Promulgating the Electricity Generation Price Range for transitional solar power and wind power plants
On November 3, 2022, the Ministry of Industry and Trade issued Circular No. 15/2022/TT-BCT ("Circular 15") regulating the establishment of a electricity generation price range for transitional solar and wind power plants, which comes into force from November 25, 2022.
In this context, on January 7, 2023, the Ministry of Industry and Trade issued Decision No. 21/QD-BCT ("Decision 21") regulating the electricity generation price range for transitional solar power and wind power plants. This price range was developed by Electricity of Vietnam ("EVN") and appraised by the Electricity Regulatory Authority – Ministry of Industry and Trade under Circular 15. Specifically, the ceiling price of the electricity generation price range (excluding VAT) for solar power and wind power plants shall be as follows:
|
No. |
Type |
Ceiling price (VND/kWh) |
|
1 |
Ground-mounted solar power plant |
1,184.90 |
|
2 |
Floating solar power plant |
1,508.27 |
|
3 |
Onshore wind power plant |
1,587.12 |
|
4 |
Offshore wind power plant |
1,815.95 |
EVN, and transitional solar and wind power generators shall agree on electricity generation prices within (not exceed) the electricity generation price range mentioned above.
Decision 21 took effect from January 07, 2023.
Amendment on dispute settlement of power purchase agreements (“PPAs”)
On December 30, 2022, the Ministry of Industry and Trade issued Circular No. 42/2022/TT-BCT ("Circular 42") regulating the inspection of electricity operations and use, and settlement of disputes pertaining to PPAs. Circular 42 replaces Circular No. 27/2013/TT-BCT dated October 31, 2013 and Circular No. 31/2018/TT-BCT dated October 5, 2018.
Regarding the mechanism for resolving disputes arising from PPAs, Circular 42 stipulates: for PPAs serving domestic purposes or electricity wholesale, retail agreements (excluding those between electricity generators engaging in electricity generation market, competitive wholesale electricity market and PPAs for electricity produced by rooftop photovoltaic installation), the parties may choose one of the following dispute resolution methods:
1. Dispute settlement at the State management agencies in the field of electricity:
- The Department of Industry and Trade will settle disputes over PPAs relating to voltage of up to 110kV;
- Electricity Regulatory Department – Ministry of Industry and Trade settle disputes over PPAs relating to voltage of exceeding 110kV.
These agencies only settle disputes in cases where the parties cannot negotiate on their own, have not conducted civil or commercial arbitration proceedings and have an agreement to request these agencies’ settlement.
The duration for notifying the settlement results is 25 working days or 40 working days (for complex cases) from the receipt date of valid dossiers.
2. Dispute settlement at competent People’s Courts or Commercial Arbitration. The parties to a PPA may bring the case to a competent People’s court or commercial arbitration for settlement in accordance with the law without doing so at the competent State management agency, or even if the case has been settled at the competent State management agency but the parties still do not agree with that resolution results.
Circular 42 shall take effect from February 16, 2023.
Comment: