On 03 October 2022, the Ministry of Industry and Trade (“MOIT”) issued Circular No. 15/2022/TT-BCT on Methods for Forming Price Brackets for Electricity Generation of Transitional Solar and Wind Power Plants (“Circular”). The Circular takes effect from 25 November 2022, stipulating methods and procedures for building and forming price brackets for electricity generation of ground-based solar power plants, floating solar power plants, onshore wind power plants and offshore wind power plants. The Circular applies to:

• the Electricity of Vietnam (“EVN”);
• Investors of solar power plants/parts of solar power plants who have signed a power purchase agreement (“PPA”) with EVN before 01 January 2021, but did not meet the conditions for the application of electricity purchase price under Decision No. 13/2020/QD-TTg, dated 06 April 2020 issued by the Prime Minister (“PM”);[1] and
• Investors of wind power plants/parts of wind power plants who signed a PPA with EVN before 01 November 2021, but did not meet the conditions for the application of electricity purchase price under Decision No. 39/2018/QD-TTg, dated 10 September 2018 issued by PM.[2]

The Circular includes two main contents:

• Chapter II prescribes forming methods, i.e. principles and calculation formulae, of price brackets for electricity generation of transitional solar and wind power plants. Accordingly, the maximum value applicable to power plants shall be the electricity generation price of the standard power plant determined using methods under the Circular.
• Chapter III prescribes procedures for forming, appraising and promulgating price brackets for electricity generation, as this diagram shows:

[1] Decision No. 13/2020/QD-TTg dated 06 April 2020 issued by PM on incentives for development of solar energy in Vietnam.

[2] Decision No. 39/2018/QD-TTg dated 10 September 2018 issued by PM on amending several provisions of Decision 37/2011/QD-TTg on mechanism supporting the development of wind power projects in Vietnam.