PPA Approval Procedure

Power Purchase Agreement (PPA)

Under Circular No.41/2010/TT-BCT issued by MOIT regulations on the method for determining generation price, the procedures and order for setting up and giving generation price bracket, and approving the power purchase agreement:

Dossiers requesting for the power purchase agreement negotiation for new power plants consist of the below documents:

a) Correspondence requesting for power purchase agreement negotiation;

b) Draft power purchase agreement according to the sample

c) Decision on the power plant construction, attached with the statement and basic design of the investment project;

d) Decision on the approval on total project investment amount including technology investment and total investment cost for specific construction items of the project;

e) Agreement on the connection between the power plant and national electricity system, attached with connection plan of the power plant;

f) Assessment report on the power plant investment project of independent consultancy and other attached documents;

g) Fuel supply agreement for the power plant, with specific regulations on the price of fuel for power generation, fuel transportation fee, and attached extra cost, fuel receipt, delivery points, and fuel supply time;

h) Calculation data of transformer capacity and power loss, transmission lines from the power plant to the connection points with national electricity system, and calculation data of used power in the power plant;

i) Calculation data of specific fuel consumption for coal power plant or specific heat consumption gas power plant;

j) Electricity tariff plan is determined according to the method regulated in Item 2 and Item 3, Chapter II of this Circular.

Detailed Circular is attached here.