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THE
PRIME MINISTER OF GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
37/2011/QD-TTg
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Hanoi,
June 29, 2011
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DECISION
ON THE MECHANISM SUPPORTING THE DEVELOPMENT OF WIND POWER
PROJECT IN VIETNAM
THE PRIME MINISTER
Pursuant to the December 25,
2001 Law on Organization of the Government;
Pursuant to the December 03, 2004 Law on Electricity;
Pursuant to the November 29, 2005 Law on Investment;
Pursuant to the November 26, 203 Law on Construction;
Pursuant to the December 16, 2002 Law on State budget;
At the proposal of the Minister of Industry and Trade,
DECIDES:
Chapter 1.
GENERAL PROVISIONS
Article 1. Scope of governing and Subject of application
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2. The
subjects of application of this Decision include organizations take part in
electricity activities in relation to the development of wind power project in
Vietnam.
Article 2. Interpretation of terms
Some terms used in this Decision
are construed as follows:
1. The
electricity buyer means the Vietnam Electricity Cooperation or its
authorized - affiliated units.
2. The
electricity seller means enterprise product, operate electricity business
from wind power projects.
3. Wind
power work means the comprehensive complex of wind turbine, electric
generator, comprehensive equipments and other construction compositions using
wind power to generate power.
4. Wind
power project includes one or many Wind power works.
5. Grid-linked
Wind power project means Wind power project constructed connection into the
national electricity net to supply a part or total of production power.
6. The
connection point means the position at which the lines of seller connect
into the electricity system of the electricity purchase.
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8. Wind
power project without linked grid means Wind power project constructed to
supply total of power for using of householders in area, not connect into
national power net.
9. The
Investment owner of Wind power project means organization conduct operation
investment on Wind power projects according to provision of Vietnam law.
10. Contract
of electricity trading sampled for Wind power projects means electricity
trading contract which is promulgated by the Ministry of Industry and Trade to
apply in transaction trading electricity which is produced from Grid-linked
Wind power project between electricity seller and electricity purchaser.
11. Main items of wind power work include wind pillar, turbine, generator and transformer
station.
Chapter 2.
PLANNING AND DEVELOPMENT
OF WIND POWER
Article 3. Planning of wind power development
1. Planning
of wind power development includes national planning of wind power development,
planning of wind power development at provincial level. Planning of wind power
development is base for activities of investment for wind power development, be
adjusted suitable with researches, assess of wind potential in each periods.
Article 4. Make, approve and announce of planning of wind
power development
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2. People’s
Committee of centrally-affiliated cities and provinces (hereinafter referred to
as People’s Committee at provincial level where have potential of wind power
development, organize making planning of wind power development at provincial level,
submit the Minister of Industry and Trade for approving.
3.
Announcement and adjustment of planning execute according to current provision.
4. The main
content of Planning of wind power development:
a) National
Planning of wind power development includes the following main content:
- Wind
potential of locals;
- List of
wind power projects;
- Orientation
of connection wind power projects into system national power.
b) Planning
of wind power development at provincial level has the following main content:
- Wind
potential of province;
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- List of
wind power projects;
- Capacity
scale of each Wind power project and project of connection into system national
power.
5. In time
when wind power planning has not yet approved, Wind power projects must have
agreed by The Prime Minister on investment policy.
6. The
Ministry of Industry and Trade specifies content, order and procedures of make,
evaluate and approve Planning of wind power development.
Article 5. The state budget for mission of making the planning
of wind power development
1. The
central budget allocates fund to execute the mission of making, evaluating,
announcement and adjusting the planning of national wind power development.
2. The budget
of centrally-affiliated cities and provinces allocates fund to execute the
mission of making, evaluating, announcement and adjusting the planning of
locality wind power development
3. Encourage
mobilize other lawfull budget source for the mission of making planning of wind
power development.
Article 6. Investment for construction of Wind power projects
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2. For Wind
power projects which have not yet had in the list of approved planning of
national wind power development and approved planning of national electricity
development, investment owner has responsibility of making dossier to suggest
on supplementing planning, send to the Ministry of Industry and Trade to
evaluate, submit to The Prime Minister for consideration and decision.
3. Investment
of construction of wind power projects is executed according to provision of
law on management of investment for work construction.
Article 7. Connection Wind power projects into electricity
system, moderation of Wind power firm operation
1. Connection Wind power
projects into national electricity grid must suitable with planning of approved
power development. The connection point is agreed by electricity seller
and electricity purchaser on the principle that the electricity seller has
responsibility for investment on transmission line to the connection point into
national electricity grid which be exist and nearest in the planning of
provincial electricity development. If The connection point is belong to
planning of new electricity grid investment has not yet performed, the
electricity seller must agree with the electricity purchaser in order to
synchronous in progress of Wind power projects investment and planning of
electricity grid development investment. If can not agree for the connection
point, the electricity seller has responsibility for submitting to The Ministry
of Industry and Trade to consider and decide
2. Investment
owner of wind power project has responsibility for investment, operation,
maintain lines and step-up transformer stations (if any) from electric plant of
seller to the connection point such as connection agreement with the
electricity purchaser
3. Depend on
level of connected transformer, power distributing unit or power transmit unit
have responsibility for investment on transmission lines from the connection
point into national electricity grid under the approved planning of power
development and sign connection agreement with investment owners of wind
power projects.
4. After
finish investment and inspection and taking enter trade operation, unit
executes moderation the electricity system and operate the power market, has
responsibility for mobilize wind power plant according to the priority mode to
exploit total capacity and generated power in suitable with wind mode of plant
area.
Article 8. Commence of wind power work construction
Investment
owner has only permitted to begin to build wind power work when had investment
certificate; had electricity trade contract signed with electricity buyer; had agreement
on power connection with power distributing unit or power transmit unit
and had data report of wind measure in the continuous period fewest is 12
months.
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After 12
months, since granted investment certificate, if investment owner don’t begin
to build main items of work, People’s Committee at provincial level has
responsibility for consider to withdraw the investment certificate, report to
state competent agency to assign project for other investor execute. Except
from legitimate reason, shall be accepted by competent level of temporary stop
or stretching the progress of project executing.
Article 10. Mode of report
1. In 5
working days, since the day of granting the investment certificate, investment owner
has responsibility for sending a copy of investment certificate has been
notarized to the Ministry of Industry and Trade in order to inspect manage.
2. In the
time of building the wind power project, before the fifth day of the month at
the head of every quarter, investment owner must have report of status of
carrying out the project of the front quarter, the executing plan of the
following quarter. Yearly, before the January 15, the investment owner must
have report of status of carrying out the project in last year, the plan of
carrying out project of the following year, to send to the Ministry of Industry
and Trade in order to manage and inspect executing.
Chapter 3.
MECHANISM OF SUPPORTING
DEVELOPMENT OF WIND POWER PROJECT
Article 11. Responsibility of buying electricity from wind
power project
1. The
electricity purchaser has responsibility for buy whole electric produced from
grid-linked wind power plant belong to the area managed by itself.
2. Electric
trade is performed through electric trade contract made as the sample electric
trade contract applying for grid-linked wind power project promulgated by the
Ministry of Trade and Industry. The sample electric trade contract has main
content as the following:
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b) Base Price
of buying electric and principle of adjusting Price of selling electric in contract
time.
c) Agreement
of connection, measurement and operation wind power plant.
d) Agreement
of making invoice and payment.
Article 12. Preferential of capital, tax, charge
1. Mobilize
investment capital:
a) Investor
can mobilize capital under forms allowed by laws, from organizations,
individuals are indigenous or foreign to invest executing wind power project.
b) The wind
power projects enjoy preferential according to current regulation on investment
credit of the State.
2. Import
tax: wind power project is exempt from import tax for goods imported in order
to form fixed assets of project, import goods are material, semi-finished
products have not yet produced in country so that import to service for
manufacture of project according to the provisions at the Law of import tax and
export tax and other regulations of current law on import tax and export
tax.
3. Enterprise
Income tax: tax rate of enterprise income tax, exemption of and reduction of
enterprise income tax for wind power project shall be performed like as for
projects belong to fields which are special preferential in investment
specified in the Law of investment, the Law of enterprise income tax and
documents guiding executing the Law of investment, the Law of enterprise income
tax.
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1. Wind power
projects and line work and transformer station to connect with grid of national
electricity are exempted, reduced the land use levies, land hire levies
according to regulation of current law apply with project belong to field which
is special preferential in investment.
2. Base on
planning approved by competent level, the People’s Committee of provincial
level has responsibility for assigning land for investment owner to execute
wind power projects. Compensation, supporting for land clearance are executed
according to regulation of current law on land.
Article 14. Supporting of electric price for grid-linked wind
power project
1. The
electric purchaser has responsibility for buying whole electric output from
wind power projects with the electric buying price at the point of electric
receipt is 1.614 dong/kwh (not yet include VAT, equivalence 7,8 UScents/kwh).
The electric buying price is adjusted by changes of rate dong/USD.
2. The State
support electric price for the electric buyer for whole electric output buy
from wind power plants is 207 dong/kwh (equivalence 1,0 UScents.kwh) through
the Vietnam Fund of Environment Protection.
3. The
Ministry of Industry and Trade inspects to propose adjustment of the level of
electric buying price at the point of receipt and the level of electric price
supporting, submits to the Prime Minister to consider, decide on the principle
of decreasing slowly and come to deleting price supporting when electric selling
price is executed like market price.
4. The wind
power projects which are supported according to this provision, shall be not
allowed to apply the mechanism of price supporting for electric output of
project according to other current regulations.
5. The wind
power projects are permitted to apply mechanism of clean development according
to current regulation of the State.
Article 15. Preferential, supporting for grid-unlinked wind
power projects
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2. Investment
owner makes planning of the electric price and defines total of supporting
level from State budget to submit to the Ministry of Industry and Trade to
evaluate, report to The Prime Minister approve.
Chapter 4.
PERFORMANCE ORGANIZATION
Article 16. The responsibility of Ministries, localities with
wind power project
1. The
Ministry of Industry and Trade
a) Have
responsibility for organization, guiding and combination with The People’s
Committee of centrally-affiliated cities and provinces to inspect, supervise
performance of this Decision.
b) Promulgate
the sample contract of electricity trade for wind power projects.
c) Make and
promulgate technical norms of wind power technology.
2. The
Ministry of Finance
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3. The
People’s Committee of centrally-affiliated cities and provinces
a) Have
mechanism for supporting, encouragement with investor in land clearance,
infrastructure, and human resource in order to invest, perform wind power
projects.
b) Execute
the Sate management function at locality with wind power projects.
c) Monitor,
supervise, and check executing wind power projects at locality according to the
competent.
Article 17. Implementation effect
This Decision
takes effect from August 20, 2011.
The
Ministers, heads of ministry agencies, heads of agencies under Government,
presidents of People’s Committee of centrally-affiliated cities and provinces,
heads of agencies, units and organizations in relation to activities of
development of wind power projects in Vietnam are responsible for
implementation of this Decision./.
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