Guiding Opinions of the National Energy Administration on Supporting the Innovative Development of New Business Entrepreneurs in the Electricity Sector

A few days ago, the National Energy Board issued the Guiding Opinions on Supporting the Innovative Development of New Business Subjects in the Electricity Sector, pointing out that it is necessary to give full play to the role of new business subjects in improving the regulation capacity of the electric power system, promoting the consumption of renewable energy sources, guaranteeing the safe supply of electric power, etc., and encouraging the innovative development of new modes and new forms of business to cultivateEnergyNew quality productivity and accelerated construction of a new type of power system.

The document makes it clear that the new operating body is equipped with power, power regulation capabilities and new technology features, new operating mode of the distribution chain of various types of resources, divided into a single technology category of new operating body and resource aggregation category of new operating body. Among them, the single-technology new business entity mainly includes distributed photovoltaic, decentralized wind power, energy storage and other distributed power and adjustable load; resource aggregation new business entity mainly includes virtual power plant (load aggregator) and smart microgrid.

The document proposes to encourage virtual power plants to aggregate distributed photovoltaic, decentralized wind power, new types of energy storage, adjustable loads and other resources to provide flexible regulation capabilities for the power system. Support the conditions of industrial enterprises, industrial parks, etc. to carry out smart microgrid construction, improve the level of new energy consumption in situ. Explore the establishment of a mechanism to increase the supply of green power to enterprises through direct connection of new energy. New business entities are in principle exempted from applying for power business licenses, unless otherwise specified.

The following is the original text:

Provinces (autonomous regions and municipalities directly under the Central Government) Energy Bureau, relevant provinces (autonomous regions and municipalities directly under the Central Government) and Xinjiang Production and Construction Corps Development and Reform Commission, Tianjin, Liaoning, Shanghai, Chongqing, Sichuan, Gansu Provincial Economic and Information Commission (Industry and Information Commission, Industry and Information Department), the National Energy Administration of the dispatched agencies, the State Grid Corporation, China Southern Power Grid Company Limited, China Huaneng Group Co. Ltd, China Southern Power Grid Corporation, China Huaneng Group Corporation, China Datang Group Corporation, China Huadian Group Corporation, State Energy Investment Group Corporation, State Power Investment Group Corporation, China Yangtze River Three Gorges Group Corporation, China Development and Investment Group Corporation, China National Nuclear Corporation, China Guangnan Nuclear Corporation, China Resources (Group) Company Limited, Inner Mongolia Electric Power (Group) Company Limited, Beijing and Guangzhou Electricity Trading Center:

In order to deeply implement the Third Plenary Session of the 20th CPC Central Committee on energy reform, give full play to the role of new business entities in improving the regulation capacity of the electric power system, promoting the consumption of renewable energy, and guaranteeing the safe supply of electric power, encourage the innovative development of new modes and new forms of business, cultivate the new quality of productivity in the field of energy, and accelerate the construction of a new type of electric power system, based on the Energy Law and other relevant laws and regulations, we put forward the following opinions. Opinions.

I. Concept and scope of new business subjects. The new operating body is with power, power regulation capabilities and new technology features, new operating model of the distribution chain of various types of resources, divided into a single technology type of new operating body and resource aggregation type of new operating body. Among them, single-technology new business entities mainly include distributed photovoltaic, decentralized wind power, energy storage and other distributed power sources and adjustable loads; resource aggregation new business entities mainly include virtual power plants (load aggregators) and smart microgrids. Virtual power plant is a power operation organization mode that uses advanced technologies such as digitalization and intelligentization to aggregate distributed power sources and adjustable loads to participate in system operation and market transactions. Smart microgrid is a small-scale power generation and distribution system with new energy as the main power source, a certain degree of intelligent regulation and self-balancing capability, and can be operated independently or networked with the power grid. The integrated project of source-grid-load-storage with corresponding characteristics in the power distribution link can be regarded as a smart microgrid.

Second, support the innovation and development of new business subjects. New operating entities should continue to improve the technical management level and regulation capabilities, better adapted to the needs of the new power system. Encourage virtual power plant aggregation of distributed photovoltaic, decentralized wind power, new energy storage, adjustable loads and other resources for the power system to provide flexible regulation capabilities. Support qualified industrial enterprises, industrial parks and other smart microgrid construction, and improve the level of new energy local consumption. Explore the establishment of a mechanism to increase the supply of green power to enterprises through direct connection of new energy. In principle, new business entities are exempted from applying for power business licenses, unless otherwise specified. Grid enterprises should do a good job of new business subjects and (interconnection) network or platform access and other services, clear service processes, access to capacity and other information to improve service efficiency.

Third, improve the scheduling and operation management of new business entities. The new operating body should implement safety production and network-related safety management related policy requirements, to meet the national and industry-related technical standards. Localities to speed up the promotion of new business subjects to realize the observable, measurable, adjustable, controllable. Encourage the regulation capacity of 5 MW and above, to meet the requirements of the corresponding technical indicators of new business subjects to provide electric energy and auxiliary services. Each region can combine the power system regulation needs and power market operation capacity, further reduce the regulation capacity requirements. Grid enterprises should assist new business entities to access the new power load management system or power dispatch automation system according to the demand for the services provided, and meet the relevant requirements for information network security protection. The new operating entity should clarify the rights and responsibilities of assets, regulation, security and other aspects of the boundary through the agreement with the power grid enterprise. When natural disasters, equipment failures and other emergencies affect the safe and stable operation of the power system, the new business entity and the aggregated resources should be subject to the unified command of the power scheduling agency.

(d) Encourage new business entities to participate in the electricity market on an equal footing. New business entities to participate in the market and other business entities to enjoy equal market status, and in accordance with the relevant provisions of the fair deviation settlement and imbalance fund sharing and other related costs, payment of transmission and distribution tariffs, system operating costs and governmental funds and surcharges, etc.. Encourage the new type of business entities of resource aggregation category to integrate resources with small regulation capacity, participate in the power market as a whole, and realize coordinated scheduling. The new business entities of the resource aggregation category negotiate with the aggregated resources to determine their rights and obligations, sign agency service contracts, and file them with the power trading organizations. In principle, the aggregated resources can only be represented by one new type of resource aggregation business entity in the same contract cycle.

V. Optimize the market registration of new business subjects. Power trading organizations around the world should set up registration categories for new business subjects, shall not set additional registration thresholds. Qualified new subjects enter or exit the electricity market, in accordance with the relevant rules of the electricity market registration procedures. Among them, the resource aggregation of new business subjects and the aggregated resources should fulfill the registration procedures, and encourage the resource aggregation of new business subjects to focus on the registration procedures.

(vi) Improving the power market trading mechanism to accommodate new business entities. Enhance the flexibility of medium- and long-term power transactions, introduce time-slot standardized trading products, accelerate the settlement of time-slot transactions, and guide new business entities to flexibly participate in medium- and long-term power transactions at various time scales according to their own power balance needs. Accelerating the construction of the power spot market, promoting new business entities to participate in the power spot market in a flexible manner such as quoting or quoting without quoting, exploring the extension of the clearing node of the power spot market to lower voltage levels, and providing more accurate price signals for new business entities to respond to market demand. Improve the auxiliary service market, promote the fair participation of new business entities in the auxiliary service market, and study the timely introduction of new varieties of auxiliary services such as standby and ramping. Improve the timeliness and accuracy of information disclosure, and promote the public disclosure of price signals in the electricity market to the society in an appropriate manner.

Seven, do a good job of measurement and settlement. New business subjects in accordance with the type of participation in electric energy and auxiliary services transactions, based on electric energy metering devices for settlement, issued by the power trading organization of the new subject settlement basis. Resource aggregation type of new business subjects in the wholesale market settlement data from the aggregated resource metering data sum formation. Resource aggregation type new business subjects are temporarily cleared and settled by power grid enterprises to households.

VIII. Strengthening organizational safeguards. The National Energy Administration, in conjunction with relevant departments, will improve the market mechanism in a timely manner to adapt to the development of new business entities, clarify the regulatory requirements, and accelerate the formulation and revision of relevant standards for new business entities. National Energy Board sent agencies and local government departments should do a good job in accordance with the division of responsibilities for the supervision and management of new business entities, combined with the practical and timely development and introduction of technical requirements to adapt to the development of new business entities, transaction rules, etc., continue to regulate the new business entities of the electric power market trading behavior, to prevent market manipulation. Grid enterprises and power market operators shall continuously improve the technical support capacity and service level for new business entities to participate in power transactions and system operation.

National Energy Administration (NEA)

November 28, 2024

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