National Energy Administration: Regulations for Distributed Photovoltaic Power Generation Officially Released! Large-scale Industrial and Commercial Photovoltaic Power Generation Can Be Adjusted to Centralized Systems (with Interpretation)

On January 23, the National Energy Administration officially issued the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation", providing new requirements for distributed photovoltaic power generation in terms of filing and grid connection.

 

According to the document, distributed photovoltaic power generation is divided into four types: natural person household, non-natural person household, general industrial and commercial, and large-scale industrial and commercial. Among them, large-scale industrial and commercial distributed photovoltaic power generation refers to the construction using buildings and their ancillary facilities, connecting to the user-side power grid or conducting dedicated power supply with users (not directly connecting to the public power grid, and the user and the power generation project investor are the same legal entity), with a connection point voltage level of 35 kV and a total installed capacity of generally no more than 20 MW, or a connection point voltage level of 110 kV (66 kV) and a total installed capacity of generally no more than 50 MW.

 

In terms of specific grid connection requirements, general industrial and commercial distributed photovoltaic power generation can choose the mode of either self-generation and self-consumption or self-generation and self-consumption with excess power grid connection; For those adopting the self-generation and self-consumption with excess power grid connection mode, the proportion of annual self-generation and self-consumption to power generation shall be determined by the provincial energy authorities in combination with the actual situation.

 

Large-scale industrial and commercial distributed photovoltaic power generation shall, in principle, adopt the mode of self-generation and self-consumption; in regions with continuous operation of the electricity spot market, large-scale industrial and commercial distributed photovoltaic power generation may participate in the spot market using the mode of self-generation and self-consumption with excess power grid connection.

 

In terms of filing, distributed photovoltaic power generation projects invested and constructed by non-natural persons shall not be filed under the name of natural persons. For those that have already been filed by natural persons before the issuance of this measure, the filing subject does not need to be changed, and they shall still be managed according to the original filing project type, but the investor shall proactively inform the filing authority and the power grid enterprise of the relevant information, and clearly bear the responsibility for the operation and maintenance of the project and the corresponding legal liabilities.

 

The document points out that for distributed photovoltaic power generation projects that have been filed before the issuance of this measure and that are connected to the grid and put into operation before May 1, 2025, the original policies shall still be implemented.

 

In addition, the National Energy Administration's interpretation of the new distributed photovoltaic management policy explains several types of projects, including the new and old division, large-scale industrial and commercial, fishery-photovoltaic, and agricultural-photovoltaic complementation.

 

(1) Regarding the "new and old division" of projects. Doing a good job in the connection between the new and old policies and clarifying the "new and old division" is a relatively concentrated opinion in the industry. To this end, the "Management Measures" proposes in the filing section: "Distributed photovoltaic power generation projects invested and constructed by non-natural persons shall not be filed under the name of natural persons. For those that have been filed by natural persons before the issuance of this measure, the filing subject does not need to be changed and shall still be managed according to the original filing project type...", and further clarifies in the supplementary provisions: "This measure shall come into effect from the date of its issuance and shall be valid for five years. The "Interim Measures for the Management of Distributed Photovoltaic Power Generation Projects" (Guonei Xinneng [2013] No. 433) shall be repealed at the same time. For distributed photovoltaic power generation projects that have been filed before the issuance of this measure and are connected to the grid and put into operation before May 1, 2025, the original policies shall still be implemented.", giving sufficient transition time for projects that have been filed before the issuance of this measure.

 

(2) Regarding the consideration of the grid connection mode for large-scale industrial and commercial distributed photovoltaic power generation. Considering that in regions with continuous operation of the electricity spot market, electricity market price signals can guide large-scale industrial and commercial distributed photovoltaic power generation projects to achieve a high proportion of self-use as much as possible, and play a role in ensuring supply during periods of tight power supply by connecting excess power to the grid, the "Management Measures" allows large-scale industrial and commercial distributed photovoltaic power generation in regions with continuous operation of the electricity spot market to participate in the spot market using the mode of self-generation and self-consumption with excess power grid connection. In addition, large-scale industrial and commercial distributed photovoltaic power generation is allowed to adjust the project to a centralized photovoltaic power plant when the power user load changes significantly, giving it more choices.

 

(3) Regarding agricultural-photovoltaic complementation, fishery-photovoltaic complementation, and small-scale ground-based power plants. Agricultural-photovoltaic complementation, fishery-photovoltaic complementation, and small-scale ground-based power plants usually have small loads and low self-consumption, and often adopt the mode of full grid connection. From the perspective of power generation characteristics, this is inconsistent with the basic positioning of distributed photovoltaic power generation for development and utilization in proximity to the location. At the same time, the land use situation of these projects is complex, and the local management methods are not unified, resulting in certain ambiguities. Based on the above considerations, agricultural-photovoltaic complementation, fishery-photovoltaic complementation, and small-scale ground-based photovoltaic power generation projects are managed as centralized photovoltaic power plants. For smaller projects of the above types, the provincial energy authorities can prioritize the arrangement and simplify the project filing and other management procedures when formulating annual development and construction plans and organizing competitive allocation, and the power grid enterprises shall cooperate in doing a good job in grid connection.

 

It should be noted that on the morning of January 23, the National Energy Administration also held a press conference to interpret the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation". National Energy Administration: Regulations for Distributed Photovoltaic Power Generation to be Released Soon, Projects Connected to the Grid Before May 1 to Follow Original Policies )

 

Pan Huimin, Deputy Director-General of the Renewable Energy Department pointed out that doing a good job in the connection between the new and old policies and clarifying the "new and old division" is a relatively concentrated opinion in the industry. To this end, the "Management Measures" proposes in the filing section: " Distributed photovoltaic power generation projects invested and constructed by non-natural persons shall not be filed under the name of natural persons. For those that have been filed by natural persons before the issuance of this measure, the filing subject does not need to be changed and shall still be managed according to the original filing project type ...", and further clarifies in the supplementary provisions: "This measure shall come into effect from the date of its issuance and shall be valid for five years. The "Interim Measures for the Management of Distributed Photovoltaic Power Generation Projects" shall be repealed at the same time. For distributed photovoltaic power generation projects that have been filed before the issuance of this measure and are connected to the grid and put into operation before May 1, 2025, the original policies shall still be implemented. ", giving sufficient policy transition time for projects that have been filed before the issuance of this measure.

 

For details and interpretations of the specific document, see below:

 

Notice of the National Energy Administration on Issuing the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation"

Guonei Xinnenggui [2025] No. 7

 

Energy Bureaus of each province (autonomous region, municipality directly under the Central Government), relevant provincial (autonomous regional, municipal) and Xinjiang Production and Construction Corps Development and Reform Commissions, various dispatched agencies, State Grid Corporation of China, China Southern Power Grid Co., Ltd., Inner Mongolia Power (Group) Co., Ltd., relevant power generation enterprises, Hydropower and Water Conservancy Planning and Design General Institute, Power Planning and Design General Institute, National Renewable Energy Information Management Center, National Renewable Energy Consumption Monitoring and Early Warning Center, China Photovoltaic Industry Association:

 

In order to standardize the management of the development and construction of distributed photovoltaic power generation, promote the high-quality development of distributed photovoltaic power generation, adapt to new situations and new requirements, the National Energy Administration has revised the "Interim Measures for the Management of Distributed Photovoltaic Power Generation Projects" (Guonei Xinneng [2013] No. 433), forming the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation", which are now issued to you for your implementation.

 

National Energy Administration

January 17, 2025

 

Attachment: Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation

 

 

Policy Interpretation of the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation"

 

Recently, the National Energy Administration revised and issued the "Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation" (hereinafter referred to as the "Management Measures"), aiming to further promote the healthy and sustainable development of distributed photovoltaic power generation. This document provides an interpretation of the revision background, guiding ideology and principles of revision, and main contents of the "Management Measures".

 

I. Revision Background of the "Management Measures"

 

In 2013, the National Energy Administration issued the "Interim Measures for the Management of Distributed Photovoltaic Power Generation Projects" (No. 433 [2013] of the National Energy Administration, hereinafter referred to as the "Interim Measures"), which clarified relevant policies and requirements for distributed photovoltaic power generation and played a positive role in promoting the rapid development of the industry. More than ten years after the issuance of the "Interim Measures", the development situation of the distributed photovoltaic power generation industry has undergone tremendous changes, making the revision work necessary and urgent.

 

In terms of scale. Regarding cumulative installed capacity, at the end of 2013, the total cumulative installed capacity of photovoltaic power generation nationwide was 19.42 million kilowatts, of which 3.1 million kilowatts were distributed, accounting for 16%. By the end of 2024, the cumulative installed capacity of distributed photovoltaic power generation reached 370 million kilowatts, 121 times that of the end of 2013, accounting for 42% of the total photovoltaic power generation capacity and 11% of the national total power generation capacity. In terms of newly added installed capacity, in 2024, the newly added installed capacity of distributed photovoltaic power generation reached 120 million kilowatts, accounting for 43% of the newly added photovoltaic power generation capacity that year. In terms of power generation, in 2024, the power generation of distributed photovoltaic power generation was 346.2 billion kilowatt-hours, accounting for 41% of photovoltaic power generation. Whether it is cumulative installed capacity, newly added installed capacity, or power generation, the trend of distributed and centralized power generation being on par is very obvious, and distributed photovoltaic power generation has become an important force in energy transformation.

 

In terms of the development environment. The price of photovoltaic components has dropped from about 5 yuan/watt in 2013 to about 0.7 yuan/watt at present, and new energy sources, including distributed photovoltaic power generation, have fully entered the stage of market-oriented development without subsidies. A series of regulations on scale management established around fiscal subsidies in the "Interim Measures" are no longer applicable, and the national level has gradually established development guidance mechanisms such as renewable energy power consumption responsibility weights and capacity assessment of distributed photovoltaic power generation access to distribution networks. The "Management Measures" need to institutionalize some good mechanisms and practices of the country and localities, and keep pace with the times to improve management.

 

In terms of the main contradictions and prominent problems. With the explosive growth of distributed photovoltaic power generation, grid connection and consumption have become the main contradiction restricting development, and it is urgent to adjust the management thinking, work together with the source, grid, load, and storage, and promote the good and rapid development of distributed photovoltaic power generation. In terms of prominent problems, in recent years, with the continuous expansion of distributed photovoltaic power generation, especially household photovoltaic power generation, some enterprises have registered and developed projects in the name of natural persons, and some projects have infringed upon the interests of farmers, which urgently needs to be regulated.

 

II. Guiding Ideology and Principles of the Revision of the "Management Measures"

 

The "Management Measures" will combine the support for the development of distributed photovoltaics with standardized development, supporting what should be supported and upholding what should be upheld. It is necessary to promote development and solve the problems restricting development, such as insufficient grid connection and consumption capacity; it is also necessary to regulate the market, resolutely correct and strictly regulate unreasonable phenomena that have emerged in development, and promote the industry to adapt to new situations and changes, effectively protect the legitimate rights and interests of both power generation and power users, especially farmers, and promote the "quantitative" and "qualitative" improvement of distributed photovoltaic power generation.

 

Distributed photovoltaic power generation has many points and a wide area, involves many entities, and has complex interest relationships. The revision of the "Management Measures" adheres to the following four principles.

 

First, adhere to the concept of a system and highlight the essential requirement of on-site development and utilization of distributed photovoltaics. The essential difference between distributed photovoltaic power generation and centralized power plants is that it is developed on the user side and utilized on-site. The "Management Measures" adhere to this essential characteristic and requirement of distributed photovoltaic power generation from aspects such as definition, classification, and grid connection mode, emphasizing the proportion of self-generation and self-use of projects, and returning to the "original intention" and origin of distributed photovoltaic power generation.

 

Second, adhere to putting the people first and effectively protect the legitimate rights and interests of users, especially farmers. Distributed photovoltaic power generation is the power generation form most closely related to users. Distributed photovoltaic power generation can only achieve sustainable development on the premise of fully respecting the wishes of users and forming good interaction with users. The "Management Measures" refine requirements from various aspects such as leasing user rooftops, registration, development, construction, and operation, effectively guaranteeing the interests of users, especially farmers, so that the development of distributed photovoltaics can benefit rural farmers more and empower rural revitalization.

 

Third, adhere to a problem-oriented approach and highlight management priorities. Focusing on key points of concern to all parties, such as definition, classification, grid connection mode, and grid connection capacity, clarifying and correcting new problems that have arisen in the industry, covering all aspects of the entire process of distributed photovoltaic power generation development and construction, from project planning to registration, construction, grid connection, and operation management, and clarifying key management requirements to ensure that management is practical and effective.

 

Fourth, adhere to differentiated management and enhance operability. It covers all forms of distributed photovoltaic power generation, while ensuring clear boundaries, laying the foundation for implementing differentiated and targeted management for different types of distributed photovoltaic power generation, and providing support for provincial energy authorities to formulate and implement specific rules based on actual conditions.

 

III. Main Contents of the "Management Measures"

 

The "Management Measures" include seven chapters: general provisions, industry management, registration management, construction management, grid connection, operation management, and supplementary provisions, totaling 43 articles. It covers the definition and classification of distributed photovoltaic power generation and the management requirements of each stage of the project's life cycle, covering the responsibilities of industry authorities, investors, and grid companies, forming a supportive and normative management system that is comprehensive and thorough.

 

(1) What is distributed photovoltaic power generation? In terms of definition, three basic characteristics are highlighted: development on the user side, access to the distribution network, and on-site balance adjustment in the distribution network system. In terms of classification, three elements are grasped: construction location, access voltage level, and installed capacity, which are divided into four types: household use by natural persons, household use by non-natural persons, general commercial and industrial use, and large-scale commercial and industrial use. In terms of grid connection mode, three methods are clarified: full grid connection, all self-generation and self-use, and self-generation and self-use with surplus power grid connection. Among them, household use by natural persons and non-natural persons can choose any of the three modes, general commercial and industrial use can choose one of the two modes of all self-generation and self-use and self-generation and self-use with surplus power grid connection. For those using self-generation and self-use with surplus power grid connection, the proportion of annual self-generation and self-use electricity to power generation is determined by the provincial energy authorities based on actual conditions. Large-scale commercial and industrial use generally chooses the mode of all self-generation and self-use, fully reflecting the differentiated management approach.

 

(II) Industry Regulation. At the national level, the focus is on comprehensively considering the development needs of distributed photovoltaic power generation, promoting applications across multiple scenarios, strengthening the monitoring of the entire industry process, timely improving industry policies and standards, and building a comprehensive framework to support and regulate the development of distributed photovoltaic power generation. Provincial energy authorities should coordinate various plans, guide local energy authorities to propose the construction scale of distributed photovoltaic power generation in their respective regions, and guide power grid enterprises to improve and invest in supporting facilities. County-level energy authorities are responsible for the specific implementation. The development of distributed photovoltaic power generation should fully respect the wishes of the owners of buildings and their appurtenant facilities. Local authorities may not use franchise operations or other methods to affect the business environment.

 

(III) Filing Procedures. The "Management Measures" clarifies that distributed photovoltaic power generation projects are subject to filing management. The filing entity is determined according to the principle of "whoever invests, files." The filing capacity is the AC-side capacity. The Measures also detail filing information, combined filing, filing changes, and record-keeping requirements, emphasizing that no additional filing documents should be arbitrarily added, and that processing time limits should not be exceeded. In recent years, distributed photovoltaic projects following the model of "farmers provide rooftops, developers provide funding" have still been filed under the names of farmers, leading to a clear imbalance of rights and responsibilities between enterprises and individuals and presenting certain financial and safety risks. The "Management Measures" emphasizes that "distributed photovoltaic power generation projects invested and developed by non-natural persons may not be filed under the name of a natural person," effectively protecting the interests of farmers.

 

(IV) Project Construction. The "Management Measures" sets forth specific requirements for the preliminary preparation, agreement signing, technical requirements, procedures, design, and construction of distributed photovoltaic projects. Construction may only begin after obtaining the grid connection approval from the power grid enterprise. Relevant regulations and standards for equipment, construction projects, and safety production must be strictly followed to ensure project construction quality and safety, and acceptance work must be completed.

 

(V) Grid Connection. The "Management Measures" clarifies the basic requirements for power grid enterprises and the actions they may not undertake. It specifies requirements for grid connection applications, acceptance and response, access system design, acceptance and response, investment interface division, signing grid connection agreements, and grid connection commissioning. It requires power grid enterprises to develop differentiated grid connection operating procedures for different types of distributed photovoltaic power generation projects. Specifically regarding the capacity of the power grid to accommodate distributed photovoltaic power generation, the "Management Measures" requires power grid enterprises to cooperate with provincial energy authorities in conducting assessments and establishing a mechanism for quarterly release and early warning of the available capacity of the distribution network, guiding the scientific and reasonable layout of distributed photovoltaic power generation. While making demands on the power grid, the "Management Measures" also proposes that new projects should meet the requirements of being "observable, measurable, adjustable, and controllable" to improve the grid connection capacity and controllability of distributed photovoltaic power generation.

 

(VI) Operational Standards. The "Management Measures" clarifies the requirements for the safety production, dispatch operation, model innovation, operation and maintenance management, information management, consumption monitoring, and upgrading of distributed photovoltaic power generation projects, forming a closed-loop management system. Regarding model innovation, projects are allowed to participate in dispatch through microgrids, integrated source-network-load-storage systems, and virtual power plant aggregation. Large-scale industrial and commercial distributed photovoltaic power generation projects can provide dedicated power supply to users. Due to the large number and scattered distribution of distributed photovoltaic power generation sites, and the significant differences in development conditions and foundations among different regions, the "Management Measures" proposes that provincial energy authorities may, in accordance with these Measures, formulate implementation rules suitable for their respective provinces (autonomous regions, municipalities directly under the Central Government) in conjunction with the branches of the National Energy Administration.

 

IV. Several Points Needing Clarification

 

(1) Regarding the "new and old division" of projects. Doing a good job in the connection between the new and old policies and clarifying the "new and old division" is a relatively concentrated opinion in the industry. To this end, the "Management Measures" proposes in the filing section: "Distributed photovoltaic power generation projects invested and constructed by non-natural persons shall not be filed under the name of natural persons. For those that have been filed by natural persons before the issuance of this measure, the filing subject does not need to be changed and shall still be managed according to the original filing project type...", and further clarifies in the supplementary provisions: "This measure shall come into effect from the date of its issuance and shall be valid for five years. The "Interim Measures for the Management of Distributed Photovoltaic Power Generation Projects" (Guonei Xinneng [2013] No. 433) shall be repealed at the same time. For distributed photovoltaic power generation projects that have been filed before the issuance of this measure and are connected to the grid and put into operation before May 1, 2025, the original policies shall still be implemented.", giving sufficient transition time for projects that have been filed before the issuance of this measure.

 

(2) Regarding the consideration of the grid connection mode for large-scale industrial and commercial distributed photovoltaic power generation. Considering that in regions with continuous operation of the electricity spot market, electricity market price signals can guide large-scale industrial and commercial distributed photovoltaic power generation projects to achieve a high proportion of self-use as much as possible, and play a role in ensuring supply during periods of tight power supply by connecting excess power to the grid, the "Management Measures" allows large-scale industrial and commercial distributed photovoltaic power generation in regions with continuous operation of the electricity spot market to participate in the spot market using the mode of self-generation and self-consumption with excess power grid connection. In addition, large-scale industrial and commercial distributed photovoltaic power generation is allowed to adjust the project to a centralized photovoltaic power plant when the power user load changes significantly, giving it more choices.

 

(3) Regarding agricultural-photovoltaic complementation, fishery-photovoltaic complementation, and small-scale ground-based power plants. Agricultural-photovoltaic complementation, fishery-photovoltaic complementation, and small-scale ground-based power plants usually have small loads and low self-consumption, and often adopt the mode of full grid connection. From the perspective of power generation characteristics, this is inconsistent with the basic positioning of distributed photovoltaic power generation for development and utilization in proximity to the location. At the same time, the land use situation of these projects is complex, and the local management methods are not unified, resulting in certain ambiguities. Based on the above considerations, agricultural-photovoltaic complementation, fishery-photovoltaic complementation, and small-scale ground-based photovoltaic power generation projects are managed as centralized photovoltaic power plants. For smaller projects of the above types, the provincial energy authorities can prioritize the arrangement and simplify the project filing and other management procedures when formulating annual development and construction plans and organizing competitive allocation, and the power grid enterprises shall cooperate in doing a good job in grid connection.