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Guiding measures for the competitive allocation of wind power projects (Trial) (2018)
Original title: 国家能源局关于2018年度风电建设管理有关要求的通知 国能发新能〔2018〕47号
Links: Source document (in Chinese) (link).
NEA New Energy (2018) No. 47
Notice of the National Energy Administration on the requirements for the management of wind power construction in 2018
To the Development and Reform Commission (Energy Administration) and Economic and Information Technology Committee (Industry and Information Technology Committee, Industry and Information Technology Department) of all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps, local regulatory branches of the National Energy Administration, State Grid Corporation, China Southern Power Grid Corporation, Inner Mongolia Electric Power Company, China Huaneng Group, China Datang Corporation, China Huadian Corporation, National Energy Investment Corporation, State Power Investment Corporation, China Resources Corporation, China Three Gorges Corporation, China National Development and Investment Corporation, China National Nuclear Corporation, China Guangdong Nuclear Power Group Co., Ltd., Electric Power Planning and Design Institute, Hydropower and Water Conservancy Planning and Design Institute, China Wind Energy Association, and the National Renewable Energy Center：
In 2017, China's wind power installed capacity has grown steadily, the operation and consumption situation has improved significantly, the technological level has been continuously improved, and the industrial development has shown a steady and positive trend。In order to promote the high-quality development of the wind power industry and reduce the intensity of subsidies per kilowatt-hour, the relevant requirements for the management of wind power construction in 2018 are hereby notified as follows：
1. Strictly implement planning and early warning requirements。All provinces (autonomous regions and municipalities directly under the Central Government) shall strictly implement the annual development quota and related requirements "Guiding Opinions of the National Energy Administration on the Implementation of the 13th Five-Year Plan for the Development of Renewable Energy" (NEA New Energy [2017] No. 31) (hereinafter referred to as the "Guiding Opinions" 》) for new wind power construction plans。Areas with red and orange warnings should strictly implement the relevant requirements of the National Energy Administration on Issuing the 2018 Wind Power Investment Monitoring and Warning Results (NEA New Energy [2018] No. 23), and should not increase planning scale during the mid-term evaluation of the 13th Five-Year Plan。If the planning target needs to be adjusted in areas where the early warning is green, under the premise of implementing the construction of supporting grids for wind power projects and ensuring the consumption, combined with the mid-term evaluation of the "13th Five-Year Plan", apply to the National Energy Administration for planning adjustments and organize implementation。
2. Regarding consumption as the first condition。All provinces (autonomous regions and municipalities directly under the Central Government) shall follow the "Notice of the National Development and Reform Commission and the National Energy Administration on Printing and Distributing the "Implementation Plan for Solving the Problem of curtailment of hydro, wind, and solar PV" (NDRC Energy [2017] No. 1942) and the "National Energy Administration Notice of the Company on Submitting and Implementing the Work Plan for the Implementation of the “Implementation Plan for Solving the Problem of curtailment of hydro, wind, and solar PV” (Guoneng Zongtong Xinneng [2018] No. 36) requires that the 2018 renewable energy power consumption be reported to the National Energy Administration. For those provinces (autonomous regions, municipalities directly under the Central Government) that have not submitted work plans, shall suspend the implementation of the new construction plans of wind power in the "Guiding Opinions"。
3. Strictly implement power transmission and consumption conditions。Wind power projects newly included in the annual construction plan must be based on the power grid company’s commitment to invest in the construction of power transmission projects and ensure that the minimum guaranteed acquisition annual utilization hours (or wind curtailment rate does not exceed 5%, the same below) are the prerequisites. Those within the city (county) level that have the conditions for local consumption will be included in the annual construction plan first。For wind power base projects for transmission and consumption via inter-provincial and inter-regional transmission channels, the project’s power transmission and consumption plan should be implemented in receiving province's government power transmission and reception agreement and the power grid enterprise's medium and long-term power purchase contract, and the price adjustment mechanism should be agreed. The power grid companies of the receiving provinces (autonomous regions, municipalities directly under the Central Government) should issue a commitment to accept the transmitted wind power。
4. Implementing a competitive approach to deploy wind power projects。Starting from the date of issuance of this notice, for provinces (autonomous regions, municipalities) that have not yet issued 2018 wind power construction plans, all centralized onshore wind power projects and offshore wind power projects with as of yet undetermined investment entities shall all be allocated and have their feed-in tariffs determined through competitive mechanisms。The provinces (autonomous regions and municipalities) that have issued the 2018 wind power construction plan and the offshore wind power projects that have determined the investment entity can continue to advance the original plan in 2018。Starting in 2019, all newly approved centralized onshore wind power projects and offshore wind power projects in all provinces (autonomous regions and municipalities) shall be allocated and have their feed-in tariff determined through competitive mechanisms。The energy authorities of all provinces (autonomous regions and municipalities directly under the Central Government), together with relevant departments, will formulate measures for the competitive allocation of wind power projects with reference to the "Guiding Plan for Competitive Allocation of Wind Power Projects (Trial)" issued with this notice, and copy them to the National Energy Administration and announce them to the whole society. The “Guiding Opinions” determined the annual increase in construction scale to organize the competitive allocation of wind power projects in the region。Decentralized wind power projects may not participate in competitive allocation, and shall gradually be incorporated in the distributed power generation trading。
5. Optimize the investment environment for wind power construction。The energy authorities of all provinces (autonomous regions and municipalities directly under the Central Government) shall improve the land use planning of wind power projects, prioritize unused land for construction of wind power projects. The land scope of the land use tax, if it is within the scope of the cultivated land occupation tax, the expropriated area and expropriation standard should be reasonably determined according to the characteristics of the land used for wind power projects and the degree of impact on land use。Relevant local government departments shall not charge enterprises in disguised form in the name of resource transfer, corporate aid construction and donations during the development of wind power projects, and shall not force the project to directly transfer shares or proceeds for various tasks that should be undertaken by the government。When relevant municipal (county)-level government departments recommend wind power projects participate in the new construction scale competition allocation, they should make effective commitments or explanations for the above construction conditions, and the provincial-level energy authority should evaluate the performance of the relevant cities (counties), and serve as an important basis for subsequent arrangements for the quota for new wind power construction。
6. Actively promote nearby wind power projects in full consumption。Support the construction of wind power projects in areas with rich wind energy resources in combination with the electricity demand of local large-scale industrial enterprises and industrial parks, and strive to achieve development without subsidies under the support of relevant national policies。Encourage prefecture-level cities with strong power demand to choose wind energy resource sites with an annual productivity of about 3,000 full-load hours. Under the premise that provincial power grid companies ensure full consumption in the vicinity, select investors and determine the feed-in tariff through competitive mechanisms, and especially encourage grid-parity projects that do not require state subsidies。
All relevant units are requested to actively take effective measures in accordance with the above requirements to do a good job in relevant work and promote the sustainable and healthy development of the wind power industry。
Annex：Competitive configuration guidance plan for wind power projects (for trial implementation)
National Energy Administration
May 18, 2018
Annex
Guiding measures for the competitive allocation of wind power projects (Trial) (2018)
In order to promote the orderly and standardized construction of wind power, accelerate the technological progress, industrial upgrading and market-oriented development of wind power, in accordance with the general requirements of the market to play a decisive role in the allocation of resources and to better play the role of the government, allocation of centralized onshore and offshore wind power projects shall be organized through competitive mechanisms。
1. Basic principles
(1) Control over the total installed capacity as included in planning。All provincial-level energy authorities must strictly follow the relevant plans approved by the energy authorities of the State Council and the management requirements of the National Energy Administration on the Implementation of the 13th Five-Year Plan for Renewable Energy Development, and orderly and standardize organization and construction。
(2) Open competition and optimization。All provincial-level energy authorities shall formulate competition allocation measures for wind power projects, disclose competition allocation conditions and procedures, and conduct project selection in accordance with the principles of openness, fairness and justice。
(3) Grid-access and consumption guarantee。All projects participating in the competitive configuration must be based on the preconditions of the power grid companies’ investment in the construction of grid connection and supporting grid projects and implementation, to ensure that the minimum guaranteed acquisition annual utilization hours after the project is completed (or the wind curtailment rate does not exceed 5%)。
(4) Determination of electricity price competition。The annual newly added centralized onshore wind power and offshore wind power projects with undetermined investment entities that have not yet been allocated to the project are all allocated and have their feed-in tariffs determined through competitive mechanisms. The feed-in tariffs declared for each project shall not be higher than the benchmark feed-in tariffs in similar resource areas specified by the state。Local government departments at all levels shall not interfere with the quotation of project units。
(5) Optimize the investment environment。The provincial energy authority shall guide the city (county) level government to optimize the investment environment, and the wind power project site conforms to the relevant plan and is not within the scope of collecting urban land use tax；If it involves arable land occupation tax and forest and grass land, the tax and fee standards should be compliant and reasonable。Local governments shall not charge enterprises in disguised form in the name of resource transfer, enterprise aid construction and donations, etc., to increase project investment and operation costs。
2. Competitive configuration of wind power project types
(1) Wind power projects for which investment entities have been determined
A project for which an investment subject has been determined refers to a project in which the investment company has signed a wind power development agreement with the local government and completed preliminary work such as wind measurement evaluation and site survey。
In accordance with the wind power development goals and annual new construction scale of the relevant energy planning in the region approved by the energy department of the State Council, all provincial energy authorities adopt a competitive approach to allocate new construction scales for projects that have been identified as investment entities, and those projects with high overall scores shall be prioritized in the annual construction plan of the region。
(2) Wind power projects (including large-scale wind power bases) for which the investment subject has not been determined
Wind power projects with undetermined investment entities refer to the site areas where the local government has organized and completed the preliminary work of wind power development, and the provincial grid companies have been consulted to implement the conditions for power transmission and consumption。All provincial-level energy authorities should take the promise of on-grid electricity prices as an important condition, and openly select project investment entities through competitive methods such as bidding。
3. Competitive configuration requirements
(1) Requirements for participating in the competition configuration project。The wind measurement has been completed for more than one year, and it has development value after evaluation. The land used is in compliance with local land use planning and related management regulations。Project construction should meet the requirements of wind power development and construction management and early warning management。
(2) Requirements of investment entities。Possess the basic technology, capital and management capabilities required for project development and construction。The specific conditions are determined by the provincial energy authorities based on local conditions。
(3) Local investment environment requirements。For the projects participating in the competition, the site used is not within the scope of the urban land use tax and involves the occupation of general cultivated land. The fees for the occupation of forest land and grassland are in compliance with the law。Local governments and related departments do not have the problem of charging fees for resource transfers other than those prescribed by national laws, and local governments have no requirements for apportioning expenses to projects or compulsory procurement of local equipment to increase project investment and operating costs。
(4) Project network connection and consumption requirements。There are no wind curtailment issues in this area or the provincial power grid companies have issued opinions on the grid connection and consumption of the project, or have uniformly issued opinions on grid connection and consumption capabilities to the provincial energy authority, and the competing projects have the grid connection and consumption conditions。Grid companies promise to invest in the construction of grid connection and related supporting grid projects。
4. Competitive configuration procedures
(1) Provincial-level energy authorities formulate competition allocation measures for wind power projects。The energy authorities of all provinces (autonomous regions and municipalities directly under the Central Government) formulate competition allocation measures for wind power projects, publicize and organize competition allocation, and send copies to the National Energy Administration and relevant energy regulatory authorities。In principle, the competitive allocation of wind power projects is organized by the provincial energy authorities。
(2) Projects recommended by the municipal (county) energy authority。In accordance with the unified work arrangements of the provincial energy authorities, the municipal (county)-level energy authorities conduct preliminary examinations of the projects declared by the enterprises, and recommend the projects after the preliminary examination to the provincial energy authorities to participate in the competition mechanisms。City (county)-level government departments issued relevant documents or instructions on the policies applicable to recommended projects。
(3) The provincial-level energy authority commissions a third-party organization。The energy authorities of all provinces (autonomous regions and municipalities directly under the Central Government) entrust third-party organizations to organize experts to carry out optimization work。Evaluation experts should be randomly selected from the authoritative expert database。
(4) Results announced by provincial-level energy authorities。The expert group issues review opinions in written form。The expert review opinions and results shall be published on the portal website after being verified by the provincial (autonomous region, municipality) energy authority。
(5) Provincial energy authorities announce the results of competition allocation。The energy authorities of all provinces (autonomous regions and municipalities directly under the Central Government) formulate annual construction plans based on expert review opinions and public announcement results, determine the investment subject and scale of each wind power project, and copy relevant information to the National Energy Administration, and fill in the relevant information in the National Renewable Energy Information System。
(6) Copy electricity price information to the provincial price authority。According to the competitive allocation results, the energy authorities of all provinces (autonomous regions and municipalities) will promptly copy the wind power projects and the determined feed-in tariffs for which investors have obtained competitive allocation to the provincial-level pricing authorities, and implement corresponding feed-in tariffs and subsidy policies。
5. Competitive factors
The competition allocation measures formulated by the energy authorities of each province (autonomous region and municipality directly under the Central Government) should include competition elements such as project plan and technological advancement, depth of preliminary work, and feed-in tariff。Regardless of the allocation method based on market competition, the feed-in tariff should be regarded as an important competitive condition, and projects with low subsidy intensity should be prioritized in the annual construction plan。The feed-in tariff promised by the enterprise shall not be higher than the benchmark feed-in tariff for wind power in the project area。
(1) The competition elements for projects for which the investment entity has been identified
1. Corporate capabilities。Including the evaluation of investment ability, performance, technical ability, and corporate integrity performance。
2. Advanced equipment。Including wind turbine selection, wind energy utilization factor, dynamic power curve guarantee, wind turbine certification status。
3. Technical solution。Including full use of resource conditions, optimization of technical solutions, utilization hours calculation, intelligent control operation and maintenance, decommissioning and dismantling plans, economic rationality, etc.。
4. Preliminary work has been carried out。Including project overall planning, wind measurement and wind energy resource assessment, feasibility study design, supporting documents that have been obtained, etc.。
5. Access and consumption conditions。Entrust the grid company to carry out the analysis results of the access system and consumption capacity。
6. Declare electricity price。Calculate and propose a 20-year fixed feed-in tariff under reasonable income conditions。If you consider linking with the full guarantee purchase method, you can request a quote based on the minimum guarantee hours, and the price beyond the part of the market will be scored according to the minimum guarantee hours。
Each provincial-level energy authority shall formulate its own competition allocation scoring rules, which may adopt a comprehensive scoring method, in which the weight of electricity price shall not be less than 40%。It is also possible to adopt the method of first technology selection and then electricity price comparison and selection, according to the order of electricity price from low to high until the distribution。
(2) The competition elements for projects for which the investment entity has not been identified
1. Corporate capabilities。Including the evaluation of investment ability, performance, technical ability, and corporate integrity performance。
2. Advanced equipment。Including wind turbine selection, wind energy utilization factor, dynamic power curve guarantee, wind turbine certification status。
3. Technical solution。Including full use of resource conditions, optimization of technical solutions, utilization hours calculation, intelligent control operation and maintenance, decommissioning and dismantling plans, economic rationality, etc.。
4. Declare electricity price。Calculate and propose a 20-year fixed feed-in tariff under reasonable income conditions。If you consider linking with the full guarantee purchase method, you can request a quote based on the minimum guarantee hours, and the price beyond the part of the market will be scored according to the electricity price within the minimum guarantee hours。
In principle, a comprehensive scoring method is adopted, in which the weight of the electricity price shall not be less than 40%。
