To resolve the curtailment of hydro, wind and PV power generation, the National Development and Reform Commission and the National Energy Administration enacted the Measures for Resolving Curtailment of Hydro, Wind and PV Power Generation (the “Measures”). With an adherence to government guidance of market forces, as well as the basic principle of overall national and local utilization of combining regulated power sources with optimized channels, technological innovation and institutional reform, it is expected that the curtailment of hydro, wind and PV power generation in areas where renewable energy generation is seriously constrained can be clearly mitigated in 2017, up to the realization of the overall objective to effectively resolving the curtailment issue throughout the country by 2020. The Measures propose five aspects to resolve the curtailment issue.
First is the improvement of the development and utilization mechanisms for renewable energy. The concept of green energy use shall be comprehensively established and improvements made to the current the monitoring and evaluation system for renewable energy development and utilization targets. In addition, the implementation of renewable energy dispatch quotas and the execution of the policy to give priority to renewable energy generation shall be used to promote market-oriented trading and subsequent consumer use.
Second is the full use of the electrical grid as a key platform. The quality of renewable energy transmission shall be improved, and more effort shall be put to the electrical grid construction in focused areas where renewable energy can be developed. Better technical support for cross-region renewable energy dispatch shall be provided and optimization of the execution of the dispatch over the electrical grid shall increase the utilization efficiency of the existing power transmission lines.
Third is the acceleration of the pace of optimizing the power infrastructure and deployment. The development of coal and renewable energy power generation will be collectively planned to optimize the deployment and development of renewable energy generation. In addition, the collective planning of the main reservoir power stations and catchment coordination will be accelerated to significantly enhance the peak adjustment capabilities of the power systems.
Fourth, multiple channels will be developed for local use of renewable energy. There will be a push for self-use power plants to participate in the use of renewable energy along with the expansion of power grid usage channels and models to accelerate power source substitution. The demand-side response capability will be enhanced and the use of renewable energy electricity for heat generation will be greatly promoted.
Fifth is the accelerated improvement to the market mechanisms and the policy system, such as the development of the electricity market, the establishment of renewable energy usage incentive mechanisms, and the price formation mechanisms for renewable energy generation.
Sixth, protection of organizational implementation will be enhanced. The National Development and Reform Commission and the State Energy Administration are in charge of the formulation and coordination of general measures for renewable energy use. The energy administration departments of various provinces (autonomous regions and municipalities under the direct jurisdiction of the State Council) are required to consult the relevant departments in formulating policy measures to promote effective utilization of local renewable energy and to report to the National Development and Reform Commission and the State Energy Administration on the utilization status of electricity generated by renewable energy sources and propose the usage target for electricity generated by renewable energy sources and specific measures by the end of January each year. Finally, monitoring and evaluation will be enhanced, where the State Energy Administration will monitor the utilization of renewable energy in various provinces (autonomous regions and municipalities under the direct jurisdiction of the State Council), announce the results of the annual monitoring and evaluation, conduct monthly monitoring and quarterly evaluations and issue annual warnings in areas with severe curtailment of hydro, wind, and PV power generation.