Rules for developing solar power and wind power generation pricing framework in Vietnam

Rules for developing solar power and wind power generation pricing framework in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On November 1, 2023, the Minister of Industry and Trade issued Circular 19/2023/TT-BCT stipulating the method of building a power generation price frame applicable to solar and wind power plants.

Rules for developing solar power and wind power generation pricing framework in Vietnam

Rules for developing solar power and wind power generation pricing framework in Vietnam must comply with the principles specified in Article 3 of Circular 19/2023/TT-BCT, specifically as follows:

(i) The electricity generation pricing framework of ground-mounted solar power plants, floating solar power plants, onshore wind power plants, and offshore wind power plants ranges from the minimum value (0 VND/kWh) to the maximum value, are developed and promulgated in the year.

(ii) The maximum value applicable to solar power plants shall be electricity generation price of the standard solar power plant determined using methods under Article 4, Article 5, and Article 6 of Circular 19/2023/TT-BCT.

(iii) The maximum value applicable to wind power plants shall be electricity generation price of the standard wind power plant determined using methods under Article 7, Article 8, and Article 9 of Circular 19/2023/TT-BCT.

(iv) The electricity generation pricing framework of ground-mounted and floating solar power plants shall be developed on the basis of the average radiant intensity of the Northern, Central and Southern regions.

(v) The standard solar power plant shall be selected for development of electricity generation pricing framework in the regions mentioned in (iv).

Procedures for developing and promulgating solar power and wind power generation pricing framework in Vietnam

According to Article 10 of Circular 19/2023/TT-BCT, the procedures for developing and promulgating solar power and wind power generation pricing framework in Vietnam as follows:

(1) Before November 1st every year, EVN shall:

- Propose selection of a standard solar power plant and standard wind power plant for development of the electricity pricing framework.

- Carry out calculation or hire a counseling organization to select a set of parameters and calculate electricity prices of the standard solar power plant and standard wind power plant in accordance with Chapter II of Circular 19/2023/TT-BCT.

- Prepare documentation for calculation of the next year's electricity generation pricing frameworks of ground-mounted solar power plants, floating solar power plants, onshore, inshore and offshore wind power plants  in accordance with Article 11 of Circular 19/2023/TT-BCT, and submit them to the Electricity Regulatory Authority of Vietnam for appraisal.

(2)  Within 5 working days from the date of receipt of the application for approval of electricity generation pricing framework mentioned in Article 11 of Circular 19/2023/TT-BCT, Electricity Regulatory Authority shall examine its adequacy and validity.

If necessary, Electricity Regulatory Authority will send a document requesting EVN to revise, supplement or explain the contents of the application.

Within 15 working days from the date of receipt of the request from Electricity Regulatory Authority, EVN shall send an explanatory report as requested.

(3) If EVN's application is valid and the explanatory report is satisfactory, within 20 working days from the date of receipt of the application, Electricity Regulatory Authority shall organize appraisal of the electricity generation pricing frameworks proposed by EVN.

If necessary, Electricity Regulatory Authority of Vietnam may consult the Advisory Board established by the Ministry of Industry and Trade or the affected entities.

The Advisory Board 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 appropriate qualifications and comprehensive understanding in electricity generation.

(4) Within 15 working days from the date of appraisal, Electricity Regulatory Authority of Vietnam shall request the Minister of Industry and Trade to consider approving the next year's electricity pricing frameworks of ground-mounted solar power plants, floating solar power plants, onshore, inshore and offshore wind power plants, and publish them on the website of Electricity Regulatory Authority.

Before the next year's electricity pricing framework, the latest electricity pricing framework may be temporarily applied.

Circular 19/2023/TT-BCT takes effect on December 19, 2023.

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