Notice of relevant policies of the National Development and Reform Commission

Notice of relevant policies of the National Development and Reform Commission

“Notice of the National Development and Reform Commission on Printing and Distributing the Interim Measures for the Management of Distributed Power Generation” (Fagai Energy [2013] No. 1381)

The distributed generation referred to in fgy [2013] No. 1381 refers to the power generation facilities built and installed at or near the user’s site, the operation mode is based on the user’s spontaneous self-use, the excess power is connected to the Internet, and is characterized by the balanced regulation of the distribution network system, or the energy comprehensive cascade utilization multiple power supply facilities with power output. The main contents include:

(1) Scope of application. The document is applicable to the following distributed power generation methods: small hydropower stations with a total installed capacity of 50,000 kW and below; wind power, solar power, biomass power, ocean power, geothermal power and other new energy power generation with various voltage levels connected to the distribution network; power generation from various wastes other than the direct combustion of coal, complementary power generation of multiple energy sources, power generation by comprehensive utilization of resources such as waste heat, pressure, residual gas power generation, coal mine gas power generation, etc.; coal-bed methane power generation with a total installed capacity of 50,000 kW and below; the comprehensive energy utilization efficiency is higher than 70%, and the natural gas, combined heat, power and cold supply, etc., are consumed on-site.

(2) Grid access requirements. Grid companies should formulate distributed power generation and grid-connected workflows, establish and publish the locations and contact information declared by distributed power generation investors in cities or counties to improve service efficiency and ensure barrier-free access. For distributed power generation that is connected to the distribution network with voltage levels of 35 kV and below, grid companies should apply for grid connection according to a specially set simplified process, and provide services such as consulting, debugging, and grid connection acceptance. For small hydropower stations and distributed generation connected to distribution network with voltage level above 35 kV, power grid enterprises shall do well in grid connection management and provide relevant services based on the principle of simplicity, timeliness and efficiency according to their access mode and power use range.

(3) Operation mode requirements. Distributed power generation is mainly for self-generation and self-use. It adopts two-way metering electricity settlement or net electricity settlement, and can consider the factors of peak and valley electricity prices. The settlement cycle is negotiated in the contract, and in principle is settled on a monthly basis. Grid companies should ensure that the distributed power generation surplus electricity is given priority to go online and purchase in full.

The Interim Measures for the administration of distributed generation defines the definition, form, development field and applicable technology of distributed generation, and puts forward management requirements for the construction and management of distributed generation projects, power grid access, operation management and policy guarantee.

“Notice of the National Development and Reform Commission on the Price Policy of Photovoltaic Power Generation Projects in 2018” (Fagai Price Regulations [2017] No. 2196)

The document is to rationally guide new energy investment and promote the healthy and orderly development of the photovoltaic power generation industry. It was decided to adjust the photovoltaic power generation benchmark on-grid tariff policy from January 1, 2018. The main contents are as follows:

(1) According to the current technological progress and cost reduction of photovoltaic industry, the benchmark on grid price of photovoltaic power stations put into operation after January 1, 2018 will be reduced. The benchmark on grid price of class I, class II and class III resource areas will be adjusted to RMB 0.55, RMB 0.65 and RMB 0.75 per kW · H (including tax). Starting in 2019, all photovoltaic power generation projects included in the annual scale management of fiscal subsidies will implement the corresponding benchmark electricity price according to the time of operation.

(2) For distributed photovoltaic power generation projects that are put into operation after January 1, 2018 and adopt the mode of “spontaneous self use and surplus grid access”, the subsidy standard for full energy per kilowatt hour is reduced by 0.05 yuan, that is, the subsidy standard is adjusted to 0.37 yuan per kW·h (including tax). Distributed photovoltaic power generation projects that adopt the “full online” mode are implemented at the price of photovoltaic power stations in the resource area. Distributed photovoltaic power generation projects are exempt from various government funds and surcharges collected with electricity prices, system reserve capacity fees and other related grid-connected service fees.

(3) The benchmark electricity price of village-level photovoltaic poverty alleviation power stations (0.5 MW and below) and the subsidy standard for household distributed photovoltaic poverty alleviation projects remain unchanged.

(4) All new energy power generation enterprises and power grid enterprises must truthfully and completely record and save the online trading electricity, price and subsidy amount of relevant power generation projects, accept the supervision and inspection of relevant departments, and submit the relevant data to the national renewable energy information management center before the 10th of each month. The price authorities at all levels should strengthen the supervision of the implementation of new energy on-grid tariffs and the settlement of additional tariff subsidies, and urge the implementation of relevant on-grid tariff policies.

(5) Encourage local governments to carry out pricing reforms for nearby consumption of photovoltaic power generation and pilot market-based bidding pricing in accordance with relevant national regulations, and gradually improve the mechanism for discovering prices through the market.