CIRCULAR ON DEVELOPING AND PPA FOR SOLAR ENERGY PROJECTS

Attached below is the Circular that regulates the development of projects and standard power purchase agreements for integrated solar power projects, which is combined by Circular No. 18/2020/TT-BCT by the Minister of Industry and Trade on the development of solar power projects and standard power purchase agreements for solar power projects; Circular No. 01/2023/TT-BCT by the Minister of Industry and Trade, which stipulates the implementation of wind power projects and standard power purchase agreements for wind and solar power projects.

Key highlights include:

1. The content of the facility design dossier for the solar power project must comply with current legal regulations and the following requirements:

• Characteristics of the project's location, solar radiation potential.
• Assessment of the impact of the project's connection scheme on the safe and stable operation of the regional power system.
• Integration of the SCADA system or control information.
• Land and water surface usage area not exceeding 1.2 hectares per 1 MWp.

2. The procedure for implementing the rooftop solar power system is as follows:

• The electricity seller registers to connect with the electricity buyer, providing some information.
• The electricity buyer assesses the connectivity and transmission capacity of the electricity seller and responds within a maximum of 5 working days from the date of receiving the registration from the electricity seller.
• Execute the connectivity agreement into the electricity buyer's grid system.
• The electricity seller installs the rooftop solar power system with a scale that matches the agreed-upon connectivity.
• The electricity seller submits a request for electricity sale.
• All parties perform technical inspections, install meters, sign electricity purchase contracts, connect the electricity, and put the system into operation.

3. The rooftop solar power system is exempted from electricity operating permits.
4. The content of the standardized power purchase agreement for grid-connected solar power projects is specified in Appendix 1 of the document.
5. The content of the standardized power purchase agreement for rooftop solar power systems is regulated in Appendix 2 of the document.

The Circular can be downloaded here: https://drive.google.com/file/d/1dpxymf6HM4694psSUq0Ck8r9jV8CO-Db/view?usp=sharing

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.