Circular No. 32/2015/TT-BCT on the development of projects and model power purchase agreements applicable to projects using solid waste for power generation.

CIRCULAR

Regulations on the development of projects and model power purchase agreements

applicable to power generation projects using solid waste

___________________ 

Pursuant to the Electricity LawNo. No. 28/2004/QH11 dated December 3, 2004; Law Amending Certain Provisions of the Electricity Law dated November 20, 2012;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CPm, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP Pursuant to Decision No. 31/2014/QĐ-TTg dated May 5, 2014 of the Prime Minister on mechanisms for developing power generation projects using solid waste in Vietnam;

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;

The Ministry of Industry and Trade,policies hỗ trợ hereby promulgates this Circular on the development of power generation projects using solid waste connected to the grid and the issuance of model power purchase agreements for such projects in Vietnam (hereinafter referred to as the Model Power Purchase Agreement).From 100 million VND to less than 300 million VND1. Project investors of power generation projects using solid waste connected to the grid.

Pursuant to the proposal of the Director of the Department of Ethnic Affairs and Religion Propaganda;on This Circular guides the implementation of reverse repurchase transactions of government bonds (TPCP) from temporarily idle state treasury funds (NQNN) in Vietnamese dong (VND) of the State Treasury (KBNN)., amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CPCustoms General Department;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP2. Units managing and operating power generation projects using solid waste connected to the grid.

4. Organizations developing power generation projects using solid waste for electricity business.ồng mua bJune 2024;5. Other organizations and individuals related to the matter.FUNCTIONS, DUTIES, POWERS, ORGANIZATIONAL STRUCTURE, OPERATIONAL REGULATIONS, AND RELATIONSHIPS OF MANAGEMENT BOARDS; DUTIES, POWERS OF THE CHAIRPERSON, VICE CHAIRPERSON (IF ANY), SECRETARY, AND MEMBERS OF MANAGEMENT BOARDSu June 2024;DEVELOPMENT OF POWER GENERATION PROJECTS USING SOLID WASTEof the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Home AffairsArticle 3. Supplementing and adjusting power generation projects using solid waste into the national plan for the development of power sources using solid wasteắn.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Investors of power generation projects using solid waste shall prepare project proposal documents in accordance with the laws on investment and construction and submit them to the People's Committee of the province or centrally governed city (hereinafter referred to as the Provincial People's Committee) where the project is located. Based on the project proposals, the Provincial People's Committee shall prepare a supplementary planning proposal document for the national plan for the development of power sources using solid waste (hereinafter referred to as the Supplementary Planning Proposal Document) in accordance with Clause 4 of this Circular and submit it to the Ministry of Industry and Trade.

Article 2. Applicability

This Circular applies to the following subjects:

2. Within five working days from the date of receipt of the documents, the Ministry of Industry and Trade (General Department of Energy) must issue a request for supplementation if the supplementary planning proposal document is incomplete or invalid.

3. The General Department of Energy shall be responsible for organizing the review of the Supplementary Planning Proposal Document within thirty working days from the date of receipt of the valid documents. If necessary, the General Department of Energy may engage consultants to assist in the review process. Based on the review results, the General Department of Energy shall report to the Minister of Industry and Trade for consideration and approval or submit to the Prime Minister for approval.

3. The General Department of Energy shall be responsible for organizing the review of the Supplementary Planning Proposal within thirty working days from the date of receipt of valid documents. If necessary, the General Department of Energy may engage consultants to assist in the review and provide counter opinions. Based on the review results, the General Department of Energy shall report to the Minister of Industry and Trade for consideration and approval or submit to the Prime Minister for approval.

Article 4. Documents for supplementing projects into the national plan for the development of power sources using solid waste

The documents for supplementing projects into the planning for the development and utilization of biomass energy include:

Chapter II

1. A letter from the Chairman of the Provincial People's Committee proposing to supplement the project into the national plan for the development of power sources using solid waste.

2. Basic information about the investor: legal status documents, business registration, key personnel, experience in implementing projects, financial and technical capacity, including a list of completed projects (including industrial and power projects) if any.

3. Information about the proposed power generation project using solid waste:

a) Type of solid waste and supply capacity;

b) The necessity of investing in the project, favorable and unfavorable conditions, exploitation and utilization plans for solid waste sources (if any);

c) Project description: location, scale, and area of construction, project components; contents related to industry planning, landfill planning, and local construction planning;

d) Preliminary implementation solutions, including: technical and technological schemes and capacity; infrastructure connection plans; equipment installation plans; project implementation schedule and management form; general resettlement compensation and infrastructure construction support plans if any; cost plans and solutions;

đ) Environmental impact assessment;

e) Fire prevention and firefighting measures and security and defense requirements;

g) Total project investment; capital arrangement capability, sources, and funding capacity according to the schedule; economic and financial effectiveness analysis and social benefits of the project.

4. Opinions of the regional electricity corporation or transmission unit (if connected to the transmission system) regarding the Supplementary Planning Proposal Document.

c) Description of the project: location, scale, and construction area of the works; components of the project; contents related to industry planning, waste disposal planning, and local construction planning;

d) Preliminary implementation solutions, including: technical, technological, and capacity schemes; infrastructure connection schemes; equipment installation schemes; implementation schedule and project management form; general resettlement compensation and infrastructure construction support schemes if applicable; plan and cost schemes;

e) Environmental impact assessment;

f) Fire prevention and firefighting solutions and security and defense requirements;

g) Total investment amount of the project; capital arrangement capability, sources of funds, and funding capacity according to progress; economic and financial effectiveness analysis and social benefit evaluation of the project.

4. Opinion of the Regional Electricity Corporation or transmission unit (if connecting to the transmission power system) on the supplementary planning proposal file.

Article 5. Investment Projects for Power Generation Using Solid Waste

1. The investor is only allowed to establish investment projects for power generation using solid waste that are included in the National Plan for Developing Power Sources Using Solid Waste, which has been approved. The content of the investment project for power generation using solid waste shall comply with current regulations on construction project management and the provisions set out in Clause 3 of this Article.

2. For investment projects for power generation using solid waste that are divided into phases with different total capacities at each phase and different operational dates for each year, the investor is responsible for establishing the investment project for each phase. In case the planned operational date of the project deviates more than six months from the schedule specified in the National Plan for Developing Power Sources Using Solid Waste, the investor must report to the People's Committee of the province and the General Department of Energy, Ministry of Industry and Trade.

3. The content of the investment project for power generation using solid waste, in accordance with the legal regulations on construction project management, shall include the following main contents:

a) Assessment of the impact of the connection plan for the power generation project using solid waste on the regional power system;

b) Plan and cost, technical measures for dismantling and handling equipment of the solid waste power plant after the completion of the project.

Article 6. Requirements for Construction Safety and Environmental Protection

Activities related to the development of investment projects for power generation using solid waste must comply with current regulations and standards on construction safety and environmental protection.

Chapter III

ELECTRICITY PRICES FOR POWER GENERATION PROJECTS USING SOLID WASTE

Article 7. Calculation of Purchase Price for Electricity

Before October 30 each year, based on costs and the general electricity price of the system, the General Department of Energy calculates the capacity of power generation sources using solid waste and sends it to the Electricity Regulatory Authority to calculate the electricity price for power generation projects using solid waste for the following year, to be reported to the Minister of Industry and Trade for consideration and decision by the Prime Minister.

Article 8. Purchase and Sale Electricity Prices for Power Generation Projects Using Solid Waste Connected to the Grid

1. The electricity purchaser is responsible for purchasing the entire electricity output from power generation projects using solid waste connected to the grid at the purchase price of electricity at the point of delivery (excluding VAT) as follows:

a) For direct combustion power generation projects using solid waste, the price is 2,114 VND/kWh (equivalent to 10.05 US cents/kWh);

b) For power generation projects burning gas recovered from solid waste landfills, the price is 1,532 VND/kWh (equivalent to 7.28 US cents/kWh).

2. Power generation projects using solid waste applying the electricity sale prices stipulated in Clause 1 of this Article shall not be eligible for support mechanisms for electricity production volumes under other current regulations; the purchase price of electricity will be adjusted according to fluctuations in the exchange rate of VND/USD.

3. The cost of purchasing electricity for power generation projects using solid waste shall be calculated and fully included in the input parameters in the annual electricity sales price plan of Vietnam Electricity Corporation, which has been approved by the competent authority.

Chapter IV

MODEL PURCHASE AND SALE CONTRACT FOR POWER GENERATION PROJECTS USING SOLID WASTE CONNECTED TO THE GRID

Article 9. Application of Model Power Purchase Agreements for Waste-to-Energy Power Generation Projects Connected to the Grid

1. The use of Model Power Purchase Agreements for waste-to-energy power generation projects connected to the grid is mandatory in power purchase transactions between such projects and the electricity purchaser.

2. Waste-to-energy power generation projects connected to the grid must generate all their electrical energy from waste sources.

Article 10. Contents of the Model Power Purchase Agreement for Waste-to-Energy Power Generation Projects Connected to the Grid

1. The contents of the Model Power Purchase Agreement for waste-to-energy power generation projects connected to the grid are specified in the Appendix attached to this Circular.

2. The seller and buyer may supplement the contents of the Model Power Purchase Agreement to clarify the responsibilities and rights of each party, but they shall not alter the fundamental contents of the Model Power Purchase Agreement issued with this Circular.

Chapter V

IMPLEMENTATION

Article 11. Responsibilities of State Management Agencies

1. The Energy General Department shall be responsible for:

a) Annually, calculate the capacity of the waste-to-energy power generation source and submit it to the Electricity Regulatory Authority.

b) Assist the electricity purchaser and seller in resolving issues related to the Model Power Purchase Agreement at the request of one or both parties.

c) Promulgate, guide, and inspect the implementation of this Circular.

2. The Electricity Regulatory Authority is responsible for calculating the electricity price for the following year based on the calculation of the capacity of the waste-to-energy power generation source by the Energy General Department, and report to the Minister of Industry and Trade for consideration and decision by the Prime Minister.

3. Provincial People's Committees are responsible for monitoring, supervising, and inspecting the operation of waste-to-energy power generation projects in their locality according to the national plan for developing waste-to-energy power sources, in compliance with the provisions of this Circular.

Article 12. Responsibilities of relevant organizations and individuals

1. Vietnam Electricity Corporation is responsible for fully calculating the cost of purchasing electricity from waste-to-energy power generation projects and incorporating these costs into the input parameters in the annual electricity selling price plan of Vietnam Electricity Corporation, and submitting it to the competent authority for approval.

2. The seller is responsible for:

a) Agreeing and signing contracts with the buyer according to the Model Power Purchase Agreement and the applicable electricity purchase and sale prices for waste-to-energy power generation projects as stipulated in Article 8 of this Circular;

b) Installing a three-phase meter in accordance with current regulations to measure the electricity consumption for billing purposes;

c) Submitting one copy of the signed Power Purchase Agreement to the Energy General Department within thirty days from the date of signing;

d) Adhering to the regulations on system operation, transmission system regulations, and distribution system regulations issued by the Ministry of Industry and Trade.

3. The buyer is responsible for:

a) Agreeing and signing contracts with the seller according to the Model Power Purchase Agreement and the applicable electricity purchase and sale prices for waste-to-energy power generation projects as stipulated in Article 8 of this Circular;

b) Adhering to the system operation regulations, transmission system regulations, and distribution system regulations issued by the Ministry of Industry and Trade;

Article 13. Transitional Provisions

For purchase and sale contracts signed before the effective date of this Circular, both parties shall be responsible for agreeing and signing an amendment appendix in accordance with the provisions of this Circular.

Article 14. Effective Date

1. This Circular takes effect from December 7, 2015.

2. During the implementation process, if there are difficulties or issues, the Energy General Department will coordinate with relevant agencies and units to report to the Minister of Industry and Trade for consideration and amendment of this Circular./.