On March 11th, 2019, Ministry of Industry and Trade (“MIT”) issued Circular No. 05/2019/TT-BCT amending and supplementing a number of articles of Circular No. 16/2017/TT-BCT dated September 12th, 2017 of the MIT regulates the project development and the model power purchase contract applies to solar power projects. The Circular takes effect from April 25th, 2019.
Accordingly, the Circular No. 05/2019/TT-BCT amended and supplemented the electricity selling price of the solar roof project as follows:
Before January 1st, 2018, the purchase and sale price of electricity was VND 2,086/kWh (excluding value-added tax, equivalent to 9.35 US cents/kWh, according to the central exchange rate of Vietnam dong against the dollar. The US announced by the State Bank of Vietnam on April 10, 2017 is VND 22,316/USD;
As from January 1st, 2018, the electricity purchase and sale prices applicable under the provisions of Clause 1 of this Article shall be adjusted according to the central exchange rate of Vietnam dong against the US dollar announced by the State Bank of Vietnam on the date of the last exchange rate announcement of the previous year.
Thus, the amendment and supplement to the electricity trading price of the solar power project under the new circular is more in line with the growth trend of the economy and the demand of the people.