Contract negotiation process for rooftop solar power systems in Vietnam

According to Clause 2 Article 5 of the Circular No. 18/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, procedures in case of rooftop solar power systems are prescribed as follows:

- The Seller shall apply to connect with the Seller with information on location of installation, capacity (no more than 1 NW and 1.25 MWp), power lines and estimated points of connection.

- The Buyer shall provide remarks on the ability to connect and transmit rooftop solar power system capacity of the Seller that applies to connect with electrical grids of the Buyer. The Buyer shall reply within 5 working days from the date on which application of the Seller is received.

- The Seller and the Buyer shall agree to connect rooftop solar power system of the Seller to electrical grids of the Buyer. In case rooftop solar power systems of the Seller connect to electrical grids that are not owned by the Buyer or are owned by electricity providers and retailers, the Buyer and the Seller shall enter into agreement with owners of the electrical grids to connect with the electrical grids. Deadline for signing agreements on connection shall be 5 working days from the date on which the Buyer receives adequate connection documents and agreements of electrical grid owners (if any).

- The Seller shall install rooftop solar power systems whose scale conforms to Point b and Point c Clause 2 of this Article.

- The Seller shall submit offer for selling electricity generated from rooftop solar power systems consisting of written offer, technical documents on solar panels, devices converting direct current to alternating current (power inverters); power lines, transformers (if any); factory release certificates and equipment quality certifications (copies).

- Parties shall perform technical inspection, install electricity meter, conclude meter readings, sign contracts for electricity sale and initiate rooftop solar power system; the Buyer shall sign contracts within 5 working days from the date on which offer for selling electricity of the Seller is received. In case the Buyer is Vietnam Electricity or authorized member entities, the Buyer and the Seller shall enter into electricity sale agreements specified under Clause 2 Article 6 of this Circular.

- Depending on practical conditions and technical requirements of each rooftop solar power system, the Seller and the Buyer shall agree to implement regulations under Points c, d, dd and e Clause 2 of this Article subsequently or simultaneously.

View more details at the Circular No. 18/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from September 15, 2020.

Thuy Tram

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