National Development and Reform Commission Solicits Opinions on 2021 PV and Wind Power On-Grid Tariffs

Photovoltaics have been informed that the National Development and Reform Commission has recently solicited opinions from relevant departments on the 2021 new energy on-grid tariff policy. According to the draft, new centralized photovoltaic power plants, industrial and commercial distributed photovoltaics, and newly approved onshore wind power projects will be registered from 2021. No more subsidies.

In terms of on-grid electricity price, the electricity price of new projects will be based on the guaranteed hours as the cut-off point, and will be implemented according to different electricity prices, which are mainly divided into the following two types of projects:
The first category is the projects within the guaranteed grid-connected scale determined by the state (that is, the projects within the annual new scale determined according to the non-water renewable energy responsibility weight indicators of each province). The on-grid electricity price consists of two parts: within the guaranteed purchase hours (obtained through competitive allocation and must not exceed the guide price) + guaranteed power generation beyond the hours of purchase (directly participating in market transactions to form on-grid electricity prices).
The second category is the market-based grid-connected scale (projects other than the guaranteed grid-connected scale), that is, projects that implement grid-connected conditions through self-construction, co-construction sharing, or purchase of services and other market-oriented methods. The on-grid electricity price is also divided into two Part: Guaranteed power generation within the acquisition hours (the on-grid electricity price is implemented according to the local guide price of the year, and does not participate in competitive allocation) + Guaranteed power generation beyond the acquisition hours (direct participation in market transactions to form the on-grid electricity price).
The document also clarifies the number of hours for guaranteed purchases. According to the "Notice on the Requirements for Doing a Good Job in the Management of Full Guaranteed Purchases of Wind Power and Photovoltaic Power Generation" jointly announced by the National Development and Reform Commission and the National Energy Administration in 2016 Guaranteed hours shall prevail.

However, the above documents do not stipulate the minimum guaranteed acquisition hours for the three types of photovoltaic resource areas. This document also clarifies that the non-guaranteed acquisition hours shall be calculated according to the reasonable utilization hours, and the reasonable utilization hours of new projects shall be in accordance with the Ministry of Finance, The National Development and Reform Commission and the National Energy Administration "Several Opinions on Promoting the Healthy Development of Non-Water Renewable Energy Power Generation" Supplementary Notice on Relevant Matters (Cai Jian [2020] No. 426) shall be implemented.
Among them, the reasonable utilization hours of photovoltaic power generation projects in the first, second and third types of resource areas in the whole life cycle are 32,000 hours, 26,000 hours and 22,000 hours. The state-determined photovoltaic leader base projects and the 2019 and 2020 bidding projects have a 10% increase in the number of hours of reasonable utilization throughout the life cycle of the resource area where they are located. That is, the reasonable utilization hours of photovoltaic projects in the three types of resource areas are 1,100 hours.
The reasonable utilization hours of wind power projects in the first, second, third and fourth resource areas in the whole life cycle are 48,000 hours, 44,000 hours, 40,000 hours and 36,000 hours respectively. The reasonable utilization hours of the whole life cycle of offshore wind power is 52,000 hours.

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