Procedures for making, appraising, and approving of the electricity generation price bracket for waste-to-energy plants in Vietnam from November 26, 2024

Procedures for making, appraising, and approving of the electricity generation price bracket for waste-to-energy plants in Vietnam from November 26, 2024 (Internet image)

On October 10, 2024, the Minister of Industry and Trade promulgated Circular 20/2024/TT-BCT stipulating the method for making the electricity generation price bracket for waste-to-energy plants and biomass power plants.

Procedures for making, appraising, and approving of the electricity generation price bracket for waste-to-energy plants in Vietnam from November 26, 2024

The procedures for making, appraising, and approving the electricity generation price bracket are conducted as follows:

- The Vietnam Electricity is responsible for:

+ Proposing and selecting a standard power plant to calculate the electricity generation price bracket for waste-to-energy plants, cogeneration plants, and biomass power plants that are not cogeneration (if any);

+ Calculating or hiring consultancy to select the set of parameters and calculate the electricity price of the standard power plant in accordance with Chapter II of Circular 20/2024/TT-BCT.

+ Preparing the calculation dossier for the electricity generation price bracket as regulated in Article 9 of Circular 20/2024/TT-BCT, submitting it to the Electricity Regulatory Authority for appraisal.

+ In cases where the calculation parameters of the price framework fluctuate requiring recalculation of the electricity generation price bracket, the Vietnam Electricity is responsible for recalculating and reporting to the Electricity Regulatory Authority for appraisal and submission to the Ministry of Industry and Trade for promulgation.

- The Electricity Regulatory Authority is responsible for checking the completeness and validity of the dossier submitted for approval. If necessary, the Electricity Regulatory Authority may issue a document requesting the Vietnam Electricity to amend, supplement, or clarify contents in the dossier. Within 15 working days from the date of receiving the request for amendment, supplementation, or clarification of the dossier from the Electricity Regulatory Authority, the Vietnam Electricity is responsible for submitting a report explaining the contents in the dossier as requested.

- The Electricity Regulatory Authority is responsible for organizing the appraisal of the electricity generation price bracket, submitting it to the Minister of Industry and Trade for approval, and announcing it on the website of the Electricity Regulatory Authority.

(Article 9 of Circular 20/2024/TT-BCT)

Application for approving the electricity generation price bracket of waste-to-energy plants in Vietnam from November 26, 2024

The dossier for the approval request of the electricity generation price bracket includes:

- A proposal document requesting appraisal and approval of the electricity generation price bracket.

- A table of parameters and calculation documents for the electricity price of the standard power plants as regulated in Article 4, Article 5, Article 6, Article 7, and the Annex issued together with Circular 20/2024/TT-BCT.

- Documents related to the parameters calculating the electricity price.

(Article 8 of Circular 20/2024/TT-BCT)

Principles for making the electricity generation price bracket of waste-to-energy plants in Vietnam from November 26, 2024

According to Article 3 of Circular 20/2024/TT-BCT, the formulation of the electricity generation price bracket must ensure the following principles:

The electricity generation price bracket for waste-to-energy plants, biomass power plants ranges from 0 (VND/kWh) to the price level of the standard power plant. The price level of the standard power plant is determined according to the method specified in Article 4, Article 5, Article 6, and Article 7 of Circular 20/2024/TT-BCT.

More details can be found in Circular 20/2024/TT-BCT which comes into force in Vietnam from November 26, 2024.

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