The regulatory mechanism for gas-fired power plants using imported LNG requires businesses to proactively negotiate, sign and take responsibility for contracts and commercial agreements.
According to the Power Plan VIII for the period 2021 - 2030, with a vision to 2050 approved by the Prime Minister in Decision No. 500/QD-TTg dated May 15, 2023, the total installed capacity of power sources by 2030 is 150,489 GW (nearly double the current total installed capacity, about 80 GW). Of which, the total capacity of gas-fired power sources that must be newly invested in is 30,424 MW (10 domestic gas projects with a total capacity of 7,900 MW and 13 LNG projects with a total capacity of 22,824 MW);
Implementing Decision 500/QD-TTg, the Ministry of Industry and Trade has recently completed the development and submitted to the Government for promulgation the Plan to implement the VIII Power Plan.
Regarding electricity, the Ministry of Industry and Trade has held many meetings to discuss and collect opinions from ministries, departments, sectors, localities, experts, the business community and related organizations. Through the meetings, opinions were unanimous that it is necessary to build a mechanism for electricity development to report to the Government to resolve some problems in developing this type of power source.
Based on the Directives, Decisions and directions of the Government and the Prime Minister, while performing the function of state management, in recent times, the Ministry of Industry and Trade has made many efforts to draft regulations on the mechanism for buying and selling electricity.
Up to this point, the Ministry of Industry and Trade has completed the draft to report to the Government before soliciting public opinions.
In which, the applicable subjects include: (1) Power generation units owning gas-fired power plants connected to the national power system; (2) Power units (Vietnam Electricity Group; Vietnam Oil and Gas Group; Power system dispatching and electricity market transaction management units).
The mechanism also stipulates that gas-fired power plants using imported LNG must proactively negotiate, sign and take responsibility for contracts and commercial agreements; competent authorities agree in principle to the mechanism for transferring gas prices to electricity prices of power plants.
Deciding on the electricity rate through long-term power purchase contracts (Qc) at an appropriate level during the debt repayment period of the LNG project aims to ensure the feasibility of attracting investment in LNG power projects, avoid strong impacts on retail prices as well as ensure fair competition with other types of power sources in the electricity market.
Regarding the mechanism for gas-fired power plants using domestic natural gas, the competent authority agrees in principle to transfer the gas price to the electricity price of power plants and assigns relevant agencies and units to guide the mechanism for consuming the upstream gas output of the Blue Whale gas field and Block B gas.
Electricity trading must still be carried out according to the model contract issued by the Ministry of Industry and Trade to participate in the Competitive Wholesale Electricity Market and sell electricity from power plants to the spot electricity market.
The cost of purchasing electricity from power plants using domestically exploited natural gas and imported LNG is reasonable, valid and calculated in the retail electricity price.
In addition, the mechanism also specifies in detail the language used in the contract, payment methods, dispute resolution (if any), payment obligation guarantees, etc.
Thy Thao
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