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THE PRIME
MINISTER
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THE SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No.:
08/2020/QD-TTg
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Hanoi, March 05,
2020
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DECISION
AMENDMENTS
TO DECISION NO. 24/2014/QD-TTG DATED MARCH 24, 2014 OF PRIME MINISTER ON
SUPPORT MECHANISM FOR DEVELOPMENT OF BIOMASS POWER PROJECTS IN VIETNAM
Pursuant to the Law on Organization of
Government dated June 19, 2015;
Pursuant to the Law on Electricity dated
December 03, 2004; the Law on amendments to the Law on Electricity dated
November 20, 2012;
Pursuant to the Law on Investment dated November
26, 2014; the Law on amendments to the Law on Investment dated November 22,
2016;
Pursuant to the Law on construction dated June
18, 2014;
Pursuant to the Law on Planning dated November
24, 2017;
At the request of the Minister of Industry and
Trade;
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Article 1. Amendments to
Decision No. 24/2014/QD-TTG dated March 24, 2014 of the Prime Minister on
support mechanism for development of biomass power projects in Vietnam
1. Clause 1 and Clause 2 Article 1 are amended as
follows:
“1. This Decision provides incentive
mechanism for development of power generation projects with use of grid-tied
biomass energy in Vietnam (hereinafter referred to as “biomass power
projects”).
2. This Decision applies to organizations and
individuals participating in power activities which are related to development
of biomass power projects.”
2. Clause 1 and Clause 2 Article 2 are amended as
follows:
“1. Buyer refers to Vietnam
Electricity (EVN) or its authorized member company or an organization that
receives rights and obligations from the former as regulated in law.
2. Seller refers to an organization or
individual engaging in generation of power produced from biomass power projects
or the one receiving rights and obligations from the former as regulated in
law.”
3. Clause 8, Clause 10 and Clause 11 Article 2,
Article 3, Article 4 and Article 5 are abrogated.
4. Article 6 is amended as follows:
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1. Development of biomass power projects shall
comply with the planning. Appraisal and approval of the biomass power projects
that are added to the planning shall comply with regulations of the law on
planning. Biomass power projects included in approved power development plans
at all levels shall be implemented in accordance with the transition provisions
in Article 59 of the 2017 Law on Planning and the Resolution No.
751/2019/UBTVQH14 dated August 16, 2019 of the Standing Committee of the
National Assembly providing explanation about some Articles of the 2017 Law on
Planning.
2. Main equipment of a biomass power project must
meet relevant national technical regulations. Quality of power produced by
biomass power projects must meet relevant technical requirements regarding
voltage, frequency and requirements for operation of the national electrical
grids in accordance with prevailing regulations.
3. Investment in and construction of biomass power
projects shall comply with regulations of the laws on investment, construction,
electrical safety, land, fire fighting and prevention, and environmental
protection and relevant laws.”
5. Article 7 is amended as follows:
“Article 7. Connection of biomass power
projects to electrical grids
1. The seller shall assume responsibility for
investment in, installation, operation and maintenance of electrical measuring
equipment, power lines and step-up substations (if any) from the seller’s power
plant to the point of connection to the buyer’s electrical grid; organize the
inspection, calibration and testing for electrical measuring equipment in
accordance with regulations of law on measurement.
2. The seller and the buyer shall reach an
agreement on points of connection which must ensure the electrical transmission
capacity of the seller's power plant and be conformable with the approved
planning. If a point of connection is different from the point where the
electrical measuring equipment is installed, the seller shall bear the power
loss in connecting power lines and the step-up substation of the power plant.”
6. Article 8, Article 9 and Article 10 are
abrogated.
7. Article 11 is amended as follows:
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1. The buyer shall buy total volume of electricity
produced by biomass power projects in conformity with regulations on operation
of the national electrical grid and relevant technical regulations/standards
applicable in electrical sector; maximize the generation capacity and
electricity produced by biomass power projects.
2. The seller and the buyer are required to use
standard-form power purchase agreement (PPA) when selling and buying
electricity produced by biomass power projects.
3. The period of validity of a PPA for electricity
produced by a biomass power project is 20 years from the commercial operation
date. After this period, the extension to the signed PPA or conclusion of a new
PPA shall be carried out in accordance with regulations in force at the time
when such extension or conclusion of new PPA is made.”
8. Article 12 and Article 13 are abrogated.
9. Article 14 is amended as follows:
“Article 14. Feed in Tariffs (FiT) for
biomass power projects
1. For combined heat and power (CHP) projects: The
FiT at the delivery point is 1,634 VND/kWh, equivalent to 7.03 UScents/kWh,
determined according to the official exchange rate between VND and USD
announced by the State Bank of Vietnam on February 21, 2020.
2. For projects other than CHP projects: The FiT at
the delivery point is 1,968 VND/kWh, equivalent to 8.47 UScents/kWh, determined
according to the official exchange rate between VND and USD announced by the
State Bank of Vietnam on February 21, 2020.
3. The FiTs prescribed in Clause 1 and Clause 2 of
this Article exclude VAT and shall be adjusted according to the fluctuation of
USD price (according to equivalent values of UScents/kWh); applied exchange
rate is the official exchange rate between VND and USD announced by the State
Bank of Vietnam on the date of invoice issued by the seller.
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5. Costs incurred from the purchase of electricity
produced by biomass power projects as prescribed in Clause 1 and Clause 2 of
this Article shall be fully calculated and included in the input parameters of
EVN’s annual electricity pricing scheme.
6. If a biomass power project applies the FiTs
prescribed herein, it shall not apply any pricing scheme for its electrical
production according to other regulations.”
10. Article 15 is abrogated.
11. Article 16 is amended as follows:
“Article 16. Responsibilities of relevant
organizations and individuals
1. The Ministry of Industry and Trade shall:
a) Organize, instruct and cooperate with the
People's Committees of provinces and central-affiliated cities in inspecting
and expediting the implementation of this Decision.
b) Promulgate the standard-form power purchase
agreement which shall be applied for biomass power projects according to this
Decision.
c) Promulgate regulations/technical regulations on
equipment, testing and commissioning of biomass power plants.
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2. People’s Committees of provinces and
central-affiliated cities shall:
a) Cooperate and assist investors in compensation,
land clearance, infrastructure and personnel for investment in, implementation
and development of local biomass power projects.
b) Monitor and inspect the implementation of local
biomass power projects within their competence.
c) Perform state management tasks of local
activities related to biomass power in accordance with prevailing regulations.
3. Vietnam Electricity shall:
Fully calculate and include costs incurred from the
purchase of electricity from biomass power projects in the input parameters of
its annual electricity pricing scheme, and report it to competent authorities
for approval.
4. Sellers shall:
Comply with regulations on operation of electrical
grids, transmission grids, distribution grids and electrical measurements, and
relevant regulations.”
Article 2. Effect
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2. Ministers, heads of ministerial agencies, heads of
Governmental agencies, Chairpersons of People’s Committees of provinces and
central-affiliated cities, and heads of relevant agencies, units and
organizations involving in development of biomass power projects in Vietnam
shall be responsible for the implementation of this Decision./.
THE PRIME
MINISTER
Nguyen Xuan Phuc