Notice on matters related to development and construction of wind power and photovoltaic power generation in 2021

Q: What is the background of the Circular?

A: 2021 is the first year of the "14th Five-Year Plan", and it is also the first year that wind power and photovoltaic power generation will be online at parity.  It has set up a new beacon for China's energy revolution and green low-carbon transformation, and defined new tasks for the development of wind power and photovoltaic power generation. The boundary conditions of the development of wind power and photovoltaic power generation in China have undergone profound changes, and the development logic, development concept and development ideas also need to be adjusted accordingly. It is necessary to introduce new annual policies in accordance with the goal orientation, improve the development mechanism, release the consumption space, optimize the development environment, give the industry and enterprises more clear expectations, and effectively enhance the confidence of market players. We will promote the large-scale, high-proportion and high-quality development of wind power and photovoltaic power generation.

To this end, since the beginning of this year, the National Energy Administration has repeatedly organized local energy authorities, investment and development enterprises, manufacturing enterprises, industry associations, research institutions and other relevant units to hold symposiums, and through written solicitations, public solicitations and other ways, widely solicit and fully absorb the adoption of opinions and suggestions from all aspects, research and improve policy ideas, and finally formed the "Notice" document.

Q: In the face of the new situation and new tasks, what long-term mechanisms have been established in the Circular?

A: The "Notice" is based on the current situation, the development and construction of wind power and photovoltaic power generation projects in 2021, and it also takes a long-term view and establishes a long-term mechanism in three aspects:

First, the establishment of the absorption responsibility weight guidance mechanism. The state no longer issues the annual construction scale and indicators of the provinces (regions and cities), but adhere to the goal orientation, calculate the annual renewable energy power consumption responsibility weight of the provinces, guide the local arrangement of wind power, photovoltaic power generation project construction, and promote cross-provincial and cross-regional wind power trading.

The second is to establish a multiple guarantee mechanism for grid connection. In order to do a good job of large-scale wind power and photovoltaic power generation projects, the future wind power and photovoltaic power generation projects will be divided into two categories. First, the new grid-connected projects necessary for the provinces (regions and municipalities) to complete the annual minimum absorption responsibility weight of non-hydropower are guaranteed grid-connected projects, which are implemented by power grid enterprises. Second, the projects that are still willing to connect to the grid outside the scope of guarantee grid-connection are market-oriented grid-connection projects. After the grid-connection conditions can be implemented through market-oriented ways such as self-construction, co-construction and sharing or purchase of services, grid enterprises will be connected to the grid to promote the overall flexibility of the power system. The guarantee and market grid-connected only have different grid-connected conditions, and the two types of projects implement the same consumption policy after grid-connected.

Third, establish a competitive allocation mechanism for ensuring grid connection. According to the calculation of the absorption responsibility weight, the scale of the guarantee grid connection is limited, which projects can be included in the scope of the guarantee grid connection, the provinces need to be unified by the provincial energy authorities through competitive allocation. The project feed-in tariff shall be implemented in accordance with the relevant policies of the State pricing authority.

Q: How to determine the scale of provincial guarantee grid connection?

A: The "Notice" clearly, the provincial energy authorities can be based on the regional annual non-hydropower minimum absorption responsibility weight and the whole society's electricity consumption, calculate the annual non-hydropower renewable energy power consumption in the region, and then calculate and determine the regional annual must be added to the scale of security grid-connected installed capacity, which is the bottom line goal necessary to complete the minimum absorption responsibility weight of non-hydropower.

For the implementation of non-hydropower absorption responsibility weight through cross-provincial and cross-regional power transactions, the guaranteed grid-connected scale can be replaced between provinces, and after the sending and receiving provinces negotiate and sign a long-term agreement with the power grid enterprises, the guaranteed grid-connected scale of the receiving province can be reduced according to the transmission (transaction) of new energy electricity, and increased to the sending province.