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Published on: May 27, 2016

Original title: 关于做好风电、光伏发电全额保障性收购管理工作的通知(发改能源[2016]1150号)
Links: Original source (in Chinese) (link). Documents referred to in below text:
“Measures for the guaranteed full purchase of renewable electric power (NDRC Energy [2016] No. 625)” (link);
“Opinions on implementation of the orderly opening up of electricity generation and consumption planning” (link).

 

National Development and Reform Commission

National Energy Administration

Circular on administrative tasks for the guaranteed full purchase of electricity from wind and PV power generation

National Development and Reform Commission, Dept. of Energy [2016] No. 1150

Development and Reform Commissions (Energy Bureaus) and Commission of Economy and Information Technology (Commission of Industry and Information Technology, Depts. of Industry and Information Technology) of all provinces (autonomous regions and municipalities) and the Xinjiang Production and Construction Corps, National Energy Administration, State Grid Corporation, China Southern Power Grid Company, Inner Mongolia Electric Power (Group) Co., Ltd., Huaneng, Datang, Huadian, Guodian, State Power Investment Corporation, Shenhua, Three Gorges Corporation, China Resources, CNNC, CGNPC, CECEP：
In order to properly handle the guaranteed full purchase of renewable electricity, and ensure the sustained and healthy development of wind and PV power generation, notice is hereby given of the following：

1. In accordance with the "Measures for the guaranteed full purchase of renewable electric power" (NDRC Energy [2016] No. 625), taking into account the consumption capacity of the electric power system, on the basis of geographic coverage of the various benchmark feed-in tariffs, and with reference to permissible costs plus reasonable profits, minimum guaranteed purchases of annual full-load hours for wind and PV power generation are hereby approved for a number of regions with problematic levels of wind or PV curtailment (see table)。The minimum guaranteed purchases of annual full-load hours will be timely adjusted on the basis of network operation conditions, cost developments of renewable energy, etc。

2. The energy authorities and economic operations departments of relevant provinces (autonomous regions, municipalities) should strictly implement the guaranteed purchases of wind and PV power generation included in the plan, conscientiously implement the NEA's "Tasks for improving renewable energy consumption in the "Three Norths" region" and the relevant requirements from related mechanisms on priority dispatch and power purchase, arrange a power generation plan in accordance with approved minimum guaranteed purchases of annual full-load hours as listed the annexes, and ensure that this guaranteed minimum annual full-load hours receives the highest level of priority dispatch。Provinces (autonomous regions, municipalities) that have already arranged their 2016 power generation plan shall, without delay, adjust their power generation plans in accordance with the approved minimum guaranteed purchases of annual full-load hours as listed the annexes。

The provincial (autonomous regions, municipal) authorities and power dispatching agencies shall strictly implement the priority order requirements from the "Opinions on implementation of the orderly opening up of electricity generation and consumption planning", strictly forbid the acquisition of priority dispatch rights through payments from renewable power generation projects to coal-fired and other power generation sources for electricity covered by the guarantees, properly handle the connections between the guaranteed acquisition for renewable power, priority dispatch for peaking units, and auxiliary services markets, and properly link with electricity trading market regulations。

3. The guaranteed purchases of electricity should be calculated by the grid companies according to the benchmark feed-in tariff and the minimum guaranteed purchases of annual full-load hours. Consumption of generated electricity exceeding this guaranteed minimum should occur through market transactions between the wind or PV power generation enterprises and power sales enterprises or power consumers, and receive renewable energy subsidies equal to the difference between the benchmark feed-in tariff for renewable energy and the benchmark power price for coal-fired power (including desulfurization, denitrification, and dust removal)。
Local governments' energy authorities or economic operation departments should actively organize connections between wind or PV power generation enterprises and power sales enterprises or power consumers, to ensure that the amount of electricity exceeding the minimum guaranteed purchases of anual full-load hours can be fully comsumed in market based trading。

4. The guaranteed purchases of electricity are minimum targets; relevant provinces (autonomous regions, municipalities) are encouraged to put forward and implement higher guarantee targets。Provinces (regions, municipalities) where actual operating hours are currently below the minimum guaranteed annual full-load hours should, on the basis of actual conditions, develop specific work programs, and take effective measures to ensure that operational wind and PV power plants achieve the required minimum guaranteed annual full-load hours as soon as possible。The specific work program should be made available to the general public and have a copy submitted to the National Development and Reform Commission and the National Energy Administration。
Except for impediments from natural resource conditions, provinces (autonomous regions, municipalities) that do not meet the required minimum guaranteed purchases of annual full-load hours, shall not construct new wind or PV power plant projects (including projects that have been approved or included in planning)。
Areas for which no guaranteed purchase has been formulated, should purchase the full amount of electricity generated from wind and PV power generation projects in accordance with natural resource conditions and the benchmark feed-in tariff。A minimum for guaranteed purchases of annual full-load hours cannot be set without first receiving approval from the National Development and Reform Commission and National Energy Administration。

5. Provinces' (autonomous regions', municipalities') relevant departments shall, when drawing up power generation plans and electricity trading schemes, reserve sufficient room for the amount of wind and PV electricity with purchase guarantees, and shall not assign a portion of electricity to be traded in market transactions in the case that the monthly guaranteed purchases of electricity have not been fulfilled. When market trading mechanisms have already been determined, these must implement monthly guaranteed electricity purchase requirements.。
Power grid enterprises (power trading institutions) should allocate the annual amount of electricity with purchase guarantees to individual months based on history and power forecasts, and first calculate accounts for the guaranteed purchases of renewable electricity of the current month. When monthly accounts have been calculated for the amount of electricity with purchase guarantees, accounts can be calculated for the portion of electricity traded in market transactions, with simultaneous settlement of accounts at the end of the year。

6. Wind and PV power generation enterprises shall assist provincial or local power grid enterprises and power trading institutions in the collection of monthly statistics on power production and curtailment, in accordance with requirements in relevant decisions of the central government。As for the compensation to be provided for the amount of electricity produced or curtailed within the scope of guaranteed purchases, the power grid enterprises are to assist the power trading institutions on the basis of the requirements stipulated in the "Measures for the guaranteed full purchase of renewable electric power (NDRC Energy [2016] No. 625)", and in accordance with the feed-in tariff applicable to the location of the wind or PV power generation project and the amount of electricity produced or curtailed clearly compensate for the full amount, and simultaneously determine how the compensation should be divided between different companies, and submit monthly reports to the local representative office of the National Energy Administration and provincial economic operation department for record keeping and publication。The grid enterprise shall retain the operating data for periods with curtailment, for inspection by the supervisory authority。
Grid enterprises shall sign a priority dispatch contract for the year 2016, before June 30th 2016, with wind or PV power generation enterprises that accord to the renewable energy development and utilization plans, that have obtained or have applied for administrative licenses in accordance with the law, and that accord to technical grid standards. They should furthermore sign a new annual priority dispatch contract before the end of each year。

7. The local branch of the energy department of the State Council shall, in conjunction with provincial energy authorities and economic operation departments, strengthen the supervision and assessment of the implementation of the guaranteed full purchase of renewable electricity, and at predetermined moments carry out 'special supervision' on priority dispatch contracts signed between grid enterprises and wind and PV power generation projects and on the implementation of guaranteed full purchase of renewable electricity. In case of violation of requirements of the "Measures for the guaranteed full purchase of renewable electric power (NDRC Energy [2016] No. 625)" and from this notice, regulatory measures will be taken, and these will be reported to the National Development and Reform Commission and the National Energy Administration。
The implementation of the system for the guaranteed full purchase of renewable electric power is a key task in the electric power system reform, as well as an important measure in solving the issue of wind and PV curtailment and in promoting the sustainable and healthy development of renewable energy。All departments shall, in accordance with the above requirements, do a good job in their tasks for the guaranteed full purchase of renewable electricity, to ensure effective alleviation of wind and PV curtailment problems。

 

Annex：1. List of minimum guaranteed purchases of annual full-load hours approved for key wind power areas
2. List of minimum guaranteed purchases of annual full-load hours approved for key PV power generation areas

National Development and Reform Commission
National Energy Administration
May 27, 2016

Annex 1

List of minimum guaranteed purchases of annual full-load hours approved for key wind power areas

Resource category area	Area	Guaranteed full-load hours purchased
Class I resource area	Inner Mongolia: areas other then Chifeng, Tongliao, Xing'an League, Hulunbeier	2000
	Xinjiang: Ili Kazakh Autonomous Prefecture, Karamay, Shihezi City	1900
Class II resource area	Inner Mongolia: Chifeng, Tongliao, Xing'an league, Hulunbeier	1900
	Hebei: Zhangjiakou	2000
	Gansu: Jiayuguan, Jiuquan	1800
Class III resource area	Gansu: areas other than Jiayuguan, Jiuquan	1800
	Xinjiang: areas other than Ili Kazakh Autonomous Prefecture, Karamay, Shihezi City	1800
	Jilin: Baicheng, Songyuan	1800
	Heilongjiang: Jixi, Shuangyashan, Qitaihe, Suihua, Yichun, Daxing'an	1900
	Ningxia Hui Autonomous Region	1850
Class IV resource area	Heilongjiang: other areas	1850
	Jilin: other areas	1800
	Liaoning	1850
	Shanxi: Xinzhou, Shuozhou, Datong	1900

 

Annex 2

List of minimum guaranteed purchases of annual full-load hours approved for key PV power generation areas

Resource category area	Area	Guaranteed full-load hours purchased
Class I resource area	Ningxia	1500
	Qinghai: Haixi	1500
	Gansu: Jiayuguan, Wuwei, Zhangye, Jiuquan, Dunhuang, Jinchang	1500
	Xinjiang: Hami, Tacheng, Altay, Karamay	1500
	Inner Mongolia: areas other than Chifeng, Tongliao, Xing'an league, Hulunbeier	1500
Class II resource area	Qinghai: areas except those with Class I resources	1450
	Gansu: areas except those with Class I resources	1400
	Xinjiang: areas except those with Class I resources	1350
	Inner Mongolia: Chifeng, Tongliao, Xing'an league, Hulunbeier	1400
	Heilongjiang	1300
	Jilin	1300
	Liaoning	1300
	Hebei: Chengde, Zhangjiakou, Tangshan, Qinhuangdao	1400
	Shanxi: Datong, Shuozhou, Xinzhou	1400
	Shaanxi: Yulin, Yan'an	1300