Circular No. 02/2019/TT-BCT stipulates the implementation of wind power project development and model power purchase agreements for wind power projects.

 

CIRCULAR

REGULATIONS ON THE IMPLEMENTATION OF WIND POWER PROJECT DEVELOPMENT AND MODEL ELECTRICITY PURCHASE AND SALE CONTRACTS FOR WIND POWER PROJECTS
MODEL ELECTRICITY PURCHASE AND SALE CONTRACTS FOR WIND POWER PROJECTS

Pursuant to the Electricity Law lức sNo. No. 28/2004/QH11 dated December 3, 2004; Law Amending and Supplementing Certain Provisions of the Electricity Law dated November 20, 2012;1Pursuant to Decision No. 37/2011/QĐ-TTg dated June 29, 2011 of the Prime Minister 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 dated June 29, 2011 of the Prime Minister on mechanisms to support the development of wind power projects in Vietnam;

Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Camendtheo Quyết định số 37/2011/QĐ-TTg ngày 29 tháng 6 năm 2011 của Thủ tướng Chính phủ về cơ chế hỗ trợ phát triển các dự ánỗ án June 2024;The Minister of Industry and Trade issues this Circular on the implementation of wind power project development and model electricity purchase and sale contracts for wind power projects.

2. Ministries and agencies at the ministerial level related to the work of collecting, managing, exploiting, and using energy information (hereinafter referred to as ministries and sectors).June 2024;1. This Circular stipulates the implementation of wind power project development and model electricity purchase and sale contracts for wind power projects in Vietnam (hereinafter referred to as the model electricity purchase and sale contract).

a) Wind power project investors;

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

b) Units managing and operating wind power facilities;

Article 2. This Circular applies to the following entities:

c) Electricity buyers;

d) Other organizations and individuals related thereto.

1. The electricity buyer is the Vietnam Electricity Corporation or its authorized subsidiaries or organizations that have taken over the rights and obligations of the Vietnam Electricity Corporation in accordance with the law.

2. The electricity seller is a business producing, operating, and selling electricity from wind power plants or organizations that have taken over the production, operation, and sale of electricity rights and obligations of such businesses in accordance with the law.

Article 2. Interpretation of Terms

In this Circular, the following terms are understood as follows:

3. A wind turbine synchronous set includes the generator, converter, blades, tower, synchronous transformer, connecting cables, and other equipment and structures serving the production of electricity from wind energy. The foundation of the tower, substation, cable trench, and related construction works are not part of the wind turbine synchronous set.

4. Onshore wind turbines are those whose center of the foundation is constructed on land and coastal areas within the boundary from the lowest average annual waterline. The lowest average annual waterline is determined and published according to Article 4 of Decree No. 40/2016/NĐ-CP dated May 15, 2016 of the Government detailing the implementation of certain provisions of the Law on Natural Resources, Environment, and Islands or the amended, supplemented, or replaced laws on natural resources, environment, and islands.

5. Offshore wind turbines are those whose center of the foundation is constructed outside the lowest average annual waterline into the sea. The lowest average annual waterline is determined and published according to Clause 4 of this Article.

6. The area for survey and research of wind power projects is the limited geographic area defined by the provincial People's Committee in the approval document for investors to conduct surveys and studies to assess wind potential for wind power investment projects within a permitted period. This area can only be used for survey and research activities such as building wind measurement towers, geological and topographical surveys.

7. The temporary land use area of a wind power project is the total area of the wind turbine foundation including the protected foundation area, the area for placing synchronous equipment at the base of the wind tower; underground cable connection areas for wind power, the base of overhead transmission line connections; substations; construction area for internal traffic systems and management offices. The temporary land use area is granted by the competent authority to the project investor throughout the project's lifetime.

8. The temporary land use area of a wind power project is the portion of the area that the investor is allowed to temporarily use for wind power project construction, including: temporary roads for construction, material and equipment storage areas, construction zones, temporary worker camps, and other auxiliary sites. After completion and commissioning of the project, the temporary land use area not included in the temporary land use area will be reclaimed by the competent authority for other purposes.

9. The safety corridor of wind power facilities is the safety corridor of wind tower columns, transmission lines, substations, and auxiliary facilities.

10. The safety corridor of wind tower columns is a semi-sphere with the center at the base of the wind tower column and a radius equal to the height of the wind tower column plus the blade radius of the turbine.

11. IEC standards are electrical technical standards issued by the International Electrotechnical Commission.

DEVELOPMENT OF WIND POWER PROJECTS

11. Tiêu chuẩn IEC là tiêu chuẩn kỹ thuật điện do Ủy ban kỹ thuật điện quốc tế ban hành.

Chapter II

PHÁT TRIỂN DỰ ÁN ĐIỆN GIÓ

Article 3. Planning and Development List for Wind Power Projects

1. The development of wind power projects shall be carried out according to the Power Development Plan, which identifies the potential and areas for wind power development in each region. Wind power projects not included in the plan must undergo evaluation, be submitted to the competent authority for approval, and be supplemented into the Power Development Plan.

2. Wind power projects already included in the Power Development Plans at various levels and the provincial Wind Power Development Plan that have been approved shall be implemented in accordance with the provisions on transition set forth in Point c Clause 1 and Clause 3 of Article 59 of the Law on Planning.

4. When developing wind power projects listed in the provincial Wind Power Development Plan for the period 2011-2020, the People's Committee of the province must update the interconnection planning for wind power projects into the power system to ensure the transmission capacity of the project and the absorption capacity of the regional power system. If the interconnection scheme changes, the People's Committee of the province must report to the Ministry of Industry and Trade for assessment, approval, or submission for approval of the adjusted interconnection scheme of the wind power project within its authority.

1. Wind power projects with exploitable potential not included in the Power Development Plan are permitted to conduct research and development and must carry out the work of establishing, evaluating, and submitting for supplementation into the Power Development Plan.

2. The contents of the supplementary dossier for wind power projects into the Power Development Plan include:

a) The planning proposal, including the following main contents: - The necessity of investing in the project and conditions for implementing construction. - The proposed objectives, scale, location (including coordinates), and implementation form of the project. - Land and resource requirements: Clearly stating the survey area, temporary land use area, limited-term land use area, and affected area by safety corridors; Listing types of land, marine areas, and analyzing the current efficiency of land and resource use, marine areas; Evaluating compatibility with land use plans, marine spatial planning, and overlapping with other plans. - Report on assessing wind potential in the project area. - Preliminary technical solutions: Analyzing technology selection based on local wind characteristics; layout plan for turbines. - Preliminary design plan, including: Construction site; Type and grade of main structures; Preliminary overall site plan drawings; Preliminary foundation solution drawings and explanations for selected main structures. - Report on selecting the interconnection scheme for the wind power plant into the power system. Including details about the current status of power sources and grids, development plans for power sources and grids, comparison of interconnection schemes, calculations of impacts on regional power sources and grids when the project appears, and evaluation of grid absorption capacity when the project is put into operation. - Preliminary implementation solutions: transportation of oversized and overweight equipment; implementation schedule; construction technical solutions. - Preliminary total investment estimate. - Preliminary economic and financial effectiveness assessment, socio-economic impact, and project effects.

b) Provincial People's Committee document on the planned location and land use area, compatibility with land use plans, and overlapping with other plans; Opinions of the competent authority regarding the use of resources and marine areas of the proposed project (if it is a marine project).

c) Opinions of the Electricity Corporation of the Region (if connected to the distribution network) or the Transmission Corporation (if connected to the transmission network) and opinions of the Vietnam Electricity Group on the absorption capacity of the regional power grid and the supplementary planning proposal dossier.

3. Procedures and formalities for approving the supplementation of wind power projects into the Power Development Plan

a) The Provincial People's Committee proposes the supplementation of wind power projects into the Power Development Plan along with the dossier stipulated in Clause 2 of Article 4 to the Ministry of Industry and Trade.

b) Within forty-five working days from receiving complete and valid dossiers, the Ministry of Industry and Trade will organize consultations with relevant ministries and sectors on the dossier contents to serve as a basis for reviewing the dossier. Based on the review results, the Ministry of Industry and Trade will issue a letter to the Provincial People's Committee requesting completion of the dossier in accordance with regulations.

c) Within fifteen working days from receiving the completed and supplemented dossier, the Electricity and Renewable Energy Department will prepare the dossier for evaluation and report to the Minister of Industry and Trade. The examination and approval of the supplementation of projects into the plan shall be carried out in accordance with current laws on planning.

Article 5. Requirements for wind measurement

Wind power projects must have a report on wind measurement results at the project site before preparing and approving the feasibility study report. Wind measurement shall be conducted for a minimum period of twelve (12) consecutive months at representative locations, with the number of wind measurement towers ensuring compatibility with the geographical changes in the project area. The wind measurement methods, equipment, and results must comply with IEC standards or equivalent international standards.

Article 6. Feasibility Study Report for Wind Power Projects

The feasibility study report for wind power projects shall comply with the laws on investment management and construction, and include the following main contents:

1. Wind measurement results as stipulated in Article 5 of this Circular.

2. Location, angular coordinates; land use area with a term limit and temporary land use area; sea area area (if located at sea) of the wind power project.

3. Interconnection plan, assessment of the impact of the interconnection plan of the wind power project on the regional power system and the capacity to absorb the project's power generation.

4. Plan and technical solutions, costs for dismantling and handling wind power plant equipment after the completion of the project.

5. Grid connection agreement; written agreement of the competent authority regarding the project location; route direction of the works; land use area (for inland projects); resource use area and sea area (for offshore projects); overall layout planning of the project; written confirmation from the competent authority regarding the location of offshore wind turbines (for projects with offshore wind turbines); written approval of the clearance height from the competent authority.

Wind power projects can only commence and construct works when they meet the conditions stipulated by the laws on investment management and construction, environmental protection requirements, and the following conditions:

1. Construction design documents have been reviewed and approved according to current regulations.

2. A power purchase agreement has been signed with the electricity buyer.

3. There is a financial supply contract and a commitment regarding the funding source to ensure that the construction work progresses according to the schedule approved in the investment construction project.

Article 8. Completion Inspection of Wind Power Facilities

1. The facility or component thereof may be put into use after being inspected and the inspection process verified according to current regulations.

2. The Electricity and Renewable Energy Department shall organize inspections of the inspection process for wind power facilities under its inspection authority as delegated by the Ministry of Industry and Trade.

3. The Department of Industry and Trade and the authorized unit shall organize inspections of the inspection process for wind power facilities under their inspection authority as delegated by the Department of Industry and Trade according to current regulations.

Article 9. Reporting System and Operation Management

1. Within ten working days from the date of issuance of the Investment Direction Decision and Investment Registration Certificate, the People's Committee of the province shall send certified copies of the Investment Direction Decision and Investment Registration Certificate to the Electricity and Renewable Energy Department for monitoring and management.

4. After the wind power project is completed and put into commercial operation, the investor must comply with the current regulations on the operation management of power facilities and environmental protection.

Article 10. Equipment for wind power projects

1. Wind power project equipment must ensure compliance with Vietnamese technical standards and regulations or international IEC standards or equivalent standards.

2. Wind power project equipment must be unused equipment with a production date not exceeding five (05) years, accompanied by a Certificate of Origin and a Certificate of Suitable Production. In cases where used wind power project equipment is utilized, or if the production date exceeds five years, a report must be submitted to the Ministry of Industry and Trade for review and decision in coordination with relevant agencies.

Article 11. Safety of the Project

1. The scope of wind power projects includes areas around wind turbine towers, transmission lines, substations, and other auxiliary facilities. Safety corridors for wind power projects, transmission lines, and substations must comply with electrical equipment technical standards and regulations on high-voltage power grid safety and relevant laws on project safety.

2. Wind power projects must be located at least three hundred meters (300m) away from residential areas.

3. Wind turbines and wind tower columns must have bright colors that do not reflect light.

Article 12. Land Usage Area

1. Land usage during the development of wind power projects includes: land area for surveying and researching wind power projects; land usage area with a term for wind power projects; temporary land usage area for wind power projects.

2. The land usage area for wind power projects must be commensurate with the scale of the project's capacity. The land usage rate with a term for wind power projects shall not exceed zero point three five (0.35) hectares per megawatt (ha/MW). The temporary land usage area for wind power projects shall not exceed zero point three (0.3 ha/MW).

Article 13. Management and Usage of Land within Wind Power Project Areas

1. Land usage with a term for wind power projects must be consistent with land planning and usage plans and must not overlap with other approved plans by authorized authorities.

2. Priority should be given to developing wind power projects on barren, rocky lands with little agricultural or aquaculture value, sparsely populated areas, or uninhabited areas.

3. After the wind power project goes into operation, the project investor must restore the temporarily occupied land area to its original state and hand it over to local authorities for management.

4. The People's Committee of the province may permit the use of land within wind power project areas for appropriate purposes (agricultural cultivation, small-scale farming), provided that it ensures the safe operation of wind power facilities.

Chapter III

MODEL ELECTRICITY PURCHASE AND SALE CONTRACT FOR WIND POWER PROJECTS CONNECTED TO THE GRID

Article 14. Application of Wind Power Electricity Prices for Wind Power Projects

For wind power projects connected to the grid that include both onshore and offshore wind turbines, the electricity seller is responsible for coordinating with the electricity buyer to establish meter installation plans and measurement methods for separately calculating the electricity output of onshore and offshore turbines as the basis for applying appropriate electricity purchase and sale prices.

Article 15. Application of Model Electricity Purchase and Sale Contracts for Wind Power Projects

1. The use of model electricity purchase and sale contracts for wind power projects is mandatory in electricity transactions between the electricity seller and the electricity buyer.

2. The model electricity purchase and sale contract applies only to electricity generated from wind energy sources.

3. The contents of the model electricity purchase and sale contract for wind power projects are stipulated in Appendix 2 attached to this Circular.

4. The electricity seller and the electricity buyer may only supplement the contents of the model electricity purchase and sale contract to clarify the responsibilities and rights of each party without altering the fundamental content of the model electricity purchase and sale contract.

Article 16. Procedures and formalities for signing the model Power Purchase Agreement for wind power projects

1. Procedure for proposing to sign the Power Purchase Agreement

a) The investor of the wind power plant project shall be responsible for preparing the application dossier for signing the power purchase agreement and submitting it to the electricity purchaser to carry out the procedures for examination and approval to sign the power purchase agreement.

b) Within fifteen working days from the date of receipt of the valid application dossier for signing the power purchase agreement submitted by the investor, the electricity purchaser shall be responsible for organizing the review of the power purchase agreement and signing the Power Purchase Agreement with the electricity seller.

2. Application dossier for signing the power purchase agreement

a) A letter proposing to sign the power purchase agreement from the electricity seller;

b) Legal documents of the project, including: Decision approving the master plan on sources and grid of competent authorities; Investment policy decision or Investment Registration Certificate; Decision approving the investment project;

c) Draft Power Purchase Agreement according to the model prescribed in Appendix II issued together with this Circular;

d) Agreement on connecting the power plant to the national power system along with the connection scheme of the power plant; Agreement on SCADA/EMS and dispatching information system; Agreement on relay protection and automation systems;

đ) Documents calculating reactive power and energy losses of transformers and transmission lines from the power plant to the point of interconnection with the national power system and electronic calculation documents used in the power plant.

Chapter IV

IMPLEMENTATION

Article 17. Implementation Organization

1. The Electricity and Renewable Energy Department shall be responsible for:

a) Popularize, guide and inspect the implementation of this Circular. In case of difficulties during the implementation process, the Electricity and Renewable Energy Department shall coordinate with relevant units and localities to examine and propose the Minister of Industry and Trade to amend and supplement this Circular.

b) Organize the assessment of theoretical wind power potential, technical wind power potential and economic wind power potential nationwide, determine the distribution of potential by region to incorporate into the database serving the development of content on the planning for wind power projects in the power development plan.

2. The Industry Department shall take the lead in researching and proposing regulations on incentive mechanisms for developing domestic production of wind power equipment, increasing the rate of localization in wind power projects, report to the Minister of Industry and Trade for approval.

3. Provincial People's Committee:

a) Monitor, supervise, inspect and report on the activities of developing wind power projects in the locality according to the approved power development plan, in compliance with the provisions of this Circular.

b) Coordinate with the Ministry of Industry and Trade to determine areas for wind power development in the locality ensuring compliance with land use planning, national marine space planning, and technical and specialized planning.

Article 18. Provisions on transition

Wind power projects that have been operating and generating electricity before November 1, 2018, shall re-sign the Power Purchase Agreement with the electricity purchaser to apply the electricity purchase price stipulated in Clause 7, Article 1 of Decision No. 39/2018/QĐ-TTg from November 1, 2018 until the remaining term of the signed Power Purchase Agreement.

Article 19. Effective Date

This Circular takes effect from February 28, 2019. Circulars No. 32/2012/TT-BCT dated November 12, 2012 of the Ministry of Industry and Trade on implementing the development of wind power projects and the model Power Purchase Agreement for wind power projects and Circular No. 06/2013/TT-BCT dated March 8, 2013 of the Ministry of Industry and Trade on the content, procedures, and formalities for drafting, examining, and approving the planning for wind power development shall cease to be effective from the date of effectiveness of this Circular./.