Polaris solar PV net news: renewable electricity quotas after the amendment introduced in China soon. It was reported that the renewable electricity quotas by the national energy agency assessment methods (for trial implementation) (hereinafter referred to as the examination regulations), have been discussed and approved in principle by the Director of the national development and Reform Commission, the Office. The proposed energy programme is currently soliciting opinions from all sides, further amendments will be submitted to the State Council approval. Prior to that, renewable energy seeking the quota system has been nearly 10 years. The introduction of quotas for renewable energy development what are the benefits?
What is RPS?
Renewable energy RPS refers to a country or region with the market share of renewable energy in the form of law making mandatory provision. In the construction of electric power, and occupy a certain proportion of renewable electricity needs, with quotas for a considerable proportion of renewable electricity in the regions (the grid) transactions to resolve the differences between renewable energy resources.
In accordance with the test method, the State will extend the quota system assessment to non-hydro renewable electricity, including wind power, solar power, biomass power generation, geothermal power, and ocean energy power generation technology, large-scale development is mainly the top 3.
Under the programme, included in the renewable energy electricity non-hydro renewable electricity consumption including quota: the production and consumption of non-hydro renewable electricity; input power from outside the region non-hydro renewable electricity; the spontaneous use of quantifiable non-hydro renewable electricity. Deliveries to other areas of non-hydro renewable electricity included in the receiving areas, are no longer included in the sending end.
What were the highlights of new policy?
The quota system for overall improvement
In the first draft of the programme, the country was divided into 4 types of renewable electricity quotas, minimum standards of 1%, up to 15%. The assessment methods to be improved, and geographically in different provinces, municipalities and regions, divided into 6 zones, defined the various provinces, cities and districts in 2015, 2017 and 2020 renewable electricity quotas for basic and advanced indicators.
Responsibility subject plural
According to the assessment method, the provincial governments and the national and provincial-level power grid enterprises to assume complete responsibility for renewable electricity quotas.
Local governments assume complete administrative responsibility for renewable electricity quotas. State grid enterprises of the respective provincial network completed renewable electricity quotas to assume leadership responsibilities. Major enterprises engaged in renewable electricity requested by the provincial governments in which the project, assume responsibility for expansion of renewable electricity production investment, the obligation to carry out efficient renewable electricity production.
Energy Administration Department under the State Council of equity-generating capacity exceeding 5 million-kilowatt power generation enterprises (Group) ‘s non-hydro renewable electricity monitoring and evaluation of the investment and production, and annual monitoring and evaluation report to be published.
Finish the target will be fined
The assessment measures will be proposed regulatory requirements. Of assessment period falls short of renewable electricity quotas in basic indicators and annual progress lags behind provinces, cities, districts, energy Administration Department under the State Council may suspend release or reduce the scale of fossil energy power years new construction measures such as effective regulation of energy structure of the area. Unfinished renewable electricity quotas for basic indicators, provinces, municipalities, districts and is part of the national grid companies should make a special report to the State Council.
For evaluation period exceeds renewable electricity quotas for basic indicators for provincial, city, district, State Council Department in charge of energy in its total energy consumption control goals for review, will surpass the basic indicators part of electricity consumption of renewable electricity quotas are converted to values, such as energy conservation, the control limits are not included in the total energy consumption.
Bringing the implementation?
Guaranteed renewable production and consumption
Quota system for the development of renewable energy provides production and marketing support.
Renewable electricity prices higher, lack of competitiveness in the market. Introduction of a quota system will be developed for the power company’s statutory obligations under the renewable energy, ensuring the development of renewable energy.
In addition, the renewable energy market is small and demand is not clear, resulting in renewable energy equipment manufacturing enterprises, insufficient power production enterprises, financial institutions, confidence in the markets, market expansion cannot be reliably predicted, enough attention at all levels of Government on renewable energy development and lack of incentives. Quota system for the law to set out a clear target market, market confidence, allowing enterprises to expand production, increasing investment in technology research and development, and grid-connected renewable energy installed capacity and will be guaranteed, you can attract more companies invest in this area.
Changes in quotas will also bring to dissolve. Investment in renewable power production in the past mainly relies on the subjective initiative. Along with the change of Government and the responsibility of power grid enterprises, these organizations will ask enterprises to more renewable power, assist them to meet local targets, which would facilitate the acceleration of renewable energy projects around the horse.
Reflect the external value of renewable energy
At present, renewable electricity contribution to environment could not be clearly reflected on the price. Excessive emission fossil fuel power plants are levying the sewage charges, but fossil fuel power plants discharge does not charge a fee. General sewage charges levied on fossil fuel power plants are far less than the costs of pollution. Therefore, renewable and conventional energy in unfair competition in the market. Renewable energy quota system through a combination of legal and market mechanisms, the environmental benefits of renewable electricity products from economic interests reflected.
Promote the rational allocation of resources and funding
Quotas are often combined with tradable green certificates system in use.
Quotas based on subjects for which a Government authorized for the complete renewable power production or energy consumption, and issue corresponding certificates. Unable to complete the quota of responsibility can purchase green certificates exceed quota responsibility superfluous, to fill her quota responsibility. This will foster the development of renewable energy resource potential and rational distribution of resources, funds and promote coordinated development between East and West. Renewable resources can be given priority development of the Western region, Eastern region in order to meet quotas, you can purchase green certificates to the West. This incremental cost needed for the development of renewable energy in the West can be spread to the eastern regions.
With good environmental and social benefit
Promoting renewable energy sources quota system policy, can bring high environmental benefits. The widespread use of renewable energy will contribute to pollution reduction, and beneficial to public health. Meanwhile, can also provide more job opportunities and bring considerable social benefits.
What are the obstacles to be overcome?
1. market barriers.
Due to the lack of competition, renewable electricity prices, lack of motivation. Therefore, it must be competition between power plants and manufacturers, to motivate them to reduce costs and improve operations. Before the competitive mechanism formed, electricity prices are still set by the Government. However, the pricing is too low, the power plants unprofitable, would be forced to quit, if overpriced, no subsidies and no effective allocation mechanism, will inevitably affect the grid company’s earnings and curb their enthusiasm to buy renewable power.
2. policy hurdles.
Renewable energy is a small industry in the early development, must rely on the Government incentives, such as low interest loans and tax breaks, subsidies, government departments issued urgently perfected. In addition, the green certificate mechanism also needs to perfect the legal system and the corresponding supervision system for support.
3. regional interests distribution impediment.
Quotas combined with tradable green certificates system, will make a renewable resource-poor Eastern region to the Western region to buy part of the certificate in order to fulfill our obligations. Although it’s good for improving the environment of the East, but it is bound to make the Conference money flows West. Eastern region is willing to pay the economic costs, or are willing to pay a much greater price, balance and coordination are required.
Original title: renewable energy sources quota system policy will be issued