Promulgating the electricity generation price bracket in Vietnam in 2021

Promulgating the electricity generation price bracket in 2021 (Artwork)

According to the Decision, promulgating the electricity generation price bracket in 2021 applicable to the negotiation of power purchase and sale contract prices of power plants are:

Generating units owning power plants connected to the national power system with a total installed capacity of over 30MW, power plants with an installed capacity of 30MW or less voluntarily participating in the electricity market, except:

- Multi-purpose strategic hydropower plants

- Oil-fired power plants

- Independent power plants are invested in the form of Build - Operate - Transfer (BOT).

- Power plants using new renewable energy (wind, geothermal, tidal and biomass)

- Power plants have their own mechanisms prescribed by the Prime Minister, the Ministry of Industry and Trade or competent state management agencies.

Specifically:

Price bracket for electricity generation for coal-fired power plants in Vietnam

The ceiling of the electricity generation price bracket (excluding value added tax and shared infrastructure) applied to coal-fired power plants is regulated as follows:

(According to Decision 4035/QD-BCT of Vietnam, the ceiling of the electricity generation price bracket for coal-fired power plants in 2020 is VND 1,409.55/kWh).

Fuel parameters used to calculate electricity generation prices in 2021:

- Net heat consumption at 85% load: 2,279.14 kcal/kWh (2x600MW net capacity).

- Heat value of coal (HHV): 5,620 kcal/kg.

- Coal price (excluding VAT and transportation costs): 996,602.4 VND/ton (imported coal).

- VND/USD exchange rate: 23,220.

Price bracket for electricity generation for hydroelectric plants in Vietnam

The ceiling of the electricity generation price bracket (excluding water resource tax, forest environmental service fee, fee for granting water right and value-added tax) applied to hydroelectric power plants is VND 1,110 /kWh (same as the ceiling of the electricity generation price bracket for hydropower plants in 2020).

Based on the above-mentioned electricity generation price bracket and the details of fuel parameters used to calculate the electricity generation price bracket for coal-fired power plants, the Electricity of Vietnam and the generating unit negotiate the actual electricity purchase and sale price in accordance with Comply with legal regulations on methods of determining electricity generation prices and management of construction investment costs promulgated by competent authorities.

Decision 2602/QD-BCT of Vietnam takes effect from November 18, 2021.

Bao Ngoc

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