Circular No. 16/2020/TT-BCT amending and supplementing certain provisions of Circular No. 44/2015/TT-BCT dated December 9, 2015, issued by the Minister of Industry and Trade on the development of biomass power projects, Avoidable Cost Tariff Table, and Model Power Purchase Agreements applicable to such projects.

CIRCULAR

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF CIRCULAR NO. 44/2015/TT-MCT DATED DECEMBER 9, 2015 ISSUED BY THE MINISTER OF INDUSTRY AND TRADE ON THE DEVELOPMENT OF PROJECTS, AVOIDABLE COST RATES, AND MODEL POWER PURCHASE CONTRACTS APPLICABLE TO BIOMASS POWER PROJECTS

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;

Pursuant to Decision No. 24/2014/QD-TTg dated March 24, 2014 of the Prime Minister on mechanisms to support the development of biomass power projects in Vietnam; and Decision No. 08/2020/QD-TTg dated March 5, 2020 of the Prime Minister amending and supplementing certain articles of Decision No. 24/2014/QD-TTg dated March 24, 2014 of the Prime Minister on mechanisms to support the development of biomass power projects in Vietnam;

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

The Minister of Industry and Trade promulgates this Circular amending and supplementing certain articles of Circular No. 44/2015/TT-MCT dated December 9, 2015 issued by the Minister of Industry and Trade on the development of projects, avoidable cost rates, and model power purchase contracts applicable to biomass power projects.

Article 1. Amending and supplementing certain articles of Circular No. 44/2015/TT-MCT dated December 9, 2015 issued by the Minister of Industry and Trade on the development of projects, avoidable cost rates, and model power purchase contracts applicable to biomass power projects.

1. Article 1 shall be amended as follows:

"Article 1. Scope of Regulation

This Circular stipulates the development of biomass power projects and the model power purchase contract applicable to grid-connected biomass power projects (hereinafter referred to as the model power purchase contract).

2. Clause 1 of Article 5 shall be amended as follows:

"1. The investor is only allowed to establish grid-connected biomass power projects that are included in the following plans: Power Development Plan or Provincial Plan approved. The content of the grid-connected biomass power project establishment shall comply with current regulations on investment construction management and the provisions of Clause 3 of this Article."

3. Amend the name of Chapter III as follows: "Chapter III. Model Power Purchase Contract for Grid-Connected Biomass Power Projects".

4. Article 9 shall be amended as follows:

"Article 9. Application of electricity prices for biomass power projects

The selling price of electricity for grid-connected biomass power projects shall be implemented according to Decision No. 08/2020/QD-TTg dated March 5, 2020 of the Prime Minister amending and supplementing certain articles of Decision No. 24/2014/QD-TTg dated March 24, 2014 of the Prime Minister on mechanisms to support the development of biomass power projects in Vietnam."

5. Clause 1 of Article 10 shall be amended as follows:

"1. The use of the model power purchase contract for grid-connected biomass power projects is mandatory in power purchases between the seller and buyer."

6. Article 11 shall be amended and supplemented as follows:

"Article 11. Implementation Organization

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

a) Promoting, guiding, and inspecting the implementation of this Circular;

b) In the process of implementation, if there are difficulties, coordinating with relevant units and localities to examine and propose the Minister of Industry and Trade to amend and supplement this Circular.

2. Each year, before January 15, the People's Committee of the province where there are biomass power projects shall report in writing to the Ministry of Industry and Trade (Electricity and Renewable Energy Department) on the registration of investment activities and the implementation status of projects in their province for monitoring and management."

7. Point a of Clause 2, Point a of Clause 3 of Article 12 shall be amended and supplemented as follows:

"Article 12. Responsibilities of related organizations and individuals

2. The seller shall be responsible for:

a) Agreeing and signing contracts with the buyer according to the model power purchase contract and the selling price of electricity according to Decision No. 08/2020/QD-TTg dated March 5, 2020 of the Prime Minister amending and supplementing certain articles of Decision No. 24/2014/QD-TTg dated March 24, 2014 of the Prime Minister on mechanisms to support the development of biomass power projects in Vietnam;

3. The buyer shall be responsible for:

a) Agreeing and signing contracts with the seller according to the model power purchase contract and the buying price of electricity according to Decision No. 08/2020/QD-TTg dated March 5, 2020 of the Prime Minister amending and supplementing certain articles of Decision No. 24/2014/QD-TTg dated March 24, 2014 of the Prime Minister on mechanisms to support the development of biomass power projects in Vietnam."

8. Article 13 shall be amended as follows:

"Article 13. Transitional Provisions

Biomass power projects that have been operating and generating electricity before April 25, 2020 shall sign new power purchase contracts with the buyer to apply the buying and selling electricity prices stipulated in Clause 9 of Article 1 of Decision No. 08/2020/QD-TTg from April 25, 2020 until the remaining term of the existing power purchase contract."

9. Supplement Appendix II on the Annual Report Template of the People's Committee of the Province on Investment Registration Activities and Implementation Status of Biomass Power Projects in the Province as stipulated in Clause 6 of this Article.

Article 2. Repeal and Replace

1. Replace Appendix III issued together with Circular No. 44/2015/TT-BCT dated December 9, 2015, of the Minister of Industry and Trade regarding project development, Avoidable Cost Schedule, and Model Power Purchase Agreement for biomass power projects with Appendix I issued together with this Circular;

2. Replace the phrase "National Energy Administration" in Circular No. 44/2015/TT-BCT dated December 9, 2015 with the phrase "Electricity and Renewable Energy Department";

3. Repeal Clause 4 of Article 2, Article 3, Article 4, Clause 2 of Article 5, Article 8, Point c of Clause 2, Clause 4 of Article 12, Appendix I, and Appendix II issued together with Circular No. 44/2015/TT-BCT dated December 9, 2015;

4. Repeal Circular No. 29/2015/TT-BCT dated August 31, 2015 of the Minister of Industry and Trade concerning the contents, procedures, and formalities for preparing, reviewing, and approving plans for the development and utilization of biomass energy;

Article 3. Effectiveness

This Circular takes effect from August 20, 2020.