Circular No. 01/2023/TT-BCT abolishes certain provisions in Circular No. 02/2019/TT-BCT dated January 15, 2019, issued by the Minister of Industry and Trade on the implementation of wind power project development and model power purchase agreements for wind power projects, and Circular No. 18/2020/TT-BCT dated July 17, 2020, issued by the Minister of Industry and Trade on project development and model power purchase agreements applicable to solar power projects.

Pursuant to the Electricity Law dated December 3, 2004; and the Law Amending and Supplementing Certain Provisions of the Electricity Law dated November 20, 2012;

Pursuant to the Planning Law dated November 24, 2017;

Pursuant to Decree number 52/2022/NĐ-CP dated August 8, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Article 1. Repeals certain provisions of Circular No. 02/2019/TT-MCT dated January 15, 2019 of the Minister of Industry and Trade on implementing wind power project development and model Power Purchase Agreements for wind power projects.

Based on Decree No. 96/2022/NĐ-CP dated November 29, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

1. Repeals Clause 3, Article 3.

Based on Decree No. 137/2013/NĐ-CP dated October 21, 2013, issued by the Government, detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law;

2. Repeals Articles 4, 7.

3. Repeals Clause 2, Article 9.

At the proposal of the Director of the Electricity and Renewable Energy Department;

4. Repeals point c, Clause 1, Article 17.

5. Repeals part of Appendix 2 Model Power Purchase Agreement applicable to wind power projects issued together with Circular No. 02/2019/TT-MCT dated January 15, 2019:

a) Repeals the following content in Clause 2, Article 2:

"2.1 For projects with commercial operation date from November 1, 2018 to before November 1, 2021

a) The electricity purchaser shall purchase the entire electricity output from the wind power grid-connected project at the electricity purchase price at the delivery point as stipulated in Clause 7, Article 1 of Decision No. 39/2018/QĐ-TTg for the portion of the power plant that commenced commercial operation before November 1, 2021. For the portion of the power plant with commercial operation date from November 1, 2021 onwards (if any), the electricity purchase price will be negotiated between both parties after guidance from competent state authorities regarding the pricing mechanism for this phase.

b) The electricity purchase price specified in Subparagraph a) shall apply for 20 years from the commercial operation date of a portion or the whole plant (depending on the commercial operation date of a portion or the whole plant determined according to Decision No. 39/2018/QĐ-TTg; Clause 9, Article 1 and Article 4 of this Agreement).

2.2 Projects that have generated electricity before November 1, 2018 may sign a new Power Purchase Agreement with the electricity purchaser to apply the electricity purchase price at the delivery point as stipulated in Clause 7, Article 1 of Decision No. 39/2018/QĐ-TTg from November 1, 2018 until the remaining term of the previously signed Power Purchase Agreement."

b) Repeals the following content in Appendix E:

"Monthly, the electricity purchaser shall pay the electricity seller the total amount of electricity purchased in the month according to the electricity price stipulated in Clause 2, Article 2, calculated as follows:

Q =

k*F*Ag*(1+t)

- Q is the total electricity payment made by the electricity purchaser to the electricity seller (VND);

- F is the exchange rate applied, which is the central exchange rate of the Vietnamese Dong to the US Dollar published by the State Bank of Vietnam on the day the electricity seller issues the invoice for payment (VND/USD).

- t is the value-added tax rate (%).

- k is 0.085 (for onshore wind power projects) or 0.098 (for offshore wind power projects), being the adjustment factor for the electricity purchase price based on fluctuations in the VND/USD exchange rate corresponding to 8.5 US cents/kWh or 9.8 US cents/kWh as stipulated in Decision No. 37/2011/QĐ-TTg dated June 29, 2011 on mechanisms to support the development of wind power projects in Vietnam and Decision No. 39/2018/QĐ-TTg dated September 10, 2018 of the Prime Minister amending and supplementing certain provisions of Decision No. 37/2011/QĐ-TTg. - A

Where:

 is the monthly electricity traded (kWh), where if the power plant does not have a test turbine, the monthly electricity traded is determined as the actual electricity delivered to the grid at the delivery point in the payment month. If the power plant has a test turbine, the monthly electricity traded is determined as follows:

 = A

G

+ A

: Actual electricity delivered to the grid at the delivery point in the payment month._g: Test electricity of turbines in the payment month, determined as follows:

A_g = P_dm: Actual electricity delivered to the grid at the delivery point in the payment month._TN

 x C x T_of+ P

 x C x T_TN: Rated capacity of one turbine.

A_TN+ C: Number of turbines tested in the month._{: Number of hours each turbine was tested in the month.}+ G: Turbine capacity factor in the payment month, calculated based on the average of all turbines that have tested electricity generation in the month."_hx G

+ P_{: Number of hours each turbine was tested in the month.}: Rated capacity of 01 turbine.

+ C: Number of turbines tested in the month.

+ T_h: Number of hours of testing for 01 turbine in the month.

+ G: Turbine power factor for the payment month, calculated based on the average of all turbines generating test power in the month.”.

Article 2. Repeal certain provisions of Circular No. 18/2020/TT-BCT dated July 17, 2020, issued by the Minister of Industry and Trade on the development of projects and model power purchase agreements for solar power projects.

1. Repeal Point a, Clause 1, Article 4.

2. Repeal the phrase "The price of electricity purchase and sale for rooftop solar systems shall be implemented according to the provisions of Article 8 of Decision No. 13/2020/QĐ-TTg dated April 6, 2020, approving the mechanism to encourage the development of solar power projects in Vietnam" at Point a, Clause 1, Article 5.

3. Repeal the phrase "(not exceeding 01 MW and 1,25 MWp)" at Point a, Clause 2, Article 5.

4. Repeal part of Appendix 1 Model Power Purchase Agreement applicable to grid-connected solar power projects issued together with Circular No. 18/2020/TT-BCT dated July 17, 2020:

a) Repeal Point a, Point b, and Point d, Clause 2, Article 2.

b) Repeal the phrase "and terminate after 20 (twenty) years from the Commercial Operation Date" at Article 6.

c) Repeal the term "2020" in Appendices A, B, C, D, E, and G.

5. Repeal Clause 1 and Clause 2, Article 2 of Appendix 2 Model Power Purchase Agreement applicable to Rooftop Solar Systems issued together with Circular No. 18/2020/TT-BCT dated July 17, 2020.

Article 3. Effectiveness

This Circular takes effect from January 19, 2023.

Article 4. Responsibilities for Implementation

Heads of units under the Ministry, People's Committees of provinces and centrally governed cities, and related organizations and individuals are responsible for implementing this Circular.