Guiding the order to develop the avoidable cost tariff applicable to biomass power projects in Vietnam

Order to develop, approve and announce the avoidable cost tariff applicable to biomass power projects is specified in Circular No. 44/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam as follows:

- Before October 31 of each year, the unit operating the power system and electricity market shall preside over and coordinate with the Buyer and the Seller and other power plants to update the database, calculate the avoidable costs of the national power system (avoidable costs) specified in Decision No. 24/2014/QĐ-TTg dated March 24, 2014 of the Prime Minister on mechanism of development assistance to the biomass power projects in Vietnam for the subsequent years by the method specified in Appendix II issued with this Circular for submission to the Electricity Regulatory Authority.

- Before November 30 of each year, the Electricity Regulatory Authority shall coordinate with the General Directorate of Energy to assess the input parameters and the result of calculation of annual avoidable costs prepared by the unit operating the power system and electricity market for submission to the Minister of Industry and Trade for review and approval. In case of necessity, the Electricity Regulatory Authority can consult the relevant organizations or individuals during the assessment.

- Before December 20 of each year, the General Directorate of Energy shall:

+ Study and submit the avoidable cost tariff to the Minister of Industry and Trade (define the coefficient k1 and k2 in Appendix 1) applicable to the biomass power projects at reasonable level to encourage the power production from biomass energy while ensuring the conformity with the social-economic condition of the country in each stage;

+ Within 02 (two) days after the tariff applicable to the biomass power projects has been issued, the General Directorate of Energy shall announce it for the subsequent year on its website and of the Ministry of Industry and Trade.

Where the tariff applicable to the biomass power projects has not yet been announced, the tariff of the previous year shall be temporarily used until the tariff applicable to the new biomass power projects is announced. The difference due to calculation under the old tariff and new tariff shall be refunded to each other by the parties in the first payment upon application of the new tariff.

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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