Recently, the Hunan Provincial Development and Reform Commission issued a notification document on the implementation of the Detailed Rules for Deepening the Market-oriented Reform of New Energy Grid Tariff in Hunan Province (Interim). It is reported that the document is an internal discussion draft of relevant departments for reference only.
The document clarifies the electricity scale, mechanism price and implementation period of the new energy sustainable development price settlement mechanism. In the new energy stock projects with full capacity connected to the grid before June 1, 2025, the electricity quantity of poverty alleviation projects is fully included in the mechanism electricity quantity, the proportion of conventional distributed and centralized new energy mechanism electricity quantity is 80% , and the mechanism electricity price is 0.45 yuan/kWh . The implementation period is determined by the year corresponding to the reasonable utilization hours of the remaining full life cycle of the project and the year corresponding to the completion of 20 years of production, whichever is earlier. For incremental projects after June 1,
2025, In 2025, the proportion of new projects included in the mechanism is determined by 20% of the annual on-grid electricity of wind power and photovoltaic projects participating in bidding in 2025. In 2026 and beyond, it will be adjusted dynamically according to the completion of the annual non-hydropower renewable energy power consumption responsibility weight issued by the state and the affordability of users. In addition, the maximum declaration ratio of individual projects shall not exceed 80% of the total on-grid electricity.
The specific calculation principle is as follows: the scale of electricity newly included in the mechanism = the total installed capacity of the bidding project × the average power generation utilization hours of the same type of power supply × (1-the average auxiliary power consumption rate of the same type of power supply) × the proportion of electricity included in the mechanism. The scale of declared electricity quantity for
distributed projects is as follows: the upper limit of the scale of declared electricity quantity for bidding of a single project = the installed capacity of the bidding project × the average utilization hours of power generation of the same type of power source × (1-the average auxiliary power consumption rate of the same type of power source-the lower limit of the proportion of self-generation and self-use specified by the government) × the proportion of declared electricity quantity. In terms of
mechanism electricity price, the upper limit is determined in consideration of factors such as reasonable cost and benefit, green value, power market supply and demand situation, and user affordability; the lower limit is determined by converting the cost per kilowatt hour according to the cost level of the most advanced power station, and the implementation period is 10 years.
In 2025, the upper limit of bidding is 0.38 yuan/kWh, the lower limit is 0.26 yuan/kWh , and the upper and lower limits of bidding in 2026 and beyond are specified according to the actual situation of Hunan Province. The
competition mode determines the selected projects according to the quotation from low to high, and the mechanism price is determined according to the highest quotation of the selected projects, but not higher than upper limit of bidding. If more than one project is declared at the clearing price, the remaining bidding electricity will be allocated according to the proportion of declared electricity. According to the
document, Hunan Province has put forward the method of monthly decomposition according to the relationship between power supply and demand, that is, the months of supply shortage in January, July, August and December . It shall be implemented according to 1.2 times (96%) of the proportion of machine-made electric quantity; it shall be implemented according to 0.8 times (64%) of the proportion of machine-made electric quantity in the difficult consumption months from March to June ; The rest of the months are executed normally.
It should be noted that there is no need for a performance guarantee for household photovoltaics, and the rest of the projects will deduct 0.5 ‰ of the performance guarantee per day as liquidated damages according to the overdue time of putting into operation. The current bidding qualification will be cancelled if it is overdue for more than 6 months, and it will not be allowed to participate within 3 years.
The following is the original text of the document.
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