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Decision 37/2009/qd-Ttg: Mechanisms To Support The Development Of Wind Power Projects In Vietnam

Original Language Title: Quyết định 37/2011/QĐ-TTg: Về cơ chế hỗ trợ phát triển các dự án điện gió tại Việt Nam

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Pursuant to the law on organization of the Government of 25 December 2001;

Pursuant to the law on electricity of 3 December 2004;

Pursuant to the law on investment of 29 November 2005;

Pursuant to the law building on November 26, 2003;

Pursuant to the law on State budget of 16 December 2002;

Considering the recommendation of the Minister of industry and trade, DECIDED: chapter I GENERAL PROVISIONS article 1. Scope and objects 1. The decision rules of the mechanism to support the development of wind power projects in Vietnam.

2. Subject to the decision of the organization involved in activities related to power development wind power projects in Vietnam.

Article 2. Explanation of terms In this decision the terms below are interpreted as follows: 1. The buyer of electricity is electricity Vietnam or subdivisions are authorized.

2. The seller is power production business, operating the business of selling electricity from wind power projects.

3. wind power works was the synchronization of the wind turbines, generators, synchronous equipment and other building structures using wind energy to generate power.

4. wind power project consists of one or more wind power works.

5. wind power grid connection project is wind power project to be built connected to the national power grid to provide part or all of the electricity produced.

6. Connection Point is the location where the line of vendors connect to the electric power system of buyer power.

7. power delivery Points is the point counting power sale out of the seller.

8. do not connect the power grid project is wind power project built to provide electricity for the entire households used in the area, not connected with the national power grid.

9. Investor wind power project is the organization performing investment activities wind power projects in accordance with the law of Vietnam.

10. power purchase contracts for wind power projects is the power purchase contract by the Ministry of industry and trade issued to apply in trading electricity produced from wind power grid connection project between the seller and the buyer.

11. the main items of the wind power works including the head wind, wind turbines, generators and substations.

Chapter II of the PLANNING and DEVELOPMENT of WIND POWER article 3. Wind power development plan 1. Wind power development plan includes development of national wind power, wind power development plan. Wind power development plan as the basis for the investment in wind power development, be adjusted in accordance with the research, the wind potential assessment in each period.

2. wind power development planning and national development planning local wind power was created once for the period of 2011-2020 vision to 2030 and are adjusted and supplemented where necessary. From the following planning phase, planning wind power development be mainstreamed into development planning provincial power and the development of national power.

Article 4. Created, approved and planned wind power development 1. Industry organizations planning national wind power development process approved by the Prime Minister; announced and instructions, tracking, checking the implementation of wind power development plan has been approved.

2. the people's committees of provinces and cities under central Government (hereinafter referred to as the provincial people's Committee) which has the potential to develop wind power held up wind power development planning process provincial Minister of Industry for approval.

3. The publication and adjust the planning done under current rules.

4. Main content of wind power development plan: a) wind power development planning of countries with the following:-the potential of the local winds;

-Directory of wind power projects;

-Connection oriented wind power projects to the national electric system.

b) wind power development plan provincial contains the following:-wind power potential of the province;

-Area and the boundaries of the area for development of wind power projects;

-Directory of wind power projects;

-Scale of the capacity of each wind power projects and projects connected to the national power system.

5. During the planning of wind power has not yet been approved, the wind power projects should be approved by the Prime Minister of investment undertakings.

6. Industry specific regulations the content, sequence, procedure, evaluation and approval of wind power development plan.

Article 5. Funding for wind power development planning 1. The central budget funding to carry out the task, verify, and correct the announced development of national wind power.

2. the budget of the central cities, the level of funding to implement the tasks set, due diligence, disclosure and adjust the planning of local wind power development.

3. Encourage the mobilization of the funds of other legal planning for wind power development.

Article 6. Construction of the wind power project 1. The construction of wind power projects to suit the development of wind power and electric power development planning grants are approved by the competent authority.

2. for wind power projects not yet in the category of development planning and national wind power development plan approved national power, the owner is responsible for making additional planning recommendations, send the Industry verified, your prime consideration and decision.

3. The construction of the wind power projects are implemented according to the provisions of the law on the management of construction works.

Article 7. Wind power project in connection to the electrical system of power plant operation 1. Connecting wind power projects to the national grid to match the electricity development plan approval. Connection points due to the seller and the buyer agreed on the principle of power seller responsible investment power line to connect to the existing national grid near for electricity development planning in the province. The case points to connect to the national grid in new grid investment projects not yet made, seller of electricity must deal with the buyer of electricity to synchronize the progress of wind power project investment and development projects of the grid. Case of non agreement score power, connections are responsible for the Industry to review the decision.

2. The owner is responsible for wind power projects in investment, operation and maintenance of transmission lines and substations to increase pressure (if available) from the selling party's power to connect connection agreement with the buyer.

3. Depending on the voltage, connect the unit to electrical distribution or transmission unit is responsible for the investment from the point of power lines connect to the national grid as electricity development plan approved and signed agreements to connect with investors in wind power projects.

4. After completion of the investment and trade in units of electricity and electricity market operator is responsible for mobilizing the wind power plant by extraction priority mode the entire capacity and power play consistent with the area's wind plant.

Article 8. Construction of wind power works the investor only allowed construction of wind power works when there was investment certificates; have signed power purchase agreement with the buyer power; connection agreement with the Distributor unit or power transmission unit and have the report gauges the wind data in a continuous period of at least 12 months.

Article 9. Terminate the project after 12 months since the investment certificate is granted, if the investor does not begin construction of the main categories of works, the provincial people's Committee has the responsibility to the consider to withdraw investment certificates, reports the competent State Agency assigned the project to investors. Unless there is good reason, be competent to accept the suspend or relax the progress of the project.

Article 10. Report mode 1. Within 5 working days from the date of investment certificates, the investor is responsible for sending a copy of the certificate of investment has certified about the Industry to track management.

2. During the construction of the wind power project, the first quarter's before June 15, the investor must have reported on the State of implementation of the projects of the previous quarter, the implementation plan of the next quarter. Every year, on Jan. 15, the previous owner must have reported on the situation of implementing the project in the years ahead, the deployment plans of the next year sent the Industry to manage, track implementation.

Chapter III the MECHANISMS to SUPPORT WIND POWER PROJECT DEVELOPMENT article 11. Responsible for the purchase of electricity from wind power projects 1. Buyer power is responsible for buying the entire electricity produced from wind power plants connected to the grid in the manage by themselves.

2. your purchases made through your purchase contract was formed under the power purchase contract model applies to grid connected wind power projects by the Ministry of industry and trade. The power purchase agreement has the following form: a) the time the contract is twenty (20) years from the date of commercial operation. The seller can extend your contract or a new contract with the buyer power under the current rules.

b) power purchase price basis and the principle of adjusting the selling price of electricity during the period of the contract.

c) connection agreement, counting and operation of wind power plants.

d) agreement on the billing and payment.

Article 12. Incentives on investment, tax, charge 1. Capital mobilization: a) investors are seeking funding under the forms permitted by law from organizations, individuals and foreign investment to make wind power projects.

b) wind power projects that enjoy the incentives under the current rules on the investment of the State credit.

2. Imported tax: wind power projects are under no imported tax for goods imported to create fixed assets of the project, the imported goods are raw materials, materials, semi-finished products not yet manufactured imports to production of the project as defined in Tax Law , Import tax and the provisions of the current law on tax, import tax.

3. Enterprise Income Tax: corporate income tax, the exemption of enterprise income tax reduction for wind power projects are done as for projects in the field of special investment incentives provisions of investment law, enterprise income tax law and other documents guiding the implementation of investment law The Enterprise Income Tax law.

Article 13. Preferential land infrastructure 1. Wind power projects and transmission lines and substations to connect with national grid to be exempted, reduced land use, land lease under the provisions of current legislation applicable to projects in the field of special investment incentives.

2. Based on the master plan was approved by the authority, the provincial people's Committee has the responsibility of assigning the land owner to make wind power projects. The compensation, clearance support are made under the provisions of the current law of the land.

Article 14. Power price support for grid connected wind power project 1. The buyer has the responsibility to buy the entire output of electricity from wind power projects with power purchase price at the delivery point is 1,614 VND/kWh (excluding value added tax, the equivalent of 7.8 UScents/kWh). Your purchase price is adjusted according to the fluctuations of the exchange rate VND/USD.

2. State support for electricity prices for the buy-side for the entire electrical power purchased from wind power plants is 207 VND/kWh (the equivalent of 1.0 UScents/kWh) through the environmental protection fund in Vietnam.

3. Industry track to edit the price of buying electricity at the point of delivery and power price support levels the prime consideration, decided on the principle of a gradual decline, progress to abolish subsidies when the selling price of electricity made according to the market price.

4. wind power projects are guided by this rule will not be applied to the price mechanism of the project according to the current rules.

5. wind power projects are the clean development mechanism is applied according to the current rules of the State.

Article 15. Incentives, support for wind power projects are not NET connection 1. Wind power projects are not NET connection enjoy incentives, support the provisions of article 12, article 13 of this decision.

2. Investors to build electricity pricing scheme and determine the total level of support from the State budget the Industry verified, reported the Prime Minister for approval.

Chapter IV IMPLEMENTATION article 16. The responsibility of the Ministry, local wind power project 1. Industry a) is responsible to organize, guide and coordinate with people's committees of provinces and cities under central test, monitoring the implementation of this decision.

b) issued power purchase contracts for wind power projects.

c) formulated and issued the standard techniques of wind power technology.

2. The Ministry of finance, in collaboration with the Ministry of trade, Ministry of natural resources and environment, regulation of the financial support mechanism from the environmental protection Fund Vietnam match rules state budget Law.

3. the people's committees of provinces and cities under central a) support mechanism, Have encouraged investors about the clearance, infrastructure, investment, manpower to make wind power projects.

b) perform functions in local governance for wind power projects.

c) tracking, monitoring, checks the implementation of wind power projects under local jurisdiction.

Article 17. Effective implementation of this decision in effect enforced since June 20, 2011.

The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of people's Committee of the province, central cities; The heads of the agencies, units and organizations related to the development of wind power projects in Vietnam are responsible for the implementation of this decision.