Renewable Electricity Quota and Assessment Method (Draft for Opinions)
On 23 March 2018 China’s National Energy Administration (NEA) announced a draft version of Renewable Electricity Quota and Assessment Method. The draft version of this document was in consultation until 30th of March 2018.
The draft version of the document contains mandatory provincial-level quotas of renewable electricity over total electricity and specific non-hydropower renewable electricity quotas accompanied by “Renewable Electricity Certificate” system. Quotas are being established for the year 2018 and year 2020.
The new system assigns electricity users including grid companies, electricity retail companies, and large end-users participating in direct power purchasing a percentage quota of their electricity that needs to come from renewable energy. Users can prove they have fulfilled the obligations by buying renewable energy certificates (RECs), which are issued to renewable generators for each megawatt-hour (MWh) they produce. There will be separate renewable obligations for hydropower and other renewable energy (wind, solar, biomass). Users with an insufficient number of RECs at the year-end will be obligated to buy replacement RECs at a price proposed by power grid enterprises and filed with the National Development and Reform Commission.
The calculation of quota considers several factors. They include are newly added renewable power installed capacity and electricity, renewable curtailment rates, inter-regional and inter-provincial power transmission capacity, power load estimation and market trading volume.
For provinces which do not achieve the quota, the energy administrative departments will cut or temporarily postponed provincial fossil power construction quota, and they are not able to apply demonstration projects. For market users which do not achieve the quota, the government will cancel or reduce the amount of allowed market trading volume for the next year. If they refuse to implement renewable obligation, these users will be listed in bad credit file and get punishment.
Provisional Renewable Electricity Quota for Provinces:
Source: NEA, 2018 Updated on 28/03/2018 | ||||
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