On November 19, the Hebei Provincial Development and Reform Commission issued a notice on the work program for distributed PV participation in the electricity market in the south grid of Hebei.
The notice makes it clear that, with the goal of full participation in market trading of new energy on-grid power in 2030, and following the principle of "incremental after stock, commercial after household, and pilot after promotion", distributed PV will be promoted to the market in an orderly and categorized manner, and ultimately achieve the same proportion of marketed power with centralized new energy sources, and gradually guide distributed PV to reasonably bear the costs of system peak shifting, frequency regulation and other consumption costs. It will gradually guide distributed PV to reasonably bear the costs of system peak adjustment, frequency adjustment and other consumption costs.
According to the identity of the investor, there are three categories: industrial and commercial, non-natural person household use and natural person household use.
Distributed PV entry methods include:
1. Direct market participation
After the distributed PV registers as an operating entity in the power trading platform, it directly participates in the medium- and long-term power and spot transactions, as well as green power transactions, by reporting and quoting the quantity and price as a power generating entity in accordance with the trading rules and programs formulated by the governmental authorities. Distributed photovoltaic directly participating in green power trading obtains the value of green environmental rights and interests.
2. Aggregation by aggregators to participate in the market approach
Aggregators with appropriate qualifications can aggregate one or more distributed PV subjects to participate in medium- and long-term power and spot transactions, as well as green power transactions, after registering as operating subjects in the power trading platform. Distributed PV aggregators participating in green power trading shall, with reference to the mode of participation in green power trading by retail users acting as agents of power sales companies, allocate the value of green environmental rights and interests according to the aggregation contract.
3. Participation in the market approach as a price taker
Distributed PV not directly (aggregated) involved in trading and aggregation participates in the market as a price taker, settles according to the average market price of the same type of power supply, and serves as a source of power purchased by the grid enterprise agent. Distributed PV subjects participating in the market as price receivers are not allowed to participate in green power trading for the time being.
With regard to the advancement of the time sequence, comprehensively considering the characteristics of distributed PV, voltage level, classification and grid connection time and other factors, the establishment of a differentiated market entry mechanism, classified, phased and step-by-step entry into the market. In principle, the promotion time sequence is as follows:
1. Commercial and industrial distributed PV
Pilot market entry in 2024, encouraging the use of aggregation to participate in the market at 20% of the feed-in tariff.
Distributed PV of 10 kV and above voltage level first connected to the grid after January 1, 2025, the on-grid electricity will enter the market according to a certain percentage. from July 1, the entire stock of distributed PV of 10 kV and above, the on-grid electricity will enter the market according to a certain percentage. Distributed PV is encouraged to use aggregator aggregation to enter the market, or directly enter the market.
Distributed PV below 10 kV first connected to the grid after January 1, 2026 shall enter the market, and the mode of participation in the market and the proportion of market entry shall be the same as that for distributed PV of 10 kV and above.
From January 1, 2027, commercial and industrial distributed PV fully enters the marketThe percentage of entry into the market is gradually expanded to be in line with centralized new energy sources.
In 2030, industrial and commercial distributed PV feed-in tariffs will fully participate in market trading.
2. Distributed photovoltaics for households with non-natural persons
Standardize the new household distributed photovoltaic project filing subject management, non-natural person filing project to enter the market according to the requirements of the time node; stock of projects in accordance with the subsequent requirements of the relevant national policies, standardize the filing of the main change.
2027 Realize that non-natural person household projects are traded on the market with reference to commercial and industrial distributed projects.
2030 Distributed PV feed-in electricity for non-natural person households to fully participate in market trading.
3. Distributed photovoltaic for natural person households
Distributed photovoltaic for household use by natural persons is implemented in accordance with relevant national policies, and their voluntary entry into the market to participate in trading is encouraged.
See below for full text:
Notice of the Hebei Provincial Development and Reform Commission on the Issuance of the Work Program for Distributed Photovoltaic Participation in the Electricity Market of the South Grid of Hebei Province
Development and Reform Commission (Bureau) of Shijiazhuang, Baoding, Cangzhou, Hengshui, Xingtai, Handan, Dingzhou, Xinji, Reform and Development Bureau of Xiongan New Area, State Grid Power Company of Hebei Province Limited, Hebei Electric Power Trading Center, and all relevant enterprises:
In accordance with the National Development and Reform Commission and other departments "on the vigorous implementation of renewable energy alternative action of the guiding opinions" (Development and Reform Energy 〔2024〕 No. 1537), the National Energy Board "on the new energy consumption work to ensure that the new energy high-quality development of the notice" (National Energy Development Electricity 〔2024〕 No. 44), and other documents, in order to steadily and orderly, categorized step-by-step to promote the distributed photovoltaic access to the electricity market. Give full play to the role of the power market mechanism, I developed the "Hebei South Distributed Photovoltaic Participation in the Electricity Market Work Program", is issued to you, please implement.
Hebei Provincial Development and Reform Commission
November 19, 2024
Hebei South Grid Distributed Photovoltaic Participation in Electricity Market Work Program
In order to further promote the construction of the power market, promote distributed PV to participate in the power market in an orderly manner, give full play to the role of the power market mechanism, enhance the capacity of new energy consumption, and better serve the high-quality development of new energy, this program is formulated.
I. General requirements
Based on the status quo and development needs of distributed photovoltaic development, accelerate the improvement of the market time-sharing tariff formation mechanism, improve the relevant supporting mechanisms, optimize the market rules, standardize the business process, serve distributed photovoltaic participation in the power market, play the role of the power market in supporting the clean and low-carbon transformation of energy, and promote the healthy development of new energy and low-carbon transformation of the whole society. With the goal of full participation of new energy online electricity in market trading by 2030, and following the principles of "incremental after stock, commercial after household, and pilot after promotion", distributed PV will be promoted to the market in an orderly and categorized manner, and ultimately achieve the same proportion of marketed electricity as that from centralized new energy sources, and gradually guide the distributed PV to take up the role of systematic and reasonable consumption, such as peak shifting and frequency regulation. It will gradually guide distributed PV to reasonably bear the costs of system peak adjustment and frequency adjustment.
II. Market mechanisms
(i) Clarify the classification of distributed PV
According to the identity of the investor, there are three categories: industrial and commercial, non-natural person household use and natural person household use. Among them:
Industrial and commercial distributed PV refers to distributed PV constructed using public institutions as well as buildings such as industrial and commercial plants and their ancillary premises.
Distributed PV for non-natural persons' households refers to distributed PV invested and constructed by enterprises utilizing residential dwellings.
Distributed photovoltaics for natural persons' households means distributed photovoltaics invested and constructed by natural persons using their own homes.
In principle, industrial and commercial and non-natural person household-use distributed PV on-grid electricity shall gradually participate in the market in accordance with the planning, and natural person household-use distributed PV on-grid electricity is encouraged to voluntarily enter the market to participate in trading.
(ii) Distributed photovoltaic market entry
1. Direct market participation
After the distributed PV registers as an operating entity in the power trading platform, it directly participates in the medium- and long-term power and spot transactions, as well as green power transactions, by reporting and quoting the quantity and price as a power generating entity in accordance with the trading rules and programs formulated by the governmental authorities. Distributed photovoltaic directly participating in green power trading obtains the value of green environmental rights and interests.
2. Aggregation by aggregators to participate in the market approach
Aggregators with appropriate qualifications can aggregate one or more distributed PV subjects to participate in medium- and long-term power and spot transactions, as well as green power transactions, after registering as operating subjects in the power trading platform. Distributed PV aggregators participating in green power trading shall, with reference to the mode of participation in green power trading by retail users acting as agents of power sales companies, allocate the value of green environmental rights and interests according to the aggregation contract.
3. Participation in the market approach as a price taker
Distributed PV not directly (aggregated) involved in trading and aggregation participates in the market as a price taker, settles according to the average market price of the same type of power supply, and serves as a source of power purchased by the grid enterprise agent. Distributed PV subjects participating in the market as price receivers are not allowed to participate in green power trading for the time being.
(iii) Timing of advancement
Comprehensively consider the characteristics of distributed PV, voltage level, classification and grid connection time and other factors, establish a differentiated market entry mechanism, and enter the market by categories, phases and steps. In principle, the advancement time sequence is as follows:
1. Commercial and industrial distributed PV
Pilot market entry in 2024, encouraging the use of aggregation to participate in the market at 20% of the feed-in tariff.
Distributed PV of 10 kV and above voltage level first connected to the grid after January 1, 2025, the on-grid electricity will enter the market according to a certain percentage. from July 1, the entire stock of distributed PV of 10 kV and above, the on-grid electricity will enter the market according to a certain percentage. Distributed PV is encouraged to use aggregator aggregation to enter the market, or directly enter the market.
Distributed PV below 10 kV first connected to the grid after January 1, 2026 shall enter the market, and the mode of participation in the market and the proportion of market entry shall be the same as that for distributed PV of 10 kV and above.
From January 1, 2027, industrial and commercial distributed PV fully entered the market, and the proportion of market entry gradually expanded to be consistent with centralized new energy.
In 2030, industrial and commercial distributed PV feed-in tariffs will fully participate in market trading.
2. Distributed photovoltaics for households with non-natural persons
Standardize the new household distributed photovoltaic project filing subject management, non-natural person filing project to enter the market according to the requirements of the time node; stock of projects in accordance with the subsequent requirements of the relevant national policies, standardize the filing of the main change.
2027 Realize that non-natural person household projects are traded on the market with reference to commercial and industrial distributed projects.
2030 Distributed PV feed-in electricity for non-natural person households to fully participate in market trading.
3. Distributed photovoltaic for natural person households
Distributed photovoltaic for household use by natural persons is implemented in accordance with relevant national policies, and their voluntary entry into the market to participate in trading is encouraged.
(iv) Distributed PV market registration
1. Technical requirements
Distributed photovoltaic shall be equipped with separate metering meters to realize separate metering of distributed photovoltaic power generation, on-grid power, off-grid power, and to meet the metering needs of medium- and long-term time-sharing transactions or spot transactions. At the same time, there are conditions for remote transmission of data. The power marketing system and the power trading platform shall realize data interconnection and intercommunication to ensure the smooth development of distributed PV registration, aggregation, trading, settlement and other businesses.
2. Registration and Changes
Distributed PV directly or using aggregation to participate in trading shall complete the registration of market members in the power trading platform, and the registration information mainly includes identity authentication, project filing (approval) documents, and electricity generating and consuming household number. Distributed PV shall dynamically update the relevant information and synchronize the changes in the power trading platform and marketing system in a timely manner.
Accept the market price of distributed photovoltaic subject temporarily not registered on the power trading platform, by the power grid enterprise power marketing department through the announcement, SMS, telephone, signing the letter of confirmation to inform the way to fulfill the obligation to inform the policy.
Beginning in 2025, distributed PV that participates in transactions directly or using aggregation completes registration into the electricity market, except in the event of corporate bankruptcy, equipment decommissioning, etc. may not be withdrawn from the market or converted to a price taker.
(v) Conditions and modalities of participation of aggregators
1. Technical requirements
The aggregator shall have the ability to collect distributed PV operation and metering information, and be able to realize remote communication with distributed PV main body, scheduling agency and marketing system, and also obtain relevant data through value-added grid data analysis service. The aggregator shall have independent copyright aggregation software (platform) that can guarantee its own data security.
2. Registration and Changes
Aggregators shall complete the registration of market members on the electricity trading platform before participating in the market. The aggregator shall have independent legal personality and corresponding qualification requirements, and its total assets, employees, business premises, enterprise and legal person credit and other requirements may initially be implemented with reference to the power sales company, and submit performance bond and insurance according to the agency power.
3. Aggregator aggregation method
The agency relationship between distributed PV entities and aggregators is established through the power trading platform in the form of an electronic contract, and distributed PV projects can only establish an agency relationship with one aggregator within the same contract cycle. Encourage the cultivation of aggregators based on distributed PV actual operators and power sales companies to participate in the transaction.
Aggregators participate in transactions on the basis of aggregation units. The aggregation unit can be determined in accordance with the spot clearing node, 110 kV node, county-level power supply enterprises or power supply offices' jurisdiction, etc., taking into account the structure and operation of the power grid; in principle, the aggregation unit does not exceed the power supply area of the same 220 kV substation.
Aggregators and agents of distributed photovoltaic in accordance with the principle of "aggregated transactions, separate settlement" to carry out settlement, the aggregated distributed photovoltaic and the use of the roof of the commercial and industrial users of the Internet, grid power separate measurement, separate settlement, shall not be offset.
(vi) Related costs
1. System reconciliation costs
Gradually promote distributed PV to bear the cost of grid auxiliary services, as well as to bear the obligation to distribute energy storage, and encourage distributed PV to lease independent energy storage capacity.
2. Transmission and distribution tariffs
Distributed photovoltaic participation in market transactions in accordance with the transmission and distribution price approved by the provincial power grid, according to the user-side voltage level.
III. Work requirements
(i) Strengthening coordination. The relevant departments of local governments at all levels shall, in accordance with the requirements of the program, strengthen systematic research, coordinate and promote the participation of distributed photovoltaic in the electricity market, and guide the relevant enterprises and power users to carry out transactions in accordance with the rules. Local governments and power grid enterprises should combine the actual situation, actively do a good job of policy publicity and guidance, timely tracking and discovery of public opinion risks, and do a good job of explaining and communicating and responding.
(ii) Strengthen the organization and implementation. Grid enterprises shall improve the function of the marketing system, standardize the collection and collection of distributed PV subject and power information, realize the information interaction with the power trading institutions, and fulfill the policy informing obligation to the distributed PV subject. Power trading institutions should cooperate with the preparation and revision of market rules, and do a good job of distributed PV and aggregators and other business subjects market registration, transaction organization, settlement, green certificate transfer and other work. At the same time to strengthen the credit system construction, strengthen the distributed photovoltaic, aggregators and other market subjects of the transaction process management, in strict accordance with the relevant national and provincial rules, rules, program requirements, the market subject registration information for dynamic verification and random sampling, to protect the legitimate rights and interests of market subjects from infringement.
(c) Timely tracking and assessment. Power trading institutions and scheduling institutions do a good job of recording, summarizing, analyzing and disclosing market operation information in accordance with the division of responsibilities, reflecting the operation of the power market in a timely and accurate manner, and carrying out assessment of the operation status of distributed PV participation in the power market, and reporting to the Commission on a regular basis.
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