On Monday, 18 March, EuroCham took part in a discussion session about the proposed draft circular aimed at substituting Circular 57, focusing on the methodologies for calculating electricity generation costs and the value of power purchase agreements (PPA).
The meeting was chaired by Tran Tue Quang, the Deputy General Director of ERAV, and attended by key players in the energy sector, including representatives from Long An Energy Corporation, PV Power, PV Gas, EVN, PVN, Hanwha Energy, CIP, Tokyo Gas, the Asian Development Bank (ADB), KoGas, and Marubeni Corporation.
EuroCham was represented by Stuart Livesey, our Board Member who also serves as the Vice-Chair of the EuroCham Green Growth Sector Committee (GGSC) and Head of the GGSC’s Renewable Energy & Energy Efficiency Working Group.
Mr. Livesey, representing EuroCham, highlighted key points from a letter sent by the EuroCham GGSC to ERAV dated 4 March 2024, including:
- Article 4 on Foreign Exchange Rates: Advocated for the determination of the purchase price in its equivalent value in USD. Aimed to ensure the stability of the VND/USD exchange rate.
- Early Termination: Suggested including a mechanism in the draft that anticipates a compulsory purchase obligation with pre-determined price components for the PPA. Pointed out the current draft’s lack of clarity on whether the buyer will compensate an amount sufficient to cover outstanding debts, liabilities, and investment costs.
- Appendix 3, Article 19.7 on Governing Law: Recommended that the PPA template should allow flexibility in the parties’ choice of governing law.
