Inner Mongolia: Implementation Plan for Deepening the Market-oriented Reform of New Energy On-grid Tariff in West Inner Mongolia Power Grid

On May 30, the website of Inner Mongolia Development and Reform Commission issued a circular on the issuance of the Implementation Plan for Deepening the Market-oriented Reform of New Energy Grid Tariff in West Inner Mongolia Power Grid. The notice made it clear that all the on-grid electricity of new energy projects had entered the electricity market.

Clearly improve the trading rules of the spot market: the upper limit of the declared price in the spot market is 1.5 yuan/kWh; Considering the factors such as other incomes that new energy can obtain outside the electricity market, the lower limit of the declared price is temporarily -0.

Medium and long-term transactions are carried out continuously on working days, allowing both suppliers and demanders to reasonably determine the volume, price and curve of medium and long-term contracts according to the characteristics of new energy output, and adjust them flexibly according to the actual situation. To improve the green power trading policy, the declaration and transaction prices should specify the price of electric energy and the corresponding green certificate price respectively. New energy power generation enterprises

are encouraged to sign multi-year power purchase agreements with power users to manage market risks in advance and form a stable supply-demand relationship. Power trading institutions can actively explore the development of multi-year transactions under the premise of reasonable convergence and controllable risks.

1," The general idea of

the reform is that the construction of Mengxi electric power market has always been ahead and exemplary, resolutely carrying the banner of market-oriented reform, and has become the fifth electricity spot market in China to be formally operated. In 2024, the proportion of new energy electricity traded in the market has reached more than 92%. It has created a solid foundation and favorable conditions for deepening the market-oriented reform of the price of new energy on the grid. We should adhere to the direction of market-oriented reform, continue to promote new energy (wind power, solar power, the same below) to enter the electricity market in an all-round way, and form prices through market transactions. We should adhere to the principle of fair responsibility, constantly improve the market trading and pricing mechanism adapted to the development of new energy, and promote the fair participation of new energy in market transactions. We should adhere to classified measures, distinguish between stock projects and incremental projects, establish a price settlement mechanism for sustainable development of new energy, maintain policy convergence of stock projects, and stabilize the income expectations of incremental projects. We should adhere to overall coordination, coordinate policies such as industry management, price mechanism and green energy consumption, improve the power market system, and better support the realization of the objectives of new energy development planning.

2. Promoting the formation

of on-grid electricity price of new energy from the market in an all-round way (1) All on-grid electricity of new energy projects enters the electricity market. On the basis that the on-grid electricity of centralized new energy projects has basically entered the electricity market, we will promote distributed photovoltaic , decentralized wind power and

participating in trans-provincial and trans-regional transactions shall be implemented in accordance with the relevant policies of the state and autonomous regions on trans-provincial and trans-regional power transmission.

(Two) improve the spot market trading rules. We will improve the trading rules of the spot market and promote the fair participation of new energy in the real-time market. The upper limit of the declared price in the spot market is 1.5 yuan/kWh; considering the factors such as other income that new energy can obtain outside the electricity market, the lower limit of the declared price is temporarily -0. The declared price limit in the spot market shall be evaluated and improved in due time in combination with the actual operation of the market price.

(Three) improve the medium and long term market trading rules. Medium and long-term transactions are carried out continuously on working days, allowing both suppliers and demanders to reasonably determine the volume, price and curve of medium and long-term contracts according to the characteristics of new energy output, and adjust them flexibly according to the actual situation. To improve the green power trading policy, the declaration and transaction prices should specify the price of electric energy and the corresponding green certificate price respectively. New energy power generation enterprises

3. Establish and improve the institutional mechanism

to support the high-quality development of new energy (4) Establish the price settlement mechanism for the sustainable development of new energy. After new energy participates in electricity market transactions, a mechanism for price difference settlement shall be established outside the market, and the price authorities of the autonomous region, together with the energy authorities, shall specify the level of new energy tariff (hereinafter referred to as the mechanism tariff), the scale of electricity and the implementation period of the mechanism in accordance with the requirements of the national principles. For the electricity included in the mechanism, if the average market transaction price is lower or higher than mechanism price, the Inner Mongolia Electric Power Company shall carry out the differential settlement, and the settlement fee shall be included in the system operation fee.

(5) The electricity scale, mechanism price and implementation period of the new energy sustainable development price settlement mechanism.

The scale of electricity, linking up with the current scale of on-grid electricity with the nature of security, to maintain the basic stability of the income of this part of electricity. First, the actual on-grid electricity of distributed photovoltaic, decentralized wind power, poverty alleviation photovoltaic, photothermal power generation and other projects; Second, centralized wind power with subsidies, centralized photovoltaic with subsidies, wind power concession projects and photovoltaic leader projects (excluding projects whose winning bid price is lower than benchmark price of coal and electricity in West Inner Mongolia) are arranged according to 215 hours, 250 hours, 1220 hours and 1210 hours respectively (converted according to the corresponding proportion of the remaining months in 2025); Third, the implementation of fixed electricity prices for new energy projects is actually grid electricity. Relevant new energy projects independently determine the proportion of electricity in the implementation mechanism each year within the scope of the scale, but not more than previous year. The

mechanism price of electricity included in the mechanism is the benchmark price of coal and electricity in West Inner Mongolia (0.

If the utilization hours or operation years of the project are specified in the original national approval document of the State Council on Promoting

In order to promote the fair participation of centralized, distributed (decentralized) and other new energy projects in the market, further deepen the market-oriented reform of on-grid electricity price, link up with the current electricity trading policy, and temporarily do not arrange for new electricity to be included in the mechanism. Subsequently, according to the completion of the annual non-hydropower renewable energy power consumption responsibility weight, as well as the affordability of users and other factors, combined with the actual operation of the power market and the income of new energy projects, the overall consideration will be made.

If the electricity quantity included in the mechanism is arranged in the following year, the project that has been put into operation and put into operation in the next 12 months and has not been included in the implementation scope of the mechanism can be voluntarily participated in according to the annual organization, and through the formation of bidding, the price authorities of the autonomous region, together with the energy authorities, will clarify the upper and lower limits of the mechanism price bidding and the implementation period, and the price of the project will be determined. Entrust Inner Mongolia Electric Power Company to formulate specific bidding rules and organize specific bidding work, and the bidding rules shall be reported to the competent price department and the competent energy department of the autonomous region for the record.

(6) The settlement method of the price settlement mechanism for the sustainable development of new energy. For the electricity quantity included in the mechanism, the Inner Mongolia Electric Power Company will carry out the price difference settlement according to the mechanism every month, and the difference between the average market transaction price and the mechanism electricity price will be included in the system operation fee; in the initial stage, no other types of price difference settlement will be carried out. In principle, the average market transaction price is determined according to the weighted average price of similar projects in the real-time market of the monthly power generation side. The electricity included in the mechanism each year is decomposed into monthly electricity, and the decomposition proportion of the monthly mechanism electricity is reasonably determined by taking into account the actual power generation capacity of new energy, system power demand and other factors. The decomposition proportion of the time-sharing mechanism electricity is determined according to the proportion of the monthly mechanism electricity and the on-grid electricity. If the actual network electricity quantity of each month is lower than decomposed electricity quantity of the current month, the settlement shall be made according to the actual network electricity quantity, and the monthly rolling liquidation shall be made within the year.

(7) Exit rules of price settlement mechanism for sustainable development of new energy. Within the implementation period, the new energy projects included in the mechanism can independently apply to Inner Mongolia Electric Power Company to withdraw part or all of the electricity included in the mechanism and participate in the market on their own. After the expiration of the implementation of the new energy projects included in the mechanism, Inner Mongolia Electric Power Company organizes the audit and withdrawal, and informs the enterprises in advance. If the implementation of new energy projects expires or voluntarily withdraws within the time limit, they will no longer be included in the scope of the implementation of the mechanism.

4. Safeguard measures

(8) Strengthen organization and implementation. The Development and Reform Commission of the Autonomous Region will coordinate with the Energy Bureau to solve the problems encountered in the implementation process, strengthen policy publicity and interpretation, and respond to social concerns in a timely manner. The Energy Bureau of the Autonomous Region should improve the spot market, medium and long-term market trading rules and green power trading policies, and do a good job of linking up with the requirements of national policies. Inner Mongolia Electric Power Company should do a good job in bidding, settlement, exit rules formulation and contract signing according to policy requirements, and collect the implementation results of the new energy sustainable development price settlement mechanism separately.

(9) Strengthen policy coordination. Strengthen the coordination of reform and green certificate policy, incorporate the electricity into the sustainable development price settlement mechanism, and do not repeat the green certificate income. Power grid enterprises can purchase new energy electricity through market-oriented way as an agent to purchase electricity. After new energy participates in the market, the amount of electricity not connected to the grid due to factors such as quotation is not included in the statistics and assessment of the utilization rate of new energy.We will resolutely correct improper interference in the electricity market, refrain from unreasonably apportioning costs to new energy sources, and refrain from taking allocation and storage as preconditions for the approval, grid connection and grid connection of new energy projects. Optimize the risk prevention mechanism of the electricity market, and gradually adjust the current compensation and recovery for the power generation side (including new energy) and the user side.

(10) Do a good job of follow-up and evaluation. The Development and Reform Commission of the Autonomous Region, together with the Energy Bureau and Inner Mongolia Electric Power Company, closely tracks market price fluctuations, changes in the cost and income of new energy power generation, and the level of electricity prices for end-users, continuously optimizes the implementation of policies, and enhances the guiding role of market price signals in the development of new energy. Combining with the progress of new energy technology, the development of power market, the growth of green power consumption and the development of green certificate market, the autonomous region timely evaluates and optimizes the price settlement mechanism for sustainable development of new energy, and withdraws when conditions are ripe.

This implementation plan will be implemented from July 1, 2025. If there are any problems during the implementation, please give timely feedback to the Development and Reform Commission and the Energy Bureau of the Autonomous Region. If the national new energy on-grid electricity price policy is adjusted and changed, it shall be adjusted accordingly according to the national policy.

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