Shandong: new PV (including distributed) 15% or full power to participate in power trading

On December 17, Shandong Provincial People's Government issued a notice on the sound improvement of new energy consumption system mechanism to promote energy quality development of a number of measures, requiring that the 2025-2026 new centralized and distributedphotovoltaic (e.g. cell)The project independently chooses to participate in the electricity market with either full power or 15% generation.

According to the document, from 2025 to 2026, new wind power projects (including decentralized wind power, hereinafter the same) can independently choose to participate in the electricity market with full power or 30% generation.New photovoltaic power generation projects (including distributed photovoltaic, the same below) can independently choose to participate in the electricity market with full power or 15% generation capacityIn the course of implementation, it will be optimized and adjusted according to the changes in national policy requirements, and in 2030, it will be fully in the market.

The document requires that enterprises be supported to adopt new energy near the direct supply, green power trading, virtual power plant, new energy self-generated self-consumption and other four modes; in addition, relying on large-scale development of new energy sources such as Lubei large-scale wind bases, offshore wind bases, and exploring the construction of green hydrogen as a peaking resource (ammonia, alcohol) projects to support the participation of the energy storage leasing market. Support "wind hydrogen ammonia alcohol" project overall promotion, in accordance with national and provincial requirements for the implementation of integrated approval (for the record).

In terms of energy storage, the development of centralized electrochemical energy storage is encouraged, a trading platform for leasing energy storage capacity is constructed, and new energy projects leasing centralized energy storage are prioritized to be included in the annual list of market-based grid-connected projects. The individual scale of energy storage projects should not be less than 30,000 kilowatts in principle, and it is encouraged to participate in power market transactions jointly with new energy projects.

It should be emphasized that, in the new energy consumption capacity is insufficient to carry out distributed energy storage construction in the region, support access to the corresponding distribution grid, "cloud energy storage" way aggregation to participate in the power market transactions, to enjoy the centralized energy storage demonstration project capacity compensation policy, and can be in the county (city, district) within the implementation of the new distributed new energy energy storage capacity leasing.

In terms of power grid, planning and layout of 1000kV UHV Binzhou station, accelerate the construction of 500kV power grid project in Highland, Bohai, etc., to meet the demand of wind power and photovoltaic power generation delivery in the north of Lu. Combined with urban planning and charging infrastructure construction, comprehensively carry out urban distribution network expansion and upgrading, and gradually improve the toughness of the distribution network. Accelerate the upgrading and transformation of rural power grids, continue to optimize the structure of the grid, and promote the consumption of distributed new energy in the vicinity.

In addition, focusing on the end of large power grids, new energy-rich villages, and high-percentage new energy power supply parks, and making full use of wind, light, natural gas and other clean energy sources, the company has explored the construction of a number of distributed smart grid projects to promote the construction of distributed grids, and to form a grid pattern in which distributed and large grids are compatible and coexist.

In terms of specific safeguard policies, in-depth development of the province's wind power and photovoltaic power generation resources census, to find out the bottom of the wind and light resources, planning a number of construction conditions are better, can be landed and can be implemented in the wind power photovoltaic power generation reserve sites, for new energy scale, sustainable development to lay the foundation.

Improve new energy land use policies and measures, and ensure that new energy development and utilization of reasonable land space needs. Improving the mechanism of hierarchical approval and coordinated promotion of the use of the sea, and accelerating the approval procedures for the use of the sea in accordance with the law for new energy projects at sea that have completed the competitive allocation at the provincial level.

For the original text, see below:

General Office of Shandong Provincial People's Government Issues Notice on Several Measures on Improving New Energy Consumption System Mechanism to Promote High-Quality Energy Development

Lu Zhengban [2024] No. 163

Municipal people's governments, people's governments of counties (cities and districts), provincial government departments and directly subordinate organizations, and major enterprises:

On the sound and perfect new energy consumption system mechanism to promote energy quality development of a number of measures has been agreed by the provincial government, is issued to you, please conscientiously implement.

General Office of Shandong Provincial People's Government

December 17, 2024

(This is a public release)

Several Measures on Improving and Perfecting the Mechanism of New Energy Consumption System to Promote High-Quality Energy Development

In order to fully implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, to further deepen the reform of the energy and power system and mechanism, to comprehensively enhance the new energy consumption capacity, to promote the new energy scale and high level of utilization, and to accelerate the creation of a demonstration area of green and low-carbon transformation of energy, to develop the following measures.

I. Deepening electricity market-oriented reform

(i) Steady promotion of new energy into the market. Improve the construction of the electricity spot market, classification, and gradually increase the proportion of new energy market-oriented trading. 2025 to 2026, new wind power projects (including decentralized wind power, the same below) can independently choose to participate in the electricity market full power or 30% power generation, the new photovoltaic power generation projects (including distributed photovoltaic, the same below) can independently choose to participate in the electricity market full power or 15% power generation, the implementation process according to the national policy requirements change optimization adjustment; 2030 onwards, new wind power, photovoltaic power generation projects to achieve full market entry. The implementation process is optimized and adjusted according to the changes in national policy requirements; from 2030 onwards, new wind power and PV power generation projects will be fully marketed. (Provincial Energy Bureau led by the Provincial Development and Reform Commission, the National Energy Board Shandong Supervision Office, the State Grid Shandong Electric Power Company in accordance with the division of responsibilities)

(ii) Smooth green certificate trading service channels. Relying on professional organizations, explore the establishment of green power certificate trading service platform, green certificate trading data analysis, policy research, publicity and promotion work, for market players to participate in green certificate trading to provide supply and demand docking, technical support, market research and judgment services. (led by the provincial energy bureau, the provincial development and reform commission, the national energy bureau of shandong supervision office, the state grid shandong province power company with)

(c) Actively expanding the scale of green power and green certificate trading. Explore the implementation of fossil energy consumption budget management for key energy-using units, and offset the part that exceeds the budget by purchasing green power green certificates. Guiding key energy-using enterprises to participate in green certificate trading, monitoring the proportion of green power consumption in the aluminum industry, completion of the green certificate as the basis for accounting. (Provincial Development and Reform Commission, the Provincial Energy Bureau, the Provincial Department of Industry and Information Technology, and the Shandong Supervision Office of the National Energy Administration are responsible for this according to their division of responsibilities.)

II. Innovative development and utilization models

(d) Promoting the integration of source, network and storage in an orderly manner. Support enterprises to adopt four modes of new energy near direct supply, green power trading, virtual power plant, new energy self-generation and self-consumption, etc., relying on the power market trading platform and "cloud, big, material, mobile, intelligent chain edge" and other technologies, to carry out the integration of the source network and storage, and to fully tap the regulation and consumption capacity of the load side of the power supply and load side of the power supply and load side of the power supply, and create a new mode of new energy consumption and storage. Through the synergistic interaction of power supply, power grid and energy storage, the power consumption side of the load side can be fully tapped to regulate the consumption capacity and create a new mode of new energy consumption. (led by the provincial energy bureau, the provincial development and reform commission, the national energy bureau of shandong supervision office, the state grid shandong province power company cooperation)

(v) Exploring new modes of supplying new energy power. For industrial parks or export-oriented enterprises with green power demand, we support the adoption of physical or virtual methods to innovate new energy power supply modes and explore the construction of a number of green power industrial parks; in principle, power supply lines are invested by the grid company, and transmission and distribution tariffs and related costs are implemented in accordance with national policies. Encourage new energy power generation enterprises and export-oriented enterprises to sign medium- and long-term power contracts, new energy power generation by export-oriented enterprises to consume all. (led by the Provincial Energy Bureau, with the cooperation of the Provincial Development and Reform Commission, the Shandong Supervision Office of the National Energy Administration, and the State Grid Shandong Electric Power Company)

(vi) Explore and promote the integrated development of "wind, hydrogen, ammonia and alcohol". Relying on large-scale development of new energy such as Lubei large-scale wind power base, offshore wind power base, explore the construction of green hydrogen (ammonia, alcohol) project can be used as a peaking resource, and support participation in the energy storage rental market. Support the "wind hydrogen ammonia alcohol" project to promote the overall, in accordance with national and provincial requirements for the implementation of the integration of the approval (for the record), with the ammonia, synthetic methanol part of the construction, not subject to the "two high" industry reduction and substitution policy restrictions. (Provincial Energy Bureau, Provincial Development and Reform Commission to take the lead, the provincial Department of Industry and Information Technology, State Grid Shandong Province Electric Power Company to cooperate)

(vii) Exploring and promoting the construction of virtual power plants. Promote integrated energy management service providers, power sales companies to carry out virtual power plant business, aggregation of source and storage resources, high-quality normalized participation in power system regulation. Encourage the new virtual power plant into the province's pilot projects, research related support policies. (Provincial Development and Reform Commission, Provincial Energy Bureau led by the National Energy Administration Shandong Supervision Office with)

III. Building a new regulatory system

(viii) Strengthening the position of coal power as a basic regulator. Improve the peak-regulating capacity of large-scale clean and high-efficiency coal power units, and the minimum technical output of newly-built purely condensing and condensate-absorbing coal power units should be no higher than the rated loads of 20% and 30%. Accelerate the flexibility transformation of the stock of coal power units, and convert the energy storage capacity according to the standard of 10%×8 hours of the new deep adjustment capacity after transformation, and use it as the supporting energy storage for the new energy projects. Encourage coal power units through the construction of electric boiler heat storage facilities, molten salt heat storage and other facilities to increase the depth of the peak capacity, the construction of the relevant facilities in the power generation enterprises within the metering outlet, the power consumption in accordance with the plant power management but not counted in the plant power statistics. (Led by the Provincial Energy Bureau, with the cooperation of the Provincial Development and Reform Commission)

(ix) Speeding up the development of pumped storage power stations. It encourages the diversification of pumped storage energy investment bodies, and supports enterprises with development qualifications to participate in project development and construction. In load centers, new energy bases, nuclear power bases, etc. to carry out "source network and storage" "wind and nuclear storage" pilot, to create a multi-scenario development model. Support pumped storage power stations to participate in the power spot market, pumping tariffs, feed-in tariffs according to the power spot market prices and rules of settlement, to enhance the level of power plant revenue. (led by the Provincial Energy Bureau, with the cooperation of the Provincial Development and Reform Commission and the Shandong Supervision Office of the National Energy Administration)

(j) Accelerating the construction of electrochemical energy storage projects. Encourage the development of centralized electrochemical energy storage, the construction of energy storage capacity leasing trading platform, leasing centralized energy storage of new energy projects are prioritized for inclusion in the annual market-oriented grid-connected project list. The individual scale of energy storage projects should not be less than 30,000 kilowatts in principle, and it is encouraged to participate in power market transactions jointly with new energy projects. Improvement of energy storage to participate in the power market rules, the establishment of "one multi-purpose, time reuse" trading model. (led by the Provincial Energy Bureau, the Provincial Development and Reform Commission, the National Energy Board Shandong Supervision Office with)

(k) support the development of compressed air and other long-term energy storage. Encourage the construction of compressed air, renewable energy hydrogen, liquid current batteries and other long-time energy storage projects, eligible for priority inclusion in the province's new energy storage project library, priority access to the grid after completion; support for long-time energy storage projects to participate in the electricity spot market transactions, the project into the library in accordance with the 2 times the capacity of the discounted energy storage capacity. (Provincial Energy Bureau to take the lead, the Provincial Development and Reform Commission, the National Energy Administration Shandong Supervision Office with)

(xii) Promoting the construction of distributed energy storage. In the new energy consumption capacity is insufficient to carry out distributed energy storage construction in the region, support access to the corresponding distribution network, "cloud energy storage" way aggregation to participate in the power market transactions, enjoy the centralized energy storage demonstration project capacity compensation policy, and can be in the county (city, district) within the implementation of the new distributed new energy energy storage capacity leasing. Study the introduction of cloud energy storage provincial local standards to further standardize the development of cloud energy storage projects. (Provincial Energy Bureau led by the Provincial Development and Reform Commission, the Provincial Market Supervision Bureau, the National Energy Administration Shandong Supervision Office with)

(xiii) enhance the emergency peaking capacity of gas turbines. Continuously optimize the adjustment of the capacity of the gas turbine tariff, gas volume gas price and other support policies, public gas turbine participation in the spot market in accordance with the "Shandong Electricity Market Rules (Trial)" to give special unit compensation. Heavy-duty combustion engine project operation for one year, the third-party agency to approve the actual peak capacity and participation in peak hours. 2027 before the commissioning of the project, if the participation in peak hours to reach the average level of independent electrochemical energy storage project, according to the approved peak capacity × 8 hours of discounted energy storage capacity, as a new energy project supporting energy storage. (Led by the Provincial Energy Bureau, with the cooperation of the Provincial Development and Reform Commission)

IV. Enhancing the role of grid configuration

(xiv) Accelerating the construction of backbone grids. Integrate new energy consumption demand and nuclear power, wind power, photovoltaic power generation and other project planning and construction progress, moderately ahead of the planning and construction of power grids. Accelerate the construction of 1000kV UHV projects, such as the Yanwei Transmission, Weihai Station, Zhaoyuan and the subsequent nuclear power plant sites, to strengthen the 500kV network structure in the north and south of the peninsula, and to meet the demand for nuclear power and offshore wind power in the Jiaodong region. Planning and layout of 1000 kV UHV Binzhou station, accelerate the construction of 500 kV grid projects in the highlands, Bohai Sea, etc., to meet the needs of wind power and photovoltaic power generation in the north of Lu. By 2025, the province's ultra-high voltage, 500 kV power grid were formed "five intersection three straight" "six horizontal and four vertical" network structure; by 2030, were formed "nine intersection four straight" "six horizontal and six vertical" network structure. (Provincial Energy Bureau, Provincial Development and Reform Commission, State Grid Shandong Province Electric Power Company)

(xv) Promoting the transformation and upgrading of distribution grids. Combined with urban planning and charging infrastructure construction, comprehensively carry out urban distribution grid expansion and upgrading, and gradually improve the resilience of the distribution grid. Accelerate the upgrading and transformation of rural power grids, continue to optimize the structure of the grid, and promote the consumption of distributed new energy in the vicinity. By 2025, the distributed photovoltaic access capacity of the province's power grid reached about 55 million kilowatts, and by 2030, it reached about 80 million kilowatts. (Provincial Energy Bureau to take the lead, the Provincial Development and Reform Commission, State Grid Shandong Province Electric Power Company with)

(xvi) Pilot construction of distributed smart grids. Implement the requirements of the implementation plan for the high-quality development of the distribution grid, focusing on the end of the grid, new energy-rich villages, a high proportion of new energy power supply parks, making full use of the wind, light, natural gas and other clean energy sources, exploring the construction of a number of distributed smart grid projects to promote the construction of distributed grids in order to promote distributed grid construction, and the formation of distributed and large grids compatible with the co-existence of the power grid pattern. (Led by the Provincial Energy Bureau, with the cooperation of the Provincial Development and Reform Commission and the State Grid Corporation of Shandong Province)

(xvii) Strengthening intelligent dispatching operations. Adapting to the new requirements of large-scale and high-percentage new energy sources and new types of subjects on power dispatch, it will comprehensively promote the optimization and adjustment of dispatching methods, mechanisms and management. Comprehensively applying technologies such as "cloud, big material, mobile intelligence and chain edge", it will enhance the level of grid intelligence and automation, and support the large-scale friendly access of new energy generation, new energy storage and diversified loads. Strengthen the intelligent construction of distribution network scheduling and information security protection system construction, comprehensively improve the observable and measurable, adjustable and controllable capacity, and gradually build a new active distribution network scheduling mode of main distribution microgrid coordination. (Provincial Energy Bureau and Provincial Development and Reform Commission taking the lead, State Grid Shandong Electric Power Company cooperating)

(xviii) Enhancing the grid-related performance of new energy sources. Scientific arrangements for the layout of new energy development, production schedule and consumption direction, strengthen the new energy and supporting grid construction synergies, new energy project grid-related performance should meet the requirements of the power system. New energy projects that use technologies to enhance grid-related performance will be supported in the declaration of market-oriented grid-connected projects and the competitive allocation of guaranteed projects. (Led by the Provincial Energy Bureau, with the cooperation of State Grid Shandong Electric Power Company)

V. Strengthening factor security support

(xix) Carrying out a census of new energy resources. According to the territorial spatial planning, combined with the results of the annual land change survey, the national sea policy adjustment and other control requirements, in-depth development of the province's wind power and photovoltaic power generation resources census, to find out the bottom of the wind and light resources, and plan a number of construction conditions are good, can be landed on the implementation of the wind power photovoltaic power generation reserve site, for the scale of new energy, and to lay the foundation for the sustainable development of the new energy. Strengthen the provincial financial support, to provide the necessary financial security. (Led by the Provincial Development and Reform Commission and the Provincial Energy Bureau, with the cooperation of the Provincial Department of Finance, the Provincial Department of Natural Resources, the Provincial Department of Ecology and Environment, the Provincial Department of Transportation, the Provincial Department of Water Resources, and the Provincial Bureau of Oceanography.)

(xx) Increase land and sea security. Adhere to the "project follows the planning, elements follow the project", support eligible key new energy, energy storage projects into the provincial key project library, strengthen the land, sea and other elements of innovation to protect. Improve new energy land use policies and measures to ensure that new energy development and utilization of reasonable land space needs. Improvement of sea-level approval and coordinated promotion mechanism, the completion of the provincial competitive allocation of new energy projects at sea, in accordance with the law and regulations to speed up the approval procedures for the use of the sea. (Provincial Development and Reform Commission, Provincial Department of Natural Resources, Provincial Energy Bureau, Provincial Bureau of Oceanography, in accordance with the division of responsibilities)

(xxi) Strengthening fiscal and financial support. Encourage financial departments at all levels to strengthen the integration of funds and increase financial support for scientific and technological innovation, pilot demonstration and key project development in the field of new energy. Support eligible new energy projects to declare local government bonds. Enrich green financial products and services, comprehensive use of green credit, green bonds and green insurance and other green financial products to meet the financial needs of energy enterprises. (Provincial Development and Reform Commission, Provincial Department of Finance, Provincial Department of Science and Technology, Provincial Energy Bureau, Financial Office of the Provincial Party Committee, Shandong Branch of the People's Bank of China, Shandong Financial Supervisory Bureau, Qingdao Financial Supervisory Bureau, in accordance with the division of responsibilities)

(xxii) Optimizing project connection services. Encourage power grid enterprises to optimize internal processes, establish a one-stop service platform for connecting new energy projects to the grid, provide information on the available access points, access capacity, technical specifications, etc. of new energy projects, and adopt "online acceptance" and "one-time notification" to accept applications for accessing the power grid. The platform will further compress the processing time for acceptance of grid connection applications and program responses, and improve the efficiency of grid connection services. (Led by the Provincial Energy Bureau, with the cooperation of State Grid Shandong Electric Power Company)

(xxiii) Strengthening the efficient allocation of resources. Give full play to the role of green power attraction, explore the establishment of new energy + industry synergistic development mechanism, support to fill the gaps in the industrial chain of high-end industries and new energy projects to plan and implement, and promote the optimization and upgrading of industrial structure. (Led by the Provincial Development and Reform Commission and the Provincial Energy Bureau, with the cooperation of the Provincial Department of Industry and Information Technology and the State Grid Shandong Electric Power Company)

VI. Creating a favorable development environment

(xxiv) Comprehensively strengthen organizational leadership. The Party's leadership throughout the entire process of reform and innovation and all aspects of the comprehensive mobilization of energy construction and operation of the main enthusiasm. The Provincial Development and Reform Commission and the Provincial Energy Bureau, together with the relevant departments, will strengthen the monitoring, analysis and early warning of new energy consumption, actively carry out green power consumption publicity, strengthen departmental consultations, promptly resolve difficulties and problems, and do a good job of integrating new energy consumption. Improve and perfect the development of harmonious, inclusive and open institutional mechanisms, promote the departments, localities, enterprises to support each other, synergistic cooperation, and actively build a policy-friendly, industry-friendly, ecologically friendly new energy development system, to create a friendly service atmosphere, and accelerate the high-quality development of energy.

These measures shall come into force on the date of their issuance, and where the relevant provisions in force are inconsistent with these measures, these measures shall prevail. If the State has other provisions, they shall prevail.

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