A "renewable power quota" is on its way. China business news (CBN) learned from multiple sources yesterday that the draft regulation on the administration of renewable energy power quotas (" draft regulation ") has recently been distributed to local governments and relevant enterprises for their final proposals.
Officials from power generation companies, power grid companies and related companies told the financial times that the new rules would further encourage companies to invest more in renewable energy, although the return on investment may be difficult to achieve in the short term.
Some people in the industry believe that the renewable energy power quota system management measures should be introduced at the same time, but also the related supporting measures, otherwise the problem of renewable energy power generation difficult to completely solve.
Identify the three main responsibility
This newspaper has learned that the three main responsibility bodies of renewable energy power quota system are power grid enterprises, large-scale power generation investment enterprises and local governments.
According to media reports, the discussion draft stipulates that the main body that undertakes the obligation of power generation quota shall be the power generation enterprises with a total installed capacity of over 5 million kilowatts. The subjects that undertake the obligation of purchasing quota are state grid corporation of China (weibo), China southern power grid corporation, Inner Mongolia power (group) co., LTD. (hereinafter referred to as "Inner Mongolia power grid") and power grid enterprises independently operating in provincial power grids. The people's governments of all provinces (autonomous regions and municipalities directly under the central government) shall, with the cooperation of power grid enterprises, be responsible for the consumption of quota indicators within the areas under their jurisdiction.
The regulations were confirmed by an official with the national energy administration. The official told the financial times that the "discussion draft" was sent to local energy authorities and related enterprises for wide consultation, and a formal plan will be issued after the measures are improved. The specific implementation time is difficult to determine.
Ren dongming, director of the renewable energy development center at the energy research institute of the national development and reform commission, said in tianjin that the renewable energy quota system will be implemented in 2012.
In addition, "discussion paper also points out that national departments according to the provinces of renewable energy resources, economy, power consumption and electric power transmission capacity, determine the renewable energy resources are rich, relatively rich region, general rich region, and is not rich region four types of renewable energy electricity quotas, all kinds of regional electricity quota percentage range from 1% to 15%.
The national energy authorities will make public at the beginning of the second year the achievement of the renewable energy quota quota of the previous year.
However, the discussion draft did not list financial incentives and penalties to facilitate the implementation of the quota system. The national energy administration official said frankly that at present, only the relevant enterprises and local governments have been put forward administrative requirements, there is no reasonable and feasible economic means to promote the implementation of the quota system, which may be the need to continue to improve in the future.
Related investment or blowout
According to the draft regulation, for power generation enterprises with a total installed capacity of over 5 gw, renewable energy should account for 11% of their power generation and 6.5% of their total power generation.
Worked at huadian new energy technology development company, have abundant renewable energy power generation project operating experience, liu dawei, told this newspaper renewable energy generation is thermal power costs are higher, private enterprises in the construction of renewable energy power generation project, enthusiasm may not be high, a total installed capacity of more than 5 million kilowatts of power generation enterprise basic belong to state-owned enterprises.
'the implementation of the quota system signals that the country will encourage and support renewable energy generation,' Mr. Liu said. There are some challenges and difficulties for enterprises to invest now, but it is also an opportunity. Under the environment of encouraging energy conservation and emission reduction, renewable energy power generation projects may become a gold mine for power generation enterprises in the future.
The five major power producers have made arrangements for renewable energy generation in advance, and some have planned new investment projects.
China guodian said at an internal meeting earlier this year that clean renewable energy had accounted for 22 percent of its total installed capacity, and its wind power capacity reached 12.26 gigawatts in 2011. The company also plans to invest 100 billion yuan between 2011 and 2020 to develop clean renewable energy in yunnan, bringing its total installed capacity in the province to 16 gigawatts.
Datang group also has a new wind power project plan recently, its three rivers in liaoning province changtu breeze electricity project recently won the approval of liaoning province development and reform commission (NDRC), the project will build 24 sets of 2 mw wind turbine, the total capacity of 48 mw, and supporting the construction of a 220 kv step-up substation, design power on the Internet of 97.83 million KWH. And huadian group also is investing new project frequently.
Research institutions also expect the quotas to boost investment in related industries. In order to reduce the overall cost of electricity, the subject of the quota system chooses the lowest cost renewable energy power through the market approach, according to a research report published by xiangcai securities recently. If the domestic introduction of the quota system, resulting in increased demand will be good for the photovoltaic and fan industry is expected.
However, in the case of severe oversupply of domestic photovoltaic industry, this favorable policy may not play a big role. "For us, the quota system can only quench our thirst for plum, but it has little practical effect." A large photovoltaic enterprise sales director told reporters that it prompted power generation enterprises to increase investment, but for photovoltaic manufacturing enterprises, capacity digestion is the most important task at present.
For the quota targets of power grid enterprises, the discussion draft requires that by 2015, state grid, China southern power grid, Inner Mongolia power grid and shaanxi local power companies should undertake guaranteed purchase targets of 5%, 3.2%, 15% and 10% respectively.
"The proportion of wind power connected to the grid will exceed 10% by the end of this year, and there should be no problem to achieve the target of 15% by 2015." 'the proportion of wind power connected to the grid in Inner Mongolia is increasing every year, and the company will continue to increase relevant investment,' a middle-level manager of the Inner Mongolia power grid told the financial times.
Meng xiangan, vice chairman of the China renewable energy association, said the draft also needs a series of supporting policies to be effectively implemented in practice, including addressing the legitimate interests of power grid enterprises and setting up a quota system for transactions between different regions.