Additional regulations on electricity sale prices and power purchase agreement value to compare with the base year price range in Vietnam

The electricity sale prices and power purchase agreement value in Vietnam prescribed in Circular 57/2020/TT-BCT is as follows:

- PPA price must be within price range for electricity generation in the base year of power plants issued by Minister of Industry and Trade of Vietnam,

In which, PPA price of thermal power plants for comparing with price range for electricity generation in the base year shall be calculated on the basis of cost components corresponding to cost components serving calculation of price range for electricity generation.

In case the base year of power plants does not have a power generation price bracket, the power purchase and sale contract price of the thermal power plant is calculated and converted on the basis of corresponding cost components to compare with the electricity generation price bracket of the most recent year of that type of power plant;

- For projects that have started but have not signed power purchase agreement in Vietnam before December 28, 2022:

The price of the power purchase and sale contract must be within the electricity generation price bracket negotiated for the power purchase agreement, in which the power purchase and sale contract price of the thermal power plant to compare with the electricity generation price bracket is calculated and converted on the basis of the cost components that correspond to the cost components of the pseudo-generating frame calculation.

(Compared to Circular 57/2020/TT-BCT, adding the case that the base year of a thermal power plant does not have a power generation price bracket and the case of projects that have started but have not yet signed a power purchase agreemen before December 28, 2022)

Vietnam's Circular 31/2022/TT-BCT takes effect on December 28, 2022.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE