February 22, 2025

Policies encourage the development of distributed power generation

The National Development and Reform Commission of Beijing issued the "Interim Measures for the Administration of Distributed Generation" (hereinafter referred to as "Measures") on the 14th, specifying the details of distributed generation in project construction management, grid access, and operation management.

Experts said that the “Measures” clarified some of the previously unclear concepts of distributed generation and strengthened subsidies for distributed generation in terms of grid connection and subsidies, which will effectively promote the development of distributed domestic power generation and further promote energy conservation and emission reductions. The application of renewable energy.

Market participants said that the "Measures" further clarified the ambiguity in the construction and operation of distributed power plants, which is conducive to ensuring the orderly development of the market. The Measures clarify that distributed generation includes: small hydropower plants with a total installed capacity of 50,000 kilowatts or less, wind power, solar energy, biomass energy, ocean energy, geothermal energy, and other new energy generation. Various types of waste power generation other than direct coal combustion, multi-energy complementary power generation, residual heat and pressure residual gas power generation, and coal mine methane (CBM) power generation are also included in the scope of comprehensive utilization of power generation.

In addition, the "Measures" also propose a series of promotion measures to encourage the development of distributed generation. First of all, the “Measures” exempted the distributed power generation project from power generation business licenses, encouraged enterprises, specialized energy service companies, and even individuals to invest in and build distributed power generation projects.

Secondly, for the “old problem” of distributed generation— grid connection, the “Regulations” require that grid companies be responsible for distributed generation of external grid access facilities and investment construction of access-induced public grid upgrading, and provide convenience for distributed generation. , timely and efficient access to power grid services. At the same time, in accordance with the principle of "mainly for self-use, excess electricity, access to the grid, and the lack of power grid adjustments", adopting two-way metering power settlement or net power settlement, grid companies should ensure that priority is given to the distributed generation of surplus electricity and full purchases.

At the end of February this year, the State Grid issued the "Opinions on the Implementation of Distributed Power Grid-connected Services," proposing a power supply project with a total installed capacity of 10 kV and below and a single grid-connected point not exceeding 6 MW. On-grid convenience.

Zhang Zhengling, a spokesperson for the State Grid Corporation of China, stated that the State Grid has already done a good job in advance and will provide technical services such as technical consultation and commissioning for the distribution of distributed power to the grid. After the user submits the application for grid connection, the company will complete the entire department process within 60 working days, and will not charge any fees for the entire process.

In addition, for the issue of subsidy for distributed generation that is generally concerned by the market, the "Measures" clearly states that subsidies for constructional capital or power generation subsidies are provided for distributed generation that meets the conditions, and distributed generation that enjoys subsidies includes: wind power generation, solar power generation , biomass power generation, geothermal power generation, ocean energy power generation and other new energy power generation.

Zhang Ping, executive chairman of the China Renewable Energy Industry Association, said that the current high cost of the photovoltaic industry, low on-grid price, coupled with the government subsidies are not timely, resulting in industry profit margins are not large, investors are not enthusiastic. A clear subsidy will help increase the enthusiasm of investors and hope to introduce relevant standards for subsidies as soon as possible, and ensure that subsidies are issued in a timely manner. Zhang Zhengling also stated that most of the distributed power costs are relatively high, and the country is subsidized. The State Grid Corporation of China will return users according to the country’s purchase price and subsidy price.

However, Meng Xianyi, deputy director of the China Renewable Energy Society, said that in the next two years, China will add 10G watts of photovoltaic power generation each year, and by 2015 it will reach 35G watts. In 2015, the power generation will reach 40-50 billion kWh, if the degree of power is Subsidies of 5 cents in electricity and continuous subsidies for 20 years will be huge investments. Combined with other renewable energy sources such as wind power, biomass, and geothermal, it needs to invest 100 billion yuan in subsidies each year, which is 2 trillion yuan in 20 years. At present, the state finances are beginning to be tight and support for the industry must be considered from the overall economic perspective.

Meng Xianzhe said that the long-term development of the photovoltaic industry should not only rely on subsidies and policy support, but need to reduce costs through technological advances. Now the cost of photovoltaic power generation is about 1 yuan per kilowatt-hour, and down to 8 cents should not be a problem. .

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