How does direct green power connection work? The government has now made it clear.

In 2025, policies were continuously released. After completing the work in the first half of the year, projects at Lao Qiang's place became much quieter in the second half. However, complaints were endless, all asking what to do in the second half of the year? Lao Qiang believes that although the planned installed capacity has been completed, there are still opportunities. Driven by the dual goals of "carbon peaking and carbon neutrality" and global green trade rules, direct green power connection is becoming a hot topic in energy transformation. In the past, enterprises wanting to use green power either relied on the unified dispatch of the power grid or participated in green power trading, but they could not avoid the intermediary of the "large power grid". Now, the national energy authorities have clarified the implementation details and technical paths of direct green power connection, allowing the "direct supply from the source" green power model to move from concept to practical operation. Most importantly, it does not occupy wind and solar power indicators, which opens up a lot of imagination. Let's look at Hebei's policy.

I. Who can use direct green power connection?

The policy clarifies three major categories of applicable entities:

1. New Loads
Newly built projects with supporting renewable energy power generation, giving priority to industries such as electrolytic aluminum, silicon photovoltaics, new energy batteries, non-ferrous metals, data centers, hydrogen energy, phosphorus chemical industry, organosilicon, agricultural product processing, and biopharmaceuticals. These industries have high power consumption, relatively stable loads, and are in line with national and provincial industrial policies.

2. Existing Loads
Enterprises with existing self-owned coal-fired power plants and gas turbine units that have paid the renewable energy development fund in full can reduce the output of their self-owned power plants and introduce green power as a replacement. At the same time, export-oriented enterprises can obtain internationally recognized green power traceability certification, reducing carbon tariffs and risks of trade barriers.

3. New Energy Project Side
Completed renewable energy projects that cannot be connected to the grid due to insufficient grid access conditions or limited consumption can switch to direct green power connection after completing the change procedures to provide clean electricity to local users.

II. How to connect to the grid? Grid-connected vs. Off-grid

The policy provides two models:

1. Grid-connected (mainstream)
The direct green power connection system is connected to the public power grid, forming a clear physical and responsibility boundary with the large power grid. When green power is insufficient, electricity can be purchased from the grid; when there is surplus, electricity can be sold to the grid (with policy permission), resulting in higher flexibility and reliability.

2. Off-grid
The power source and load are directly connected through a dedicated line without connecting to the public power grid, forming an independent small power supply system. Suitable for areas with concentrated power consumption, conditions for off-grid operation, or difficulties in grid access.

For grid-connected projects, the grid connection voltage should generally not exceed 220 kV. In special cases, it can be increased to 330 kV, but a special safety risk assessment is required. For off-grid projects, the power balance, safety protection, and operation management mechanisms need to be improved.

III. Implementation Path: From Investment Entity to Operating Rules

1. Clarify the Investment Entity

The project is generally led by the power user, but it can also be jointly constructed by the power generation enterprise or both parties. The direct connection line is generally invested by the load side or the power source side. Ownership, operation, maintenance, and breach of contract responsibilities must be clearly defined through an agreement.

2. Strengthen Source-Load Matching

Configure the type and scale of renewable energy units according to the principle of "determining the source based on the load". The self-generation and self-consumption ratio of grid-connected projects should reach more than 60% of the total power generation and more than 30% of the total power consumption. This should be increased to 35% before 2030, and the grid-connected ratio should not exceed 20%.

3. Access and Safety

The project must meet technical specifications such as the "Power System Safety and Stability Guidelines", configure protection and communication systems, and ensure that it does not affect the safe operation of the public power grid. The lines should minimize crossovers, and the energy storage and load regulation capabilities should be planned simultaneously.

4. Electricity Price and Fees

Before the national unified transmission and distribution electricity price policy is introduced, various regions can clarify the calculation standards according to the project type. The self-used portion of grid-connected projects needs to pay government funds, cross-subsidies, and standby capacity fees; off-grid projects are exempt from standby fees but still need to bear policy cross-subsidies and other fees.

IV. Detailed Explanation of the Four Types of Fees Payable for Direct Green Power Connection Projects

1. Transmission and Distribution Fees

This is used to pay for the grid service fees generated by using the national power grid transmission lines. According to Lao Qiang's understanding, the payment rules are distinguished as follows:

1) Self-generated and self-consumed electricity: Exempt, as it does not use large power grid resources, referring to the practice of self-owned power plants.

2) Off-grid electricity (i.e., sent to the grid and then returned to the user end): This must be paid, and it is priced according to the voltage level (e.g., 0.169 yuan/kWh for 10 kV in Hunan, 0.216 yuan/kWh for 35 kV);

3) On-grid electricity (i.e., sold back to the market): Exempt, as the transmission and distribution fees are already included in the electricity price and are borne by the purchaser.

2. System Operation Fees

This is used to compensate for the adjustment and operation costs of the power system, including auxiliary services, frequency regulation, peak regulation, pumped hydro storage, etc. The payment rules are:

1) Self-generated and self-consumed electricity: Exempt, as it does not use system auxiliary regulation;

2) Off-grid electricity: Must be paid, approximately 0.03 yuan/kWh;

3) On-grid electricity: Exempt, already included in market settlement.

Note: System operation fees are often confused with "system standby capacity fees." The latter usually applies to self-owned power plants, and some regions can reduce or halve the levy. Direct green power connection is analogous to self-owned power plants, and similar policies can be enjoyed during the transition period.

3. Policy Cross-subsidies

This is to guarantee low-priced users such as residential electricity. Enterprise electricity prices need to pay a certain percentage of fees for electricity price subsidies. (Think about whether our residential electricity prices have increased in the past few decades? This is the country losing money to subsidize people's livelihood, this is an aside.) Payment rules:

1) Self-generated and self-consumed electricity: Reduced or exempted, most provinces allow renewable energy projects to be exempt or partially exempt;

2) Off-grid electricity: Must be paid, especially with higher standards for high energy-consuming industries;

3) On-grid electricity: Exempt.

4. Government Funds and Surcharges (Unit: Yuan/kWh)

Includes: Renewable energy development fund 0.019 yuan/kWh, rural grid repayment fund: 0.02 yuan/kWh (exemption in some areas), major water conservancy project construction fund 0.00105 yuan/kWh, large and medium-sized reservoir resettlement support fund: 0.0062 yuan/kWh

In general, it is summarized as self-generated and self-used electricity and off-grid electricity, which must be paid. If it is on-grid electricity, it can be exempted. The scope is:

Local authority fees: such as cross-subsidies, grid standby capacity fees, local governments can reduce or exempt them according to law in conjunction with energy-saving projects;

V. Case Study: China's First Data Center Integrated Green Electricity Direct Connection of Source, Network, Load, and Storage

On July 15, 2024, the Zhongjin Data Low-Carbon Computing Power Base project in Ulanqab City officially put into operation. The project has supporting construction of 200,000 kW wind power, 100,000 kW photovoltaic, and 45,000 kW energy storage, and accesses the user side through a double-return 220 kV line, realizing cross-regional energy synergy: when wind power output is insufficient, the energy storage system quickly replenishes energy; when photovoltaic power fluctuates, the power grid dispatching system adjusts the power supply strategy in real time.

This model effectively solves the contradiction between the fluctuation of new energy power generation and the high reliability requirements of data centers, providing a replicable engineering solution for "calculating electricity based on electricity, and adjusting electricity based on calculation".

IV. The Value of Direct Connection to Green Electricity

1. Three Benefits for Electricity Users

Green ID: Meets international green trade rules such as EU CBAM and the new battery law, avoiding high carbon tariffs.

Cost Lock-in: Lock in electricity prices through long-term PPAs (power purchase agreements) to avoid market fluctuations.

Brand Enhancement: 100% green electricity use contributes to ESG ratings and capital market image.

2. Stable Market for Power Generation Enterprises

Customer Lock-in: No need to worry about difficulties in consumption and low-price market dumping.

Premium Acquisition: The price of direct supply of green electricity is usually higher than the benchmark price of coal-fired electricity, bringing additional income from "green attributes".

3. System Value of New Energy Industry

On-site Consumption: Reduces long-distance transmission losses and impacts on large power grids.

Promoting Integration: Promotes the synergy of source, network, load, and storage, and is an important practice of the new power system.

In the future, with the advancement of cross-provincial green electricity direct connection pilot projects, the unification of transmission and distribution pricing policies, and the improvement of the green electricity certification system, the direct connection model is expected to expand from key industries to a wider range of industrial and commercial users, becoming an important tool for new energy consumption. And the government has given a clear "construction plan", the next step is to see how enterprises combine their own load characteristics, supply resources and market opportunities to make this green channel stable and long-lasting.