The application period for very small power producers (VSPPs) aiming to participate in the community power plant project is fast drawing to a close, with the deadline set for February 4, 2021. February 4 is also the closing date of the period for public comments on the two draft regulations outlining the pilot project to procure electricity from community power plants. These draft regulations are being finalized by the Energy Regulation Commission (ERC)  as part of an effort to boost the economy at a grassroots level. The community power plant project will procure 150 MW from VSPPs producing electricity from either biomass or biogas. 75 MW will be obtained from biomass VSPPs, with a limit of 6 MW to each biomass VSPP, while 75 MW of the electricity procurement will be obtained from biogas VSPPs with a limit of 3 MW each. VSPPs wishing to apply for the community power plant project must be 90%-owned by a private company, while 10% of ownership must be under a community enterprise or community enterprise network—consisting of at least 200 households—registered with the Department of Agricultural Extension. Furthermore, the fuel used by the VSPP must be either biogas or biomass obtained from the community enterprise or community enterprise network, and must not include fossil fuels. Once VSPPs have submitted their applications, they will be subject to a technical assessment to determine power production readiness, and will undergo a process of competitive bidding. VSPPs will be compared and selected based on a number of factors, including power production capacity, ability to operate for duration of the 20-year project, and the proposed fixed feed-in tariff (FiT). VSPPs that are chosen to participate in this pilot project will be subject to the following FiTs per unit of electricity, based on the type of fuel and

On September 9, 2020, Vietnam’s Ministry of Industry and Trade (MOIT) issued Circular No. 21/2020/TT-BCT on the order and procedures for issuance of electricity operating licenses (Circular 21). Circular 21 will take effect on October 26, 2020, replacing Circular No. 36/2018/TT-BCT as amended by Circular No. 15/2019/TT-BCT (together, Circular 36).

Partner Vinh Quoc Nguyen and senior associate Tu Ngoc Trinh have contributed a chapter on electricity regulations in Vietnam, with a focus on the emerging renewable energy field, for the 2020 edition of the Practical Law Energy and Natural Resources Global Guide . The guide provides a comparative high-level overview, in a concise Q&A format, of energy laws and regulations in multiple jurisdictions around the world, and is split into three sections featuring regulations on (i) electricity, (ii) oil and gas, and (iii) mining. The Vietnam electricity chapter covers a range of topics, including the following: Recent trends in Vietnam’s electricity market and regulatory structure Companies involved in electricity generation, transmission, distribution and supply Import and export of electricity Electricity generation and renewable energy sources, including government policies and incentives Electricity transmission, distribution, and supply Proposals for reform, including privatization Practical Law Company is owned by Thomson Reuters and provides global guides covering legal know-how for corporate lawyers, including Global Guides to electricity regulation. Tilleke & Gibbins also contributes the Thailand chapter of this guide, as well as guides to numerous other practice areas. The full chapter can be viewed on the Practical Law website or downloaded using the button below.

On August 26, 2020, the Vietnamese Government issued Decree No. 99/2020/ND-CP stipulating penalties for administrative offenses in the petroleum sector, and in the petrol, oil, and gas trading sector. Decree 99 will take effect on October 11, 2020, replacing Decree No. 67/2017/ND-CP dated May 25, 2017.Decree 99 stipulates that the maximum fine in the sector of exploration and production of petroleum is VND 1 billion (approx. USD 43,000) for an individual and VND 2 billion (approx. USD 86,000) for an organization.