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On May 30, the National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on Orderly Promoting the Development of Green Electricity Direct Connections", which for the first time clarified the regulatory framework of "green electricity direct connection", a new model of new energy supply and consumption, at the national level, aiming to promote the local consumption of new energy and meet the green energy needs of enterprises. Ensuring energy security, economy, cleanliness and sustainable supply is of great significance to stable economic growth and high-quality development.

National Development and Reform Commission National Energy Administration

Notice on matters related to orderly promotion of the development of green electricity direct connection

Development and Reform Energy [2025] No. 650

To the Development and Reform Commissions and Energy Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps, Beijing Municipal Urban Management Committee, Tianjin Municipal Industry and Information Technology Bureau, Liaoning Provincial Department of Industry and Information Technology, Shanghai Municipal Economic and Information Technology Commission, Chongqing Municipal Economic and Information Technology Commission, Gansu Provincial Department of Industry and Information Technology, all dispatched offices of the National Energy Administration, State Grid Corporation of China, China Southern Power Grid Co., Ltd., and relevant central enterprises:

This Notice is formulated in accordance with the Energy Law of the People's Republic of China and other relevant laws and regulations to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the decisions and arrangements of the CPC Central Committee and the State Council on improving the policies and measures for the absorption and regulation of new energy, explore innovative development models for the integration of new energy production and consumption, promote the absorption of new energy nearby, and better meet the green energy needs of enterprises.

I. General requirements

(I) Scope of application. The green electricity direct connection referred to in this article refers to the mode in which new energy sources such as wind power, solar power generation, and biomass power generation are not directly connected to the public power grid, and green electricity is supplied to a single power user through a direct connection line, which can realize a clear physical traceability of the supplied electricity. Among them, the direct connection line refers to a dedicated power line that directly connects the power source and the power user. According to whether the load is connected to the public power grid, it is divided into two types: grid-connected and off-grid. Grid-connected projects are connected to the public power grid as a whole, forming a clear physical interface and responsibility interface with the public power grid. The power supply should be connected to the user side of the property boundary between the user and the public power grid. If the directly connected power source is distributed photovoltaic, it shall be implemented in accordance with the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation" and other policies. For the direct supply of green electricity to multiple users using direct connection lines, the specific measures shall be separately stipulated by the National Development and Reform Commission and the National Energy Administration.

(II) Development goals. The green electricity direct connection project aims to meet the green energy needs of enterprises and improve the level of local consumption of new energy. It is constructed and operated in accordance with the principles of safety priority, green friendliness, equal rights and responsibilities, and source-load matching, and bears safety responsibilities, economic responsibilities, and social responsibilities fairly and reasonably.

II. Strengthening planning guidance

(III) Standardize project construction. New loads can be equipped with new energy projects. Existing loads can be directly connected to green electricity on the premise that existing coal-fired and gas-fired self-owned power plants have fully paid off the renewable energy development fund, and clean energy substitution can be achieved by reducing the output of self-owned power plants. Export-oriented enterprises with rigid demand for carbon reduction can explore the development of green electricity direct connection for existing loads by utilizing surrounding new energy resources. Support new energy projects that have not yet started grid access construction or cannot be connected to the grid due to restrictions on new energy consumption, and carry out green electricity direct connection after completing the corresponding change procedures.

(IV) Strengthen planning and coordination. Provincial energy authorities should strengthen the overall planning of green power direct connection projects to ensure the orderly development of the green power direct connection model. The scale of wind power and solar power generation of the project shall be included in the new energy power generation development and construction plan formulated by the provincial energy authorities. The scale of power load shall be based on and supported. Direct connection lines and access systems shall be included in the provincial or city energy, power and land space planning according to the voltage level, and shall be filed in accordance with the "Enterprise Investment Project Approval and Filing Management Measures" and other regulations. Direct connection lines should minimize the number of crossings, and safety measures should be taken if crossings are necessary. The project should prepare an integrated plan including power sources, loads, direct connection lines and access systems, with special chapters to evaluate system risks, power safety, power quality, etc., and propose specific technical measures. The access voltage level of the project shall not exceed 220 (330) kV; if it is necessary to access 220 (330) kV, the provincial energy authorities shall organize power grid companies, project units, etc. to carry out special assessments of power system safety risks in conjunction with the dispatched agencies of the National Energy Administration to ensure the safe and stable operation of the power grid. Projects should be uniformly constructed and put into operation simultaneously according to the integrated plan.

(V) Encourage model innovation. In principle, the load is the main responsible unit for green electricity direct connection projects. All types of business entities, including private enterprises (excluding power grid companies), can invest in green electricity direct connection projects. The project power supply can be invested by the load, or by the power generation enterprise or a joint venture established by both parties. In principle, the direct connection line should be invested by the load and power supply entities. If the project power supply and load are not the same investment entity, a multi-year power purchase agreement or contract energy management agreement should be signed, and an agreement should be signed on matters such as power facility construction, property rights division, operation and maintenance, dispatching and operation, settlement relations, and liability for breach of contract. New energy power generation projects in the project are exempted from power business licenses, unless otherwise specified.

(VI) Do a good job in matching sources and loads. Grid-connected projects should scientifically determine the type and installed capacity of new energy power sources in accordance with the principle of "determining sources based on loads". In areas where the spot market is in continuous operation, a model of overall self-generation and self-use can be adopted, with surplus power connected to the grid as a supplement; in areas where the spot market is not in continuous operation, reverse transmission to the public grid is not allowed. The proportion of the project's overall new energy self-generation and self-use electricity in the total available power generation should be no less than 60%, and the proportion of the total power consumption should be no less than 30%, and the proportion of self-generation and self-use should be continuously improved, not less than 35% before 2030. The upper limit of the proportion of grid-connected electricity to the total available power generation is determined by the provincial energy authorities based on actual conditions, and generally does not exceed 20%. Local governments can reasonably set new energy utilization targets based on information such as self-generation and self-use, grid-connected electricity ratio, source-load matching, and regulation capabilities in the project construction plan.

3. Strengthening operation management

(VII) Strengthen safety management. Green power direct connection projects should strictly implement various safety production management measures to ensure safe and stable operation. Projects should promptly carry out risk control and hidden danger investigation and treatment, conduct in-depth assessments and promptly eliminate project internal equipment failures and various safety risks, and continuously enhance reliability.

(VIII) Ensure grid access. The project should be equipped with secondary systems such as relay protection, safety and stability control devices, and communication equipment according to standards. The grid-related performance of internal facilities should meet relevant standards to avoid affecting the safe and stable operation of the grid due to its own reasons. The project should organize completion acceptance in a timely manner, and submit the completion acceptance report to the provincial energy authorities and the dispatched agencies of the National Energy Administration. Grid companies should provide grid access services to projects that meet the grid connection conditions fairly and without discrimination.

(IX) Strengthen dispatching and operation management. Green electricity direct connection projects should achieve coordinated optimization of internal resources. The overall and internal power supply of the grid-connected project shall be managed by the corresponding dispatching agency according to the access voltage level and capacity scale, and connected to the new power load management system or power dispatching automation system according to the category of services provided to the system. Except for emergencies that affect the safe and stable operation of the public system, the dispatching agency shall issue a dispatching plan in accordance with the power generation and consumption curve arranged by the project independently. The internal resources of the project should be observable, measurable, adjustable and controllable, and relevant information should be provided to the power dispatching agency in accordance with the "Grid Operation Guidelines" and other documents. All business systems of the project should strictly implement the "Electric Power Monitoring System Safety Protection Regulations", install network security monitoring, isolation devices and other network security facilities, file with the relevant dispatching agency as required, and accept technical supervision conducted by the dispatching agency.

(X) Clarify the responsibility interface. The grid-connected green electricity direct connection project and the public power grid form a clear and definite safety responsibility interface based on the property rights demarcation point, and each shall perform the corresponding power safety risk management and control responsibilities within the safety responsibility interface. The project should comprehensively consider factors such as internal source and load characteristics, balancing capacity, economic benefits, and exchange power with the public power grid, independently and reasonably declare the grid-connected capacity, and negotiate with the power grid company to determine the power supply responsibility and costs beyond the grid-connected capacity. The power grid company shall perform its power supply responsibilities in accordance with the project's declared capacity and relevant agreements. The project shall adjust internal power generation and load to ensure that the exchange power between the project and the public power grid does not exceed the declared capacity, and bear the relevant responsibilities for power supply interruptions due to its own reasons.

(XI) Encourage the improvement of system friendliness. Grid-connected green electricity direct connection projects should fully improve the flexibility and adjustment capabilities of the project by reasonably configuring energy storage and tapping the potential for flexible load adjustment, so as to reduce the system adjustment pressure as much as possible. The project planning scheme should reasonably determine the maximum peak-to-valley difference rate of the project's load, and the peak-to-valley difference rate of the power exchanged between the project and the public power grid should not be higher than the planned value of the scheme. During the difficult period of new energy consumption, the project should not send power back to the public power grid. The project should manage reactive power and power quality in accordance with relevant management requirements and technical standards.

4. Trading and Pricing Mechanism

12. Participate in the market as a whole. Grid-connected green electricity direct connection projects enjoy equal market status and are registered in accordance with the Basic Rules for Electricity Market Registration. In principle, they should participate in electricity market transactions as a whole, arrange production according to market transaction results, and settle accounts according to the exchange power with the public power grid. The project load shall not be purchased by the power grid enterprise. If the project power source and load are not the same investment entity, they can also be registered separately and participate in electricity market transactions in an aggregated form.

(XIII) Reasonable payment of relevant fees. Green power direct connection projects should pay transmission and distribution fees, system operation fees, policy cross subsidies, government funds and surcharges in accordance with the relevant regulations of the State Council’s price and financial authorities. Local governments shall not reduce or exempt relevant fees in violation of national regulations.

(XIV) Standardize metering and settlement. Grid-connected green electricity direct connection projects use the project access point as the reference point for metering and settlement, and settle electricity charges with the public power grid as a whole. The project should have the conditions for separate metering, and install two-way metering devices that comply with relevant standards and are approved by relevant departments at the points of internal power generation, factory power consumption, self-generation and self-use, and energy storage. It is prohibited to bypass the installed power metering devices for electricity consumption. If the power source and load of the project are not from the same investment entity, the transaction volume and grid-connected volume between the two parties should be implemented in accordance with the relevant provisions of green certificates and green power transactions.

V. Strengthening organizational support

The National Development and Reform Commission and the National Energy Administration shall strengthen the guidance of the green electricity direct connection model, timely evaluate the results, ensure the smooth progress of the work, and strengthen the research on direct connection of other green power sources. The dispatched agencies of the National Energy Administration should strengthen supervision, timely track and monitor the project construction and policy implementation in their jurisdictions, and actively promote all parties to carry out project construction and operation in accordance with the requirements. Provincial energy authorities should further refine the specific requirements such as the distance to local consumption, the proportion of grid-connected electricity, and the exit mechanism based on the actual situation of the province's power supply and demand situation and consumption conditions, guide the project to scientifically and reasonably evaluate the needs, avoid the situation where there is a large deviation between the actual operation and the design plan, and the consumption of new energy is not as expected; organize and sort out the needs of local green electricity direct connection projects, actively promote them to private enterprises, and support private capital to participate in investment and construction; do a good job in project management and operation monitoring, organize qualified third-party institutions to carry out program reviews, fully listen to the opinions of power grid companies and the dispatched agencies of the National Energy Administration, and promote the orderly development of the green electricity direct connection model. Power grid companies and power market operators shall implement the requirements of the notice and continuously improve the technical support capabilities and service levels for project access to the power grid and participation in power market transactions.

National Development and Reform Commission National Energy Administration

May 21, 2025

Source: National Development and Reform Commission