Circular No. 05/2019/TT-BCT amending and supplementing certain provisions of Circular No. 16/2017/TT-BCT dated September 12, 2017, issued by the Minister of Industry and Trade on the development of solar power projects and model power purchase agreements applicable to rooftop solar power projects.

 

CIRCULAR

AMENDING AND SUPPLEMENTING CERTAIN ARTICLES OF CIRCULAR NO. 16/2017/TT-BCT DATED SEPTEMBER 12, 2017 OF THE MINISTER OF INDUSTRY AND TRADE ON DEVELOPMENT OF PROJECTS AND MODEL POWER PURCHASE CONTRACTS APPLICABLE TO SOLAR POWER PROJECTS

WHEREAS, Law on Electricity No. 28/2004/QH11 dated December 3, 2004; Law Amending and Supplementing Certain Provisions of the Law on Electricity dated November 20, 2012;

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

The Prime Minister issues this Decision amending and supplementing certain Articles of Decision No.11/2017/QĐ-TTgdated April 11, 2017 of the Prime Minister on mechanisms to encourage the development of solar power projects in Vietnam and Decision No.02/2019/QĐ-TTgdated January 8, 2019 amending and supplementing certain provisions of Decision No.11/2017/QĐ-TTg dated April 11, 2017 of the Prime Minister on mechanisms to encourage the development of solar power projects in Vietnam;

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

The Minister of Industry and Trade issues this Circular amending and supplementing certain articles of Circular No.16/2017/TT-BCT dated September 12, 2017 of the Minister of Industry and Trade on development of projects and model power purchase contracts applicable to solar power projectsồng mua bJune 2024;n điện mẫu áp dụng cho các dự án điện mặt trời.

Article 1. Amending and supplementing certain articles of Circular No. 16/2017/TT-BCT dated September 12, 2017 of the Minister of Industry and Trade on development of projects and model power purchase contracts applicable to solar power projects

1. Article 16 shall be amended and supplemented as follows:

"Article 16. Price of electricity purchase and sale for rooftop solar power projects
1. Before January 1, 2018, the price of electricity purchase and sale is 2,086 VND/kWh (excluding value-added tax, equivalent to 9.35 US cents/kWh, according to the central exchange rate of the Vietnamese dong against the US dollar published by the State Bank of Vietnam on April 10, 2017, which is 22,316 VND/USD);
2. From January 1, 2018, the price of electricity purchase and sale shall be adjusted according to the central exchange rate of the Vietnamese dong against the US dollar published by the State Bank of Vietnam on the last day of the previous year."

2. Adding the content of the model power purchase contract for rooftop solar power projects as stipulated in the Appendix of this Circular.

Article 2. Repealing Clause 2, Article 18 and Appendix 3 of Circular No. 16/2017/TT-BCT dated September 12, 2017 of the Minister of Industry and Trade on development of projects and model power purchase contracts applicable to solar power projects.

Article 3. Effectiveness

This Circular shall take effect from April 25, 2019.

 

 

ANNEX

MODEL POWER PURCHASE CONTRACT FOR ROOFTOP SOLAR POWER PROJECTS
(Annexed to Circular No. 05/2019/TT-BCT dated March 11, 2019 of the Minister of Industry and Trade on amending and supplementing certain provisions of Circular No. 16/2017/TT-BCT dated September 12, 2017 of the Minister of Industry and Trade on development of projects and model power purchase contracts applicable to solar power projects)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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MODEL POWER PURCHASE CONTRACT FOR ROOFTOP SOLAR POWER PROJECTS

WHEREAS, Law on Electricity No. 28/2004/QH11 dated December 3, 2004; Law Amending and Supplementing Certain Provisions of the Law on Electricity dated November 20, 2012;

The Prime Minister issues this Decision amending and supplementing certain Articles of Decision No.11/2017/QĐ-TTgdated April 11, 2017 of the Prime Minister on mechanisms to encourage the development of solar power projects in Vietnam and Decision No.02/2019/QĐ-TTgdated January 8, 2019 amending and supplementing certain provisions of Decision No.11/2017/QĐ-TTg dated April 11, 2017 of the Prime Minister on mechanisms to encourage the development of solar power projects in Vietnam;

Circular No.16/2017/TT-BCT dated September 12, 2017 of the Minister of Industry and Trade on development of projects and model power purchase contracts applicable to solar power projects and Circular No.../2019/TT-BCT dated..., ..., 2019 of the Minister of Industry and Trade on amending and supplementing certain provisions of Circular No. 16/2017/TT-BCT:

Based on the needs of both parties,

Today, the ... day of the month of ..., year ..., at ...

We include:

Seller (Party A):

Fax:

Phone: ___ Email:___ Fax:___

Tax Code:___ Business Registration Certificate:

Account: ___ Bank ___

Representative:

ID Card/Passport Number:

Position: ___ (Authorized by ___

pursuant to the authorization document (number, date, year).

Buyer (Party B):

Fax:

Phone: ___ Email:___ Fax:___

Tax Code ___ Business Registration Certificate:

Account: ___ Bank ___

Representative:

Position: ___ (Authorized by ______________

pursuant to the authorization document (number, date, year).

Together agree to sign a power purchase contract (hereinafter referred to as the Contract) to buy and sell electricity generated from the rooftop solar power project (hereinafter referred to as the Project), with a total installed capacity of ... kW, with the parameters specified in the Appendix (Model Appendix issued by Party B), invested and operated by Party A at[project construction location]with the following terms and conditions:

Article 1. Electricity Purchase and Sale

1. As of the date of commercial operation,[date of commercial operation],Party A agrees to sell to Party B, and Party B agrees to purchase from Party A the amount of electricity produced from Party B's project connected to the grid, measured by the meter recorded in the Meter Installation and Removal Record attached hereto. The Meter Installation and Removal Record is an integral part of this Contract and will be replaced (periodically or due to damage) during the process of electricity purchase and sale between the Parties.

2. Party B shall be responsible for paying the amount of electricity from Party A's project connected to Party B's grid according to the electricity purchase price stipulated in Article 2 of this Contract.

3. The electricity that Party A receives from Party B's grid will be subject to a separate electricity purchase and sale contract not within the scope of this Contract.

Article 2. Electricity Purchase and Sale Price

1. Prior to January 1, 2018, the electricity purchase and sale price is 2,086 VND/kWh (excluding VAT, equivalent to 9.35 US cents/kWh, based on the central exchange rate of the Vietnamese dong against the US dollar published by the State Bank of Vietnam on April 10, 2017, which is 22,316 VND/USD).

2. From January 1, 2018, the electricity purchase and sale price shall be applied according to the provisions of Clause 1 of this Article, adjusted based on fluctuations in the VND/USD exchange rate based on the central exchange rate of the Vietnamese dong against the US dollar published by the State Bank of Vietnam on the last day of the previous year.

3. The electricity purchase price specified in Clauses 1 and 2 of this Article shall apply for 20 years from the date the project enters commercial operation.

Article 3. Confirmation of Meter Readings, Grid-connected Electricity Generation, and Billing

1. Confirmation of Meter Readings, Grid-connected Electricity Generation

- Party B shall record the meter reading on the ... of each month.

- Within one working day from the date of recording the meter reading, Party B shall notify Party A of the meter reading and the amount of electricity generated from the project connected to the grid during the payment period in the following manner:

□ Web ... □ Email ...... [Email address] .... □ Zalo/Viber... [Phone number to receive messages] ...

- In case Party A disagrees with the meter reading and the amount of electricity generated from the project connected to the grid notified by Party B, Party A shall respond within one working day from the date of receiving Party B's notification in the following manner:

□ Web ... □ Email ...... [Email address] .... □ Zalo/Viber... [Phone number to receive messages] ...

- After the above deadline, if Party A does not provide feedback to Party B, it shall be understood that Party A agrees with the meter reading and the amount of electricity generated from the project connected to the grid notified by Party B.

2. Electricity Payment:

a. Electricity Payment: Based on the electricity volume agreed upon by both Parties in Clause 1 of this Article and the electricity purchase price stipulated in Article 2 of this Contract, Party B shall pay Party A the electricity payment (excluding VAT) on a monthly basis as follows:

T(n) = Ag(n) x G(n)

Where:

T(n): Electricity payment for month n (VND).

Ag(n): The amount of electricity generated by Party A and connected to Party B's grid in month n (kWh).

- For single-rate meters, Ag(n) is the forward volume recorded at the meter measuring device.

- For three-rate meters, Ag(n) is the total volume of the three rates (normal hours, peak hours, off-peak hours) recorded at the meter measuring device.

G(n): Electricity price applicable for month n as stipulated in Article 2 (VND/kWh).

b. Value Added Tax (VAT): In addition to the electricity payment under sub-clause a of Clause 2 of this Article, Party B must pay Party A the VAT amount if Party A has revenue from the solar power project subject to tax according to current regulations. At the end of the final meter reading period of the year, Party B shall be responsible for settling the electricity purchase from the solar power project for the year and settling the VAT for Party A depending on the revenue generated from the solar power project.

Article 4. Payment

1. Payment documents:

a) Party A is a business entity issuing invoices monthly:

The meter reading sheet and electricity quantity table provided by Party B for the electricity Party A feeds into Party B's grid each month;

The sales invoice issued by Party A in accordance with regulations, with the amount of electricity payment determined in Clause 2, Article 3 of this Contract.

b) Party A is an organization or individual not issuing monthly invoices:

Monthly:

Party B will base on the meter reading sheet and electricity quantity table provided by Party A to pay Party A for electricity, with the amount of electricity payment determined in Point a, Clause 2, Article 3 of this Contract.

Annually:

At the latest within fifteen days from the end of the year or the end of the Contract, whichever occurs first, Party B shall prepare and send to Party A the "Confirmation of electricity generation and payment" form for the year according to the model specified in the Appendix (Appendix model issued by Party B) of this Contract. In case Party A has revenue subject to tax as stipulated in point b, Clause 2, Article 3, Party A is responsible for sending Party B the sales invoice including taxes and fees as prescribed.

2. Payment method:

□ Transfer (Party A bears the transfer fee).

Bank transfer information:...

3. Payment deadline:

a) Within seven (7) working days after the day Party A agrees on the meter readings and electricity quantity fed into the grid (announced by Party B) and submits all payment documents as stipulated in Clause 1 of this Article.

b) After the above deadline, if Party B does not make payment to Party A, Party B shall be responsible for paying interest on late payment for the entire overdue amount from the day following the due date until the day Party B makes payment. Interest on late payment is calculated at the average inter-bank transaction rate for one (1) month published by the State Bank of Vietnam at the time of Party B's payment.

Article 5. Rights and Obligations of the Parties

1. Rights and obligations of Party A

a) Ensuring technical standards for solar power; ensuring the quality of electricity as prescribed in Clause 1, Article 15 of Decree No. 

137/2013/ND-CP issued on October 21, 2013 by the Government detailing certain provisions of the Electricity Law and the Law amending and supplementing certain provisions of the Electricity Law; Articles 40, 41 of Circular No. 39/2015/TT-BCT issued on November 18, 2015 by the Ministry of Industry and Trade specifying the distribution system (referred to as Circular No. 39/2015/TT-BCT) or any subsequent amendments, supplements, or replacements, except where otherwise agreed.b) Jointly with Party B to record, agree upon, and monitor the electricity generated and fed into Party B's grid.

c) Operating the Project in accordance with Article 52 of Circular No. 

d) Party A may not connect other sources of electricity to the metering system without the consent of Party B, except for the Project agreed upon in this Contract. issued on November 18, 2015 by the Ministry of Industry and Trade specifying the distribution system (referred to as Circular No. 39/2015/TT-BCT) or any subsequent amendments, supplements, or replacements, except where otherwise agreed. .

e) Party A is responsible for fully complying with all tax obligations as prescribed by the State.

2. Rights and obligations of Party B

a) Investing and installing bidirectional meters at the point of electricity delivery for Party A if Party A meets the connection standards set out in Point a, Clause 1 of this Article.

b) Jointly with Party A to record, notify, agree upon, and monitor the electricity generated and fed into Party B's grid from the Project.

c) Inspecting, supervising operation, and handling in accordance with Article 52 of Circular No. 39/2015/TT-BCT.

d) Party B has the right to refuse payment when Party A fails to comply with the provisions set out in Points a, c, d, e, Clause 1 of this Article.

d) Party B has the right to refuse payment when Party A fails to comply with the provisions set forth in Points a, c, d, e of Clause 1 of this Article.

Article 6. Other Agreements

……………………………………………………………………………

Article 7. Implementation Provisions

1. Unless extended or terminated prematurely, this Contract shall be effective from the date of signing and have a term of 20 years from the date[date of commercial operation].

2. During the performance period, if either party requests to amend, supplement, or terminate the Contract, the requesting party must notify the other party at least 15 days in advance for joint resolution.

3. This Contract shall be made in two original copies having equal legal force, each party holding one copy.