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Evaluation methods and standards for the monitoring of the PV power generation market environment (revision of 2019)
Original title: 国家能源局关于印发《光伏发电市场环境监测评价方法及标准（2019年修订版）》的通知
Links: Source document (in Chinese) (link). For the original version of the PV market monitor, introduced in 2017, see (link).
National Energy Administration
Notice of the publication of the "Evaluation methods and standards for the monitoring of the PV power generation market environment (revision of 2019)"
To the energy bureaus of all provinces (autonomous regions, directly-controlled municipalities) and the Xinjiang Production and Construction Corps, Beijing city, Tianjin city, Shanghai city, Fujian province, Hainan Provincial Development and Reform Commission, local branches of the regulatory agencies of the National Energy Administration, State Grid Co., China Southern Power Grid Corporation, Inner Mongolia Electric Power Company, Huaneng, Datang, Huadian, Guoneng Investment, Guodian Investment, Three Gorges, China Nuclear, China Guangdong Nuclear Power, China Energy Conservation Group Corporation, Hydropower General Administration, Electric Power Planning Design General Institute, industry associations, societies, chambers of commerce related to the PV industry, and the National Renewable Energy Center：
In order to further enable the decisive role of the market in the allocation of resources, to do a good job of monitoring and evaluating the photovoltaic power generation market environment, to promote the continuous optimization of the environment for construction and operating of PV power generation, to guide companies to invest rationally, and to promote the sustainable and healthy development of the PV industry, it has been decided to revise Annex 1 of the "Circular on the establishment of a market environment monitoring and evaluation system to guide the healthy and orderly development of the PV industry" (NEA New Energy [2017] No. 79). The revised "Evaluation methods and standards for the monitoring of the PV power generation market environment (revision of 2019)" are hereby issued to you, and are effective from the date of issue。
Annex：Evaluation methods and standards for the monitoring of the PV power generation market environment (revision of 2019)
National Energy Administration
January 7, 2020
Annex
Evaluation methods and standards for the monitoring of the PV power generation market environment (revision of 2019)
1. Evaluation method
The monitoring and evaluation of the market environment of PV power generation utilizes a combination of binding indicators and judgment to determine an evaluation result。The overall evaluation result is the total sum of various indexes for competitiveness and risk。A total score of less than 60 points gives a red evaluation result；a total score of 60 points or more, but less than 80 points gives an orange evaluation result；a total score of 80 points or more gives a green evaluation result。The extent of curtailment is a binding index, with a curtailment rate of more than 10% directly leading to a red evaluation result。
2. The evaluation criteria
| Item | Content | Score | Evaluation criteria |
| 1. Competitiveness evaluation index | 1.1 Land conditions | 10 | The overall score is based on two items, divided into an assessment on the basis of annual statistics on the land use cost for newly-built photovoltaic power stations (converted to annual land use cost on the basis of costs for greenfield sites, excluding urban land use tax or farmland use tax) and land taxation (including urban land use tax or farmland use tax)：
1. Land use cost of 300 RMB or less per mu and year, 10 points；Land use cost of 300 RMB or more per mu and year, but below 1000 RMB per mu and year, deduct 1 point for every 100 RMB per mu and year；Land use cost of 1000 RMB per mu and year or more, deduct 2 points for every 100 RMB per mu and year。 2. For the share of land on which farmland use tax is levied, as a share of total land used, for every increment of 10% or more, deduct 5 points；For the share of land on which urban land use tax is levied, as a share of total land used, for every increment of 5% or more, deduct 5 points。 The minimum score is 0 points。 |
| 1.2 Local government services | 10 | The evaluation is based on three items for the level of government services with respect to the resource allocation for ordinary PV power plants or industrial and commercial distributed PV projects by local governments：
1. Competitive allocation (3 points)：where a competitive system, that is the same all throughout the province, is used in the allocation of ordinary PV power plants or industrial and commercial distributed PV projects, 3 points are awarded；where a competitive system is used for allocation only at the level of municipalities or counties, respectively, 2 points or 1 point are awarded。 2. Additional conditions (4 points)：where there are no additional conditions in the resource allocation for ordinary PV power plants or industrial and commercial distributed PV projects set by local governments (including hidden charges, industry localization and other additional requirements), 4 points are awarded；For each additional requirement, 1 point is deducted, with a minimum score of 0 points。 3. Service evaluation (3 points)：A comprehensive score is based on the situation reflected in a business survey, market complaints, and media supervision。 |
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| 1.3 Grid enterprise services | 10 | The evaluation is based on two items for preparation phase work and construction/repurchase of supporting grid infrastructure：
1. Preparation phase services (5 points)：where a reply on the measures for power grid access is received on average within a period of 3 months or less, 5 points are awarded；for each additional month, 1 point is deducted, with a minimum score of 0 points。 2. Construction/repurchase of supporting grid infrastructure (5 points)：Where the provincial-level grid enterprise constructs supporting infrastructure for the delivery of electricity within a timely manner, AND where the repurchase of this infrastructure is completed within one year in case the investment in such infrastructure is done by the power generation enterprise, 5 points are awarded；Where the provincial-level grid enterprise does not construct supporting infrastructure for the delivery of electricity within a timely manner, OR where the repurchase of this infrastructure is not completed within one year in case the investment in such infrastructure is done by the power generation enterprise, 3 points are awarded；Where the provincial-level grid enterprise does not construct supporting infrastructure for the delivery of electricity within a timely manner, AND where the repurchase of this infrastructure is not completed within one year in case the investment in such infrastructure is done by the power generation enterprise, 0 points are awarded。 |
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| 1.4 Level of local government subsidies | 5 | Evaluation is done on the basis of subsidy policies introduced by the various levels of local government：
Where the provincial-level government has introduced a subsidy policy, 2 points are added； Where the municipal-level government has introduced a subsidy policy, 2 points are added； Where the county-level government has introduced a subsidy policy, 1 point is added； The maximum score is 5 points。 |
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| 2. Risk evaluation index | 2.1 Level of PV curtailment | 30 | Evaluation is done on the basis of of the level of curtailment of PV in combination with the fulfillment of the minimum guaranteed full-load hours purchased：
Where there is no curtailment of PV, 30 points are awarded； Where curtailment of PV is below 1%, 29 points are awarded； Where curtailment of PV exceeds 1%, but is below 2%, 28 points are awarded； Where curtailment of PV exceeds 2%, but is below 3%, 27 points are awarded； Where curtailment of PV exceeds 3%, but is below 3.5%, 25 points are awarded； Where curtailment of PV exceeds 3.5%, but is below 4%, 23 points are awarded； Where curtailment of PV exceeds 4%, but is below 4.5%, 21 points are awarded； Where curtailment of PV exceeds 4.5%, but is below 5%, 18 points are awarded； Where curtailment of PV exceeds 5%, but is below 6%, 15 points are awarded； Where curtailment of PV exceeds 6%, but is below 7%, 12 points are awarded； Where curtailment of PV exceeds 7%, but is below 8%, 9 points are awarded； Where curtailment of PV exceeds 8%, but is below 9%, 6 points are awarded； Where curtailment of PV exceeds 9%, but is below 10%, 3 points are awarded； Where curtailment of PV exceeds 10%, this immediately leads to a red evaluation result。 Where the number of minimum guaranteed full-load hours purchased as determined by the national government is fulfilled, but where the curtailment rates give a score of less than 18 points, 18 points are nonetheless awarded。 |
| 2.2 Market consumption risk | 5 | Evaluation is done on the basis of curtailment of other forms of renewable electricity：
Where there is no curtailment of hydropower and wind power, 5 points are awarded； Where the utilization rate of hydropower is 95% or more, and the curtailment rate of wind power is less than 10%, 3 points are awarded； Where the utilization rate of hydropower is 95% or less, or the curtailment rate of wind power is 10% or more, 1 point is awarded； Where the utilization rate of hydropower is 95% or less, and the curtailment rate of wind power is 10% or more, 0 points are awarded； Where there is no curtailment of PV, but a score of less than 3 points is achieved on this item, 3 points are nonetheless awarded。 |
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| 2.3 Level of implementation of the guaranteed full purchase policy | 10 | Evaluation is done on the basis of implementation of the policy for minimum guaranteed full-load hours purchased：
Where all electricity generated is purchased under the provisions of the policy for minimum guaranteed full-load hours purchased, 10 points are awarded； Where the minimum volume and minimum price as stipulated in the policy for minimum guaranteed full-load hours purchased is achieved, 8 points are awarded；where the volume of electricity purchased equals 90% or 80% of the minimum volume as stipulated in the policy for minimum guaranteed full-load hours purchased, 6 or 4 points are awarded, respectively；where it is less than 80%, 0 points are awarded。 |
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| 2.4 Annual project construction results | 20 | Evaluation is done on the basis of the below scoring standard as well as three types of scenarios：
1. Scoring standard Where all generation capacity is connected to the grid within the time stipulated by relevant national policies, 20 points are awarded； Where more than 90% but less than 100% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 18 points are awarded； Where more than 80% but less than 90% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 16 points are awarded； Where more than 70% but less than 80% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 14 points are awarded； Where more than 60% but less than 70% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 12 points are awarded； Where more than 50% but less than 60% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 10 points are awarded。 Where more than 40% but less than 50% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 8 points are awarded。 Where more than 30% but less than 40% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 5 points are awarded。 Where less than 30% of all generation capacity is connected to the grid within the time stipulated by relevant national policies, 0 points are awarded。 2. Scoring method Evaluation of project construction will be done differently for each of the three types of scenarios in each province (or resource area)： Scenario 1：Provinces (or resource areas) where no PV leader bases or demonstration bases have been constructed。 For those PV projects selected, in the year of evaluation, in competitive bidding for feed-in tariff and grid-parity projects announced by the national government, the scoring will be based on the total capacity for which grid-connection was realized。 Scenario 2：Provinces (or resource areas) where PV leader bases or demonstration bases have been constructed。Scoring is the sum of the following two parts。 1) Those PV projects selected, in the year of evaluation, in competitive bidding for feed-in tariff and grid-parity projects announced by the national government, are scored based on the total capacity for which grid-connection was realized, with a weight of 70%。 2) PV leader base projects (including second and third phase application leader bases and technology leader bases) as well as demonstration base projects (excluding projects with supporting transmission channels for inter-regional or inter-provincial delivery), are scored based on the total capacity for which grid-connection was realized, with a weight of 30%。 Scenario 3：Provinces (or resource areas) where no new projects are scheduled for construction in the year of evaluation (excluding projects with supporting transmission channels for inter-regional or inter-provincial delivery)。The score is converted on the basis of the proportion of points scored under the other evaluation items, that is, the points awarded here are: 20*(points awarded under the other evaluation items/80)。 |
Notes：1. The assessment of the fulfillment of guaranteed full-load hours purchased is done on the basis of annual full-load hours utilized。The annual full-load hours utilized is based on a statistical calculation including PV power stations that had fully completed construction, were connected to the grid and were operational in the selected administrative region, in the year previous to the evaluation. The number of annual full-load hours utilized = the total volume of electricity put on to the grid by PV power plants included in the statistics / the total generating capacity of PV power plants included in the statistics。
2. The PV curtailment rate is based on a statistical calculation including PV power stations that had fully completed construction, were connected to the grid and were operational in the selected administrative region, in the year previous to the evaluation. The PV curtailment rate = A/(A+B)×100%, in which A is the total volume of electricity curtailed from power plants included in the statistics, and B is the total volume of electricity put on to the grid by PV power plants included in the statistics。
3. In the table, where it says "above, below, within, outside, or exceeding" a certain number, the range includes the exact value of this number, where it says "higher than, less than" the range excludes the exact value of this number。
4. For provinces where distributed PV power generation is the dominant form (where the cumulative installed capacity of distributed PV exceeds 50% of the total installed capacity of the province, in the evaluation period), the scoring standard for "1.1 land conditions" is appropriately adjusted, on the basis of the share of distributed PV capacity during the evaluation period. Specifically, the adjustment is:：final score = score for PV power stations in the province × cumulative installed capacity of PV power stations in the province / cumulative installed capacity of all forms of PV in the province + maximum score for this item × cumulative installed capacity of distributed PV in the province / cumulative installed capacity of all forms of PV in the province。The final score is rounded to the nearest integer。
5. The term demonstration bases refer to the various types of demonstration bases issued by the national government (excluding projects with supporting transmission channels for inter-regional or inter-provincial delivery), municipal or county-level demonstration areas or parks, etc.。As of the end of 2019, demonstration bases issued by the national government are mainly：the Zhangjiakou renewable energy demonstration zone; the Xishan new energy demonstration park in Taiyuan, Shanxi; the Kubuqi desertification control demonstration project in Inner Mongolia; the National high share of renewable energy demonstration county of Jinzhai in Anhui; the clean energy base in the Hexi Corridor in Gansu, etc.。This will later be adjusted upon the publication of the national government project development quota。
