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Increasing electricity price for the biomass energy projects

Increasing electricity price for the biomass energy projects - 

The Prime Minister has just issued Decision 08/2020/QD-TTg on amending and supplementing a number of articles of Decision No. 24/2014/QD-TTg dated March 24 / 2014 by the Prime Minister on the mechanism to support developing the biomass power projects in Vietnam.

The concrete conditions: for cogeneration projects, the electricity price at the delivery point is 1,634 VND/kWh equivalent to 7.03 UScents/kWh (the old price was 1,220 VND /kWh, equivalent to 5.8 UScents/kWh), according to the central exchange rate of Vietnam Dong versus US dollar announced by the State Bank of Vietnam on February 21, 2020.

For the projects generating only electricity, the price at the delivery point is 1,968 VND/kWh equivalent to 8.47 UScents /kWh, according to the central exchange rate of Vietnam Dong versus US Dollar, announced by the State Bank of Vietnam on February 21, 2020.

The electricity prices specified above do not include value added tax (VAT), and is adjusted according to the fluctuation of the US dollar (equivalent to UScents /kWh) with central exchange rate of Vietnam Dong versus the US dollar announced by the State Bank of Vietnam on the date when the electricity seller issues the payment invoice.

The biomass power projects in operation before March 5, 2020 are the subject to the above mentioned electricity price from April 25, 2020 for the remaining time of the signed PPA.

The costs for purchasing electricity from the above-mentioned biomass power projects have been calculated and fully included in the input parameters of the annual electricity sale price project of Electricity of Vietnam.

The biomass power projects applying the electricity prices according to these regulations must not apply the price mechanism for their electricity output under the other current regulations.

PV.

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