A DECISION.

On the mechanism of supporting the development of biomass power projects in Vietnam

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Government Law Base December 25, 2001;

The Power Law Base on 3 December 2004, the Law amended, added a number of provisions of the Power Law on November 20, 2012;

The Investment Law Base November 29, 2005;

Construction of the Law Building on November 26, 2003;

At the suggestion of the Minister of Commerce,

The Prime Minister issued a decision on the mechanism of supporting the development of mass-biomass projects in Vietnam.

Chapter I

COMMON RULES

What? 1. Apply Scope and Apply Objects

1. This decision specifies the mechanism for the development of development projects using biomass energy in Vietnam.

2. The applicable subject of this Decision includes organizations, individuals who participate in power activities related to the development of biomass power projects in Vietnam.

What? 2. Explain the word

In this Decision the words below are understood as follows:

1. The purchase party is the Vietnam Electric Corporation or the authorized member unit (for grid-linking projects).

2. The semi-electric side is the organization, the individual has a power operation license in the field of electricity from power plants using biomass energy.

3. The biomass energy used to produce electricity includes: Annex, waste in agricultural production, agricultural processing, and other crops that can be used as fuel for electricity generation.

4. The biomass power project is a power generation plant project that primarily uses biomass energy to produce electricity.

5. The grid-netting power project is the building of a biomass power plant that connects to the national grid to provide a partial or all of the electricity produced on the national grid.

6. The connection point is the location where the wiring of the semi-electric side connects to the power side ' s power system.

7. Power junction is the point of placing the measured counting device in the electricity purchase contract to determine the sale of the sale electricity by the electricity seller.

8. The non-grid-connected mass biopower project is the building biomass power plant project to provide full power for household appliances in the area, not to match the national grid.

9. The sample purchase contract for grid-block power projects is the electricity purchase contract issued by the Ministry of Commerce as the basis for the application in the electricity purchase transaction produced from the grid-wired power project between the electricity seller and the buyer ' s side. Electricity.

10. The avoidance cost of the national power system is the cost of producing a (01) kWh of the thermal machine using coal imported in the national power system, the cost can be avoided if the buyer buys a (01) kWh from a power plant using the energy. The biomass was replaced.

11. The avoidance cost expression applied to the biomass power project is the price of calculated according to the avoidance costs of the national power system when there is one (01) kWh power generation from the power plant using the biomass energy that is broadcast to the national power system. Oh,

12. The main category of the biomass power plant project includes the boiler, turbine turbines, electric generator and variable stations.

13. The thermal emission-electric project is the production of the production block and provides both heat and heat energy.

Chapter II

BIOMASS PLANNING AND DEVELOPMENT

What? 3. Mass Power Development Planning

1. The biomass power development planning is one of the contents of the development planning and the use of biomass energy. The development and use of biomass energy includes the development and use of national biomass energy, development planning, and the use of provincial biomass energy. The planning of developing and using biomass energy as the basis for investment activities develops and uses biomass energy sources, which are tailored in accordance with the research, evaluate the biomass energy potential in each period.

2. The development and use of national biomass energy and development planning and the use of provincial biomass energy is set once for the period to 2020, the vision to 2030 and is adjusted, supplematable as needed. From the following stages of planning, the planning of the biomass power development is interred with the Provincial Power Development Planning and the National Electric Power Development Planning.

What? 4. Set, appraisal, approve and publish the Planning and Development Planning and Use of biomass energy

1. The Ministry of Commerce organizes the development planning and use of the national biomass energy of the Prime Minister approx; publication and guidance, track, examination of the implementation of the development planning and the use of biomass energy has been approved. Check.

2. The Provincial Committee of the Provincial People, the Central Committee of the Central Committee (later known as the Provincial People's Committee), organizes the planning of development and the use of the provincial-level biomass energy of the Minister of Commerce.

3. The publication and adjustment of the planning implementation under the current regulation.

What? 5. The funding for the public, appraisal, approval and publication of the Development Planning and Use of the biomass energy

1. The state budget budget to carry out the task of establishing, appraisal, publication and regulating the development of the development and use of biomass energy.

2. Encourage to mobilize other legitimate sources of funding for the construction of the development planning and the use of biomass energy.

What? 6. Investment building blocks of grid-connected block power projects

1. The investment of the construction of the biomass power project must be consistent with the Development Planning and the use of biomass energy and the power development planning of grants approved by the authorities.

2. For the unscheduled biomass power projects in the category of the development planning and the use of national biomass energy and the approved national power development planning, the investment holder is responsible for the planning of the planning addition, sending the Ministry of Energy to the United States. Appraisal, the Prime Minister considers, decided.

3. While planning to develop and use unapproved biomass energy, the investment of biomass power projects needs to be approved by the Prime Minister.

4. The investment of building blocks of biomass power projects is carried out by law on construction, fire prevention, environmental protection, and other regulations involved.

What? 7. Match the biomass power project into the electrical system, the operation of the biomass power plant

1. The connecting of the biomass power project into the national grid must be consistent with the approved power development planning. It is connected by the Power side and the Purchase Agreement on the principle of the electricity seller responsible for the investment of the power line to the point of entry into the nearest national grid, which is currently under the planning of the provincial power development. Where the point of connection points to the national grid is not yet in the power development planning, the owner needs to deal with the point of connection with the distribution unit or the electricity transmission unit as the basis for the addition of provincial power development planning. the current rules. In the absence of a connection point, the electric side is responsible for the review of the Ministry of Commerce, the decision.

2. The owner of the biomass power project is responsible for investing, operating, maintenance of the line and the increased pressure station (if any) from the power station of the Seller of the electricity to the point where the deal is connected to the Purchase agreement.

3. Depending on the connecting voltage, the Electrical Distribution Unit or the Power transmission unit is responsible for the investment of the electrical load from the point of connection to the national grid under the approved power development plan and sign the match agreement with the investment holder. The biomass power project.

4. After the completion of the investment and the acceptance of the commercial operation, the Electric Power Systems Unit and the electric market operator are responsible for mobiling the biomass power plant under the principle of prioritifully exploiting the full capacity and electricity. It ' s the ability to provide the biomass energy of the plant area.

What? 8. Construction of the construction of biomass power construction

The investment holder is only allowed to initiate construction of a grid-connected power grid, in addition to the regulatory conditions at Article 72 Building Law and relevant law-related texts, and also: A certificate of investment, a written approval text of the party. buy electricity; the agreement to be connected to the Coordination Unit or the Electronic transmission unit (for the network of networked power); the opinion of the design of the state agency is competent in accordance with the law of the management of the building's investment management.

What? 9. End of Project execution

Within 12 months of being issued an Investment Certificate, the Investment Owner failed to build the main category of the work or maximum of 24 months from the date of the operating commitment in the Investment Certificate in which the smoke electricity project was not expected. bringing in the operation, the Provincial People ' s Committee is responsible for review to revoking the prescribed investment certificate, reporting the state agency has the authority to hand over the project to another investor to do so. Except for the correct reason and granted authority to accept the pause or dilation of the progress of the project.

What? 10. The report mode performs the project

1. Within five days of work since the date of the Certificate of Investment Certificate, the owner of the investment is responsible for sending copies of the Certificate of Investment that have been corroborated by the Ministry of Commerce to monitor management.

2. During the construction of the biomass power project, before the 15th of the first month, the Chairman must have a report on the deployment of the previous quarter's project, the next quarter's implementation plan. Every year, before 15 January, the Chairman must have a report on the implementation of the implementation of the project in the previous year, the next year 's deployment plan to the Provincial People' s Committee, the Ministry of Commerce for management, the implementation of the implementation and the purchase. The power to coordinate.

Chapter III

THE MECHANISM FOR DEVELOPMENT OF THE BIOMASS POWER PROJECT

What? 11. Charge of purchasing power from grid-grid power projects

1. The purchase side is responsible for purchasing the entire electric power produced from the grid-based biomass generator plants that are managed by themselves.

2. The purchase of the electricity sale is made through the electricity purchase contract established under the Procurement Contract purchase contract applicable to the grid-based mass electronics projects issued by the Ministry of Commerce.

3. In the six-month term since the owner of the biomass power project has the text of the sale of electricity, the Purchase must proceed to sign the sale of the electricity purchase contract with the prescribed sale of electricity.

4. The deadline for the contract to purchase electricity for biomass power projects is twenty (20) years from the day of commercial operation. After 20 years, the two sides may renew their contract time or sign new contracts under the rules of the existing law.

What? 12. incentives for investment capital and taxes

1. Investment Capital.

a) The investor is mobilized capital from organizations, individuals in and out of the country to invest in implementing biomass power projects under the rules of the existing law.

b) The biomass electrical projects are entitled to the investment credit incentives under the existing law regulations on investment credit and the export credit of the State.

2. Import tax: The import-free biomass power project is imported to import goods to create fixed assets for the project; imports of imports are raw materials, supplies, sales of domestic products that have not yet produced imported to serve the production of the project. according to the law of the current law on the export tax, the import tax.

3. Corporate income tax: The exemption, the reduction of corporate income tax on the biomass power project is implemented as for the project of the investment incentives sector by the regulation of the current law on taxes.

What? 13.

1. Mass power projects and transmline work and transformer stations to match the national grid are exempt, reducing land use, land rent by statute of applicable law applicable to the project of the investment incentives sector.

2. Based on the approved planning authority, the Provincial People ' s Committee is responsible for the deployment of sufficient land funds for the owner to implement the biomass power projects. The compensation, the release of the free release, is carried out by the laws of the land.

What? 14. The sale price of grid-block power projects

1. For thermal-electric field projects: The procurement party is responsible for purchasing the entire power output from thermal-emission projects-electricity uses biomass energy at the price of electricity at a spot price of 1,220 copper/kWh (which has not included a value-added tax, equivalent of 5.8 UScents/kWh). The wholesale price is adjusted according to the volatility of the copper/USD billion.

2. For other mass-biomass projects:

a) The power source projects use biomass energy for electricity to be electric, but not as a heating-electric project: The sale price is applied in accordance with the avoidance of avoidance costs applied to the biomass power projects.

b) Every year, the Ministry of Labor constructs and enacted the avoidance cost Expression is applied to the biomass power projects.

3. The biomass power projects that apply the sales price by regulation at Clause 1 and Clause 2 This are not to apply the subsidy mechanism for the project's electricity output under other existing regulations.

4. Cost of purchasing power from the biomass power projects is calculated and put in full in the input parameters in the annual sales price method of the Vietnamese Electric Power Corporation granted the authority to approve.

5. The Ministry of Commerce follows, proposes to adjust the price of the prescribed purchase price at paragraph 1 This Article, the Government Prime Minister considers, the decision.

What? 15. Preference, support for non-connected block power projects.

1. The non-netting mass biosphere project is entitled to the incentives, which support regulation at Article 12, Article 13 This Decision.

2. The investment owner proposes a power price and determines the total support from the state budget of the Ministry of Commerce of the Appraisal, the Prime Minister's report approx. The total support from the state budget is extracted from the Vietnam Environmental Protection Foundation.

Chapter IV

THE ORGANIZATION.

What? 16. The responsibility of the ministries, local to the biomass power project

1. The Ministry of Commerce is responsible

a) Content Guide, sequence, decision-making, appraisal, approval, adjustment, and publication of the Development Plan and the use of biomass energy.

b) There is a responsibility to organize, guide and coordinate with the People ' s Committee of the Examination Provinces, which oversees the implementation of this Decision.

c) The Board of Procurement Contracts for grid-grid electronics projects.

d) Build and enact national engineering regulations on the biomass electricity.

) Enacted the cost of avoiding the annual biomass power project.

2. Ministry of Finance: presided over, in coordination with the Ministry of Industry, Ministry of Natural Resources and Environmental Regulation Financial mechanisms that support development of non-connected block power projects from the Vietnam Environmental Protection Foundation in accordance with the current regulation

3. The People ' s Committee of the Provinces, the Central City of the Central Committee:

a) Coordination, investor support for compensation, free, infrastructure, human resources for investment, implementation and development of biomass power projects on the site.

b) The monitoring, monitoring, inspection of local mass-biomass projects by jurisdiction.

c) The task of administing the state of operations in relation to local biomass electricity by the regulation of the existing law.

d) The non-networked mass birth power project, the Provincial People's Committee applied the preferable mechanism under Article 12, 13 of this Decision, and is responsible for supervising management, ensuring the investment of local biomass energy efficiency.

What? 17.

1. This decision has been in effect since 10 May 2014.

2. Ministers, peer-agency Prime Minister, Head of the Government of the Government, Chairman of the People ' s Committee of the Provinces, the Central City of Central City; Head of the Agency, Unit and Organization in relation to the development of mass-mass electricity projects. in Vietnam is responsible for this decision.