03:12 | 31/05/2023

Which cases are exempted from electricity licenses in Vietnam? What is the application for an electricity generation license according to Circular No. 10/2023/TT-BCT?

I would like to ask which cases are exempt from electricity licenses. - Question from Ms. Tra (Sa Dec)

Which cases are exempted from electricity licenses in Vietnam?

Pursuant to Article 3 of Circular No. 21/2020/TT-BCT stipulating electricity license exemptions as follows:

Electricity license exemptions
1. Generation of electricity for serving domestic consumption without selling electricity to any other entities.
2. Generation of electricity with an installed capacity of not exceeding 01 MW for selling to any other entities.
3. Electricity traders in rural, mountainous or island regions that purchase electricity with a capacity of not exceeding 50 kVA from the electrical distribution grid for selling directly to consumers in such rural, mountainous or island regions.
4. Dispatch of the national power system and management of transactions in the electricity market.

Thus, there are 4 cases above which are exempted from electricity licenses.Which cases are exempted from electricity licenses in Vietnam? What is the application for an electricity generation license according to Circular No. 10/2023/TT-BCT?

Which cases are exempted from electricity licenses in Vietnam? What is the application for an electricity generation license according to Circular No. 10/2023/TT-BCT?

What are the scopes of electricity licenses in Vietnam?

Pursuant to the provisions of Article 5 of Circular No. 21/2020/TT-BCT stipulating as follows:

Scope of an electricity license
1. A license for electrical consulting services is valid nationwide.
2. The scope of an electricity transmission or electricity distribution license corresponds to the management and operation scope of each specific electrical grid.
3. An electricity wholesaling or retailing license is valid within a prescribed region.
4. An electricity generation license is valid for each power plant.

Thus, there are 4 areas corresponding to the scope of activities that are granted electricity licenses according to the above regulations.

What is the application for electricity generation license according to Circular No. 10/2023/TT-BCT?

Pursuant to the provisions of Article 7 of Circular No. 21/2020/TT-BCT (amended by Clause 3, Article 1 of Circular No. 10/2023/TT-BCT), the application for electricity generation license from June 9, 2023 include:

- The application form for electricity license.

- The copy of the applicant’s enterprise registration certificate, establishment decision or certificate of incorporation (in case of unavailability of the enterprise registration certificate).

- The list of technical managers and shift leaders of the power plant;

- Copies of their academic qualifications and employment contracts signed with investor or operator of the power plant;

- Documents proving working experience in electricity generation of technical managers (curriculum vitae certified by the employers or other documents of equivalent validity) (as amended by a new regulation);

- Certificates of completion of safety training courses and operation certificates issued to the listed shift leaders by competent power load dispatch units according to the National load dispatch procedures adopted by the Ministry of Industry and Trade.

- The copy of the written approval or the decision on approval for the power plant investment guidelines or the copy of the investment certificate issued by a competent authority according to regulations of the law on investment or Decision on investment issued by the investor; the copy of the written approval for work planning issued by a competent authority.

- The copy of the decision on approval for the environmental impact assessment report or the written certification of the environmental protection plan for the power plant investment project issued by a competent authority in accordance with the Law on Environment.

- The copy of the decision on approval for the reservoir operation procedures issued by a competent authority (if the license concerns a hydroelectric power plant).

- The copy of the acceptance test report on the installed generating set or solar panel system; the copy of the document indicating main parameters of the power plant (including turbine, generator or solar panel, solar converter and main transformer).

- The copy of the acceptance test report on the installed IT infrastructure system and telecom infrastructure system serving the operation of the electricity market; the copy of the acceptance test report on the installed SCADA system serving the operation of electricity network and electricity market (if the power plant participates in the electricity market).

- The copy of the acceptance test report on hydroelectric dam; the hydroelectric dam and reservoir protection plan, disaster response plan, emergency response plan, and report on inspection of hydropower dam (regarding a hydroelectric power plant).

- If a power plant or generating set is not grid-tied and generates electricity for selling to customers in case of the national grid’s failure, the application shall not include the document in Clause 8 Article 7 of Circular No. 21/2020/TT-BCT.

Thus, it can be seen that Circular No. 10/2023/TT-BCT has added the following documents to the application for an electricity generation license, including:

- Documents proving working experience in electricity generation of technical managers;

- Report on inspection of hydropower dam (regarding a hydroelectric power plant).

- The copy of the written approval or the copy of the investment certificate issued by a competent authority according to regulations of the law on investment or Decision on investment issued by the investor; the copy of the written approval for work planning issued by a competent authority.

Circular No. 10/2023/TT-BCT takes effect from June 9, 2023.

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