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.

Q: How to implement the guaranteed grid connection scale in 2021?

A: The wind power and photovoltaic power generation projects to be connected to the grid in 2021 are mainly stock projects, including wind power projects that have been approved before the end of 2020 and within the validity period of approval, affordable wind power photovoltaic projects and bidding photovoltaic projects in 2019 and 2020, with a scale of about 90 million kilowatts. These projects are approved (filed) and in line with policies. The "Notice" makes it clear that the guaranteed grid-connected scale in 2021 is mainly used to arrange stock projects; Inventory projects do not need to participate in competitive allocation, and are directly included in the scope of provincial (autonomous regions and municipalities) guaranteed grid-connected projects.

For the provinces (autonomous regions and municipalities) that still cannot meet this year's minimum non-hydropower absorption responsibility weight requirements after the stock projects are connected to the grid, and there is still room for guaranteed grid-connection, the provincial energy authorities should pay close attention to organizing competitive allocation according to the remaining guaranteed grid-connection scale, accelerate the construction of projects, and ensure that the grid is connected and put into operation within the year.

The inventory projects that failed to be connected to the grid during the year were coordinated by the provincial energy authorities and directly included in the scope of subsequent annual guaranteed grid connection.

Q: How to arrange household photovoltaic power generation this year?

A: In order to promote the development of household photovoltaic power generation, there are still subsidies for household photovoltaic power generation this year, and the budget limit of financial subsidies is 500 million yuan, and the specific subsidy intensity is implemented according to the relevant policies of the price department. Household photovoltaic power generation construction management continues to be implemented in accordance with the relevant requirements of the Notice of the National Energy Administration on Matters related to the construction of wind power and photovoltaic power generation projects in 2019 (National Energy Development New Energy (2019) No. 49). Household photovoltaic power generation projects are guaranteed to be connected to the grid by power grid enterprises.

Q: How to do a good job in 2022 wind power, photovoltaic power generation project reserves?

A: Considering the project construction cycle, in order to ensure that the 2022 wind power and photovoltaic power generation projects are connected to the grid on schedule and ensure the completion of the 2022 renewable energy power consumption responsibility weight, it is necessary to reserve the 2022 grid-connected projects this year.

To this end, the "Notice" requires that in addition to focusing on promoting the grid connection of stock projects and steadily promoting the construction of household photovoltaic power generation, it is also necessary to do a good job in the reserve and construction of grid-connected projects next year. Recently, the state will release the 2021 and 2022 provincial administrative regions of renewable energy power consumption responsibility weight, all localities should determine the 2022 annual guarantee grid connection scale in accordance with the 2022 non-hydropower renewable energy power consumption responsibility weight, combined with the implementation of renewable energy development "14th Five-Year Plan", pay close attention to the organization of competitive allocation of guaranteed grid connection projects. Organize the approval (record) of a number of new wind power and photovoltaic power generation projects, do a good job of project reserves, and promote the timely construction of projects to achieve continuous development.

Q: Under the new situation, how to do a good job of wind power, photovoltaic power generation grid consumption?

A: The "Notice" puts forward clear requirements for grid enterprises to do a good job of grid-connected consumption. First, it is necessary to ensure that the guaranteed grid-connected projects and market-oriented grid-connected projects included in the annual construction plans of the provinces achieve "can do all"; Second, promote the new energy cloud platform, simplify the network connection process, facilitate the network connection procedures, and strengthen the construction of network connection projects; Third, we will work with the national new energy consumption monitoring and warning center to timely announce the grid-connected consumption situation and forecast analysis of provincial administrative regions, guide market players to make independent decisions, rational investment, orderly construction, and ensure that the utilization rate of wind power and photovoltaic power generation is at a reasonable level.

The National Energy Administration and its agencies will organize comprehensive supervision of clean energy consumption this year to promote a high level of consumption and utilization of wind power and photovoltaic power generation.

Q: What measures will be taken to optimize the development environment of wind power and photovoltaic power generation?

A: In order to implement the goal of reaching the peak of carbon and carbon neutrality, and promote the rapid development of large-scale, high-proportion and high-quality wind power and photovoltaic power generation, it is crucial to optimize the development and construction environment.

The Notice requires local energy authorities to optimize the business environment, standardize the order of development and construction, and shall not use supporting industries as the threshold of project development and construction; It is necessary to increase coordination with natural resources, forestry and grassland, ecological environment, housing construction and other departments, urge the implementation of project construction conditions, promote the introduction of land, fiscal, tax, financial and other support policies, and reduce the unreasonable burden of new energy development and construction. Power grid enterprises shall not attach additional conditions to the guaranteed grid-connected projects and market-oriented grid-connected projects included in the annual development and construction plan.

The National Energy Administration will strengthen policy coordination, form policy synergy, create a good policy environment for the development of wind power and photovoltaic power generation, and promote the sustainable and healthy development of wind power and photovoltaic power generation and high-quality development.