Circular 18/2020/TT-BCT on Stipulating development of the Solar power project in Vietnam

1 Chapter I. ENERAL PROVISIONS
5 ATTACHED APPENDIX

CIRCULAR 18/2020/TT-BCT

July 17th, 2020

Stipulating project development and standardized Power Purchase Agreement for solar power projects

Pursuant to Decree No. 98/2017/ND-CP dated 18th August 2017 by the Government defining functions, tasks, power and organizational structure of the Ministry of Industry and Trade (MOIT);

Pursuant to Decision No. 13/2020/QD-TTg dated 6th  April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Viet Nam;

At the request of the Director General of Electricity and Renewable Energy Authority (EREA),

Minister of Industry and Trade promulgates Circular on project development and sample Power Purchase Agreement (PPA) applied for solar power projects.

Chapter I. ENERAL PROVISIONS

Article 1. Governing scope

This Circular stipulates the development of grid-connected solar power projects, rooftop solar power systems and sample PPA applied for grid-connected projects and rooftop solar power systems in Viet Nam.

Article 2. Subjects of application

This Circular is applied for organizations and individuals involved in the development of solar power projects in Viet Nam and other relevant organizations and individuals.

Article 3. Interpretation of terms

1.  Wp, KWp and MWp are measurement units of the direct current (DC) capacity of PV panels under standard conditions and publicized by the manufacturers.

2.  Time-bound use of land and water surface areas for a grid-connected solar power project is the total area for constructions (including power plants and substations and excluding transmission lines and roads to the power plants).

Chapter II. SOLAR POWER DEVELOPMENT

Article 4. Grid-connected solar power investment project

1.  Power purchase price

a)   If a grid-connected solar power project has its investment policy approved by competent authorities before 23rd November 2019 and the commercial operation date (COD) (after completing initial comisssioning for the whole or a part of work; acquirig operating license for power generation; confirming the meter reading between the power Seller and Buyer for payment calculation) of the whole or a part of project in the period from 1st July 2019 to 31st December 2020, the wole or a part of that project will be applied with the Feed-in Tariff of grid-connected solar power projects at the electricity delivery point stipulated in the Appendix of Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Vietnam.

b)    The grid-connected solar project in Ninh Thuan province has the power selling price determined on the order of recognition time of COD (after completing initial comisssioning for the whole or a part of work; acquiring operating license for power generation; confirming the meter reading between the power Seller and Buyer for payment calculation) of the whole or a part of the project. Speciffically,

The capacity of a part or the whole of the project with COD before 1st January 2021 is included in the total accumulative capacity of no more than 2,000 MW applied with the power selling price in clause 3, Article 5 of Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Vietnam;

The capacity of a part or the whole of the project which does not belong to the total accumulative capacity of 2,000 MW and has its investment policy approved by competent authorities before 23rd November 2019 and COD in the period from 1st July 2019 to 31st December 2020 will be applied with the power selling price in clause 1, Article 5 of Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Vietnam.

2.  Contents of the basic design document of a solar power project comply with the current law and following requirements:

a)   Characteristics of the area and solar radiation potential of the project;

b)    assessment of impacts of the solar power project connection plan on safe and stable operation of the power system in the area;

c)   Design and connection of the SCADA system or load dispatch information.

3.  Land and water surface areas under time-bound use of the project is no more than 1.2 ha/01 MWp.

Article 5. Development of the rooftop solar system:

1.  Feed-in Tariff (FiT)

a)  Power buyer is the EVN: The FiT of the rooftop solar system follows Article 8 of Decision No. 13/2020/QD-TTg dated 6th June 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Viet Nam.

b)   Power buyer is not the EVN: The FiT is decided by negotiations between the Buyer and Seller.

2.  Sequence of implementation for the rooftop solar power system:

a)   The power Seller (Seller) registers its grid connection with the power Buyer (Buyer) and provides information on installation location, capacity (no more than 01 MW and 1,25 MWp), transmission line and expected connection point to the Buyer.

b)      The Buyer gives feedback on the ability of connection and capacity transmission of the rooftop solar system of the Seller registering its grid connection with the Buyer. The response time is no more than 5 business days since the date that the Buyer receives the Seller’s registration.

c)    The Seller and the Buyer realize the agreement for connecting the Seller’s rooftop solar system to the Buyer’s grid system. If the rooftop solar system of the Seller is connected to the grid which is not the Buyer’s asset or the grid of a power distribution and retail unit, the Buyer and the Seller will negotiate with the grid owner (organization or individual) to implement the connection agreement. The Buyer receives all grid connection documents and the written connection agreement of the grid owner (if any).

d)   The Seller installs the rooftop solar system with size satisfying contents at points b and c, clause 2 of this Article.

e)     The Seller sends request documents for electricity sale from the rooftop solar system including the request letter for electricity sale; technical documents of the PV panel and AC/DC inverter; transmission lines and transformer (if any); factory certificate and equipment quality certificate (certified true copy).

f)    Stakeholders conduct the technical examination and installation of electric meter; meter reading confirmation; signing of PPA and power generation to put the rooftop solar system into operation. Deadline for the Buyer to sign the PPA is 5 business days since the date of receiving request documents for electricity sale from the Seller. In case that the Buyer is the EVN or its authorized member, then the Buyer and the Seller shall sign the PPA according to regulations at clause 2 of Article 8 of this Circular.

g)     Upon specific conditions and technical requirements of each individual rooftop solar power system, the Seller and the Buyer shall decide whether the implementation sequence is chronological or combined at the same time with items and tasks stated at points c, d, e and f of clause 2 of this Article.

3.  The Seller shall ensure that the AC/DC inverter has the anti-islanding function when the grid has no power to avoid the interference into and control of operation and follows legal norms and regulations on power quality.

4.  The rooftop solar system is exempted from the operating license for power generation.

Chapter III. SAMPLE POWER PURCHASE AGREEMENT

Article 6. Contents of the sample Power Purchase Agreement (PPA)

1.  Contents of the sample PPA applied for grid-connected solar power projects are stipulated in Appendix 1 attached to this Circular.

2.  Contents of the sample PPA applied for rooftop solar power systems are stipulated at Appendix 2 attached to this Circular.

3.  Besides contents stipulated at clauses 1 and 2 of this Article, the Seller and the Buyer are only allowed to supplement contents to the sample PPA for clarification of responsibilities and power of each party. Supplementary contents should be consistent with contents of the sample PPA which is promulgated in attachment with this Circular.

Chapter IV IMPLEMENTATION

Article 7. Responsibilities of state management agencies

1.  The EREA is responsible for:

a)   Communicating, guiding and examining the implementation of this Circular.

b)   Summarizing problems and difficulties and reporting them to the Minister of Industry and Trade for the review, amendment and supplementation of this Circular.

2.  Provincial People’s Committees (PPCs) are responsible for

a)   Monitoring, examining and supervising the development of solar power in relevant localities in conformity to the current law.

b)   Making a written report (with form in Appendix 3 attached to this Circular) on business registration and implementation of grid-connected solar projects arising in provinces during the reporting period and sending it to the MOIT before 15th January every year for monitoring and management.

Article 8. Responsibilities of relevant organizations and individuals

1.  The Buyer is responsible for:

a)   Widely communicating contents of connection agreement and signing of the PPA, testing and commissioning applicable to the rooftop solar system; making a report on the rooftop solar system development throughout the country every 6 months and sending it to the MOIT.

b)     Examining and monitoring the operation of solar power plants (including rooftop solar power and grid-connected solar power) in accordance with the law. In case of discovering penetration, interference or equipment supervision software containing contents which violate the law, temporarily stop the connection between the power plant and the national grid, draft the minutes and report to the MOIT for solutions.

2.  The Seller is responsible for:

a)   Complying with regulations on the operation and load dispatch of the power system as well as on the power transmission and distribution systems promulgated by the MOIT.

b)   Regularly examining the operation and performance-monitoring software of solar power equipment to ensure the compliance with legal regulations and avoid externally unauthorized intervention and penetration.

c)   Not acting against the law to ensure information safety.

d)     Protecting the environment, controlling fire and explosion and ensuring electricity safety in accordance with the law.

e)     Clearing, removing, returning the site plan and disposing all materials, equipment of solar power structures during the development and operation or after the conclusion of the grid-connected solar power project and rooftop solar power system in line with legal regulations on environment.

Article 9. Transitional provisions

1.  The whole or a part of the solar power project with its PPA signed and COD regonized before July 1st 2019 will continue to be implemented in accordance with the signed PPA.

2.  In case grid-connected solar power projects (including the whole or a part of the project) and rooftop solar power systems have CODs after June 30th 2019 to the day before effective date of this Circular, the Buyer and Seller are allowed to revise and re- sign the signed PPA following the sample PPA regulated at Article 6 of this Circular.

Article 10. Implementation effectiveness

1. This Circular takes effect from August 31st 2020. Circular No. 16/2017/TT- BCT dated  12th September 2017  and  Circular  No. 05/2019/TT-BCT  dated 11th March 2019 by the MOIT on project development and the sample PPA applied for solar power projects becomes invalid from the effective date of this Circular./.


ATTACHED APPENDIX

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