Circular 18/2020/TT-BCT issued by MOIT is the second policy document governing purchase power agreements (solar PPA) for solar power projects in Vietnam. More importantly, it allows private investors to sell solar energy to rooftop owners and businesses (also called direct PPA (DPPA)). The previous solar PPA mechanism (Circular 16) only allowed signing with EVN. Circular 18 has also revised regulations for development of grid-connected solar farms (ground and floating) and rooftop solar. See below for template and details.
1/ Circular 18 Validity conditions:
2/ Basic Design Dossier must include details of:
3/ No minimum 20 percent equity ownership requirement.
4/ Private PPA is Possible: The template PPA attached to Circular 18 need not be used in the case where the seller is not EVN! In this case, the parties are free to agree on terms and prices consistent with Vietnam law.
5/ Other requirements:
CIRCULAR 18/2020/TT-BCT
July 17th, 2020
Stipulating project development and standardized Power Purchase Agreement for solar power projects
Pursuant to Decree No. 98/2017/ND CP dated 18th August 2017 by the Government defining functions, tasks, power and organizational structure of the Ministry of Industry and Trade (MOIT);
Pursuant to Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Viet Nam; At the request of the Director General of Electricity and Renewable Energy Authority (EREA), Minister of Industry and Trade promulgates Circular on project development and sample Power Purchase Agreement (PPA) applied for solar power projects.
Chapter I. GENERAL PROVISIONS
Article 1. Governing scope
This Circular stipulates the development of grid-connected solar power projects, rooftop solar power systems and sample PPA applied for grid-connected projects and rooftop solar power systems in Viet Nam.
Article 2. Subjects of application
This Circular is applied for organizations and individuals involved in the development of solar power projects in Viet Nam and other relevant organizations and individuals.
Article 3. Interpretation of terms
Chapter II. SOLAR POWER DEVELOPMENT
Article 4. Grid-connected solar power investment project
The capacity of a part or the whole of the project with COD before 1st January 2021 is included in the total accumulative capacity of no more than 2,000 MW applied with the power selling price in clause 3, Article 5 of Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Vietnam;
The capacity of a part or the whole of the project which does not belong to the total accumulative capacity of 2,000 MW and has its investment policy approved by competent authorities before 23rd November 2019 and COD in the period from 1st July 2019 to 31st December 2020 will be applied with the power selling price in clause 1, Article 5 of Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Vietnam.
Article 5. Development of the rooftop solar system:
Chapter III. SAMPLE POWER PURCHASE AGREEMENT
Article 6. Contents of the sample Power Purchase Agreement (PPA)
Chapter IV IMPLEMENTATION
Article 7. Responsibilities of state management agencies
Article 8. Responsibilities of relevant organizations and individuals
Article 9. Transitional provisions
Article 10. Implementation effectiveness
ATTACHED APPENDIX
APPENDIX 1
SAMPLE POWER PURCHASE AGREEMENT
(Issued with Circular No. 18/2020/TT-BCT dated 17th July 2020 of Minister of Industry and Trade on project development and sample Power Purchase Agreement applied for solar power projects)
CONTENTS
The sample Power Purchase Agreement
Appendix A: Agreement on the power system connection
Appendix B: Technical specifications of major works under the Project Appendix C: System of metering and data collection
Appendix D: Requirements prior to the commercial operation date Appendix E: Payment for electricity bill
Appendix F: Other agreements (if any)
SAMPLE POWER PURCHASE AGREEMENT FOR THE SOLAR POWER PROJECT OF (name)
BETWEEN
[NAME OF THE POWER SELLER]
as the “Seller”
and
[Place of signing], dated… 20…
TABLE OF CONTENTS
Article 1. Definitions 11
Article 2. Electricity delivery, purchase and operation 12
Article 3. Connection, metering and opeation of the power plant 15
Article 4. Billing and payment …………………………….Error! Bookmark not defined.
Article 5. Force majeure events……………………………Error! Bookmark not defined.
Article 6. Term of the Agreement ………………………..Error! Bookmark not defined.
Article 7. Breach of the agreement, indemnity and termination of the agreement implementation ………………………………………………….Error! Bookmark not defined.
Article 9. Trust, transfer and restructuring…………….Error! Bookmark not defined. Article 10. Other agreements ………………………………Error! Bookmark not defined. Article 11. Performance commitment …………………..Error! Bookmark not defined.
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
————————— POWER PURCHASE AGREEMENT
No:
Pursuant to:
– The 2015 Civil Code;
– The 2005 Commercial Law;
– The 2004 Electricity Law; the Law on amending and supplementing a number of articles of the Electricity Law dated 20th November 2012;
– Decree No. 137/2013/ND-CP dated 21st October 2013 by the Government detailing implementation of a number of articles of the Electricity Law and the Law on amending and supplementing a number of articles of the Electricity Law;
– Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Viet Nam (Decision No. 13);
– Circular No. …/2020/TT-BCT dated … 2020 by the Minister of Industry and Trade on project development and sample PPA applied for solar power projects (Circular No. …);
– Decision No. … dated … 20 of [name of the investor] approving the construction project [name of the project];
– Demand for power purchase of the two parties, Today, on …, at …
We are:
The Seller:
(authorized by at the authorization document no. , dated dd/mm/yy)
(hereinafter referred to as “the Seller”); and
The Buyer:
Address: Tel.: Fax: Tax code: Account number: Bank name: Represented by: Job title: (authorized by at the authorization document no. , dated dd/mm/yy)
(hereinafter referred to as “the Buyer”).
To mutually enter into the Power Purchase Agreement on selling and buying electricity generated from the [Name of the project] solar power plant with the total installed capacity of [Capacity of the project] which is constructed and operated by the Seller at [Project location] with the following terms and conditions:
Article 1. Definitions
In this Agreement, the terms below are interpreted as follows:
Article 2. Electricity delivery, purchase and operation
The Seller agrees to operate the power plant with the maximal capacity of [the plant’s capacity in MW] and have design and equipment meeting technical standards and regulations of the power sector. The Seller has no legal responsibilities for the Buyer’s direct damage resulted from the Seller’s failure to supply sufficient power without any faults of the Seller. In case there is no written agreements from the Buyer, the Seller is not allowed to sell power to a third party or use power for other purposes rather than producing electricity to be sold to the Buyer.
The Seller is strictly prohibited from connecting other power generation systems outside the project stated in the Agreement through the project’s current metering system.
The Seller develops and implements the operational plan in accordance with regulations on the national power system operation.
The Seller should notify the Buyer of the blackout schedule and time of planned and unplanned repair in accordance with regulations on the national power system operation.
The Buyer has no obligation to buy or receive power in the following cases:
The Seller can cut or reduce the power capacity sold and delivered to the Buyer in case of equipment installation, repair, replacement, accreditation, test or repair of the power plant that leaves direct impacts on power delivery to the Buyer.
Before cutting or reducing the power capacity delivered to the Buyer, the Seller should notify the Seller before at least 10 (ten) days and clearly state the reasons and planned time of starting and disrupting the power delivery.
The Buyer is responsible for minimizing the time of reducing or stopping the receipt of power in cases stated at clause 7 of this Article. But for emergencies, during the time of temporarily reducing or stopping the receipt of power, the Buyer should notify the Seller before at least 10 (ten) days and clearly state reasons and planned starting and disruption time. If necessary, the Buyer should transfer to the Seller with operation dispatch commands received from the power system dispatch unit related to the plant operation and the Seller should comply with such commands unless they change the plant’s mobilization characteristics.
The Seller agrees to operate the power plant in synchronization with the Buyer’s grid at the capacity coefficient identified by the current regulations on distribution and transmission systems at the Buyer’s delivery point.
Within 02 (two) months before the tentative commercial operation date regulated in this Agreement, the Seller is responsible for sending the Buyer the draft procedure for commissioning and acceptance of the power plant in accordance with the current regulations, technical standards and technologies of the power plant so that the two parties reach an agreement on the commercial operation date and calculate the power capacity for trailing the power plant.
The Seller is responsible for notifying the Buyer in writing at least 30 (thirty) days before the first time of synchronous connection between the Seller’s power generation units and the Buyer’s grid. The Seller should coordinate with the Buyer in operation for the first and subsequent times of synchronous connection.
The Seller and the Buyer should adhere to regulations related to power delivery and receipt following regulations on distribution grid and power metering and other legal documents associated with the power sector.
Within a term of 03 (three) to 06 (six) months before the commercial operation date stated in Appendix B, the Seller should officially confirm the change of the commercial operation date. Stakeholders should cooperate in changing the commercial operation date and the Buyer should not reject such change but for having plausible reasons.
Article 3. Connection and metering
The Buyer is responsible for investing in and installing equipment for the transmission and delivery of power to the Buyer at the power delivery point. The Buyer is responsible for cooperating with the Seller in such installation tasks.
Equipment of the Buyer and the Seller should be installed, operated and connected in accordance with regulations on the national power system operation and technical standards and regulations of the power sector.
Upon the advance notification as for regulations, each party is entitled to examine the other party’s connection equipment to ensure the implementation of legal regulations on the national power system operation. This examination should not have any impacts on the examinee’s performance. If the examinee’s equipment fails to satisfy operation and maintenance conditions, the examiner should notify the examinee of points to be corrected. The examinee should take relevant corrective actions upon the reasonable request for corrective actions from the examiner.
(i) Using metering results of the backup metering system to identify the power output for billing and payment.
(ii) In case the backup metering system has breakdown or accreditation results reveal that the backup metering system has error which is bigger than the allowable limit, the power output for billing and payment will be identified as follows:
– In case the main metering system is workable but has error which is bigger than the regulated accuracy level, the power output traded between the two parties will be identified by the metering result of the main metering system converted into power value equivalent to the error of 0%.
– In case the main metering system has breakdown, the backup metering system is workable but has error which is bigger than the regulated accuracy level, the power output traded between two parties will be identified by the metering result of the backup metering system converted into power value equivalent to the error of 0%.
– In case the main and backup metering systems have breakdowns, the two parties will estimate the power output delivered and received according to the monthly average data (if any) of the power plant in the same payment period of the year prior to the contract year with reasonable modifications for specific billing period based on available data related to impacts on power generation of the power plant such as parameters of environmental temperature, radiance, performance, operational hours, operational duration of the power plant and the amount of self-consumed power (collectively referred to as “operational parameters”) during the time when metering equipment has breakdowns unless otherwise agreed in written form by the two parties.
– If there is no reliable data, the power output delivered and received should be estimated according to the monthly power output of the power plant of 06 (six) payment periods right before the metering equipment has breakdown (or less in case the power plant has operated for less than 06 months) and shall be modified according to the downtime or operational parameters unless otherwise agreed in written form by the two parties.
(iii) Based on corrected metering results agreed by the two parties, the Seller has obligation to calculate the amount of money which should be paid to a party by the other party for the time when the metering system has breakdown. This amount includes the difference between fee collection and payment, interest of the difference between fee collection and payment according to the inter-bank average interest rate and metering accreditation fee as regulated at points c and d of clause 5 of this Article.
(iv) In case the metering equipment is dead or broken down, the Seller has obligation to replace or repair in the shortest time so that metering equipment can meet technical specifications and operates at the normal conditions. Equipment subject to repair or replacement should be ensured in terms of its legality and technical specifications as regulated before being put into service.
On a monthly basis, legitimate representatives of both sides will collect, examine and cofirm the meter reading at 12 p.m of the final day in the preceding month.
After the notification as regulated, the Buyer is allowed to go to the power plant or the place of installing the metering equipment to read the meter, examine the meter and perform other tasks related to the fulfillment of obligations under this PPA. This task shall have no impacts on the Seller’s normal operation. Electricity staff or testers assigned by the Buyer to go to the power plant shall comply with safety regulations and internal rules of the power plant.
At the power delivery point, electricity ownership shall be transferred from the Seller to the Buyer. At this point, the Buyer has the right to possess, control and take responsibility for the power output received.
Article 4. Billing and payment
On a monthly basis (or the period of reading the electricity meter as agreed by the two parties), the Buyer and the Seller mutually read the electricity meter on the agreed date to identify the power output delivered and received in the month. The Seller will record the meter readings in the regulated form with confirmation of the Buyer’s representative and send the written meter reading results and bill via fax (soft copy to be sent via email) followed by the official letter to the Buyer within 10 (ten) working days after the meter reading.
Where there is insufficiency of necessary data for determining the power output or the payment amount which the Buyer owes the Seller, except for cases stated in clause 4 of this Article, the Seller shall estimate such data and change the payment amount in line with the reality of the next payment times.
To determine the power output received and accepted by the Buyer for one payment period, the meter reading, billing and payment shall be based on estimated data following the sequence below:
If there is no reliable data, the power output delivered and received shall be estimated according to the monthly average power output of the power plant of 06 (six) payment periods before the meter is broken (or the whole operational duration in case the power plant has operated for less than 06 months) and shall be modified according to the downtime or operational parameters.
Article 5. Force majeure events
Force majeure events include but not limited to, as published by state agencies or other organizations, excluding the Parties as follows:
In case of a force majeure event, the party invoking the force majeure event shall:
After taking all measures specified in clause 2 of this Article, the violating party shall be exempted from the responsibility related to the failure to fulfill its obligations under the Agreement due to a force majeure event, excepting for the responsibility related to the payment of due date amounts in accordance wtih this PPA before the force majeure event.
If due to the force majeure event, either party fails to fulfill its obligations under this Agreement within 01 (one) year, the other party has the right to unilaterally terminate the Agreement after 60 (sixty) days from the date of giving the written notification (unless such obligations are fulfilled within this 60-day term). The Parties will mutually work and figure out reasonable and suitable solutions and reach an agreement through negotiation on good wills.
Article 6. Term of the Agreement
Unless otherwise extended or terminated before the term in accordance with the Agreement’s conditions and provisions, this Agreement shall come into force from the date when the authorized representatives of Parties officially sign and be terminated in no more than 20 (twenty) years from the commercial operation date. Contents of this Agreement shall survive the termination of the Agreement in a necessary period of time for the parties to develop the final invoice, modify invoice, make payment and fulfill their rights and obligations under this Agreement.
An extension of the Agreement term or engagement into a new Agreement can be implemented by the Parties in compliance with legal regulations on the expiry of the Agreement.
Article 7. Breach of agreement, indemnity and termination of agreement performance
Where the Seller has attempted to take remedial measures for its acts of breach within the term of 60 (sixty) days as mentioned above, but such measures are not completed within that term, the Seller may extend the duration of remedial measures to maximum 01 (one) year from the date of receiving the written notification on the Seller’s breach (unless the competent agency allows to extend the investment schedule in compliance with the current regulations). The Seller shall continue to complete its remedial measures for its breach in the shortest time, excepting for the cases specified in Article 5 of this Agreement;
Where the Buyer has attempted to take remedial measures for its acts of breach within the term of 60 (sixty) days as mentioned above, but such measures are not completed within that term, the Buyer may extend the duration of remedial measures to a maximum of 01 (one) year from the date of receiving the written notification on the Buyer’s breach. The Buyer shall continue to complete remedial measures for its breach in the shortest time, excepting for the cases specified in Article 5 of this Agreement;
In case of any breaches of the Agreement, the other party shall send a written notification to the violating party. The violating party shall cooperate in settling the breach.
Where a breach of the Agreement cannot be solved under clause 4 of this Article, the other party may continue to request the violating party to take remedial actions or may terminate the Agreement by sending notification to the violating party. After the other party chooses to terminate the Agreement performance in accordance with conditions of this Agreement, the parties shall not have to fulfill their Agreement obligations, excepting for cases specified in Article 5 and the other party has the right to request the violating party to make indemnity for its damages.
Where the Seller is the indemnity holder and decides to terminate the Agreement, the indemnity value is calculated by the value of electricity actually generated for one year prior to the termination of the Agreement.
Article 8. Dispute settlement
Where a dispute is arisen between the parties in this Agreement, the party lodging the dispute shall give written notification to the other party on the dispute contents and requirements within the prescribed term. The parties shall negotiate and settle their dispute within 60 (sixty) days from the date of receiving the notification from the party lodging the dispute. The dispute related to payment of electricity bills shall be settled within 15 (fifteen) days from the date of receiving the notification from the party lodging the dispute.
This mechanism of dispute settlement is not applicable to the disputes which do not directly arise from this Agreement between a party of the Agreement and third parties.
Where the dispute cannot be settled through negotiation in accordance with the provisions in clause 1 of this Article or one of the parties fail to comply with the result of negotiation, either party may request for dispute settlement in accordance with provisions in Circular No. 40/2010/TT-BCT dated 13th December 2010 by the Minister of Industry and Trade on the sequence and procedures for dispute settlement in the electricity market or approach to another dispute settlement body as agreed by both parties for their dispute settlement in accordance with relevant regulations.
Article 9. Trust, transfer and restructuring
The entrusting or transferring party shall comply with the current legal regulations on its action and immediately give written notification to the other party regarding the trust or transfer
Where the restructuring of the power sector has impacts on the Seller’s or the Buyer’s rights and obligations under this Agreement, the Agreement performance shall be transferred to the recipient. The Buyer shall confirm and ensure in writing that the relevant recipients fulfill their obligations of power purchase or distribution as well as other interests and obligations in compliance with this Agreement.
Article 10. Other agreements
The Parties shall not revise contents of provisions in this Agreement themselves but for cases regulated in clause 3, Article 6 of this Circular.
The Seller is obligated to implement legal procedures related to the power plant. The Buyer shall cooperate with the Seller to obtain necessary license, approval and permission from the competent state agencies with regard to the location of the plant, control of natural resources, investment, transmission or sale of electricity, ownership and operation of the power plant, including provision of additional documents or archived documents and performance of other necessary and reasonable activities to implement agreements of the Parties.
The interpretation and performance of this Agreement shall comply with regulations of Vietnam’s legislation.
Failure to exercise the Parties’ rights under this Agreement at any time shall not affect the exercise of rights under the Agreement later. The parties agree that the statement of waiver of rights from one party for any commitments or conditions under the Agreement or any breaches of the Agreement shall not be deemed that such party waives the similar rights later.
Where any contents in this Agreement are found inconsistent with the legal regulations or invalid as judged by the Court, other contents of the Agreement remain valid if the remaining parts fully reflect their contents without the invalidated parts.
All notifications, bills or other necessary correspondences exchanged during the performance of the Agreement shall clearly state the date and the relation to the Agreement. Such notifications, bills or correspondences shall be made in writing and sent by fax or post. In case of sending by fax, the original copy shall be sent later by the post with prepaid postage. Notifications, bills or other correspondences shall be sent to the following addresses:
Viet Nam
, , Viet Nam
The Buyer agrees to keep confidential the plant’s information specified in the Appendix of the Agreement unless such information has been disclosed by the Seller or the competent state agency.
This PPA is the final complete agreement between the contracting Parties and replaces the Agreement-related discussions, information and correspondences exchanged before signing the Agreement.
The Seller shall be responsible for the removal and reinstatement of the work site, cleaning and disposal of materials, equipment and facilities of solar power works during the development and operation or after the conclusion of the project in accordance with relevant legal regulations on environment.
Article 11. Performance commitment
Both Parties shall commit to perform this Agreement as follows:
This Agreement and its six appendices is an integral part of the Agreement and is made into 10 (ten) copies with the same validity. Each Party shall keep 04 (four) copies, and the Seller shall send 01 (one) copy of the PPA to the EREA and another copy to the Electricity Regulatory Authority of Vietnam.
FOR THE SELLER (Job title) (Signature and seal) (Full name) | FOR THE BUYER (Job title) (Signature and seal) (Full name) |
APPENDIX A
AGREEMENT ON CONNECTION TO THE POWER SYSTEM
(attached to Agreement No. dated…./…./2020)
– Connection:
– Connection to SCADA system:
– Protection system:
[Applied individually to each project based on specifications of the project, including the single-line diagram of connection equipment, list of characteristics of metering systems, voltage and connection requirements]
APPENDIX B
TECHNICAL SPECIFICATIONS OF THE POWER PLANT
(attached to Agreement No. dated…./…./2020)
Part A. General specifications
Part B. Operational parameters of specific technologies
APPENDIX C
METERING AND DATA COLLECTION SYSTEM
(attached to Agreement No. dated…./…./2020)
The main and backup metering system are installed in accordance with the technical design agreements of power metering system and meter reading collection system at [name and number of the agreement between parties].
Specifications of the metering system comply with the technical design agreements of power metering system and meter reading collection system at [name and number of the agreement between parties].
Technical requirements of metering equipment, metering circuits, lead sealing measure and meter reading collection, processing and storage system comply with the technical design agreement of power metering system at [name and number of the agreement between parties].
III. Metering location
The two parties agree with each other on the metering locations of metering systems as follows:
– Main metering location: ….
– Backup metering location 1: ….
– Backup metering location 2: ….
– Output separation and metering location (if any): …
On the 1st of every month, legal representatives of the two Parties will confirm the meter reading and develop the confirmation minutes of meter reading at 0:00 a.m on that day and power output of the preceding month.
The power output that the Buyer must make payment to the Seller in the due month [is established and confirmed by the two sides for each specific project and location].
APPENDIX D
REQUIREMENTS BEFORE THE COMMERCIAL OPERATION DATE
(attached to Agreement No. dated…./…./2020)
60 (sixty) days before the expected COD in accordance with Appendix B, the Seller is responsible for sending the Buyer the Draft procedure for power plant commissioning in line with the current regulations on and technical and technological standards of a solar power plant in order for the parties to agree with each other on the COD and calculate the trial power output of the power plant.
APPENDIX E ELECTRICITY BILL
(attached to Agreement No. dated…./…./2020)
APPENDIX F
OTHER AGREEMENTS (if any)
(attached to Agreement No. dated…./…./2020)
APPENDIX 3 PERIODIC REPORT ON
THE INVESTMENT REGISTRATION AND THE IMPLEMENTATION OF SOLAR POWER PROJECTS IN THE PROVINCE
(Issued with Circular No. 18/2020/TT-BCT dated 17th July 2020 of Minister of Industry and Trade on project development and sample Power Purchase Agreement applied for solar power projects)
PEOPLE’S COMMITTEE OF……… ——— No:……../BC-………… | SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ————- ………, ……./……./20…. |
REPORT
On the investment registration and the implementation
of solar power projects in…….from January 1st 20… to December 31st 20..
Respectfully to: Ministry of Industry and Trade
1.1. Registered projects: Summary information and form of the registration for implementation of grid-connected rooftop solar projects (see the attachment)
1.2. Projects with approved investment policies: Summary
1.3. Projects which are being implemented in the power development plan and province’s planning: Summary
2.1. Name of the first project: Location of construction: Investor:
Investment policy/Investment license No……..dated……/……./…….. Capacity in the first phase:
Capacity in the second phase (if any): Development and approval of investment projects: Site clearance and land allocation (if any): Construction commencement date:
Current progress of the project:
Tentative time for project operation in the first phase: Tentative time for project operation in the second phase:
…….
SUMMARY FORM OF THE REGISTRATION FOR IMPLEMENTATION OF ROOFTOP SOLAR POWER PROJECTS
No. | Name of the project | Location | Proposed capacity (MW) | Area (ha) | Total tentative investment (bil VND) | Connection | Tentative progress of operation | Note | ||
Substation | Line | Connection location | ||||||||
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APPENDIX 2
STANDARDIZED POWER PURCHASE AGREEMENT FOR THE ROOFTOP SOLAR POWER SYSTEM
(Attached to Circular No. 18/2020/TT-BCT dated 17th July 2020 by the Minister of Industry and Trade on project development and the sample PPA applied for solar power projects)
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
————-
STANDARDIZED POWER PURCHASE AGREEMENT FOR THE ROOFTOP SOLAR POWER SYSTEM
No.:
Pursuant to:
– The 2015 Civil Code;
– The Commercial Law dated 14th June 2005;
– The Electricity Law dated 3rd December 2004; the Law on amending, supplementing a number of articles of the Electricity Law dated 20th November 2012;
– Decree No. 137/2013/ND-CP dated 21st October 2013 by the Government providing detailing the implementation of a number of articles of the Electricity Law and the Law on amending, supplementing a number of articles of the Electricity Law;
– Decision No. 13/2020/QD-TTg dated 6th April 2020 by the Prime Minister on incentive mechanism for developing solar power projects in Viet Nam;
– The Circular No. …/2020/TT-BCT dated … 2020 by the Minister of Industry and Trade on project development and sample PPA applied for solar power projects;
– Demand for power sale and purchase of the two parties; Today, on..…, at….…
We are:
The Seller (Party A): …..
Address:
Tel.:
Email:
Fax:
Tax code
Business Registration Certificate:
Bank account: Bank name: Represented by:
ID or passport number:
Position: (authorized by At the authorization letter (number, date).
The Buyer (Party B): …..
Address:
Tel.: Email: Fax: Tax code _ Business Registration Certificate: Bank account: Bank name: Represented by:
Position: (authorized by At the authorization letter (number, date).
To mutually enter into the Power Purchase Agreement (hereinafter referred to as the Agreement or PPA) on selling and purchasing electricity generated from the rooftop solar power system (hereinafter referred to as “the System”) with the installed capacity of … kW and specifications stated in the Appendix (the Appendix form is promulgated by Party B) which is constructed and operated by Party B at [place of installing the System] with the following terms:
Article 1. Power for sale and purchase
Article 2. Power purchase price
Article 3. Confirmation of meter readings, power generated on the grid and billing
– Party B shall read the meter on [date] of every month.
– Within no more than 05 (five) business days from the date conducting the meter readings, Party B shall notify Party A of the meter readings and the power output generated from the System connected to the grid in the payment period via the following channels:
Email [email address] SMS/Zalo/Viber [tel.]
– In case Party A does not agree with the meter readings and the power output fed to the grid as notified by Party B, Party A shall give feedback within 01 (one) working day from the date of receiving the notification from Party B via the following channels:
Website: ………….. Email [email address]
– After the above deadline, if Party A has no feedback to Party B, it shall be deemed that Party A agrees with the metering readings and the power output fed to the grid as notified by Party B.
Where :
T(n)= Ag (n) x G (n)
T(n): The billing amount in the month n (VND)
Ag(n): The power generated by Party A to Party B’s grid in the month n (kWh).
– For one-rate electricity meter, the Ag(n) is the electricity output that Party B’s grid receives from Party A’s system at the delivery point as recorded by the electricity meter.
– For three-rate electricity meter, the Ag(n) is the total electricity output of three time-based electricity rates (normal hours, peak hours and off-peak hours) that Party B’s grid receives from Party A’s system at the delivery point as recorded by the electricity meter.
G(n): Electricity price applied for the month n as specified in Article 2 of this Agreement (VND/kWh).
– If Party A is a VAT taxable subject, in addition to the electricity billing amount as defined at point a of clause 2 in this Article, Party B shall pay a VAT amount to Party A in accordance with the current regulations.
– If Party A is a household or an individual implementing the rooftop solar project and receiving electricity from the national grid, By the end of the last period of power meter readings of the year, by the end of the last period of power meter readings of the year, Party B shall be in charge of making the final payment for the electricity amount purchased from the solar power system in the year and for the VAT amount to Party A depending on the revenue obtained from the solar power system. Party A is responsible for cooperating with Party B in settling the VAT in accordance with the current legal regulations.
In case the power metering system has a fault (due to fire, breakdown, loss or inaccuracy), the Seller needs to immediately notify the Buyer about the fault, and the parties shall make a report on the fault and realize the agreement on Party A’s power output generated to the Party B’s grid based on the output of the preceding payment period, month or week.
Article 4. Payment
The statement of power meter readings and electricity amount generated on
Party B’s grid from Party A’s system issued by Party B in the month;
Sales invoice in accordance with regulations issued by Party A showing the bill amount as defined in clause 2 of Article 3 of this Agreement.
If the invoice issued by Party A is a directly-deductable VAT invoice (no tax rate and VAT amount are stated in the invoice), Party A shall send Party B the VAT specification and VAT payment receipt for the purchased power billing amount in order for Party B to reimburse Party A the VAT payment.
Party B shall, based on the statement of power meter readings and electricity amount generated on Party B’s grid from Party A’s system, make payment for the electricity bill to Party A with the amount defined at point a of clause 2 of Article 3 of this Agreement.
On a yearly basis:
Party B shall prepare and send Party A the “Minutes of confirmation of delivered electricity amount and bill amount” of the year following the form issued by Party B no later than 15 days from the last day of the year or the expiry date of the Agreement (whichever comes first).
In case Party A’s revenue is subject to tax payment as mentioned at point b of clause 2 of Article 3, Party A shall be responsible for sending the sales invoice, VAT specification and VAT payment receipt for the purchased power billing amount in order for Party B to reimburse Party A the VAT payment.
Bank transfer (transfer fee is covered by Party A).
Bank transfer information: ……………………………………………………………….
Article 5. Rights and obligations of the parties
grid together with Party B.
Party B’s grid from Party A’s System together with Party A.
Article 6. Other agreements
In case of any disputes between the parties in this Agreement, the dispute initiator needs to inform the other party in written form on the dispute contents and requests within the regulated time limit. The parties shall negotiate to resolve the dispute within 30 (thirty) days since the date of receving written notification from the dispute initiator. Disputes related to late power output payment shall be resolved within 5 (five) days since the date of receving written notification from the dispute initiator.
If the two parties cannot resolve disputes, they are entitled to sending requests to competent state authorities for support in addressing disputes.
Such the dispute resolution mechanism is not applicable to disputes which do not directly arise from this Agreement between a party of this Agreement and the third parties.
In case disputes cannot be resolved through negotiation in accordance with regulations at clause 1 of this Article or one of the parties refuses to comply with negotiation results, one of the parties or the parties can send a petition to the higher electricity authority of the Buyer or the MOIT for a resolution.
Article 7. Implementation provisions
Party A (Signature, seal and full name)
| Party B (Signature, seal and full name)
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APPENDIX 3 PERIODIC REPORT ON
THE INVESTMENT REGISTRATION AND THE IMPLEMENTATION OF SOLAR POWER PROJECTS IN THE PROVINCE
(Issued with Circular No. 18/2020/TT-BCT dated 17th July 2020 of Minister of Industry and Trade on project development and sample Power Purchase Agreement applied for solar power projects)
PEOPLE’S COMMITTEE OF……… ——— No:……../BC-………… | SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ————- ………, ……./……./20…. |
REPORT
On the investment registration and the implementation
of solar power projects in…….from January 1st 20… to December 31st 20..
Respectfully to: Ministry of Industry and Trade
1.1. Registered projects: Summary information and form of the registration for implementation of grid-connected rooftop solar projects (see the attachment)
1.2. Projects with approved investment policies: Summary
1.3. Projects which are being implemented in the power development plan and province’s planning: Summary
2.1. Name of the first project: Location of construction: Investor:
Investment policy/Investment license No……..dated……/……./…….. Capacity in the first phase:
Capacity in the second phase (if any): Development and approval of investment projects: Site clearance and land allocation (if any): Construction commencement date:
Current progress of the project:
Tentative time for project operation in the first phase: Tentative time for project operation in the second phase:
…….
SUMMARY FORM OF THE REGISTRATION FOR IMPLEMENTATION OF ROOFTOP SOLAR POWER PROJECTS
No. | Name of the project | Location | Proposed capacity (MW) | Area (ha) | Total tentative investment (bil VND) | Connection | Tentative progress of operation | Note | ||
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CT TNHH Suntiki Solar is a solar energy company based in Vietnam. We consult, survey, engineer and install rooftop solar panel systems for residential, commercial, industrial such as factories, farms, villas, industrial parks and others.