CIRCULAR

AMENDMENTS TO CIRCULAR NO. 44/2015/TT-BCT DATED DECEMBER 9, 2015 OF MINISTER OF INDUSTRY AND TRADE ON DEVELOPMENT OF AVOIDABLE COST TARIFF AND SAMPLE OF ELECTRICITY SALE CONTRACT APPLICABLE TO BIOMASS POWER PROJECTS

Pursuant to Decree No. 98/2017/ND-CP dated August 18, 2017 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decision No. 24/2014/QD-TTg dated March 24, 2014 of Prime Minister on incentive policies for development of biomass power projects in Vietnam; and Decision No. 08/2020/QD-TTg dated March 5, 2020 of Prime Minister on amendments to Decision No. 24/2014/QD-TTg dated March 24, 2014 of Prime Minister on incentive policies for development of biomass power projects in Vietnam;

At request of Director General of Electricity and Renewable Energy Authority,

Minister of Industry and Trade promulgates Circular on amendments to Circular No. 44/2015/TT-BCT dated December 9, 2015 of Minister of Industry and Trade on development of avoidable cost tariff and sample of electricity sale contract applicable to biomass power projects.

Article 1. Amendments to Circular No. 44/2015/TT-BCT dated December 9, 2015 of Minister of Industry and Trade on development of avoidable cost tariff and sample of electricity sale contract applicable to biomass power projects

1. Amendments to Article 1 are as follows:

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This Circular prescribes development of biomass power projects and samples of electricity sale contract applicable to grid-connected biomass power projects (hereinafter referred to as “sample of electricity sale contract”).”

2. Amendments to Clause 1 Article 5 as follows:

“1. Project developers shall only prepare grid-connected biomass power projects under electricity development planning or approved provincial planning. Details of biomass power investment projects shall be prepared according to applicable regulations and law on management of construction investment and according to Clause 3 of this Article.

3. Amendment to Chapter III title is as follows: “Chapter III. Sample electricity sale contract for grid-connected biomass power projects”.

4. Amendments to Article 9 are as follows:

“Article 9. Application of electricity price for biomass power projects

Electricity price applicable to grid-connected biomass power projects shall conform to Decision No. 08/2020/QD-TTg dated March 5, 2020 of Prime Minister on amendments to Decision No. 24/2014/QD-TTg dated March 24, 2014 of Prime Minister on incentive policies for development of biomass power projects in Vietnam.”

5. Amendments to Clause 1 Article 10 as follows:

“1. Use of sample electricity sale contract for grid-connected biomass power projects is compulsory during electricity sale between the Seller and the Buyer.”

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“Article 11. Implementation

1. Electricity and Renewable Energy Authority is responsible for:

a) publicizing, guiding and examining implementation of this Circular;

b) difficulties that arise during the implementation of this Circular should be reported to the Ministry for consideration.

2. On a yearly basis, People’s Committees of provinces where biomass power projects are located shall submit written reports using defined form to Ministry of Industry and Trade (via Electricity and Renewable Energy Authority) on investment application and implementation of projects within the provinces for supervision and management before January 15.”

7. Amendments to Point a Clause 2 and Point a Clause 3 Article 12 are as follows:

“Article 12. Responsibilities of relevant organizations and individuals

2. The Seller is responsible for:

a) entering into agreement with the Buyer according to sample electricity sale contract and electricity price specified under Decision No. 08/2020/QD-TTg dated March 5, 2020 of Prime Minister on amendments to Decision No. 24/2014/QD-TTg dated March 24, 2014 of Prime Minister on incentive policies for development of biomass power projects in Vietnam;

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a) entering into agreement with the Seller according to sample electricity sale contract and electricity price specified under Decision No. 08/2020/QD-TTg dated March 5, 2020 of Prime Minister on amendments to Decision No. 24/2014/QD-TTg dated March 24, 2014 of Prime Minister on incentive policies for development of biomass power projects in Vietnam.”

8. Amendments to Article 13 are as follows:

“Article 13. Transition clauses

Biomass power projects that generate power before April 25, 2020 shall be re-entered via electricity sale contract with the Buyer in order to be applied with electricity price specified under Clause 9 Article 1 Decision No. 08/2020/QD-TTg from April 25, 2020 until the expiry date of the previously entered electricity sale contract.”

9. Add Annex II for Annual report form for reports produced by People’s Committees of provinces on investment application and implementation results of biomass power projects within the provinces as specified under Clause 6 of this Article.

Article 2. Replacement and annulment

1. Replace Annex III attached to Circular No. 44/2015/TT-BCT dated December 9, 2015 of Minister of Industry and Trade on development of avoidable cost tariff and sample of electricity sale contract applicable to biomass power projects with Annex I attached to this Circular.

2. Replace “General Directorate of Energy” under Circular No. 44/2015/TT-BCT dated December 9, 2015 with “Electricity and Renewable Energy Authority”;

3. Annul Clause 4 Article 2, Article 3, Article 4, Clause 2 Article 5, Article 8, Point c Clause 2, Clause 4 Article 12, Annex I, and Annex II under Circular No. 44/2015/TT-BTC dated December 9, 2015;

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Article 3. Entry into force

This Circular comes into force from August 20, 2020.

PP. MINISTER
DEPUTY MINISTER




Hoang Quoc Vuong