Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 316
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4.2 Consequences of a project delay
Under the PPA template, if the commercial
operation date is delayed, the seller must
inform the buyer of the revised COD at least
six to 12 months before the estimated COD.
The buyer may not refuse to accept the revised COD without a legitimate reason.
The seller will breach the terms of the PPA if
it fails to achieve COD within three months
of the estimated COD (except for force
majeure events, change of COD as mentioned above or approval by the competent authority for extension of the project
schedule). In such circumstances, the seller
is liable for damages to the buyer, including
actual and direct loss suffered and the direct
benefits lost due to the breach. If the breach
cannot be resolved, the buyer has the right
to terminate the PPA.
4.3 Examples of actual and future tariffs
The latest feed-in-tariff for offshore wind
power projects is not determined by auctions but by wind regulations. An auction
scheme will likely be issued by the Government and implemented. The latest tariff
applies to projects that have been "partially
or fully operational" before 1 November
2021 and is adjusted according to the VND/
USD exchange rate. The ceiling price of the
electricity generation price range issued by
the MIT on 7 January 2023 applies to the
portions of the projects which have signed a
PPA with EVN before 1 November 2021 but
were not operational before 1 November
2021.
Vietnam
5. GRID AND
GRID CONNECTION
5.1 Planning and construction of the grid
connection system
Currently, a connection point between
the wind power project and the national
power grid must be agreed upon between
the seller and the buyer. However, the seller
must be responsible for investing, operating,
and maintaining the transmission lines and
step-up transformer stations (if any) from
its power plant to the nearest pre-existing
connection point to the national power grid,
as provided under the relevant provincial
power development plan. Depending on the
level of connected voltage, the power distribution company, or the power transmission company under EVN is responsible for
investing in power transmission lines from
the connection point to the national power
grid following the approved power development plan.
If the connection point belongs to a new
power grid project which has not yet been
completed, the seller must agree with the
buyer in order to synchronise the progress
of the wind power project and the power
grid development project. If the seller and
the buyer cannot agree on the connection
point, the seller must submit a proposal to
MOIT to resolve the impasse.
5.2 Responsibility for the cost of
the grid connection system
The seller is responsible for the construction
costs of the power transmission lines and
step-up transformer stations (if any) from
its power plant to the connection point. The
