Circular No. 06/2016/TT-BCT amends and supplements some articles of Circular No. 32/2014/TT-BCT regarding the procedures for building and applying avoided cost tariff tables for small hydropower plants. It specifies conditions for applying avoided cost tariffs and responsibilities for investing in infrastructure and interconnection between the plant and the power grid.
적용 범위
Small hydropower plants, Electricity Regulatory Authority, Ministry of Industry and Trade
핵심 사항
- Small hydropower plants with capacity ≤ 30 MW and all electricity generated from Renewable Energy can apply avoided cost tariffs.
- If a cascade hydropower complex has a total capacity ≤ 60 MW, the first hydropower plant with capacity ≤ 30 MW can apply avoided cost tariffs.
- Hydropower plants in the complex with capacity > 30 MW can only apply avoided cost tariffs after the subsequent plant is put into commercial operation and price negotiations and calculations are completed.
- The seller must invest in SCADA infrastructure, metering, and data transmission for system dispatching for hydropower plants with capacity ≥ 10 MW.
- The buyer has the right to review the design, inspect, and notify errors in the protection equipment of the power plant.
🌐 이 문서의 사회적 영향
- Positive impact: Reducing operating costs for small hydropower plants, increasing efficiency in using renewable energy.
- Negative impact: Increasing investment burden for infrastructure for hydropower plants with capacity > 10 MW.
❓ 자주 묻는 질문
When can small hydropower plants apply avoided cost tariffs?
Small hydropower plants (capacity ≤ 30 MW) and all electricity generated from Renewable Energy can apply avoided cost tariffs.
If a cascade hydropower complex has a total capacity > 60 MW, how is the first hydropower plant with capacity < 30 MW applied to avoided cost tariffs?
The first hydropower plant in a cascade hydropower complex with a total capacity > 60 MW cannot apply avoided cost tariffs.
What must the seller do when the hydropower plant has a capacity ≥ 10 MW?
The seller must invest in and equip SCADA infrastructure and metering to transmit data for system dispatching.
What is the duration of applying avoided cost tariffs for small hydropower plants?
Applied until December 31, 2016, then subject to specific conditions thereafter.
What happens if the project owner fails to complete price negotiations and Power Purchase Agreements?
This hydropower plant will not be dispatched to supply power to the grid and will not receive payment for electricity.
전문
CIRCULAR
Circular amending and supplementing some articles of Circular No. 32/2014/TT-BCT dated October 9, 2014 of the Minister of Industry and Tradeetermining on the procedures for establishing and applying the avoided cost tariff table and promulgating model Power Purchase Agreements for small hydropower plants
On the basis of APPLICATION pursuant to Decision No. 95/2012/NĐ-CP dated November 12, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;
Pursuant to the Electricity Law dated December 3, 2004; Law Amending and Supplementing Certain Provisions of the Electricity Law on November 20, 2012;
At the proposal of the Director of the Electricity Regulatory Authority,
Article 1. Amending and supplementing some articles of Circular No. 21/2023/TT-BTTTT dated December 31, 2023 of the Ministry of Information and Communications on functions and technical features of the Administrative Procedure Handling Information System at the ministerial and provincial levels (hereinafter referred to as Circular No. 21/2023/TT-BTTTT) as follows: The Ministry of Industry and Trade amends and supplements certain provisions of Circular No. 32/2014/TT-BCT dated October 9, 2014 of the Minister of Industry and Tradeetermining on the procedures for establishing and applying the avoided cost tariff table and promulgating model Power Purchase Agreements for small hydropower plants as follows:
Article 1. "Article 7. Reduction of the mandatory reserve ratio
Article 7. Conditions for Applying the Avoided Cost Tariff Table to the Seller The seller may apply the avoided cost tariff table when meeting one of the following conditions:
1. Installed capacity of the power plant is less than or equal to 30 MW and all electricity generated comes from Renewable Energy.
2. If the seller has multiple cascaded hydropower plants on the same river with total installed capacity of these plants being less than or equal to 60 MW, the following shall be implemented:
a) In case the first hydropower plant in the cascaded hydropower system has an installed capacity of less than or equal to 30 MW, the avoided cost tariff table will be applied to all hydropower plants in the cascaded hydropower system according to this Circular;
b) In case the first hydropower plant in the cascaded hydropower system has an installed capacity greater than 30 MW, the investor shall be responsible for:
- Calculating and negotiating electricity prices and Power Purchase Agreements in accordance with Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Ministry of Industry and Trade on the method of constructing electricity generation prices and the procedure for inspecting Power Purchase Agreements (hereinafter referred to as Circular No. 56/2014/TT-BCT); participating in the electricity market in accordance with regulations on the electricity market issued by the Ministry of Industry and Trade;
- After the next power plant enters commercial operation, the investor has the right to choose one of the following options:
+ Continuing to calculate and negotiate electricity prices and Power Purchase Agreements in accordance with Circular No. 56/2014/TT-BCT; participating in the electricity market in accordance with regulations on the electricity market issued by the Ministry of Industry and Trade;
+ Applying the avoided cost tariff table to all power plants in the cascaded hydropower system from the date the next power plant enters commercial operation according to this Circular."
Article 2. Amend and supplement Clause 2, Article 3 of Appendix IV - Model Power Purchase Agreement applying the avoided cost tariff table as follows:
" 2. Interconnection
a) For power plants with installed capacity of 10 MW or more, the seller is responsible for investing in and equipping infrastructure for SCADA, metering infrastructure, and data transmission to the system dispatch center;
b) For power plants with installed capacity from 3 MW to less than 10 MW
the seller is responsible for equipping metering infrastructure and data transmission facilities to ensure operational data transmission to the System Dispatch Center;
c) The seller is responsible for investing in, constructing, operating, and maintaining interconnection equipment to connect the power plant to the distribution grid and the SCADA system in compliance with Distribution Grid Regulations and other relevant regulations. The seller must bear the costs to upgrade the metering system at the substation to measure active and reactive energy in both directions on the distribution line connected to the power plant as stipulated in Appendix C of this Agreement;
d) The buyer has the right to review the design and check the completeness of protection devices. The buyer must notify the seller in writing of the audit results within thirty days from the date of receipt of all related technical documents. The buyer must notify the seller in writing of any design errors found. The seller must make modifications and supplements proposed by the buyer in compliance with Distribution Grid Regulations and Transmission Grid Regulations according to the connection voltage level of the power plant;
e) The buyer is responsible for connecting the power plant of the seller to the buyer's grid after the seller has completed all requested modifications and supplements by the buyer and cooperate with the seller to complete the trial run and acceptance of the power plant."
Article 3. Effectiveness
1. This Circular takes effect from July 29, 2016.
2. Transitional provisions for cascaded hydropower systems where the first hydropower plant has an installed capacity greater than 30 MW
a) For cascaded hydropower systems that have signed Power Purchase Agreements under the avoided cost tariff table before the effective date of this Circular, continue to apply the avoided cost tariff table as prescribed in Circular No. 32/2014/TT-BCT until December 31, 2016;
b) By December 31, 2016, if the power plant investor has not completed the commercial operation of the next hydropower plant with an installed capacity of less than 30 MW in the cascaded hydropower system, the following shall apply:
- For hydropower plants in the cascaded hydropower system with an installed capacity of less than or equal to 30 MW: Apply the avoided cost tariff table as prescribed in Circular No. 32/2014/TT-BCT;
- For hydropower plants in the cascaded hydropower system with an installed capacity greater than 30 MW: Calculate and negotiate electricity prices and Power Purchase Agreements in accordance with Circular No. 56/2014/TT-BCT; participate in the electricity market in accordance with regulations of the Ministry of Industry and Trade. By December 31, 2016, if the investor fails to complete the negotiation of electricity prices and Power Purchase Agreements as prescribed in Circular No. 56/2014/TT-BCT, this power plant will not be dispatched to generate electricity and will not be paid for electricity;
c) After the next hydropower plant in the cascaded hydropower system enters commercial operation, the investor has the right to choose to apply the provisions of Article 1 of this Circular.
3. During the implementation of this Circular, if there are any issues, relevant units are responsible for reporting to the Electricity Regulatory Authority for research, proposal, and submission to the Ministry of Industry and Trade for appropriate amendments and supplements to this Circular.
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