Headlines 24/02/2021 11:39 SA

Principles of annual fixed pricing of power purchase agreements are now available

Như Ý

The Ministry of Industry and Trade promulgates the Circular No. 57/2020/TT-BCT regulating methods of power generation and power purchase agreement pricing.

According to this document, regulations on principles of annual fixed pricing of power purchase agreements include:

- Two contracting parties may apply agreed average fixed prices in validity years of power purchase agreements.

If conversion of the agreed average fixed price into the annual fixed price is consented to by both parties, the average fixed price must not be different from the price rate that both parties agree and the following principles must be observed:

+ Financial discount rate used for calculating the annual fixed price agreed upon by both parties must accord with the internal financial rate of return (IRR) of the power plant.

+ The investor must fulfill its obligation to repay loans for investment in power plant construction by the loan maturity date.

Circular No. 57/2020/TT-BCT is entering into force as of February 22, 2021, replacing the Circular No. 56/2014/TT-BCT dated December 19, 2014 and the Circular No. 51/2015/TT-BCT dated December 29, 2015.




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