The country introduced new wind power price management policy

In order to standardize wind power price management and promote the healthy and sustainable development of the wind power industry, the National Development and Reform Commission recently issued the “Notice on Perfecting the On-grid Tariff Policy of Wind Power Generation” (Price Development No. [1] No. 1906).

The "Notice" stipulates that the country will be divided into four types of wind energy resource areas in accordance with the conditions of wind energy resources and project construction conditions, and wind power benchmarking on-grid tariffs will be formulated accordingly. The wind power benchmark price levels in the four resource regions are 0.51 yuan, 0.54 yuan, 0.58 yuan and 0.61 yuan per kilowatt hour respectively. In the future, we will build a new onshore wind power project and implement wind power benchmark on-grid tariffs in wind energy resource regions. The on-grid tariffs for offshore wind power will be separately formulated according to the construction process. At the same time, it is stipulated that the wind power cost sharing system will continue to be implemented. The part of wind power on-grid tariffs that is higher than the on-grid tariffs of local coal-fired unit benchmarks will be resolved through the nation’s additional renewable energy prices.

The "Notice" requires that all wind power generation companies and power grid companies must truly and completely record and store data on the amount of electricity traded, prices, and subsidies for wind power projects on the Internet; price authorities at all levels must strengthen the implementation of wind power on-grid tariffs and tariff supplements The supervision will ensure that the on-grid tariff policies for wind power are put into place.

In 2006, the National Development and Reform Commission promulgated the Trial Measures for the Management of Renewable Energy Power Generation Prices and Expenses (Development and Reform Price [2006] No. 7), established a pricing mechanism and cost sharing mechanism for renewable energy in China, which has effectively promoted Development of renewable energy power generation industry. However, with the rapid development of wind power, this approach has been unable to meet the needs of real-life management. The wind power benchmarking on-grid price policy introduced this time is a supplement and improvement to the original approach. It is conducive to changing the current wind power pricing mechanism in a non-uniform situation and further regulating wind power price management. It is conducive to guiding investment. By publishing the benchmark price level in advance, it provides investors with a clear investment forecast, encourages the development of quality resources, limits the development of inferior resources, and ensures the orderly development of wind power. Helps reduce costs and control costs. The lower the project cost, the better the management, and the higher the return, incentivizing wind power companies to continuously reduce investment costs and operating costs. In addition, the implementation of benchmarking prices is also conducive to reducing government administrative approvals.