Vietnam: What are the details of a solar power sale and purchase agreement form? Who is eligible for solar power sale and purchase?
What is solar power in Vietnam? Who is eligible for solar power sale and purchase?
Pursuant to Clauses 4 and 5, Article 3 of Decision 13/2020/QD-TTg as follows:
- “Solar power” refers to electricity produced by solar panels using the method of converting light energy into electrical energy.
- “Rooftop solar system” refers solar system in which solar panels are installed on the roof of the construction with no more than 1 MW in power and directly or indirectly connected to power grid with up to 35kV of the Buyers.
In common sense, solar power is a source of clean energy, through the process of converting direct sunlight into electricity. The owners can sell it to other units when they fail to use up.
Electricity buyers and sellers in Vietnam, are specified in Clauses 1 and 2, Article 3 of Decision 13/2020/QD-TTg as follows:
- “Buyer” refers to Vietnam Electricity Group (EVN), member entities authorized by the EVN, other organizations and individuals that buy electricity from the Seller or other organizations assigned with rights and obligations of organizations above as per the law.
- “Seller” refers to organizations participating in development sector in solar plants or systems, organizations and individuals assigned with rights and obligations of organizations and individuals mentioned above as per the law.
What are the electricity purchase and sale prices in Vietnam?
Solar power prices are divided into: electricity prices for rooftop solar power projects and electricity prices for grid-connected solar power projects (including floating solar power projects and ground solar power projects).
Pursuant to Article 5 of Decision 13/2020/QD-TTg on electricity price for grid-connected solar power projects as follows:
Electricity price for grid-connected solar power projects
1. Grid-connected solar power projects prioritized for investment by competent authorities before November 23, 2019 whose commercial operation date lies within July 1, 2019 to December 31, 2020 inclusively may apply electricity purchase price schedule for grid-connected solar power under Annex of this Decision.
2. Electricity purchase price under the electricity purchase price schedule does not include VAT and shall be adjusted according to the central rate of VND to USD dollar publicized by the State Bank of Vietnam on the date the Seller produces invoices. The electricity purchase price shall be applied for 20 years from the commercial operation date.
3. With respect to Ninh Thuan Province, purchase price of electricity in grid-connected solar power projects in electricity development planning of all levels whose commercial operation date precedes January 1, 2021 with total capacity no more than 2,000 MW is VND 2,086/kWh (VAT excluded, equals USD 9.35 cent/kWh, according to central conversion rate of VND to USD publicized by the State Bank of Vietnam in April 10, 2017 is VND 22,316/USD) and applied for 20 years from the commercial operation date. Electricity purchase price shall be adjusted depending on VND/USD conversion rate. The applied conversion rate shall be the central conversion rate of VND to USD publicized by the State Bank of Vietnam at the time on which the Seller produces invoices.
4. Purchase price of electricity from grid-connected solar power projects that fail to satisfy requirements specified in Clauses 1 and 3 of this Article shall be determined based on competition.
5. Electricity purchase prices under Clauses 1 and 3 of this Article shall be applied to projects in which capacity of solar cells exceed 16% or module exceeds 15%.
6. Purchase price of electricity from grid-connected solar power projects specified in Clauses 1 and 3 of this Article shall be accounted and fully provided in input figures of annual electricity sale and retail price scheme of the EVN.
Pursuant to Article 8 of Decision 13/2020/QD-TTg on electricity price for rooftop solar power projects as follows:
Electricity purchase price power purchase agreement form
1. Rooftop solar power systems may sell the entire or part of electricity produced to the Buyer which is the EVN or other organizations and individuals in case of not using power grids of EVN.
2. The EVN or authorized member entities shall pay for the electricity transmitted to the national grid from rooftop solar power systems according to electricity purchase price under the Annex attached to this Decision. The price does not include VAT and shall be adjusted according to conversion rate of VND to USD (translates to US cents/kWh), conversion rate to be applied shall be central conversion rate of the VND to USD publicized by State Bank of Vietnam at the end of the previous year to calculate electricity bill for the following year. Parties are responsible for complying with regulations and law on tax and charges.
3. In case the Buyer is not the EVN or authorized member entity thereof, electricity purchase price and power purchase agreement shall be agreed upon by parties satisfactory to applicable regulations and law.
4. Electricity purchase price under Clause 2 of this Article is applied to rooftop solar power systems whose power generate and electricity meter reading confirmation dates range from July 1, 2019 to December 31, 2020 and shall be applied for 20 years from the initial date of electricity generation. Purchase price for electricity of rooftop solar power systems specified in Clause 2 of this Article shall be accounted and fully provided in the inputs figures of annual electricity sale and retail price scheme of the EVN. Invoices shall be made separately for distributed electricity and received electricity.
5. Buyer which is EVN or authorized member entity thereof must conform to power purchase agreement form. Power purchase agreement in case of rooftop solar power systems shall remain for a maximum of 20 years from the date of initial electricity generation. After the period mentioned above, extending or signing new contracts shall comply with applicable regulations and law.
Specifically, the price schedule for solar power purchase is specified in the Appendix issued together with Decision 13/2020/QD-TTg as follows:
What are the details of a solar power sale and purchase agreement form in Vietnam?
Pursuant to Article 6 of Circular 18/2020/TT-BCT stipulating the details of a solar power sale and purchase agreement form in Vietnam as follows:
- Details of an electricity sale and purchase agreement form applicable to grid-connected solar power projects are specified under Annex 1 attached to Circular 18/2020/TT-BCT.
- Details of an electricity sale and purchase agreement form applicable to rooftop solar power projects are specified under Annex 2 attached to Circular 18/2020/TT-BCT.
- In addition to the above details, the Buyer and Seller may supplement details of sample of electricity sale contract to clarify responsibilities and rights of parties.
Supplemented details must be mutually agreed upon and not contradict details of an electricity sale and purchase agreement form attached to Circular 18/2020/TT-BCT.
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