Analysis of Global Power Market slide image

Analysis of Global Power Market

Analysis of China's Power Operation Market Policies and Regulation (1/5) Key Policies and Regulations of Power Operation Market in China Issuing Time Issuing Authorities 2019.05.30 NEA 2019.05.21 NDRC 2019.05.10 NDRC, NEA 2019.04.28 NDRC Industry Guideline Notice on the Work Concerning Construction of Wind Power and Photovoltaic Power Generation Projects in 2019 《关于2019年风电、光伏发电项目建设有关事项的 通知》 Notice on Improving the On-grid Pricing Policy for Wind Power 《关于完善风电上网电价政策的通知》 Notice on Establishing and Improving the Guarantee Mechanism of Renewable Energy Power Consumption 《关于建立健全可再生能源电力消纳保障机制的通知》 Key Contents Local governments and related energy departments should prioritise the approval and development of wind power and photovoltaic power generation projects with relatively low or no subsidies. Local governments and related energy departments should prioritise the transmission and consumption of power generated from the wind power and photovoltaic power generation projects with relatively low or no subsidies. The policy changes the original benchmark on-grid tariff for wind power to the guiding price. All newly approved on-grid tariff for centralised onshore wind power projects shall be determined through competition and shall not be higher than the guiding price in the resource area where the project is located. Meanwhile, the guiding prices of onshore wind power and offshore wind power in different resource regions have been announced. The notice proposes to establish and improve the guarantee mechanism of renewable energy power consumption, and to determine the proportion target of renewable energy power consumption in each provincial region, namely "renewable energy power consumption responsibility weight". The purpose is to encourage all provincial regions to give priority to the consumption of renewable energy, accelerate the solution of the problem of abandoning water, wind and light, and at the same time urge all kinds of market entities to equally assume the responsibility of consumption, so as to form a long-term development mechanism led by renewable energy power consumption. The notice changed the original benchmark on-grid tariff for photovoltaic power stations into the guiding price, and the newly added on-grid tariff for centralised Notice on Improving the On-grid Pricing Mechanism photovoltaic power stations shall be determined in principle through market for PV Power Generation 《关于完善光伏发电上网电价机制有关问题的通知》 competition, and shall not exceed the guiding price in the resource area. At the same time, the circular announced the guiding price of photovoltaic power in different resource areas and appropriately reduced subsidies for new photovoltaic power generation Source: NPC, NDRC, NEA, Frost & Sullivan FROST & SULLIVAN 63
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