Biomass power projects in Vietnam: Responsibility of the electricity seller and buyer

According to Circular No. 44/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam, the Vietnam Electricity shall fully calculate the costs of electricity purchase of the biomass power projects and put them into the input parameters in the electricity sale price plan of Vietnam Electricity and submit it to the competent level for approval.

When developing biomass power projects, the electricity seller (the generating unit) shall:

- Make agreement and sign the Contract with the Buyer under the sample of electricity sale Contract and under the avoidable cost tariff;

- Install meters in accordance with current regulations to measure the used electricity for payment of electricity bill;

- Sell all power on busbar of plant to the Buyer upon application of avoidable cost tariff;

- Send 01 (one) signed electricity sale Contract to the General Directorate of Energy within 30 (thirty) days from the date of signing;

- Comply with regulation on operation of power system, transmission power system and power distribution system issued by the Ministry of Industry and Trade.

The Buyer shall:

- Make agreement and sign the Contract with the Seller under the sample of electricity sale Contract and under the avoidable cost tariff if the Seller meets the conditions specified in Article 5 of this Circular and other relevant laws;

- Comply with regulation on operation of power system, transmission power system and power distribution system issued by the Ministry of Industry and Trade.

Annually, the unit operating the power system and electricity market shall calculate the avoidable costs for submission to the Electricity Regulatory Authority.

View details at Circular No. 44/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from January 25, 2016.

Thu Ba

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