This Circular stipulates the method for calculating the electricity generation price framework for solid waste power plants and biomass power plants in Vietnam, including the selection of benchmark plants, calculation of fuel costs, fixed operation and maintenance costs, and the procedures for establishing, reviewing, and approving the price framework. This Circular takes effect from November 26, 2024.
Đối tượng áp dụng
Vietnam Electricity Corporation, Electricity Regulatory Authority, and related units involved in managing and operating the national power system.
Các điểm cốt lõi
- Method for calculating the electricity generation price framework for solid waste power plants and biomass power plants
- Procedures for establishing, reviewing, and approving the electricity generation price framework
- Authorities of Vietnam Electricity Corporation and Electricity Regulatory Authority in managing the electricity generation price framework
- Amend Point a Clause 2 Article 1 of Circular No. 57/2014/TT-BCT on power generation units connected to the national power grid
- Effective date of this Circular and provisions regarding the implementation of referenced documents
🌐 Tác động xã hội từ văn bản này
- To ensure fairness and transparency in the management of electricity generation prices for solid waste power plants and biomass power plants
- To provide a clear legal basis for relevant entities to perform their tasks effectively
- To support the sustainable development of renewable energy in Vietnam
❓ Câu hỏi thường gặp
When does this Circular take effect?
This Circular takes effect from November 26, 2024.
Who is responsible for preparing the calculation files for the electricity generation price framework?
Vietnam Electricity Corporation is responsible for preparing the calculation files for the electricity generation price framework in accordance with Articles 8 and 9 of this Circular.
What role does the Electricity Regulatory Authority play in managing the electricity generation price framework?
The Electricity Regulatory Authority is responsible for reviewing the calculation files for the electricity generation price framework, organizing reviews, and submitting to the Minister of Industry and Trade for approval of the price framework.
Toàn văn
PART I
GENERAL PROVISIONS
Article 1. Scope of Regulation and Applicability
1. Scope of Regulation
This Circular stipulates the methods, procedures for drafting, reviewing, and approving the power generation price framework for solid waste power plants and biomass power plants.
2. This Circular applies to the following entities:
a) Solid waste power plants, biomass power plants.
This Circular applies after the content regarding electricity prices in 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, Decision No. 08/2020/QD-TTg dated March 5, 2020 of the Prime Minister amending and supplementing certain provisions of Decision No. 24/2014/QD-TTg, and Decision No. 31/2014/QD-TTg dated May 5, 2014 of the Prime Minister on mechanisms to support the development of solid waste power projects in Vietnam have been abolished;
b) Vietnam Electricity Group;
c) Other relevant organizations and individuals.
Article 2. Interpretation of Terms
In this Circular, the following terms shall be understood as follows:
Power Plant chuẩn means a solid waste power plant or a biomass power plant that has been selected as an investor based on the implementation of the National Power Development Plan, with common capacity scale, representative of solid waste power plants and biomass power plants, used to calculate the power generation price framework..
Chapter II
DETERMINATION OF THE POWER GENERATION PRICE FRAMEWORK FOR SOLID WASTE POWER PLANTS AND BIOMASS POWER PLANTS
Article 3. Principles for Establishing the Power Generation Price Framework
The power generation price framework for solid waste power plants and biomass power plants is a range of values from 0 (VND/kWh) to the price level of the standard power plant. The price level of the standard power plant is determined according to the method prescribed in Articles 4, 5, 6, and 7 of this Circular.
Article 4. Method for Determining the Power Generation Price of For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.the Power Plant chuẩn
The power generation price (VND/kWh) of the standard power plant is determined according to the following formula: 
= FC + FOMC + VC
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:specialized agency under the People's Committee of the province/city. FC:
Where:
|
The average fixed cost of the standard power plant is determined according to the provisions of Article 5 of this Circular (VND/kWh). |
FOMC: |
|
The annual fixed operation and maintenance cost of the standard power plant is determined according to the provisions of Article 6 of this Circular (VND/kWh). |
VC: |
|
The variable cost of the power plant is determined according to the method prescribed in Article 7 of this Circular (VND/kWh). |
Article 5. |
Method for Determining the Average Fixed Cost of 1. The average fixed cost FC (VND/kWh) of the standard power plant is a component for recovering investment costs, determined according to the following formula: TC: The investment capital cost for constructing the standard power plant (excluding VAT) converted evenly annually as prescribed in Clause 2 of this Article (VND); For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.the Power Plant chuẩn
The average annual power generation and delivery of the standard power plant is determined according to the provisions of Clause 5 of this Article (kWh).
Where:
|
2. The investment capital cost of the standard power plant converted evenly annually TC is calculated according to the following formula: |
Investment rate of the power plant determined according to the provisions of Clause 3 of this Article (VND/kW); |
|
|
The rated capacity of the power plant (kW); |
:n:
Where:
|
Financial discount rate of the power plant determined according to Clause 5 of this Article (%)." |
The economic life of the power plant as specified in the Appendix attached to this Circular (years); |
|
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.: |
i: |
|
The financial discount rate of the power plant determined according to the provisions of Clause 4 of this Article (%). |
3. The investment rate is the investment cost for 1 kW of rated capacity of the standard power plant determined based on the effective total investment amount (only including production-related items) or actual contract negotiation data (if available), updated with foreign currency exchange rates at the time of calculating the power generation price framework, and references to data from consulting organizations (if necessary). |
|
4. The financial discount rate i (%) applied to the weighted average cost of capital before tax of the standard power plant is determined according to the following formula: |
The proportion of borrowed capital in the total investment as specified in the Appendix attached to this Circular (%); |
The economic life of the power plant as specified in the Appendix attached to this Circular (years);
The average loan repayment period as specified in the Appendix attached to this Circular (years);
Where:
|
+ D |
The pre-tax return on equity determined according to the provisions of Point b of this Clause (%). |
|
d,D |
7. Amend and supplement Point a Clause 5 Article 5 as follows: |
|
In which: |
a) Interest rate on borrowed capital r |
|
For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.Domestic air passenger transport service on regular basic economy class: |
The proportion of foreign currency borrowed capital in the total borrowed capital as specified in the Appendix attached to this Circular (%); |
|
FFor coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;: |
× r |
|
FAverage loan repayment period is 10 years;: |
The proportion of domestic currency borrowed capital in the total borrowed capital as specified in the Appendix attached to this Circular (%); |
The interest rate on foreign currency borrowed capital is determined by adding the average SOFR (Secured Overnight Financing Rate) for a term of 180 days (180 Days - Average) of the 36 consecutive months ending in the nearest March, June, September, or December of the year of contract negotiation published by the Fed (Website: www.newyorkfed.org) to the average annual fee for arranging loans by banks at 3%/year;For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%; is determined based on the total investment amount and the capital structure of the project according to the project approval decision of the competent state agency;
FFor coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%; Proportion of domestic currency (Vietnamese Dong) loan capital in total loan capital as specified in the Appendix attached to this Circular (%);F × rd,F + DDomestic air passenger transport service on regular basic economy class × rd,D
In this context:
|
Domestic air passenger transport service on regular basic economy classF: |
The interest rate on domestic currency borrowed capital is determined by averaging the annual interest rate on deposits in VND for a term of 12 months payable at maturity for individual customers of the first day of the 60 consecutive months preceding the calculation of the power generation price framework of four commercial banks (Vietnam Joint Stock Commercial Bank for Foreign Trade, Vietnam Joint Stock Commercial Bank for Industry and Trade, Vietnam Joint Stock Commercial Bank for Investment and Development, Vietnam Agricultural and Rural Development Bank or their legitimate successors) plus the average annual service fee of the banks at 3%/year. |
|
Domestic air passenger transport service on regular basic economy classDomestic air passenger transport service on regular basic economy class: |
b) Pre-tax return on equity r |
|
Fd,F: |
(%) is determined according to the following formula: |
|
Fd,D: |
e,pt |
Post-tax return on equity (%), determined as 12%;Average loan repayment period is 10 years; t:
Where:
|
FThe average corporate income tax rate during the economic life of the solid waste power plant and biomass power plant as prescribed by current State regulations (%) to ensure that the project enjoys preferential corporate income tax treatment.: |
5. Average annual power generation and delivery |
|
t: |
The average corporate income tax rate for solid waste power plants and biomass power plants shall be determined in accordance with the current regulations of the State (%) to ensure that the project benefits from preferential corporate income tax treatment. |
5. Annual average electricity exchange volume 
(kWh) of the standard power plant is determined according to the following formula:
|
Where: |
|
|
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.: |
The refined capacity of the standard power plant is determined at the point of delivery with the buyer (after deducting self-consumption ratio and transformer loss of the power plant) and taking into account the average capacity reduction ratio for the entire economic life of the standard power plant as approved in the design or referring to data and documents from consulting organizations; |
|
Tmax: |
The number of hours of operation at maximum capacity of the standard power plant is determined based on the approved basic design of the standard power plant or referring to data and documents from consulting organizations. |
In case it cannot be determined according to the above formula, Ebq is determined according to the approved basic design and technical design (if applicable) effective at the time of calculating the price framework.
Article 6. Method for determining the variable cost of the power plant chuẩn
The variable cost of the standard power plant for the year of applying the price framework (VC) is a component to recover fuel costs and other variable costs of the power plant with the number of hours of operation at maximum capacity, determined according to the following formula:
Where:
|
|
Variable cost of the power plant (VND/kW); |
|
|
Refined fuel consumption rate of the standard power plant calculated at the load level specified in Appendix 1 of this Circular (kg/kWh or kJ/kWh or kcal/kWh); |
|
|
Price of main fuel of the power plant (VND/kg) |
:
:
: The price of main fuel is calculated after excluding subsidies for fuel collection, transportation, and processing according to environmental protection laws (if applicable).
Article 7. Method for determiningfixed operation and maintenance cost of the power plant 1. The fixed operation and maintenance cost FOMC (VND/kWh) of the standard power plant is a component to recover annual repair costs, labor costs, and other expenses, determined according to the following formula: chuẩn
Total fixed operation and maintenance cost of the power plant is determined according to Clause 2 of this Article (VND);
Where:
|
|
Average annual electricity delivered by the power plant is determined according to Clause 5 of Article 5 of this Circular (kWh). |
|
|
2. Total fixed operation and maintenance cost |
(VND) of the standard power plant is determined according to the following formula: 
Investment cost of the power plant is determined according to Clause 3 of Article 5 of this Circular (VND/kW).
Where:
|
Financial discount rate of the power plant determined according to Clause 5 of this Article (%)." |
Refined capacity of the standard power plant (kW). |
|
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.: |
O&M |
|
kFixed operation and maintenance cost ratio in the investment cost of the power plant is determined based on referring to data from consulting organizations or actual operational data from similar projects (%).: |
PROCEDURE FOR ESTABLISHING, REVIEWING |
PART III
APPROVING AND PRICE FRAMEWORK GENERATION
Article 8. N |||
Establishing, reviewing approving and price framework for power generation 1. Vietnam Electricity Corporation shall be responsible for:
a) Proposing the selection of standard power plants to calculate the price framework for power generation of solid waste power plants, cogeneration power plants, and biomass power plants that are not cogeneration (if any);
b) Calculating or hiring consultants to select parameters and calculate the power generation price of the standard power plant according to the provisions of Chapter II of this Circular.
c) Preparing the calculation file for the price framework for power generation according to Article 9 of this Circular, submitting to the Electricity Regulatory Authority for review.
d) In cases where the parameters for calculating the price framework fluctuate and require recalculation of the power generation price framework, Vietnam Electricity Corporation shall be responsible for recalculating and reporting to the Electricity Regulatory Authority for review, then submitting to the Ministry of Industry and Trade for issuance.
2. The Electricity Regulatory Authority shall be responsible for checking the completeness and validity of the submitted files. If necessary, the Electricity Regulatory Authority may issue a letter requesting Vietnam Electricity Corporation to amend, supplement, or clarify the contents of the file. Within the latest 15 working days from the date of receipt of the request for amendment, supplementation, or clarification of the contents of the file from the Electricity Regulatory Authority, Vietnam Electricity Corporation shall be responsible for sending a report clarifying the contents of the file as requested.
3. The Electricity Regulatory Authority shall be responsible for organizing the review of the price framework for power generation, submitting to the Minister of Industry and Trade for approval, and publishing on the Electricity Regulatory Authority's website.
3. The Electricity Regulatory Authority shall be responsible for organizing the review of the power generation pricing framework, submitting it to the Minister of Industry and Trade for approval, and publishing it on the Electricity Regulatory Authority's electronic information website.
Article 9. Documents for requesting approval of the electricity generation price framework
The documents for requesting approval of the electricity generation price framework include:
1. A proposal for reviewing and approving the electricity generation price framework.
2. Tables of parameters and calculation documents for the electricity generation price for standard power plants as prescribed in Articles 4, 5, 6, 7, and the annexes issued together with this Circular.
3. Related documents concerning the parameters for calculating the electricity generation price.
Chapter IV
IMPLEMENTING PROVISIONS
Article 10. Implementation
1. The Electricity Regulatory Authority is responsible for reviewing and submitting to the Minister of Industry and Trade for approval of the electricity generation price framework.
2. Vietnam Electricity Corporation is responsible for preparing the calculation documents for the electricity generation price framework in accordance with Articles 8 and 9 of this Circular.
Article 11. Amending point a of Clause 2 of Article 1 of Circular No. 57/2014/TT-BCT dated December 19, 2014, of the Minister of Industry and Trade on the method, procedures for building and promulgating the electricity generation price framework as follows:
"a) Power generation units owning power plants connected to the national grid with total installed capacity exceeding 30 MW, power plants with installed capacity up to 30 MW voluntarily participating in the electricity market, except strategic multi-purpose hydropower plants, oil-fired power plants, independent power plants invested under the Build-Operate-Transfer (BOT) model, renewable energy power plants (wind, solar, geothermal, tidal, solid waste, and biomass), and power plants with special mechanisms prescribed by the Prime Minister, the Ministry of Industry and Trade, or competent state management agencies."
Article 12. Effectiveness
1. This Circular takes effect from November 26, 2024.
2. In cases where the referenced documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement documents.
During implementation, if any difficulties arise, organizations and individuals are responsible for reporting to the Ministry of Industry and Trade for appropriate supplementation and amendment./.
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