Circular No. 29/2015/TT-BCT stipulates the contents, procedures, and processes for drafting, reviewing, and approving plans for the development and utilization of biomass energy.

CIRCULAR

Provisions on the content, procedures, and formalities for drafting, reviewing, and approving

plans for the development and utilization of biomass energyi

____________________

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. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Based on Decision No. 24/2014/QĐ-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 General of the Energy Administration,

The Minister of Industry and Trade issues this Circular stipulating the content, procedures, and formalities for drafting, reviewing, and approving plans for the development and utilization of biomass energy.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates the content, procedures, and formalities for drafting, reviewing, and approving national plans for the development and utilization of biomass energy and provincial plans for the development and utilization of biomass energy.

2. This Circular applies to organizations and individuals involved in the drafting, reviewing, and approving of plans for the development and utilization of biomass energy in Vietnam.

Article 2. Interpretation of Terms

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

1. Biomass energy used for electricity production includes: agricultural waste, processing waste from agriculture and forestry products, and other types of crops that can be used as fuel for electricity production.

2. Theoretical biomass energy potential is the biomass energy potential that can be sustainably harvested and utilized according to physical principles of biomass without considering limitations in access and collection. The theoretical biomass energy potential of a type of biomass is estimated based on the ratio of waste or sustainable harvesting coefficient and the harvest or extraction yield of agricultural or forestry crops or other types of crops.

3. Technical biomass energy potential is the portion of the theoretical biomass energy potential that can be harvested and utilized after considering limitations in harvesting, accessibility, and collection technology. The technical biomass energy potential of a type of biomass is calculated based on its collection coefficient and theoretical energy potential. Each type of biomass has a different collection coefficient depending on its characteristics.

4. Commercial biomass energy potential is the technical biomass energy potential that can be exploited for commercial purposes.

National plan for the development and utilization of biomass energy (hereinafter referred to as the National Plan) is a national plan aimed at determining the total potential for developing and utilizing biomass energy nationwide, distributing the potential for developing and utilizing biomass energy among regions or provinces during each investment construction phase up to 2020, with consideration given to 2030.

Provincial plan for the development and utilization of biomass energy (hereinafter referred to as the Provincial Plan) is a plan aimed at determining the total potential for developing and utilizing biomass energy within the province's scope, distributing biomass potential in various areas of the province during each investment construction phase up to 2020, with consideration given to 2030.

Chapter II

CONTENT, PROCEDURES, AND FORMALITIES FOR DRAFTING, REVIEWING, AND APPROVING NATIONAL PLANS

FOR THE DEVELOPMENT AND UTILIZATION OF BIOMASS ENERGY

Article 3. Content of the national plan for the development and utilization of biomass energy

1. The national plan for the development and utilization of biomass energy includes the following main contents:

a) Overview of the situation regarding the development of biomass energy globally and in Vietnam: current status of exploitation, supply, and use; applied technologies; trends in development; measures and policies to support development; current status of biomass energy development in Vietnam and research on existing biomass energy potential in Vietnam;

b) Natural and socio-economic characteristics of Vietnam: current status and development orientation;

c) Current status and planning for the development of power sources and the power grid in Vietnam;

d) Determination of theoretical, technical, and commercial biomass energy potentials, and the capacity of Vietnam to exploit biomass energy resources under various development scenarios;

đ) List of regions and provinces with theoretical, technical, and commercial biomass energy potentials;

e) Interconnection schemes with the national power system;

g) Technical, economic, and financial criteria for developing biomass power;

h) Strategic environmental impact assessment in the activities of constructing and developing biomass power projects;

i) Solutions and policy mechanisms;

k) Conclusions and recommendations.

2. Detailed content of the national plan for the development and utilization of biomass energy is specified in Appendix I attached to this Circular.

Article 4. Procedure and process for establishing and submitting for review the national plan for the development and utilization of biomass energy

1. Preparing detailed outlines and selecting consultants

a) Based on the state budget plan for the establishment of the national plan for the development and utilization of biomass energy, the General Department of Energy shall prepare a detailed outline, budget estimate, and plan for developing the national planning proposal and submit it to the Minister of Industry and Trade for approval;

b) The General Department of Energy shall select consulting organizations with sufficient capacity according to current regulations to develop the national planning proposal based on the approved outline and budget estimate and submit it to the Minister of Industry and Trade for approval;

2. Establishing and submitting for review the national plan for the development and utilization of biomass energy

Consulting organizations shall carry out the preparation of the national planning proposal and are responsible for:

a) Preparing the national planning proposal in accordance with the approved outline and within the assigned timeframe;

b) Implementing intermediate reporting steps to seek opinions from relevant agencies and complete the national planning proposal;

c) Submitting the dossier for reviewing the national planning proposal to the General Department of Energy after completion.

3. Dossier for submitting for review the national plan for the development and utilization of biomass energy includes:

a) 15 (fifteen) copies of the national planning proposal and 01 (one) CD/DVD/USB containing the report on the national planning proposal and accompanying documents (comprehensive biomass data used to develop the national planning proposal, other related documents);

b) 15 (fifteen) copies of the summary report of the national planning proposal.

Article 5. Reviewing, approving, and announcing the national plan for the development and utilization of biomass energy

1. Reviewing and submitting for approval the national plan for the development and utilization of biomass energy

a) The General Department of Energy shall be responsible for reviewing the national planning proposal within 30 (thirty) working days from the date of receiving all valid documents. In necessary cases, the General Department of Energy may hire consultants for review and counter-expertise to support the review work;

b) Within 05 (five) working days from the date of receiving all valid documents, the General Department of Energy shall be responsible for sending a document seeking opinions on the content of the national planning proposal to relevant agencies and localities;

c) Agencies and localities requested for opinions shall be responsible for studying and sending written responses to the General Department of Energy within 15 (fifteen) working days from the date of receipt of the document requesting opinions on the national planning proposal;

d) After receiving written opinions from relevant agencies and units, the General Department of Energy shall complete the review report on the national planning proposal and submit it to the Minister of Industry and Trade for consideration and report to the Prime Minister for decision.

2. Dossier submitted to the Prime Minister

a) Proposal for approval of planning;

b) Draft decision on plan approval;

c) 10 (ten) copies of the completed national planning proposal;

d) 10 (ten) copies of the summary report of the national planning proposal;

đ) Written comments from relevant agencies and localities;

e) Explanation and adoption of comments from relevant agencies and localities.

3. The General Department of Energy shall be responsible for announcing the approved national plan for the development and utilization of biomass energy on its electronic information website, the Ministry of Industry and Trade, and organizing a conference to announce the plan.

4. The costs for reviewing and announcing the national plan for the development and utilization of biomass energy shall be implemented in accordance with current laws.

Chapter III

CONTENT, PROCEDURES, AND FORMALITIES FOR DRAFTING, REVIEWING, AND APPROVING NATIONAL PLANS

AND THE USE OF BIOMASS ENERGY AT PROVINCIAL LEVEL

Article 6. Content of the Provincial Biomass Energy Development and Utilization Plan

1. The Provincial Biomass Energy Development and Utilization Plan (hereinafter referred to as the Provincial Planning Proposal) includes the following main contents:

a) An overview of the development situation of biomass energy in the province;

b) Natural characteristics and socio-economic conditions and directions for development of the province;

c) Current status and directions for developing power sources and power grids within the provincial territory;

d) Determination of theoretical, technical, and commercial biomass energy potential and the capacity to exploit biomass energy resources in the province and exploitation and utilization schemes according to various development scenarios;

đ) List of biomass power projects: area and boundaries of zones for developing biomass power; scale and capacity of biomass power projects.

e) Interconnection schemes with the national power system;

g) Capital investment requirements and financial effectiveness of the project;

h) Environmental impact assessment during the construction and development of biomass power projects;

i) Solutions and policy mechanisms;

k) Conclusions and recommendations.

2. Detailed contents of the Provincial Biomass Energy Development and Utilization Plan are specified in Appendix II attached hereto.

Article 7. Procedures and formalities for establishing, submitting, and reviewing the Provincial Biomass Energy Development and Utilization Plan

1. Preparing detailed outlines and selecting consultants

a) Based on the budget plan allocated for planning work, the Department of Industry and Trade is responsible for preparing detailed outlines and budget estimates (which may involve hiring consulting organizations to carry out the work) and submitting them to the People's Committee of the province or centrally governed city (hereinafter referred to as the Provincial People's Committee) for approval;

b) The Department of Industry and Trade selects a consultant with sufficient capacity to prepare the planning based on the approved outline and budget estimate and submits it to the provincial People's Committee for approval.

2. Establishing and Submitting the Provincial Biomass Energy Development and Utilization Plan

a) The selected consulting organization conducts the preparation of the Provincial Planning Proposal in accordance with the approved outline and within the assigned timeframe;

b) During the preparation of the Provincial Planning Proposal, the consulting organization must implement intermediate reporting steps to seek opinions from relevant agencies and complete the Provincial Planning Proposal;

c) The Department of Industry and Trade is responsible for soliciting opinions from relevant agencies, provincial electricity companies, and related regional electricity corporations regarding the Provincial Planning Proposal.

Within 15 (fifteen) working days from the date of receipt of the request for comments, the agencies and units requested to provide comments shall be responsible for studying and providing written comments to the requesting agency.

3. Documents submitted to the Ministry of Industry and Trade for approval of the Provincial Biomass Energy Development and Utilization Plan include:

a) The Provincial People's Committee's proposal for approving the plan;

b) 10 (ten) complete copies of the Provincial Planning Proposal and 01 (one) CD/USB containing the report on the Provincial Planning Proposal and accompanying documents (explanatory notes, appendices, data, figures, comments from relevant agencies, and other reference materials);

c) 10 (ten) summary reports of the Provincial Planning Proposal;

d) Written comments and recommendations from relevant agencies;

đ) Written explanations and adoption of comments from relevant agencies.

Article 8. Review, Approval, and Announcement of the Provincial Biomass Energy Development and Utilization Plan

1. Review and Approval of the Provincial Biomass Energy Development and Utilization Plan

a) The General Department of Energy is responsible for reviewing the Provincial Planning Proposal within 30 (thirty) working days from the date of receipt of complete and valid documents. In cases where necessary, the General Department of Energy may hire consultants to assist in the review process;

b) Within 05 (five) working days from the date of receipt of complete and valid documents, the General Department of Energy must send a request for comments on the Provincial Planning Proposal to relevant agencies and localities;

c) Agencies and localities requested to provide comments shall be responsible for studying and sending written responses to the General Department of Energy within 15 (fifteen) working days from the date of receipt of the request for comments on the Provincial Planning Proposal;

d) After receiving written comments from relevant agencies and units, the General Department of Energy completes the review report and submits it to the Minister of Industry and Trade for consideration and approval.

2. The Provincial People's Committee is responsible for announcing the Provincial Biomass Energy Development and Utilization Plan that has been approved on the provincial website and organizing a conference to announce the plan.

3. Costs for reviewing and announcing the Provincial Biomass Energy Development and Utilization Plan shall be implemented in accordance with current laws.

Chapter IV

IMPLEMENTING PROVISIONS

Article 9. Responsibilities of the Parties Involved

1. The Energy General Department shall be responsible for:

a) Advising and assisting the Minister of Industry and Trade to propose the Prime Minister consider and decide on amending and supplementing the national plan for the development and utilization of biomass energy in accordance with economic and social conditions at each period;

2.  Provincial People's Committees shall be responsible for monitoring and supervising the development of solar power projects in their localities in accordance with approved provincial and national solar power development plans, in compliance with the provisions of this Circular.

2. Provincial People's Committees have the responsibility:

a) Cooperating with the Ministry of Industry and Trade to assess the potential of biomass energy in their locality during the process of developing the National Plan for the Development and Utilization of Biomass Energy;

b) Based on the potential of biomass energy in the province, deciding on the establishment of the provincial plan for the development and utilization of biomass energy or using data and information from the national plan for the development and utilization of biomass energy as a basis for developing biomass energy in the locality;

c) Based on the economic and social conditions in the locality at each period, proposing the Minister of Industry and Trade to decide on amending and supplementing the provincial plan for the development and utilization of biomass energy;

d) Monitoring, supervising, and inspecting the operation of biomass power project development in the locality according to the approved provincial plan for the development and utilization of biomass energy.

Article 10. Transitional Provisions

1. For planning projects that have been approved by competent authorities for outline, tasks, and budget before this Circular takes effect and have been confirmed by the Ministry of Industry and Trade, the planning project shall be implemented according to the approved decision.

2. Within ninety (90) days from the date this Circular takes effect, localities with planning projects as stipulated in Clause 1 of this Article shall have the responsibility to send the Ministry of Industry and Trade for review and confirmation.

Article 11. Effective Date

1. This Circular takes effect from October 16, 2015.

2. During implementation, in case of difficulties or obstacles, the National Power Agency will coordinate with relevant agencies and units to report to the Minister of Industry and Trade for consideration and amendment of this Circular.

ANNEX I

CONTENT OF THE NATIONAL PLAN FOR THE DEVELOPMENT AND UTILIZATION OF BIOMASS ENERGY

(Annexed to Circular No. 29/2015/TT-BCT dated August 31, 2015 issued by the Minister of Industry and Trade)

A. Explanatory Section

Chapter 1. Overview of the Situation of Biomass Energy Development in the World and Vietnam

1.1. Current Status of Extraction, Supply, and Utilization

1.2. Technology and Trends in Biomass Energy Development

1.3. Regional and National Policies Related to Biomass Energy Development

1.4. Current Status of Biomass Power Development in Vietnam and Existing Research on Biomass Power Potential in Vietnam

1.5. Research Methodology for Planning

1.6. Current Support Mechanisms for Biomass Energy Development

Chapter 2. Natural and Economic-Social Characteristics of Vietnam

2.1. Natural Characteristics

2.1.1. Geographic Location

2.1.2. Topographic Features

2.1.3. Meteorological Conditions

2.2. Economic-Social Characteristics

2.2.1. Current Economic-Social Status

2.2.2. Directions for Economic-Social Development

2.3. Current Status and Land Use Planning

Chapter 3. Current Status and Directions for Power Source and Grid Development in Vietnam

3.1. Current Status of National Power Sources and Grids

3.2. Current Electricity Consumption Status

3.3. Current Proportion of Biomass Power

3.4. National Electricity Demand

3.5. Directions for National Power Source and Grid Development and Limitations to Current Biomass Power Development

3.5. Directions for the development of national power sources and grids and limitations on the current development of biomass power

Chapter 4. Determining Theoretical, Technical, and Commercial Biomass Energy Potential

4.1. Input Data

4.2. Methods for Collecting and Processing Data

4.3. Main Results

4.4. Characteristics of Biomass

4.5. Criteria for Determining Theoretical, Technical, and Commercial Biomass Energy Potential

4.6. List of Theoretical, Technical, and Commercial Biomass Energy Potential: Area and Boundaries of Regions for Developing Biomass Power; Scale of Capacity of Biomass Power Projects

Chapter 5. Connecting to the National Electricity System Plan

Chapter 6. Technical, Economic, and Financial Indicators for Biomass Power Development

6.1. Determining Technical Indicators for Biomass Power

6.2. Determining Economic and Financial Indicators for Biomass Power Projects

6.3. Estimating Total Investment Costs for Investment Phases

Chapter 7. Strategic Environmental Impact Assessment in Biomass Power Activities

7.1. Evaluation of Land Use Impacts

7.2. Resettlement

7.3. Environmental Impact Assessment and Emission Reduction Potential

7.4. Conclusions

Chapter 8. Solutions and Policy Mechanisms

8.1. Main Solutions Regarding Capital and Procedures

8.2. Policy Mechanisms Supporting Biomass Power Development

8.3. Implementation Organization

Chapter 9. Conclusions and Recommendations

B. Appendices, Drawings, and Maps

ANNEX II

CONTENT OF THE DEVELOPMENT PLAN FOR ELECTRICITY

AND THE USE OF BIOMASS ENERGY AT PROVINCIAL LEVEL

A. Explanatory Section

Chapter 1. Overview of the Situation of Biomass Energy Development in the World and Vietnam

Chapter 1. Overview of Biomass Energy Development Situation in the Province

1.1. Technology and Trends in Biomass Energy Development

1.2. Current Policies and Support Mechanisms Related to Biomass Power Development

1.3. Current Status of Biomass Energy Extraction and Development in the Province

1.4. Research Methodology for Planning

1.5. Support Mechanism for Biomass Power Development

Chapter 2. Natural and Socio-Economic Characteristics of the Province

2.1.1. Geographic Location

2.1.2. Topographic Features

2.1.3. Meteorological Conditions

2.1.3. River Characteristics

2.1.4. Meteorological Conditions

2.2.1. Current Economic-Social Status

2.2.2. Directions for Economic-Social Development

2.3. Current Status and Land Use Planning

2.3. Current and Planned Land Use

Chapter 3. Current Status and Direction of Electricity Generation and Grid Development in the Province

3.1. Current Status of Electricity Sources and Grids in the Province

3.2. Provincial Electricity Demand

3.3. Plan for Developing Electricity Sources in the Province

Chapter 4. Determining Theoretical, Technical, Financial, and Commercial Biomass Energy Potential

4.1. Input Data

4.2. Data Processing Methods

4.3. Main Results

4.4. Characteristics of Biomass

4.5. Criteria for Determining Theoretical, Technical, and Commercial Biomass Energy Potential

4.6. List of Theoretical, Technical, and Commercial Biomass Energy Potential: Area and Boundaries of Regions for Developing Biomass Power; Scale of Capacity of Biomass Power Projects

Chapter 5. Connecting to the National Electricity System Plan

Chapter 6. Technical, Economic, and Financial Indicators for Biomass Power Development

6.1. Determining Project Technical Indicators for Biomass Power

6.2. Determining Economic and Financial Indicators for Biomass Power Projects

6.3. Estimating Total Investment Costs and Investment Phases

Chapter 7. Environmental Impact Assessment in Biomass Power Extraction and Production Activities

7.1. Evaluation of Land Use Impacts

7.2. Resettlement

7.3. Environmental Impact Assessment and Emission Reduction Potential

7.4. Conclusions

Chapter 8. Solutions and Policy Mechanisms

8.1. Main Solutions Regarding Capital and Procedures

8.2. Policy Mechanisms Supporting Biomass Power Development

8.3. Implementation Organization

Chapter 9. Conclusions and Recommendations

B. Appendices, Drawings, and Maps