Decision No. 39/2018/QD-TTg Amending and Supplementing Certain Provisions of Decision No. 37/2011/QD-TTg dated June 29, 2011 of the Government on Mechanisms to Support the Development of Wind Power Projects in Vietnam.

Pursuant to …;

Amending and supplementing certain provisions of Decision No. 37/2011/QĐ-TTg dated June 26, 2011 of the Government on mechanisms to support the development of wind power projects in Vietnam

The Government issues this Decision to amend and supplement certain provisions of Decision No.

Pursuant to the Law on Government Organization dated June 19, 2015;

On the basis of Decree No. 17/2020/NĐ-CP dated February 5, 2020 of the Government amending and supplementing certain articles of related Decrees concerning investment and business conditions within the scope of management under the Ministry of Industry and Trade;

Pursuant to the Investment Law dated November 26, 2014;

Pursuant to the Construction Law dated June 18, 2014;

At the proposal of the Minister of Industry and Trade;

37/2011/QĐ-TTgdated June 29, 2011 of the Government on mechanisms to support the development of wind power projects in Vietnam.Decision of the Government Prime Minister dated June 29, 2011 on the mechanism for supporting wind power project development in Vietnam.

Article 1. Amending and supplementing certain provisions of Decision No. 37/2011/QĐ-TTg dated June 29, 2011 of the Government on mechanisms to support the development of wind power projects in Vietnam

1. Supplement Clause 12, Clause 13, and Clause 14 to Article 2 as follows:

"12. Onshore wind power project means wind power grid-connected projects with wind turbines constructed and operated on land and coastal areas where the outer boundary is the lowest astronomical tide line over many years (18.6 years).

13. Offshore wind power project means wind power grid-connected projects with wind turbines constructed and operated outside the lowest astronomical tide line over many years (18.6 years) offshore.

14. Commercial operation date means the date when part or all of the wind power grid-connected plant is ready to sell electricity to the Buyer and meets the following conditions:

a) The wind power plant has completed initial tests for part or all of the wind power grid-connected plant and related equipment;

b) The plant has been granted a power business operation permit;

c) The Seller and Buyer have agreed on meter readings to start payment."

2. Repeal Article 3, Article 4, and Article 5.

a) Sea freight and passenger transport.

"Article 6. Investment in wind power projects

1. Investment in wind power projects must be in accordance with the approved power development plan.

2. Investment in wind power projects shall be carried out in accordance with the laws on investment management of construction projects."

4. Amending Article 8 as follows:

"Article 8. Commencement of wind power construction projects. The investor may only commence construction of wind power projects upon meeting the commencement conditions for construction projects as stipulated by the Construction Law, having signed a power purchase agreement with the Buyer, having reached an interconnection agreement with the Distribution Company or Transmission Company, and submitting a report on wind measurement data for at least 12 consecutive months."

5. Repeal Article 9.

"6. Amend Article 10 as follows:"

4. Abolishing the annual report on technical requirements for security of equipment serving bank card payments as stipulated in Circular No. 47/2014/TT-NHNN dated December 31, 2014 of the Governor of the State Bank of Vietnam on technical requirements for security of equipment serving bank card payments (hereinafter referred to as Circular No. 47/2014/TT-NHNN) as follows:

1. Within five working days from the date of issuance of the Investment Policy Decision or Investment Registration Certificate, the investor is responsible for sending a certified copy of the Investment Policy Decision or Investment Registration Certificate to the Ministry of Industry and Trade for monitoring and management.

2. Annually, before January 15 and July 15, the People's Committees of provinces with wind power projects must submit semi-annual reports on investment registration activities and project implementation progress within their jurisdiction to the Ministry of Industry and Trade for management and oversight."

7. Amend Article 14 as follows:

"Article 14. Electricity price for grid-connected wind power projects

1. The Buyer is responsible for purchasing the entire electricity output from wind power projects at the following purchase prices at the point of delivery:

a) For onshore wind power projects: The purchase price at the point of delivery is VND 1,928/kWh (excluding VAT, equivalent to 8.5 US cents/kWh, based on the central exchange rate published by the State Bank of Vietnam on August 30, 2018, which is VND 22,683/USD). The purchase price will be adjusted according to fluctuations in the VND/USD exchange rate;

b) For offshore wind power projects: The purchase price at the point of delivery is VND 2,223/kWh (excluding VAT, equivalent to 9.8 US cents/kWh, based on the central exchange rate published by the State Bank of Vietnam on August 30, 2018, which is VND 22,683/USD). The purchase price will be adjusted according to fluctuations in the VND/USD exchange rate.

2. The cost of purchasing electricity from wind power projects shall be calculated and fully included in the input parameters of the annual electricity selling price scheme of the Vietnam Electricity Corporation.

3. The purchase price under Clause 1 of this Article shall apply to part or all of the grid-connected wind power plants that have a commercial operation date before November 1, 2021, and shall be applied for 20 years from the commercial operation date.

4. Wind power projects that have been generating electricity before the date of issuance of this Decision shall apply the purchase price under Clause 1 of this Article from the effective date of this Decision for the remaining term of the signed power purchase agreement.

5. Wind power projects applying the purchase price under this provision shall not be eligible for other existing pricing mechanisms for electricity production.

6. The Ministry of Industry and Trade shall be responsible for proposing to the Prime Minister for consideration and decision regarding the auction mechanism for wind power development and the wind power purchase price applicable from November 1, 2021."

8. Supplement Points d and đ of Clause 1 of Article 16 as follows:

"d) Review and specify regulations on the management of the investment and construction process of wind power projects;

đ) Study and propose to the Prime Minister to establish regulations on incentive mechanisms for domestic production of wind power equipment and to increase the localization rate in wind power projects."

9. Repeal Clause 2 of Article 16.

Article 2. Effective Date

1. This Decision takes effect from November 1, 2018.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial and centrally-administered city People's Committees, Heads of relevant agencies, units, and organizations involved in the development of wind power projects in Vietnam are responsible for implementing this Decision./.