The energy storage industry welcomes the benefits again! The two ministries encourage self-building or purchasing peak-shaving capacity to increase the scale of network connection.

Following the release of the "guidance on accelerating the Development of New Energy Storage" in July this year, the energy storage industry welcomes the positive again!

On August 10, the National Development and Reform Commission and the National Energy Administration jointly issued the Circular on encouraging renewable energy power generation enterprises to build or purchase peak-shaving capacity to increase the scale of grid connection. The circular pointed out that in order to strive to achieve the goal of independent contribution to climate change and promote the development and full absorption of wind power, solar power and other renewable energy, in accordance with the provisions of relevant laws, regulations and policies on renewable energy, in accordance with the relevant requirements of the construction of energy production, supply, storage and marketing system and renewable energy consumption, and on the basis of Electroweb enterprises undertaking the responsibility of grid connection of renewable energy, Power generation enterprises are encouraged to increase the scale of renewable energy generation installed and connected to the grid by self-building or purchasing peak-shaving energy storage capacity.

The following is the original text of the notice:

National Development and Reform Commission National Energy Administration on encouraging Renewable Energy

Power generation enterprises build or purchase peak regulation capacity

Notice of increasing the scale of grid connection

Development and Reform Operation (2021) No. 1138

Development and Reform Commission of all provinces, autonomous regions and municipalities directly under the Central Government, Economic and Information Commission (Industry and Information Commission, Department of Industry and Information Technology), Energy Bureau, Beijing Municipal Urban Administration Commission, National Electroweb Co., Ltd., South China Electroweb Co., Ltd., China Huaneng Group Co., Ltd., China Datang Group Co., Ltd., China Huadian Group Co., Ltd., SPIC, State Energy Investment Group Co., Ltd., China Development Investment Group Co., Ltd., China Resources Group Co., Ltd.:

In order to achieve the goal of independent contribution to climate change and promote the development and full absorption of renewable energy such as wind power and solar power, in accordance with the relevant laws, regulations and policies on renewable energy, in accordance with the relevant requirements of the construction of energy production, supply, storage and marketing system and renewable energy consumption, and on the basis of Electroweb enterprises undertaking the responsibility of grid connection of renewable energy, Power generation enterprises are encouraged to increase the scale of installation and grid connection of renewable energy generation by self-building or purchasing peak-shaving energy storage capacity, which is hereby notified as follows:

Fully understand the importance and urgency of improving the scale of renewable energy grid connection

In recent years, renewable energy in China has developed rapidly, but the shortcomings and problems such as lack of flexibility and regulation capacity of power system are prominent, which restrict the development of renewable energy in higher proportion and larger scale. In the future, it is an arduous task for our country to achieve the goal of carbon peak by 2030 and strive for carbon neutralization by 2060, which requires arduous efforts. The key to achieving carbon peak lies in promoting the development of renewable energy, the key to promoting the development of renewable energy lies in consumption, and the key to ensuring the consumption of renewable energy lies in Electroweb access, peak shaving and energy storage. All localities and relevant power enterprises should fully understand the equal importance of the development and consumption of renewable energy, attach great importance to the grid connection of renewable energy, and promote the development, grid connection, Synchronize research and Synchronize of renewable energy. to ensure that the carbon peak by 2030 and the goal of carbon neutralization by 2060 will be achieved as scheduled.

Second, guide market players to increase the scale of renewable energy grid connection through multiple channels

(1) to increase the capacity of renewable energy to be connected to the grid through multiple channels. Electroweb enterprises should earnestly assume the main responsibility of Electroweb construction and development and grid-connected consumption of renewable energy, and co-ordinate peak regulation capacity building and resource utilization. Electroweb enterprises should bear the main responsibility in the new scale of grid-connected consumption every year. Power enterprises should properly assume the responsibility of grid-connected consumption of renewable energy. With the progress of new energy power generation technology, the improvement of efficiency, and the reduction of the cost of peak regulation of the system, the consumption scale and proportion borne by Electroweb enterprises will be reduced in an orderly manner.

(2) to encourage power generation enterprises to build their own energy storage or peak regulation capacity to increase the scale of grid connection. In addition to Electroweb enterprises' responsibility for grid connection of renewable energy such as wind power and solar power, renewable energy power generation enterprises that are still willing to invest in construction are encouraged to build their own energy storage or peak-shaving resources on a voluntary basis to increase the scale of grid connection. For renewable energy power generation enterprises that are required to build energy storage or peak regulation capacity according to the prescribed proportion, after Electroweb enterprises are determined in accordance with the procedures, they may arrange to install the corresponding units and be connected to the grid.

(3) allow power generation enterprises to purchase energy storage or peak regulation capacity to increase the scale of grid connection. In addition to Electroweb enterprises undertaking the responsibility of grid connection of renewable energy such as wind power and solar power generation, renewable energy power generation enterprises that still have the willingness to invest in construction can assume the responsibility of peak regulation by means of market-oriented transactions with market players of peak-shaving resources, so as to increase the scale of grid connection of renewable energy power generation. Renewable energy power generation enterprises are encouraged to sign agreements or contracts with new pumped storage and energy storage power stations to increase consumption capacity, and to clarify the responsibilities and obligations for the construction and operation of market-oriented peak regulation resources. Renewable energy power generation enterprises that have signed contracts for energy storage or peak regulation capacity may, after being determined by Electroweb enterprises in accordance with the procedures, arrange for the corresponding units to be installed and connected to the grid.

(4) encourage various channels to increase peak regulation resources. Undertake the peak regulation resources corresponding to the consumption of renewable energy, including pumped storage power stations, chemical energy storage and other new energy storage, gas power, photothermal power stations, flexible manufacturing and retrofit coal power plants. The above peak-shaving resources do not include those that have been listed as emergency backup and peak-shaving power sources.

III. Confirmation and management of self-built peak shaving and energy storage capacity

(1) the ratio requirement of self-built peak shaving resources. Self-built peak shaving resources refer to power generation enterprises to build pumped storage, chemical energy storage power stations, gas power, photothermal power stations or carry out flexible transformation of coal power according to the proportion of full capital. In order to encourage power generation enterprises to participate in the construction of peak regulation resources in the market, the scale other than the indemnificatory grid connection of Electroweb enterprises shall initially be equipped with a peaking capacity of 15% of the power (the duration is more than 4 hours, the same below). Priority is given to grid connection according to the proportion of more than 20%. The allocation ratio will be timely adjusted according to the situation after 2022, and will be announced once a year. After the competent departments at the provincial level organize Electroweb enterprises or third-party technical institutions to evaluate and confirm the peak regulation capacity measures and effects of the project, the hook ratio can be appropriately adjusted in the light of the actual situation.

(2) the proportion requirements for the joint construction of peak-shaving resources. Joint construction of peak shaving resources means that power generation enterprises jointly build pumped storage, chemical storage power stations, gas power, photothermal power stations or carry out flexible transformation of coal power plants with other market entities according to a certain proportion of investment. After the completion of the joint construction of peak-shaving resources, the proportion of self-built peak-shaving resources can be multiplied by the proportion of investment to build renewable energy for power generation. In order to encourage power generation enterprises to actively participate in self-built peak regulation resources, the initial allocation can be appropriately higher than the proportion of investment.

(3) determination of peak shaving and energy storage capacity by self-construction and co-construction. The capacity of self-built and co-built peak shaving and energy storage shall be determined in accordance with the principles of "enterprise commitment, government filing, process verification, and one penalty for leave". Power generation enterprises that take the initiative to build and co-build peak regulation and energy storage capacity shall provide proof materials for the construction of peak regulation and energy storage projects, and make a clear commitment to the basic situation, peak regulation capacity and commissioning time of the project, which shall be submitted to the competent departments of the government at the provincial level for the record. In the process of implementation, the competent department at the provincial level entrusts Electroweb enterprises or third-party agencies to conduct a comprehensive verification or spot check on the self-construction joint construction projects, and for those enterprises that find that they have failed to fulfill their construction responsibilities as promised, the calculation of peak regulation capacity shall be deducted according to 2 times of the uncompleted capacity; the relevant enterprises shall make rectification within a time limit, and enterprises that fail to carry out rectification and reform on time shall not participate in the market-oriented integration of renewable energy into the grid next year.

(4) to strengthen the operation and management of self-built and co-built peak shaving and energy storage projects. Since the joint construction of peak shaving and energy storage projects have been completed and put into operation, enterprises can choose to operate the projects independently or hand them over to local Electroweb enterprises for dispatching and management. For peak regulation and energy storage projects operated independently by power generation enterprises, they can participate in the electricity market as independent market entities and obtain revenue in accordance with relevant national policies; for peak regulation and energy storage projects dispatched and managed by Electroweb enterprises, Electroweb dispatching agencies carry out dispatching management of related projects according to the needs of Electroweb peak regulation, and projects obtain revenue according to relevant price policies. In order to ensure the availability of peak shaving and energy storage capacity of the project, Electroweb dispatching agencies carry out scheduling tests on related projects from time to time.

IV. Confirmation and management of purchasing peak shaving and energy storage capacity

(1) the main ways to purchase peak-shaving resources. Purchasing peak regulation resources means that power generation enterprises purchase peak regulation capacity from market players such as pumped storage, chemical energy storage power stations, gas power, photothermal power stations or thermal power plants that carry out flexible transformation, including the purchase of peak regulation energy storage projects and the purchase of peak regulation energy storage services. In order to ensure that the peak regulation resources purchased by power generation enterprises do not occupy the system consumption capacity of Electroweb enterprises, the main body to be purchased is limited to the newly built peak regulation resources this year.

(2) the requirement for the proportion of purchasing peak-shaving resources. If the scale beyond the guaranteed grid connection of Electroweb enterprises is exceeded, peak-shaving capacity will be purchased at the initial stage according to 15% of the pegged capacity, and more than 20% of the pegged capacity will be encouraged. The purchase ratio will be timely adjusted according to the situation after 2022, and will be announced once a year. After the competent departments at the provincial level organize Electroweb enterprises or third-party technical institutions to evaluate and confirm the peak regulation capacity measures and effects of the project, the hook ratio can be appropriately adjusted in the light of the actual situation.

(3) to determine the purchase of peak shaving and energy storage capacity. The purchase of peak regulation and energy storage projects shall be made by the buyer's enterprise to the provincial government authorities and provide the purchase contract, which shall be determined according to the peak regulation capacity signed in the purchase contract. In the process of implementation, the buyer's enterprise is responsible for supervising and urging the seller's enterprise to ensure that the project is implemented, and the competent department of the provincial government entrusts Electroweb enterprise or a third-party agency to conduct a comprehensive verification or spot check on the items in the purchase contract. For enterprises that find that they have not fulfilled their construction responsibilities as promised, they shall be deducted according to 2 times of the unfinished capacity when calculating the peak shaving capacity. Relevant enterprises should make rectification and reform within a time limit, and enterprises that fail to do so shall not participate in the market-oriented integration of renewable energy into the grid next year.

(4) strengthen the operation and management of purchasing peak shaving and energy storage projects. After the purchase of peak regulation and energy storage projects are completed and put into operation, the purchase of peak regulation energy storage projects shall be treated as self-built projects for operation and management; for the purchase of peak regulation energy storage services, the power generation enterprise and the peak regulation energy storage project enterprise shall sign a peak regulation service binding agreement or contract to stipulate the rights, responsibilities and income distribution of both parties, and encourage the signing of a long-term agreement or contract for more than 10 years. In order to ensure the availability of peak shaving and energy storage capacity of the project, Electroweb dispatching agencies carry out scheduling tests on related projects from time to time.

Quantitative Standard and dynamic Adjustment of self-built or purchased Peak shaving and Energy Storage capacity

(1) determination of pumped storage, electrochemical energy storage and peak regulation capacity of photothermal power stations. The peak regulation capacity of pumped storage power stations, electrochemical energy storage and photothermal power stations shall be determined according to the installed scale.

(2) determination of peak shaving capacity of gas and electricity. The peak regulation capacity of gas and electricity is determined according to the design output of the unit, and the peak regulation capacity is determined according to the actual maximum output when the generation output is limited due to gas source, weather and other reasons.

(3) determination of peak shaving capacity for flexible manufacturing and transformation of coal and power plants. For the coal power unit with flexible manufacturing and transformation, the peak shaving capacity is determined according to the difference between the adjustable output range of the manufacturing transformation and the adjustable output range before the transformation or the average adjustable output range.

(4) to make overall arrangements for the timing of the construction and commissioning of power generation and peak regulation projects. Considering the construction cycle of the new peak regulation resource project, all localities should complete and connect the Synchronize with the new peak regulation project Synchronize when arranging power generation projects. The proportion of peak-shaving energy storage and construction shall be implemented in accordance with the standards for the approval (filing) of renewable energy power generation projects in that year.

(5) to establish a dynamic adjustment mechanism for peak regulation and energy storage capacity standards and allocation ratio. With the continuous expansion of the scale and proportion of renewable energy connected to the grid, as well as the progress of peak regulation and energy storage technology and the decline in cost, all localities should make overall efforts to deal with the relationship between the enthusiasm of enterprises and the demand for peak regulation of the system. the standards of peak regulation and energy storage capacity and the proportion of construction can be dynamically adjusted according to the local actual situation.

VI. Operation and supervision of peak shaving and energy storage trading mechanism

(1) unused peak regulation resources can be traded to other market entities. If the power generation enterprises that implement peak regulation resources through self-construction or co-construction, if the scale of renewable energy power generation in that year is lower than the prescribed proportion, it is not allowed to carry forward to the next year and can be traded to other power generation enterprises in a market-oriented way.

(2) Index transactions need to be co-ordinated in the province. In order to ensure that the new peak regulation capacity can effectively play a role in promoting the consumption of renewable energy, power generation enterprises carry out overall planning within the scope of their own province (autonomous region and city) in the process of self-construction, co-construction, purchasing peak-shaving resources and carrying out peak-shaving resource index transactions.

(3) strengthen operational supervision. Local government departments, together with Electroweb enterprises, strengthen supervision over power generation enterprises' commitment to build, co-build or buy peak regulation projects. After the project is put into production, dispatching agencies will carry out dispatching operation irregularly in accordance with the enterprise's promised peak regulation capacity, to ensure that peak regulation capacity is true, credible and operational, and enterprises that falsely promise peak regulation capacity will be disqualified to assume the responsibility of renewable energy consumption on their own in the coming year.

VII. Safeguard measures

(1) strengthen organizational leadership. The National Development and Reform Commission and the National Energy Administration will coordinate the work related to the self-construction or purchase of peak regulation capacity of national renewable energy power generation enterprises to increase the scale of grid connection, comprehensively track the implementation progress of various localities and enterprises, and coordinate and solve the major problems in progress. The development and reform commissions and energy bureaus of all provinces (autonomous regions and municipalities directly under the Central Government), in conjunction with the relevant departments at the provincial level, in combination with the reality of local power development, promote local power generation enterprises to assume responsibility for renewable energy consumption on their own, and effectively link up with Electroweb enterprises' safeguard grid connection, emergency reserve and peak regulation unit construction work, so as to avoid double counting of projects.

(2) Electroweb enterprises should give full play to their responsibilities of supervision and network integration. The State Electroweb Corporation and the Southern Electroweb Company should organize Electroweb enterprises in various places and cooperate with local government departments to strengthen effective supervision over power generation enterprises' self-construction and co-construction and purchase of peak-shaving energy storage projects, so as to ensure the smooth progress and real availability of each project. For enterprises that complete the construction of peak-shaving energy storage capacity according to the requirements, they should conscientiously do a good job in matching the corresponding scale of new energy grid access.

(3) to improve and improve the mechanism of reward, punishment and evaluation. The National Development and Reform Commission and the National Energy Administration will improve the reward, punishment and evaluation mechanism, praise the areas where renewable energy power generation enterprises have made remarkable progress in self-building or purchasing peak regulation capacity and increasing the scale of grid connection, and conduct interviews in areas where work progress lags behind. In the process of advancing the work, third-party evaluation and other methods will be adopted in due course to comprehensively evaluate the work of self-building or purchasing peak regulation capacity to increase the scale of grid connection of renewable energy power generation enterprises in various places.

National Development and Reform Commission

Guojia Energy Source Bureau

July 29, 2021