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Renewable Energy’s Power Generation Priority Right Will Be Implemented: Measures on Full-Amount Protective Acquisition Management on Renewable Energy Power Generation Seeks Ideas from the All Society
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Link of original text: http://news.xinhuanet.com/energy/2015-12/28/c_128575059.htm

 

Recently, in order to further implement the Several Opinions of CPC Central Committee and the State Council on Further Deepening Power System Reform (Zhong Fa [2015] No. 9 Document) and the relevant requirements of the supporting documents, the National Energy Administration drafted the Measures on Full-Amount Protective Acquisition Management on Renewable Energy Power Generation (Draft) (hereinafter referred to as the Measures), asking for the opinions from the whole society.

 

The Measures clearly defines the definition, main responsible body, protection scope and compensation methods for power generation by renewable energies. According to its regulations, the annual quantity of electricity generated by the grid-connected renewable energy power generation projects is divided into protective acquisition and market trading of electricity quantity, where the "quantity of electric power by protective acquisition will be guaranteed for a full-amount purchase through giving priority to annual power generation plans, and through signing priority power generation contracts (physical or price gap contracts) with grid companies (in kind contract or contracts for Difference)”, while the "quantity of electric power by market trading will be obtained via power generation contracts by renewable energy enterprises through participating in market competition, who need to conduct priority scheduling and implementation of the power generation contracts". This regulation can not only protect the basic benefits from renewable energy projects, but also enable renewable energy to fully exercise the advantage of lower power marginal cost to allow them to implement priority power generation rights through market competition.

 

The Measures require that "within the scope of the electric power quantity through protective acquisition, the limited electric power quantity resulted by grid scheduling in renewable energy’s grid-connected power generation projects may be regarded as the priority power generation right for renewable energy or transferring automatically the priority power generation contracts to other generator sets within the system that have lower level of priority, which shall take the responsibility of compensating costs for the renewable energy’s grid-connected power generation projects”.

 

In addition, the Measures makes arrangements for the main responsibility bodies involved in the full-amount protective acquisition of the renewable energy power generation. Among them, the national energy administrative departments will examine and approve the number of annual utilization hours for the full-amount protective acquisition of the renewable energy power generation projects, monitor the implementation, supervise the specific implementation of the electric power quantity through protective acquisition, and the settlement, together with the economic operation administrative departments.

 

Over recent years, abandonment of wind and PV power generation has been the last hinder for a healthy and sustainable development of China’s renewable energy industry. The Measures will further expand efforts in implementing the provisions in Renewable Energy Law and other laws and regulations on full-amount protective acquisition of renewable energy, protect realization of targets relating to the proportion of non-fossil energy consumption, and promote major measures in energy production and consumption revolution. After the Measures is issued and implemented, it will become a major driving force to solve the problem of abandoning wind and PV power generation, and promote an effective growth in the renewable energy industry including wind power and solar PV.