operation of power plant
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Article 5. Coordinated handling in case of force majeure
Article 6. Contract duration
Article 7. Contract breach, damage compensation and
suspension of Contract implementation
Article 8. Dispute resolution
Article 9. Entrustment, assignment and restructuring
Article 10. Other agreements
Article 11. Commitment to implementation
Appendix A: Technical parameters of plant
Appendix B: Requirements for system connection
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Appendix D: Payment of electricity bill
SAMPLE OF ELECTRICITY SALE CONTRACT
APPLICABLE TO BIOMASS POWER PROJECTS
BETWEEN
THE SELLER
(Specify name)
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THE BUYER
(Specify name)
(Issued with Circular No.
44/2015/TT-BCT dated 09/12/2015 by the Minister of Industry and Trade)
Socialist Republic of Vietnam
Independence - Freedom - Happiness
……
...
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Pursuant to the Electricity Law dated 03/12/ 2004; the Law
amending and adding some Articles of the Electricity Law dated 20/11/2012;
Pursuant to the Commercial Law dated 14/6/2005;
Pursuant to the Decision No. 24/2014/QD-TTg dated 24/3/2014
of the Prime Minister issuing the Decision on mechanism of assistance to
development of biomass power projects in Vietnam;
Pursuant to the Circular No. 44/2015/TT-BCT dated 09/12/2015
of the Minister of Industry and Trade providing for project development,
avoidable cost tariff and sample of electricity sale Contract applicable to
biomass power projects;
Based on the need for electricity sale and purchase of both
parties,
Today, on date…….month………..year, at………………
We consist of:
The Seller: ______________________________________________________________
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Tel: _____________________________ Fax:
______________________________
Tax code: _______________________________________________________________
Account: _____________________________ Bank
_________________________
Representative:
___________________________________________________________
Position: _______________ (Authorized by ____ Under the
authorization document No._____, date _____ month ____ year_____)
The Buyer: ______________________________________________________________
Address:
________________________________________________________________
Tel: _____________________________ Fax:
______________________________
Tax code:
_______________________________________________________________
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Representative:
__________________________________________________________
Position: _______________ (Authorized by ____ Under the
authorization document No._____, date _____ month ____ year_____)
Both Parties have agreed to sign the electricity sale Contract
with the following contents:
Article 1. Definition
In this Contract, the terms below are construed as follows:
1. Lender is the organizations or individuals lending capital to the
Seller or the Buyer to carry out this Contract.
2. Party or Parties are the Seller or the Buyer or both Parties or the
unit receiving the rights and obligations of one Party or Parties in this Contract.
3. Connection point is the location where the line of the electricity
Seller is connected to the power system of the electricity Buyer as agreed in
Appendix A of this Contract.
4. Power delivery point is the point where the metering
equipment of sold power output of the electricity Seller (the metering point of
primary or backup metering System at the power Plant) specified in Appendix B.
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6. Contract is comprised of this document and the accompanying
Appendices.
7. Average inter-bank trading interest
rate is the average inter-bank trading interest rate of 01-month
term announced by the State Bank of Vietnam at the time of payment
8. Basic interest rate is the interest rate announced by the State Bank as
a basis for credit organizations to set their business interest
9. Contractual year is the year calculated by solar year of 12 (twelve)
months beginning from the first day of January and ending on the last day of
December of such year, except in case for the first Contractual year beginning
from the date of commercial operation and ending on the last date of December
of such year. The last Contractual year ends on the last date of Contract
duration.
10. Payment due date is the time limit of 15 (fifteen) days from the date
the Buyer receives the Seller’s voucher of electricity bill payment.
11. Working days: Are the days except for Saturdays and Sundays and other
holidays in accordance with current regulations.
12. Commercial operation day of generating unit is the day the generating unit of
power plant is ready to sell electricity to the Buyer and meets the following
conditions: (i) the power plant finishes the initial tests for the generating
unit and connection equipment, (ii) the power plant has been issued with the
power operation permit in the field of power generation and (iii) both Parties
take the meter reading to begin their payment.
13. Commercial operation day of power plant is the commercial operation day of
the last generating unit and the power plant is issued with the official power
operation Permit in the field of power generation.
14. Power plant consists of all generating equipment, protective equipment,
connecting equipment other relevant auxiliary equipment; land used for
electricity works and ancillary works for power production under this Contract
of the Seller.
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16. Regulations on national power system operation are the Circulars and Procedure
providing for the standards of power system operation, conditions and
procedures for connection to power grid, dispatch of operation of power system,
power metering in the power distribution and transmission system.
17. Case of emergency means the conditions or circumstances that can
disrupt the power supply services to the Buyer’s customers, including the cases
of causing major failure in the national power system which can threaten lives
and assets or affect the technical capacity of power plant.
Article 2. Electricity delivery, sale and operation
1. Electricity delivery
From the day of commercial operation, the Seller agrees to
deliver and sell power to the Buyer and the Buyer agrees to buy the Seller’s
power in accordance with the provisions of this Contract. The Buyer shall
purchase all power output generated on the Buyer’s grid at the buying price
specified in Clause 2 of this Article. The Seller shall enjoy the benefits
related to the environment in accordance with regulations of law and
international agreements.
2. Electricity sale price
The electricity sale price under this Contract is applied
under the provisions of Article 14 of Decision No. 24/2014/QD-TTg dated
24/3/2014 of the Prime Minister issuing the Decision on mechanism of development
assistance to the biomass power projects in Vietnam and Circular No.
44/2015/TT-BCT dated 09/12/2015 of the Minister of Industry and Trade providing
for the development of project, avoidable cost tariff and the sample of
electricity sale Contract applicable to the biomass power projects as follows:
a) For thermal power - power cogeneration projects: The
power selling price at the delivery point is 1.220 dong/kWh (excluding VAT,
equivalent to 5.8 UScents/kWh). The power selling price is modified with the volatility of the
exchange rate VND / USD.
b) For other biomass power projects: The power selling price
is applied under the avoidable cost tariff applicable to the biomass power
projects annually announced.
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The Seller agrees to operate the power plant with the
available capacity of the equipment and in line with the technical regulations
and standards of electricity sector. The Seller shall not have to take legal
responsibility for the Buyer’s direct damages because the Seller does not
sufficiently supply the sold and purchased power in case of no fault of the Seller. Where there is no written
consent of the Buyer but the Seller has reduced the sold and purchased
power for the purpose of selling electricity to the third party or for other
purposes without production of sold and purchased power, the Seller shall not
be exempted from legal responsibility.
4. Operation plan
a) Before or on the date of implementation of this Contract,
the Seller shall provide the Buyer with the chart of annual power generation
capacity on the busbar of the plant by each month in line with the basic design
of the power plant and provide the charts of generation capacity based on the
biomass data of the previous years.
b) The Seller shall provide the Buyer with the annual power
production plan, including:
- Operation plan of months in a year (power output and
available capacity);
- Maintenance and repair schedule of generating units in a
year (if any).
c) The Seller must provide information on maintenance and
repair plan and generating unit mobilization plan for the unit dispatching the
power system (at dispatching level having the authority to control) in
accordance with regulation of law on operation of national power system.
5. Downtime
a) The Seller shall inform the Buyer the estimated downtime
schedule and downtime for periodical repair 03 months in advance. The Buyer has
to discuss with the Seller prior to the downtime if there is a requirement for
change of downtime. The Seller shall discuss and reach to an agreement with the
Buyer in accordance with the regulations and standards of electricity sector and
comply with the Regulation on operation of power system.
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6. Operation of power grid
The Buyer and the Seller shall operate and maintain the
power grid and the equipment connected to the power plant within the scope of
asset management in accordance with the Regulation on distribution power grid
and transmission power grid under the connection
voltage level of the plant, the regulations and standards of
electricity sector and Regulation on operation of power system to ensure the
sale and purchase of power under the Contract. The Buyer must discuss and reach
an agreement with the Seller on balance of load and voltage stability for the
distribution power grid to ensure the maximum load capacity of distribution power
grid and transmission power grid.
7. Disruption in electricity receipt and purchase
The Buyer shall not have to fulfill its obligations or
receive the power in the following cases:
a) The Seller’s power plant has been operated and maintained
not in accordance with regulations on operation of national power system and regulations and standards of electricity sector;
b) During the time the Buyer installs the equipment, repair,
replace, assess or test the power grid directly related to the connection of
the Seller’s power plant;
c) The transmission or distribution power grid connected to
the Buyer’s power grid with breakdown or the equipment of power grid directly
connected to the Buyer’s transmission or distribution power grid with
breakdown;
d) The Buyer’s power grid needs to be supported for
restoration after the breakdown in accordance with regulations on operation of
national power system and regulations and standards of
electricity sector;
8. Disruption in electricity delivery and sale
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Before stopping or reducing the amount of power delivered to
the Buyer, the Seller must give a notice the Buyer 10 (ten) days in advance. In
this notice, there must be the reason, estimated starting time and disrupting
time of power delivery.
9. Coordination
The Buyer shall minimize the time to reduce or stop the
receipt of power in cases specified in Clause 7 of this Article. Except for
emergency cases, when temporarily reducing or stopping the receipt of power,
the Buyer must give a notice the Seller 10 (ten) days in advance, stating the
reasons and expected starting time and disruption time. In case of necessity,
the Buyer must transfer the dispatching orders on operation received from the
power system dispatching system related to the plant operation to the Seller
and the Seller must follow such orders, except that they change the
mobilization characteristics of the plant.
10. Capacity coefficient
The Seller agrees to operate the power plant in synchronization
with the Buyer’s power grid to deliver power at the delivery point, at the
voltage level and capacity coefficient from 0.85 (corresponding to the reactive
power) to 0.90 (corresponding to the reactive power) as specified in Appendix
C. The Seller’s power plant must be operated with the defined capacity
coefficient under the Regulation on distribution power grid at the delivery
point to the Buyer.
11. Synchronous operation
The Seller shall inform the Buyer in writing at least thirty
(30) days before the first synchronization of generating units in the Seller’s
power plants to the Buyer’s power grid. The Seller must coordinate the
operation with the Buyer in the first synchronization and the subsequent
synchronizations.
12. Standard
The Seller and the Buyer must comply with the regulations on
power delivery and receipt under the Provisions on distribution power grid and
regulations on power metering and other documents related to the electricity
sector.
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From 06 (six) months to 12 (twelve) months before the
commercial operation day specified in Appendix A, the Seller must officially confirm
the change of commercial operation day. The Parties must cooperate with each
other and the Buyer must not make refusal if having plausible reasons.
Article 3. Connection, metering and operation of power plant
1. Responsibility at delivery point
The Seller must invest and install the equipment for
transmission and delivery of power to the Buyer at the delivery point. The
Buyer shall coordinate with the Seller to carry out this installation.
2. Connection
a) The Seller shall invest, build, operate and maintain the
connecting equipment for connecting the plant with the transmission or
distribution power grid in accordance with regulation on transmission or
distribution power grid and other relevant regulations. The Seller must bear
the costs to upgrade the metering system at the substation to meter the active
and reactive power under 02 (two) ways on the distribution line connected with
the power plant in accordance with the provisions in Appendix B of this Contract.
b) The Buyer has the right to review the design and verify
the completeness of protective equipment. The Buyer must inform the Seller of
the written assessment result within 30 (thirty) days) after receiving all
technical documents related to the design. The Buyer shall inform in writing
all design errors found. The Seller must carry out all modifications and
addition proposed by the Buyer in accordance with the regulations of law on
operation of national power system and the technical regulations and standards
of electricity sector.
3. Connection standards
The equipment of the Seller and the Buyer must be installed,
operated and connected under the Regulation on distribution power grid.
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When there is a prescribed prior notice, each party has the
right to inspect the connecting equipment of the other party to ensure the
compliance with regulations of law on operation of national power system. This
inspection does not affect the activities of the inspected party. Where the
inspected party’s equipment does not meet the operation and maintenance
conditions, the inspecting party must inform the inspected party of the points
to be corrected. The inspected party shall take the necessary remedial measures
upon requirement for reasonable correction from the inspecting party.
5. Exciter
If the Seller’s power plant has the exciter, the Seller must
install the capacitors to correct the separate capacity coefficient for each
generator. These capacitors must be closed and cut simultaneously with each
exciter. The norm value KVAr of each capacitor must ensure the highest standard
value but not exceeding the no-load requirement KVAr of generators. The Seller
must make payment to the Buyer the costs of consumed power to operate the
exciter in case the consumed power is taken from the Buyer’s power grid at
retail price at corresponding voltage level. This payment is specified in
Article 4 of this Contract.
6. Metering
a) The Seller’s responsibility:
- Install and maintain the main and backup metering
equipment used to meter the power and make invoice;
- Provide the location to install the metering equipment if
such location is in the power plant.
b) Requirements for metering equipment:
- In accordance with the regulations on metering and other
relevant regulations
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- Being able to transmit data to locations as required by
the Buyer;
- Being sealed with lead and able to record and store large
data.
7. Take the meter reading
Each month (or according to the metering cycle agreed by
both party), the Buyer and the Seller shall take the meter reading
simultaneously.
After having informed, the Buyer goes into the power plant
or the place installed with metering equipment to take the meter reading, check
the meter and do other activities related to the fulfillment of obligations
under this Contract. The Buyer’s entering the plant must ensure no effect on
the Seller’s normal operation. The electricity employees or checker sent by the
Buyer must comply with the safety regulations and rules of the plant upon
entering the plant
8. Inspection of metering equipment
a) The testing and inspection of metering equipment or
confirmation of precision of metering equipment must be done under the
regulations on power metering by the competent or authorized organization. The
inspection is done before using the metering equipment for the first time to
take the meter reading of sale power of the power plant. All metering equipment
must be sealed with lead and locked after inspection and the Buyer has the
right to witness this process.
b) All metering equipment of sale power of power plant must
be inspected annually in accordance with regulation on electricity metering.
The inspection costs shall be paid by the Seller. In case of necessity, either
party can recommend the inspection of precision of any metering equipment and
the inspection costs shall be paid by the recommending party. The result of
inspection of metering equipment must be informed to the other party upon
requirement. Where the metering equipment has the error greater than the
permitted limit in metering regulations, the Seller shall correct or replace
and return the excessive paid amount to the Buyer plus the interest of the
excessive paid amount based on the basic interest and cost of inspection of
power metering. Each party shall be informed in advance and shall appoint its
employee to participate in the unsealing and inspection and seal with lead the
meter. Where one party the meter is broken down or is not active, such party
must inform the other party immediately and the party having the meter must
test and repair it.
9. Transfer of electricity ownership
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10. Operation of power plant
The Seller must operate the power plant in accordance with
the Regulation on distribution power grid, the Regulation of electricity sector
and other relevant regulations.
Article 4. Making invoice and payment
1. Making invoice
Each month (or according to the metering cycle agreed by
both party), the Buyer and the Seller shall read the meter simultaneously on
the agreed date to define the amount of power delivered and received in a
month. The Seller shall take the meter readings under the prescribed form with
confirmation of the Buyer’s representative and send the result of meter reading
in writing (or by fax with later official letter or the copy sent by mail) to
the Buyer within 10 (ten) working days after taking the meter reading.
2. Payment
a) The Buyer shall make payment of electricity bill to the
Seller in accordance with the provisions in Clause 2, Article 2 and Appendix D
of this Contract for all amount of power sold and purchased no later than the
due date of payment.
b) Where the Buyer does not make payment within the above
time limit, it shall pay the interest of late payment penalty for all amount of
late payment. The interest of late payment penalty is calculated by the average inter-bank trading interest rate of 01-month term calculated from the
date after the date of due payment.
c) Where the Buyer does not read the meter simultaneously as
stipulated in Clause 1 of this Article, the Buyer still have fulfill its
payment obligations to the Seller of the amount of power delivered.
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Where there is no necessary data to define the amount of
power or the payment owed by the Buyer to the Seller, except for the cases
specified in Clause 4 of this Article, the Seller must estimate such data and
modify the payment in line with the reality in the subsequent payment times.
4. Order of application and replacement of meter readings
To define the amount of power the Buyer has received and
accepted in a payment period, the taking of meter readings, making of invoice
and payment must be based on the estimated data as follows:
a) The readings of main meter in the power plant in the
payment period must have the correct level in accordance with the provisions in
Clause 8, Article 3 of this Contract;
b) The readings of backup meter in the power plant when the
backup meter is used to meter the amount of power delivered must have the
correct level in accordance with the provisions in Clause 8, Article 3 of this Contract;
c) When all meters do not record the correct amount of power
delivered and received, it is required to estimate the power output delivered
and received according to the monthly medium data (if any) of the power plant
in the same payment period of the year preceding the Contractual year and must
reasonably adjusted for the stage of making of invoice according to the data
available affecting the power generation of power plant such as parameter of
biomass, performance of generating unit, number of operational hours,
operational time of generating unit and self-used amount of power (generally
called “operational parameters”) during the time of breakdown of meter.
When there is not reliable data, it is required to estimated
the amount of power delivered and received according to the average monthly
amount of power of the power plant of 06 (six) payment period right before the
breakdown of meter (or less if the power plant has not yet been operated for 06
(six) months and must be modified according to the downtime or operational
parameters.
5. Invoice dispute
a) Where one party does not agree with the whole or
avoidable cost tariff part of invoice about the power output or the paid
amount, such party has the right to give avoidable cost tariff written notice
to the other party before the date of due payment. After receiving the notice
but the parties fail to reach an agreement, the duration for one or both
parties to lodge their dispute is 01 (one) year after the Buyer receives the
valid invoice.
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If the Buyer is right, the Seller must return the amount in
dispute received plus the interest calculated at the base rate, monthly
compound interest from the date of receiving the payment to the date of payment
of amount in dispute.
All payments in this item must be made within 15 (fifteen)
days from the date of final decision on Dispute resolution in accordance with
the provisions of Article 7 of this Contract.
Article 5. Case of unforeseen event
1. Force majeure
The force majeure is the events that occur beyond the
control ability and not due to non-implementation, neglect, lack of
responsibility in fulfillment of Contract obligations of one party, including
the following events:
a) Decision of competent authorities affecting the ability
to fulfill the obligations of one party;
b) After the date of commercial operation, the Seller cannot
have the Permits or approval of the competent state authorities despite of its
reasonable effort;
c) Natural disaster, fire, explosion, flood, tsunami,
epidemic or earthquake;
d) Riot, rebel, war, protest, sabotage, embargo, siege,
blockade, any act of war or community hostility whether the war has been
declared or not;
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e) Other causes beyond the control and not due to the fault
of the party invoking the force majeure event.
2. Handling in case of force majeure
In case of force majeure, the party invoking the force
majeure event must:
a) Quickly sends the written notice to the other party of
the force majeure stating the reasons and presenting evidence demonstrating the
force majeure and giving out the estimated time and the impact of force majeure
on the ability to fulfill its obligations;
b) Tries its best to fulfill the obligations under the Contract;
c) Quickly takes necessary acts to remedy the force majeure
and provide evidence to demonstrate the reasonable effort to remedy the force majeure;
d) Takes necessary measures to minimize harm to the parties
in the Contract;
dd) Quickly gives notice to all parties of termination of
force majeure.
3. Consequence of force majeure
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4. Duration of force majeure
Where due to the force majeure and one party fail to fulfill
its obligations under its obligations under this Contract within 01 (one) year,
the other party has the right to unilaterally terminate the Contract after 60 (sixty)
days from the date of giving the written notice, except that such obligations
are fulfilled within 60 days mentioned above; provided that the Buyer does not
choose to terminate the Contract due to the force majeure specified under
Points b and dd, Clause 1 of this Article.
Article 6. Contract duration
This Contract takes effect from the date ... month ... year
.... and terminates after 20 (twenty) years from the date of commercial
operation. After termination of the Contract, the contents of this Contract
continues to be valid for a period of time necessary for the parties that are
obliged to continue to make the invoice for the last time; modify invoice, make
payment and complete their rights and obligations under this Agreement.
For the plants co-generating thermal power in the sugar
plants previously operated but their date of commercial operation cannot be
identified, the duration of Contract shall be agreed upon by both Parties;
Article 7. Acts of breach of Contract, damage compensation
and suspension of Contract implementation
1. The Seller’s acts of breach of Contract
a) The Seller fails to implement the date of commercial
operation as specified in Appendix A within 03 (three) months, except for the
force majeure;
b) The Seller fails to implement or follow the contents of Contract
within 60 (sixty) days after receiving the Buyer’s written notice.
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c) The Seller denies the validity of a part or the entire Contract;
d) Breaches the Seller’s commitments under Article 10 of
this Contract.
2. The Buyer’s acts of breach of Contract
a) The Buyer fails to implement or follow the contents of Contract
within 60 (sixty) days after receiving the Seller’s written notice.
Where the Buyer or the Buyer’s lending Party has tried to
remedy its acts of breach within 60 (sixty) days mentioned above but the remedy
cannot be completed within such duration, the Buyer or the Buyer’s lending
Party can extend the duration of remedy to a maximum of 01 (one) year from the
date of written notice of the Buyer’s acts of breach. The Buyer must continue
to complete its remedy of breach in the shortest possible time, except for the
cases specified in Article 5 of this Contract;
b) The Buyer fails to make the non-dispute payment under the
Contract when due and such failure of payment continues to last over 90
(ninety) days without plausible reasons;
c) The Buyer denies the validity of a part or the entire Contract;
d) Breaches the Buyer’s commitments under Article 10 of this
Contract.
3. Procedure for remedy and handling of Contract breach
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b) The lending party of the offending party has the right to
appoint a third party or replace the offending party to remedy the breach of Contract
but must inform in writing the aggrieved party. In this case, the replacement
may not increase the financial burden of the aggrieved party which must accept
the replacement or appoint a third party of the lending party to remedy the
breach of Contract. The lending party of the offending party shall inform in
writing the offending party of estimated remedy of breach in lieu of the
offending party and reach an agreement with the aggrieved party on a reasonable
period of time from the time of giving notice in order to fulfill its
obligations under the Contract in lieu of the offending party.
4. Damage compensation
a) The party having acts of breach of Contract is obliged to
make compensation due to acts of breach to the aggrieved party. The
compensation value includes the actual and direct value of loss which the
aggrieved party must suffer caused by the offending party and the direct
benefits which the aggrieved party shall receive in case of no act of breach;
b) The aggrieved party must demonstrate its loss and loss
degree due to the acts of breach and the direct benefits which the aggrieved
party should have received if there were not the acts of breach.
5. Suspension of Contract implementation
Where the breach of Contract cannot be solved under Clause 4
of this Article, the aggrieved party may continue to require the offending
party to remedy such acts of breach or may suspend the Contract implementation
by sending a notice to the offending party. After the aggrieved party chooses
to suspend the Contract implementation according to the conditions of this Contract,
the parties shall not have to fulfill their Contract obligations, except for
cases specified in Clause 1 of this Article and the aggrieved party has the right
to require the offending party to make damage compensation.
Where the Seller is the aggrieved party and chooses to
suspend the Contract implementation, the value of damage compensation is
calculated by the value of power output actually generated of the Seller during
a period of one year earlier by the time of suspension of Contract
implementation.
Article 8. Dispute resolution
1. Dispute resolution in negotiation
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b) In case of failure to reach an agreement as
defined above, the parties have the right to send a written request to
the General Directorate of Energy for assistance to resolve the problems.
c) This mechanism of dispute resolution is not applicable to
the disputes which are not generated directly from this Contract between a
party in the Contract and a third party.
2. Resolution of disputes in electricity market in
accordance with regulations of law
Where the disputes cannot be resolved through negotiation or
mediation in accordance with the provisions in Clause 1 of this Article or one
of the parties fail to comply with the result of negotiation or mediation, one
or the parties may require the resolution of dispute in accordance with the
provisions in Circular No. 40/2010/TT-BCT dated 13/12/2010 of the Minister of
Industry and Trade defining the order and procedures for dispute settlement in
the electricity market or another dispute resolution body selected by both
parties for their dispute resolution in accordance with the relevant
regulations of law.
Article 9. Entrustment, assignment and restructuring
1. Entrustment and assignment
Where this Contract is entrusted or assigned for
implementation, the regulations on rights and obligations in this Contract
shall continue to be valid to the legal representative or authorized
representative of the parties.
Where the Seller assigns or entrusts the Contract
implementation, it must get the written approval from the Buyer, except that
the Seller authorizes one part or the whole to the lending party for the
purpose of lending or purchase of equipment or building of power plant. If the
entrusted part of the Seller has the value equivalent to the value of equipment
which can be operated, it is the valid entrustment under this Contract.
The entrusting or assigning party must inform in writing
immediately the other party of the entrustment or assignment.
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Where the restructuring of electricity sector affects the
Seller or the Buyer’s rights and obligations in this Contract, the
implementation of Contract shall be transferred to the receiving units. The
Buyer shall certify and ensure in writing concerning the units’ receiving the
fulfillment of obligations of power purchase or distribution and other
interests and obligations under this Contract.
3. Chosen participation in electricity market
The Seller has the right to choose to participate in the
electricity market in accordance with the regulations on competitive
electricity market. In this case, the Seller must inform in writing 120 days in
advance to the Buyer, the Electricity Regulatory Authority and unilaterally
terminates the Contract after completing the prescribed notification
obligations.
Article 10. Other agreements
1. Contract modification
The modification or addition of this Contract is done in
writing in accordance with the provisions of Circular No….dated…..by the
Minister of Industry and Trade providing for the project development, the
avoidable cost tariff and the sample of electricity sale Contract applicable to
the biomass power projects.
2. Cooperation responsibility
The Seller is obliged to implement the legal procedures related
to the power plant. The Buyer shall cooperate
with the Seller to have the necessary permit, approval and permission from the
competent state authorities related to the location of the plant, fuel and
control of natural resources, investment, transmission or electricity sale,
possession and operation of power plant, including the additional documents or
archived documents and perform other necessary and reasonable activities to implement the agreements of the parties.
3. Applicable law
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4. Waiver of rights
Failure to exercise the Parties’ rights under this Contract
at any time shall not affect the exercise of rights under the Contract later.
The parties have agreed that the statement of failure to exercise the rights of
one party for any commitment or condition under the Contract or any breach of Contract
shall not be deemed that such party waives the similar rights later.
5. Independence
of the contents of the Contract
Where there is any content in this Contract said
to be inconsistent with the regulations of law or
invalid as judged by the Court, the other contents of Contract remain valid, if
the remaining parts reflect all contents without need of invalidated part.
6. Notice
All notices, invoices or other necessary information
discussions during the implementation of Contract must specify the date of
preparation and relation to the Contract and must be made in writing and sent
by fax or postal services. If sent by fax, the original must be sent later by
the postal services with prepaid postage. The notices, invoices or other
information discussions must be sent to the following addresses:
a) The Seller: The General Director,
_____________________________, Viet Nam;
b) The Buyer: ___________,
___________________________________, Viet Nam;
c) In the notices, including the notice appointing the
lender, the parties may specify the address of another sender or recipient in
the form specified in this Clause;
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7. Confidentiality
The Buyer agrees to keep the information of plant confidential
specified in the Appendix of Contract, except that such information has
announced before by the Seller or the General Directorate of Energy.
8. Contract termination
This Contract shall be terminated in the following cases:
a) After 20 (twenty) years from the date of commercial
operation;
b) Either party has the right to terminate the Contract in
case of force majeure where the other party cannot implement its contract
obligations for a period of over 01 (one) year. In this case, the contract
termination must be done in order specified in Clause 5, Article 5 of this
Contract;
c) When the Seller participates in the electricity market.
Article 11. Commitment to performance
Both parties are committed to implement this Contract as
follows:
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2. The signing and implementation of this Contract of each
party shall comply with the conditions and contents of electricity operation
Permit issued by the competent authorities and the relevant regulations of law;
3. The parties do not have any legal or administrative acts
obstructing or affecting the other party in implementation of this Contract;
4. The signing and implementation of one party in this
Contract shall not breach any provision of other Contracts or be a part of
another Contract in which such party is a contractual party.
This Contract is made into ten (10) copies with 04 attached
appendices of the same value as the integral part of this Contract. Each party
shall keep four (04) copies. The Seller shall send one (01) copy of electricity
sale Contract to the General Directorate of Energy and the Electricity
Regulatory Authority.
THE SELLER’S REPRESENTATIVE
(Title)
(Seal and signature)
(Full name)
THE BUYER’S REPRESENTATIVE
(Title)
(Seal and signature)
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(Full name)
Appendix A
TECHNICAL PARAMETERS OF POWER PLANT
(Attached
Contract No….dated…..)
Part A. General parameters
1. Name of power plant:
___________________________________________________
2. Location of power plant: _________________________________________________
3. Rated capacity:
___________________________________________________kW
4. Capacity sold to the Buyer: minimum_____________kW; maximum
___________ kW
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6. Estimated annual production power:
____________________________________kWh
7. Completion date of power plant construction:
_________________________________
8. Estimated date of commercial operation of power plant:
________________________
9. Voltage generated on distribution grid:
_____________________________________V
10. Connection point to distribution grid:
_______________________________________
11. Point where the metering equipment is placed:
___________________________________________________
Part B. Operational parameters of specific technology
1. Generation technology (co-generation of thermal power and
power
2. Operational design features:
______________________________________________
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Appendix B
SYSTEM CONNECTION REQUIREMENTS
(Enclosed with
Contract No……dated……..)
(To be applicable to each project
depending on the technical characteristics of project, including one-line
diagram of connecting equipment and list characteristics of metering system and
voltage).
Appendix C
METERING AND DATA COLLECTION SYSTEM
(Enclosed with
Contract No……dated……..)
I. Installation location and features of metering system
1. Installation location of metering System:
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2. The features of the metering System must be consistent
with the provisions in the Circular on power metering issued by the Ministry of
Industry and Trade.
II. Technical requirements of metering system
The technical requirements of metering equipment, the
technical requirements of metering circuit, measures of seal with lead and the
requirements for meter reading and collection system must be consistent with
the provisions in the Circular on power metering issued by the Ministry of
Industry and Trade.
III. Metering location
Both parties shall uniformly use the current metering
locations of the power plant as follows:
Cluster of generating unit
Main metering system
Backup metering system
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IV. Method of defining the delivered power output
1. On the first date of each month, the legal representative
of both parties shall take the meter reading and record it at the time of 0:00
of the first date and the power monthly delivered of the preceding month.
a) The power output which the Seller delivers to the Buyer
in the payment month is calculated by the following formula:
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AGi:
Amount of power of delivery way at metering point i of
corresponding main metering system in a month;
AG:
Amount of power paid by the Buyer to the Seller in the
payment month (kWh).
b) The power output which the Seller receives from the
national power system in the payment month is calculated by the following
formula:
In which:
ANi:
Amount of power of receipt way at metering point i of
corresponding main metering system in a month;
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The amount of power paid by the Seller to [Electricity
Company…] under the electricity selling tariff to the industrial customers as
regulated by the competent state authorities (kWh).
Appendix D
ELECTRICITY BILL PAYMENT
Each month, the Buyer shall make payment to the Seller of
all amount of power sold and purchased in a month at the price specified in
Clause 2, Article 2 by the following formula:
Q = P * F * Ag * (1+t)
In which:
- Q is the total payment of electricity bill from the Buyer
to the Seller (dong);
- Ag is the power monthly purchased and sold;
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- t is the tax rate of value-added tax (%);
- P = (PMB or PMT or PMN)
is the selling price of electricity specified in Circular No. 44/2015/TT-BCT
dated 09/12/2015 of the Ministry of Industry and Trade providing for project
development, avoidable cost tariff and sample of electricity sale Contract
applicable to the biomass power projects annually issued by the Ministry of
Industry and Trade.