What are methods for determining fixed operation and maintenance costs of the standard wind power plants in Vietnam?

What are methods for determining fixed operation and maintenance costs of the standard wind power plants in Vietnam?

Pursuant to Article 9 of the Circular 15/2022/TT-BCT (takes effect from 25/11/2022) stipulating methods for determining fixed operation and maintenance costs of the standard wind power plants in Vietnam as follows:

Fixed operation and maintenance costs FOMCG (VND/kWh) of the standard power plant serves as a component to recover major repair costs, personnel costs, and other costs annually and is determined using the formula below:

In which:

: Total fixed operation and maintenance costs of the standard wind power plant are determined in accordance with Clause 2 of this Article (VND);

: Average annual electricity yield of the standard wind power plant is determined in accordance with Clause 5 Article 8 hereof (kWh).

2. Total fixed operation and maintenance costs   (VND) of the standard wind power plant are determined using the formula below:

In which:

SĐT^G: Investment unit price of the standard wind power plant is determined in accordance with Clause 3 Article 5 hereof (VND/kW);

P^G: Installed capacity of the standard wind power plant (kW) is determined to be 50.000 kW;

k_G: Percentage of fixed operation and maintenance costs included in investment unit cost of the standard wind power plant is specified under Appendix attached hereto (%).

What are procedures for developing, appraising, and promulgating electricity price range in Vietnam?

Pursuant to Article 10 of the Circular 15/2022/TT-BCT (takes effect from 25/11/2022) stipulating procedures for developing, appraising, and promulgating electricity price range in Vietnam as follows:

1. Within 15 days from the effective date hereof, project developers of ground-mounted solar power plants and floating solar power plants that have entered into power purchase agreements before January 1, 2021 and onshore wind power plants and offshore wind power plants that have entered into power purchase agreements before November 1, 2021 are responsible for producing feasibility study or technical design to the EVN.

2. On the basis of documents under Clause 1 of this Article, the EVN has the right to hire consultant to select specifications, calculate, and determine electricity generation price range of the standard solar power plants in accordance with Article 4, Article 5, and Article 6 hereof and standard wind power plants in accordance with Article 7, Article 8, and Article 9 hereof.

3. Within 45 days from the effective date hereof, the EVN is responsible for developing electricity generation price range of ground-mounted solar power plants, floating solar power plants, onshore wind power plants, and offshore wind power plants in accordance with Article 11 hereof and send to Electricity Regulatory Authority of Vietnam.

4. Procedures for appraising electricity generation price range:

a) Within 5 working days from the date on which documents on calculating electricity generation price range under Article 11 hereof are received, the Electricity Regulatory Authority of Vietnam are responsible for inspecting the documents for their contents, adequacy, and legitimacy.

b) In case the documents are inadequate or illegitimate, the Electricity Regulatory Authority of Vietnam is responsible for requesting the EVN in writing to revise or clarify contents of the documents.

c) Within 45 days from the date on which adequate documents on calculating electricity generation price range are received, Electricity Regulatory Authority of Vietnam is responsible for appraising the electricity price range using methods prescribed in this Circular.

d) If necessary, the Electricity Regulatory Authority of Vietnam shall consult independent experts gather feedback pertaining to the price range via a Board of counsel established by the Ministry of Industry and Trade.

The Board of counsel has up to 9 members, including a Chairperson, a Vice Chairperson, a Secretary, and representatives of relevant entities of Ministry of Industry and Trade with sufficient specialty and comprehensive understanding in electricity generation.

5. Within 10 working days from the date on which appraisal results of electricity generation price range under Clause 4 of this Article are produced, the Electricity Regulatory Authority of Vietnam are responsible for finalizing documents and requesting the Minister of Industry and Trade to approve electricity generation price range applied to the aforementioned power plants and publicize on website of the Ministry of Industry and Trade and Electricity Regulatory Authority of Vietnam.

What documents are included in the written request for approval of electricity generation price range in Vietnam?

Pursuant to Article 11 of the Circular 15/2022/TT-BCT (takes effect from 25/11/2022) stipulating the written request for approval of electricity generation price range in Vietnam as follows:

The written request for approval of electricity generation price range for ground-mounted solar power plants, floating solar power plants, onshore wind power plants, and offshore wind power plants under Clause 2 Article 1 hereof consists of:

1. Presentation and calculation of the EVN pertaining to electricity generation price of standard solar power plant and standard wind power plant.

2. Specifications and documents on calculating electricity generation price for standard solar power plant and standard wind power plant in accordance with Article 4, Article 7, and the Appendix attached hereto.

3. Documents pertaining to specifications used in calculating electricity generation price of ground-mounted solar power plants, floating solar power plants, onshore wind power plants, and offshore wind power plants.

Best regards!