Analysis of Global Power Market

Analysis of China's Power Operation Market Green Certificates Scheme Procedure of Application for Green Certification, China Renewable Energy Power Plants The Information Management System of National Renewable Energy Power Generation Project Operational Documents Approval of Projects Construction Situation • • Operation Condition Financial Documents Power Settlement Statements • Invoice Bank Transfer Certification Application for Green Certification Issuance of Green Certification Trade Green Energy Subscription Platform The Public Highlights Currently, the development of renewable energy generation in China relies on government subsidies. However, The long settlement time of tariff for renewable power generation has become a common phenomenon in China, and the settlement time of tariff for PV power generation in China can be range from one to three years. One reason for the long settlement time is the complex procedures of application and approval. Another important cause for this phenomenon is the deficits of the renewable energy development fund. Currently, the financial source of the renewable energy development fund is the renewable energy surcharge in the power retail segment, which is RMB 0.019 per kWh. Additionally, the delay of the application for the subsidies of renewable energy subsidies is another reason for the long settlement time. In Mar 2017, the MOF just started the application for subsidies of renewable energy power plants which were approved after 2006 and connected to the grid before the end of Mar 2016. Until June 2018, the MOF issued the result of this application. In order to alleviate this problem and facilitate the healthy development of the renewable energy industry, the government started to promote the green certification and renewable energy power quota policy. In 2017, the NDRC issued the "Notice of the Trial Implementation of Green Certification Issue and Voluntary Subscription Trading System" (* 于试行可再生能源绿色电力证书核发及自愿认购交易制度的通知)which marked the beginning of green certification trade. Currently, the subscription of green certification is voluntary. In Nov. 2018, the NEA issued the notice about the implementation of the renewable energy power quota policy, which stipulated the proportion of renewable energy power in the total power consumption at the province level and the subscription of green certification can be calculated into the quota. Source: Frost & Sullivan FROST & SULLIVAN 76

View entire presentation