ANTD.VN - The Ministry of Industry and Trade is seeking comments on a draft Circular on the price framework for solar and wind power plants. According to the draft, EVN is assigned to calculate the price framework for solar and wind power plants.
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Wind and solar power price framework built by EVN |
Explaining this provision in the draft, the Ministry of Industry and Trade said that, according to the provisions of Clause 2, Article 31 of the Electricity Law (amended and supplemented by Clause 15, Article 1 of the Law amending and supplementing a number of articles of the Electricity Law): “The electricity generation price framework… is developed by the relevant electricity unit; the electricity regulatory agency appraises and submits it to the Minister of Industry and Trade and the Minister of Finance for approval according to the assignment of the Government…”.
Clause 1, Article 24 of Decree No. 137/2013/ND-CP dated October 21, 2013 detailing the implementation of a number of articles of the Electricity Law and the Law amending and supplementing a number of articles of the Electricity Law stipulates: "The Ministry of Industry and Trade is responsible for prescribing methods, procedures for establishing and appraising electricity generation price frames".
Pursuant to the provisions of the Electricity Law and the above Decree, the Ministry of Industry and Trade is responsible for guiding the method of establishing the electricity generation price framework applicable to solar and wind power projects and the relevant EVN is responsible for establishing the electricity generation price framework for wind and solar power projects and submitting it to the Electricity Regulatory Authority for appraisal before submitting it to the Minister of Industry and Trade for consideration and approval.
In addition, according to the Ministry of Industry and Trade, the draft Circular also stipulates EVN's responsibility for calculating or hiring a consultant to calculate, as well as stipulating cases where it is necessary to obtain opinions on the results of calculating the price framework through the Advisory Council established by the Ministry of Industry and Trade as a basis for the Ministry of Industry and Trade to consider and approve the electricity generation price framework.
Regarding the regulations on electricity generation price framework issued annually, the Ministry of Industry and Trade said that the electricity generation price framework is calculated based on the same calculation method as other types of power plants today.
Input parameters for calculating the economic life of solar and wind power plants are 20 years. Parameters related to investment rate, financial and technical parameters, operating and maintenance costs are selected based on data from consulting organizations to ensure universality and update data worldwide instead of using past data of power plants.
Based on the Power Plan VIII on encouraging and prioritizing the development of solar energy in the North, the draft Circular stipulates that the electricity generation price framework will be determined for each region, different from the current price framework.
The price framework is issued annually as a basis for investors of solar and wind power plant projects to negotiate electricity prices and sign power purchase contracts with Vietnam Electricity Group (EVN) to ensure that electricity prices do not exceed the price framework issued by the Ministry of Industry and Trade.
Accordingly, before November 1 of each year, EVN is responsible for calculating or hiring consultants to calculate the price framework; the Ministry of Industry and Trade approves the annual price framework based on the appraisal of the Electricity Regulatory Authority and the opinion of the Advisory Council established by the Ministry of Industry and Trade if necessary.
The electricity price framework in the base year (the year the investor approves the total investment of the project) is the basis for EVN and the investor to negotiate and agree on the electricity price to sign the electricity purchase contract and the two parties do not have to negotiate and re-sign according to the electricity price framework of the following year.
Regarding the subjects of application, the electricity generation price framework stipulated in the draft Circular is applied to solar and wind power projects that have not signed a power purchase agreement with EVN. For solar and wind power projects that have signed a power purchase agreement with EVN at the FIT price, they will continue to be implemented according to the provisions of the signed contract; for transitional solar and wind power plant projects (projects that have signed a power purchase agreement with EVN but do not meet the conditions for applying the FIT preferential electricity price mechanism) are specifically stipulated in Circular No. 15/2022/TT-BCT dated October 3, 2022 of the Minister of Industry and Trade stipulating the method of developing a transitional electricity generation price framework for solar and wind power plants and Decision No. 21/QD-BCT dated January 7, 2023 of the Minister of Industry and Trade stipulating the electricity generation price framework for transitional solar and wind power plants.
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