Policy Interpretation: Why Choose Direct Green Power Connection

This report interprets the Notice on Orderly Promoting the Development of Direct Green Power Connection.

1. Why issue documents on the Direct Green Power Connection?

First, meet the needs of new energy consumption nearby. In recent years, with the leap-forward development of new energy in China, the pressure of new energy consumption is increasing year by year. At the same time of long-distance transportation, the integrated development model of new energy production and consumption is explored through green power direct connection projects, so as to tap the demand for local consumption, expand new energy application scenarios and improve the utilization efficiency of new energy resources.

Second, meet the green power consumption needs of users. In recent years, the countries concerned have implemented green trade barriers, the traditional and emerging high-energy industries have a strong desire to increase green and reduce carbon, and the demand for diversified green energy is constantly emerging. The Direct Green Power Connection project can meet the needs of users for green and low-carbon transformation to a certain extent.

Third, provide more choices for users to reduce the cost of electricity. The Notice encourages users to declare their own grid-connected capacity and assume corresponding responsibilities, and at the same time, reduce electricity consumption costs by improving their flexible adjustment ability.

2. What are the provisions of the Notice on investing in the construction of Direct Green Power Connection projects?

First, support various business entities to invest in the construction of Direct Green Power Connection projects. The Notice clearly supports all kinds of business entities (excluding power grid enterprises), including private enterprises, to invest in Direct Green Power Connection projects. Provincial energy authorities should cooperate with relevant work and support the participation of private capital.

Second, fully mobilize the enthusiasm of investors. The "Notice" proposes that the project power supply can be invested by users, or by new energy power generation enterprises or joint ventures established by both parties; In principle, direct-connected private lines should be invested by users and power supply entities.

Third, safeguard the legitimate rights and interests of all kinds of investors. The Notice clarifies that if the project power supply and users are not the same investor, it is necessary to sign a multi-year power purchase agreement or a contract energy management agreement, and sign agreements on matters such as power facility construction, property rights division, operation and maintenance, dispatching and operation, settlement relationship, and liability for breach of contract, so as to avoid unclear rights and responsibilities and effectively safeguard the legitimate rights and interests of investors.

3. What provisions have been made for the Direct Green Power Connection project in promoting the consumption of new energy nearby and promoting energy transformation?

The "Notice" always takes "green" as the background color, and takes various measures to improve the promotion of Direct Green Power Connection projects to new energy consumption and promote the green and low-carbon transformation of energy. Clarify the proportion of spontaneous self-use electricity and lay the foundation for the "green" project. The Notice requires that the proportion of spontaneous self-use electricity consumption in the new energy year of the project should not be less than 60% of the total power generation, and the proportion of total electricity consumption should be increased from not less than 30% in 2025 to not less than 35% in 2030, so as to guide the new energy projects to be absorbed and utilized as close as possible to ensure the "green" background color of the project. Tap the potential of flexible adjustment and enhance the "green" ability of the project. The "Notice" guides the Direct Green Power Connection project to increase the proportion of spontaneous self-use of new energy and make the project more "green" by rationally allocating energy storage and tapping the flexible adjustment potential of users.