Stock 0.3078 yuan/kWh, increment ≤80%, term 12 years! Gansu Document No. 136 officially issued!

On August 12, the Gansu Provincial Development and Reform Commission, Gansu Provincial Department of Industry and Information Technology, Gansu Provincial Energy Bureau, and the National Energy Administration Gansu Regulatory Office issued a notice on the issuance of the "Implementation Plan for Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices in Gansu Province to Promote High-quality Development of New Energy."

The document mentions, In principle, all new energy projects within the province, including centralized photovoltaic, centralized wind power, distributed photovoltaic, decentralized wind power, and solar thermal power generation, shall have their grid-connected electricity volumes fully enter the power market, and grid-connected electricity prices shall be formed through market transactions.

Stock projects: New energy projects put into operation before June 1, 2025.

Electricity volume scale: 15.4 billion kWh.

Mechanism price: 0.3078 yuan/kWh.

Execution period: Determined by the earlier of the year corresponding to the remaining reasonable utilization hours of the project's full life cycle as of the end of May 2025 and the year corresponding to 20 years after commissioning.

Incremental projects: New energy projects put into operation from June 1, 2025.

Electricity volume scale: The annual newly added electricity volume included in the mechanism is determined based on the completion of the national annual non-hydropower renewable energy power consumption responsibility weight, user affordability, and other factors. The electricity volume of a single project applying to be included in the mechanism should not exceed 80% of its total grid-connected electricity volume.

Mechanism price: New energy projects that have been put into operation and those to be put into operation within the next 12 months, and have not been included in the mechanism execution scope, can participate in bidding. Distributed photovoltaic projects can participate independently or aggregated in bidding; aggregators should generally refer to the qualifications of power sales companies.

Execution period: 12 years.

The original text is as follows:

Gansu Provincial Development and Reform Commission, Gansu Provincial Department of Industry and Information Technology,

Gansu Provincial Energy Bureau, National Energy Administration Gansu Regulatory Office.

Notice on the issuance of the "Implementation Plan for Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices in Gansu Province to Promote High-quality Development of New Energy."

 

Gansu Development and Reform Price [2025] No. 516.

 

Development and Reform Commissions and Industry and Information Technology Bureaus of all cities and prefectures, Economic Development Bureau of Lanzhou New Area, Energy Bureaus of Jiuquan City and Qingyang City, State Grid Gansu Electric Power Company, Gansu Electric Power Trading Center Co., Ltd., and all relevant power generation enterprises:

 

The "Implementation Plan for Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices in Gansu Province to Promote High-quality Development of New Energy" has been approved by the provincial government and is now issued to you. Please organize and implement it conscientiously.

 

Gansu Provincial Development and Reform Commission.

Gansu Provincial Department of Industry and Information Technology.

Gansu Provincial Energy Bureau.

National Energy Administration Gansu Regulatory Office.

2025 August 8, [Year].

 

Implementation Plan for Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices in Gansu Province to Promote High-quality Development of New Energy.

 

To fully implement the spirit of the "Notice of the National Development and Reform Commission and the National Energy Administration on Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices to Promote High-quality Development of New Energy" (Development and Reform Price [2025] No. 136), the "Action Plan for Building Gansu Province into a National Important New Energy and New Energy Equipment Manufacturing Base" (Gansu Government Office [2025] No. 11), and other related policies, and to promote the high-quality development of new energy and new energy equipment manufacturing industries, this implementation plan is formulated based on the actual situation of our province.

 

1. Fully promote the entry of new energy grid-connected electricity volumes into market transactions.

 

(1) In principle, all new energy projects within the province, including centralized photovoltaic, centralized wind power, distributed photovoltaic, decentralized wind power, and solar thermal power generation, shall have their grid-connected electricity volumes fully enter the power market, and grid-connected electricity prices shall be formed through market transactions.

 

(2) New energy projects can report volume and price for trading according to regulations or accept market-formed prices. Among them, a single distributed photovoltaic project can enter the market as an independent market entity or aggregated; distributed photovoltaic projects that do not directly or aggregately participate in the market are temporarily assumed to accept the weighted average price of all new energy projects in the monthly real-time market on the generation side of the spot market for market transactions.

 

(3) New energy electricity volumes, grid-connected electricity prices, and trading mechanisms participating in cross-province and cross-region transactions shall be implemented in accordance with national policies on cross-province and cross-region power transmission.

 

2. Establish and improve institutional mechanisms to support the high-quality development of new energy.

 

(1) Establish a sustainable price settlement mechanism for new energy.

 

After new energy projects enter the power market for trading, a price difference settlement mechanism shall be established outside the market. The price level of new energy included in the mechanism (hereinafter referred to as the mechanism price), electricity volume scale, execution period, etc., shall be clarified by the Provincial Development and Reform Commission in conjunction with the Provincial Energy Bureau and the Provincial Department of Industry and Information Technology. For the electricity volume included in the mechanism, if the market transaction average price is lower or higher than the mechanism price, the price difference shall be settled by the State Grid Gansu Electric Power Company according to regulations.

 

(2) Electricity volume scale, mechanism price, and execution period of the sustainable price settlement mechanism for new energy.

 

1.2025 Stock new energy projects put into operation before June 1 of the year.

 

(1) The electricity volume scale included in the mechanism is 15.4 billion kWh.

 

(2) The mechanism price is 0.3078 yuan/kWh.

 

(3) The execution period is determined by the earlier of the year corresponding to the remaining reasonable utilization hours of the project's full life cycle as of the end of May 2025 and the year corresponding to 20 years after commissioning; if the reasonable utilization hours of the full life cycle cannot be determined, it shall be determined according to 20 years after commissioning. After the execution period expires, the mechanism electricity volume scale corresponding to the new energy project shall be automatically deducted from the province's total mechanism electricity volume scale.

 

(4) The commissioning time of new energy projects is based on the time when the approved (filed) capacity is fully constructed and connected to the grid. Among them: centralized photovoltaic, centralized wind power, and solar thermal power projects use the grid connection date specified in the power business license as the commissioning time; distributed photovoltaic projects use the grid connection date in the power grid enterprise marketing system as the commissioning time; decentralized wind power projects use the end time of trial operation recognized by the power grid dispatching agency as the commissioning time.

 

(5) Poverty alleviation projects, franchise rights projects, distributed photovoltaic, parity demonstration, and solar thermal power projects (excluding "Sago wasteland" base projects) have their grid-connected electricity fully included in the mechanism electricity scope; decentralized wind power and wind power projects approved by the National Energy Administration under document Guoneng Xin Neng [2014] No. 541, and guaranteed parity projects (referring to new energy grid-connected projects within the province approved before December 31, 2021, that do not enjoy financial subsidies) are included in the mechanism electricity scope based on 1800 hours of annual wind power utilization and 1160 hours of annual photovoltaic utilization; the remaining mechanism electricity scale is proportionally allocated to other existing new energy projects based on installed capacity.

 

(6) The Provincial Energy Bureau, in conjunction with relevant departments, determines the list of existing mechanism electricity projects that meet the conditions according to the above principles.

 

(7) State Grid Gansu Electric Power Company forecasts the electricity scale of various projects for the next year before the end of September each year according to the project list, forms a list of the maximum electricity scale that each project can apply for, and submits it to the Provincial Development and Reform Commission and the Provincial Energy Bureau for approval. After approval, it is announced on the New Energy Cloud and State Grid online platforms. Each new energy project can independently apply for the electricity to be included in the mechanism within the determined scale each year, but not exceeding the previous year (excluding projects fully included in the mechanism electricity). Existing projects that do not participate in the initial application (excluding distributed photovoltaic projects) are deemed to have forfeited the mechanism electricity and will no longer be included in the mechanism execution scope.

 

(8) New energy projects are encouraged to enhance competitiveness through equipment updates and upgrades and actively participate in market competition.

 

(9) New energy projects enjoying financial subsidies will continue to implement the original subsidy standards within the reasonable utilization hours of their full lifecycle.

 

2.2025 New energy incremental projects put into operation from June 1 of the year.

 

(1) Electricity scale. The annual newly included mechanism electricity scale is determined based on the completion of the national annual non-hydropower renewable energy power consumption responsibility weight, user affordability, and other factors. If the consumption responsibility weight is exceeded, the mechanism electricity scale included the following year will be appropriately reduced; if not completed, it will be appropriately increased. The proportion of newly included mechanism electricity in the first year after notification implementation to the incremental new energy grid-connected electricity should appropriately connect with the existing non-market new energy proportion to avoid excessive fluctuations. The electricity applied by a single project to be included in the mechanism should not exceed 80% of its total grid-connected electricity.

 

(2) Mechanism electricity price. New energy projects that have been put into operation or will be put into operation within the next 12 months and have not been included in the mechanism execution scope can participate in bidding. Distributed photovoltaic projects can participate individually or aggregated; aggregators should generally refer to the qualifications of power sales companies. New energy enterprises declare electricity and prices within the upper and lower limits set by the Provincial Development and Reform Commission to participate in bidding. Projects are selected based on bids from low to high. The mechanism electricity price is generally determined by the highest bid of the selected projects but must not exceed the bidding upper limit. If two or more projects are selected at the mechanism electricity price, allocation is based on the proportion of declared electricity; if the declared electricity does not reach the total mechanism electricity scale, allocation is based on the declared electricity.

 

(3) Execution period. Determined to be 12 years. For projects already put into operation when selected, the start time is determined by the first month of the public bidding cycle of the selected project. For projects not yet put into operation when selected, the start time is based on the declared commissioning time. If the selected project is not commissioned on time, the mechanism electricity coverage before actual commissioning automatically becomes invalid, and the execution period is not extended. If the actual commissioning time is 6 months or more later than the declared commissioning time, the project's current bidding selection result is void, and specific matters are handled according to the new energy sustainable development price settlement mechanism difference agreement.

 

(4) In principle, bidding for the next year is organized before the end of October each year. The Provincial Development and Reform Commission, together with the Provincial Department of Industry and Information Technology, Provincial Energy Bureau, and Gansu Energy Regulatory Office, issues regulations on mechanism electricity scale and bidding price limits before the end of September each year. The 2025 bidding work is organized in two batches for new energy projects completed and connected to the grid from June 1, 2025, to December 31, 2025, and from January 1, 2026, to December 31, 2026.

 

(III) Settlement method of the new energy sustainable development price settlement mechanism.

 

1. For electricity included in the mechanism, State Grid Gansu Electric Power Company conducts monthly difference settlement at the mechanism electricity price, incorporating the difference between the new energy market transaction average price and the mechanism electricity price into system operation costs. No other forms of difference settlement are carried out initially.

 

2. Difference settlement cost = mechanism electricity × (mechanism electricity price - new energy market transaction average price). The new energy market transaction average price is temporarily determined by the weighted average price of all new energy projects on the generation side in the spot market's monthly real-time market, published monthly by State Grid Gansu Electric Power Company on the Gansu power trading platform. The difference settlement cost is included in system operation costs and shared or borne monthly by all industrial and commercial users.

 

3. The electricity included in the mechanism for a single project each year must be evenly decomposed into monthly amounts based on days. If the actual grid-connected electricity exceeds the decomposed electricity for the month, settlement is based on the decomposed electricity for that month. If the actual grid-connected electricity is less than the decomposed electricity for the month, settlement is based on the actual grid-connected electricity. The shortfall can be rolled over to the next month but not across years. If the electricity settled at the mechanism electricity price has reached the annual mechanism electricity scale, the excess part will no longer be executed at the mechanism electricity price; if the annual mechanism electricity scale is not reached by year-end, the shortfall will no longer be executed at the mechanism electricity price.

 

(IV) Exit rules of the new energy sustainable development price settlement mechanism.

 

New energy projects included in the mechanism can voluntarily apply to exit within the execution period. Projects that have expired or voluntarily exited within the period will no longer be included in the mechanism execution scope. The mechanism electricity scale of exited projects will not be replenished.

 

3. Accelerate the improvement of the power market system compatible with the new type of power system.

 

(I) The Gansu Energy Regulatory Office leads the improvement of the implementation rules for medium- and long-term power transactions to promote effective connection between medium- and long-term markets and spot markets. Medium- and long-term transactions are reasonably determined by both parties based on actual needs. The requirement for the proportion of medium- and long-term contracts on the generation side is moderately relaxed, and the proportion on the user side is adjusted accordingly. There is no lower limit for the medium- and long-term contract proportion for new energy.

 

(II) The Provincial Department of Industry and Information Technology leads the improvement of spot market rules, further optimizes spot market transactions, revises spot market settlement rules, establishes market power supervision mechanisms, and regulates spot market trading behavior. New energy projects should fully participate in the day-ahead reliability unit commitment and real-time market. New energy projects and user-side voluntarily participate in the day-ahead market. After the day-ahead market clears, the dispatching agency conducts day-ahead reliability unit commitment based on forecasted load demand, new energy output information, operator declared information, and interconnection line plans. The results are used for unit day-ahead start-stop and output planning.

 

(III) The Gansu Energy Regulatory Office leads the improvement of power ancillary services market operation rules, reasonably sets and continuously enriches ancillary service market trading varieties, timely establishes ramping and reserve ancillary service trading, and strengthens effective connection with the electric energy market.

 

(IV) The Provincial Energy Bureau leads the establishment of power retail market trading rules to regulate retail market operations; coordinates and strengthens green certificate management and standardizes green certificate trading.

 

(5) The Provincial Development and Reform Commission takes the lead in improving the price formation mechanisms for the province's medium- and long-term electricity market, spot market, ancillary services market, and retail market, further streamlining the market price formation mechanisms, and steadily and orderly promoting the market formation of electricity volume prices, capacity prices, and ancillary service prices. Research and establish a market-based capacity compensation mechanism on the generation side. At the current stage, a fixed capacity electricity price compensation method is adopted to compensate the system capacity provided by coal power, power grid-side new energy storage according to their contribution. In the later stage, combined with the operation of the electricity market, a capacity market will be established, where all types of power sources and demand-side resources that can provide capacity can obtain capacity payments by participating in the capacity market. Establish a cost compensation mechanism for coal power units, compensating for start-up costs, must-run unit costs, no-load costs, and uplift compensation of coal power units. Simultaneously adjust the bid price and clearing price limit ranges in the spot market. Adhere to the principle of "who serves, who benefits; who profits, who bears the cost," reasonably determine the upper limits of prices for frequency regulation, reserves, and other services, and orderly regulate the transmission of ancillary service fees.

 

(6) By the end of 2025, optimize and improve various market trading mechanisms and price mechanisms, establish and improve electricity market mechanisms adapted to the characteristics of new energy, promote fair access of new energy to market transactions, and form an electricity market system with efficient coordination between wholesale and retail markets.

 

4. Continuously strengthen the coordinated linkage mechanism supporting the high-quality development of new energy.

 

(1) Strengthen work coordination among departments. The Provincial Development and Reform Commission, Provincial Department of Industry and Information Technology, Provincial Energy Bureau, Gansu Energy Regulatory Office, and State Grid Gansu Electric Power Company and other relevant departments should closely cooperate, carefully organize implementation, strengthen policy publicity and interpretation, build consensus on reform, promptly respond to social concerns, and solve problems encountered during policy implementation. The Gansu Energy Regulatory Office and Provincial Market Supervision Bureau should strengthen supervision and inspection of electricity market operation and order, ensure fair participation of new energy in transactions, and promote stable market operation. The State Grid Gansu Electric Power Company should formulate a general template for the price settlement mechanism differential agreement for sustainable development of new energy, organize bidding according to bidding implementation rules, properly handle the signing and settlement of differential agreements, and separately collect the results of the sustainable development price settlement mechanism for new energy under the system operation cost item "Sustainable Development Price Settlement Mechanism Differential Settlement Cost." New energy projects should actively cooperate with the State Grid Gansu Electric Power Company in signing differential agreements; failure to sign differential agreements in a timely manner as required will be deemed as waiving the mechanism electricity volume.

 

(2) Strengthen coordination between price policies and new energy development planning goals, new energy equipment manufacturing industry development, industrial transfer in central and eastern regions, and power grid construction to enhance new energy consumption levels.

 

(3) Strengthen coordination between reform and proxy electricity purchase mechanisms, optimize proxy electricity purchase methods for guaranteed electricity volumes such as residential and agricultural use, and when the preferred generation volume matches the guaranteed volume but still has shortages or surpluses, trade the difference through market-based methods.

 

(4) Strengthen coordination between reform and green electricity and green certificate trading policies. Within the province, green electricity conducts bilateral negotiations and listing transactions, with declared and transaction prices clearly specifying electricity volume prices and green certificate prices respectively, without organizing separate centralized bidding or rolling matching transactions; electricity volumes included in the sustainable development price settlement mechanism do not receive duplicate green certificate benefits. The green certificate benefits of green electricity transaction volumes are settled based on the smallest of the monthly green electricity contract volume, generation enterprise's off-mechanism grid-connected volume, and electricity user consumption volume, at the corresponding green certificate price. All corresponding green certificates are transferred to a provincial dedicated green certificate account, jointly held by all industrial and commercial users.

 

(5) Strengthen coordination between reform and the market. New energy volumes not connected to the grid due to bidding prices or other factors after market participation are not included in new energy utilization rate statistics and assessments.

 

(6) Strengthen coordination between reform and business environment optimization, resolutely correct improper interventions in the electricity market, prohibit allocating unreasonable costs to new energy enterprises, and prohibit making energy storage configuration a prerequisite for approval, grid connection, or grid access of new energy projects.

 

(7) Strengthen reform tracking and effectiveness evaluation. Relevant departments should closely monitor market price fluctuations, changes in new energy generation costs and revenues, and end-user electricity price levels, carefully assess the impact of reforms on industry development and enterprise operations, timely summarize reform achievements, optimize policy implementation, and continuously enhance the guiding role of market price signals for new energy development. According to national reform deployment, evaluate and optimize the sustainable development price settlement mechanism for new energy in a timely manner, and exit when conditions mature.

 

Incremental projects under this implementation plan shall be executed from June 1, 2025, and stock projects from January 1, 2026. If major issues arise during policy implementation, report promptly to the Provincial Development and Reform Commission, Provincial Department of Industry and Information Technology, Provincial Energy Bureau, and Gansu Energy Regulatory Office. If current policy provisions conflict with this notice, this notice shall prevail. In case of national policy adjustments during the period, national regulations shall be followed.

 

Attachment: Gansu Province New Energy Sustainable Development Price Settlement Mechanism Bidding Implementation Rules

 

Gansu Province New Energy Sustainable Development Price Settlement Mechanism Bidding Implementation Rules

 

To implement the requirements of the "Gansu Province Deepening New Energy Grid Price Market-oriented Reform to Promote High-quality Development of New Energy Implementation Plan" (Gan Fa Gai Price [2025] No. 516), to carry out bidding for incremental new energy projects, ensure fair competition, impartial review, and transparent results, these implementation rules are formulated.

 

1. Bidding Model

 

(1) Bidding Organizer and Bidding Platform

 

Organizer: The Provincial Development and Reform Commission, together with the Provincial Department of Industry and Information Technology, Provincial Energy Bureau, and Gansu Energy Regulatory Office organize, with the State Grid Gansu Electric Power Company responsible for specific administrative tasks.

 

Bidding Platform: The State Grid Gansu Electric Power Company conducts bidding work relying on the bidding business function modules of the New Energy Cloud and Online State Grid service platforms (hereinafter referred to as the "bidding platform"). Project application and data submission are carried out through New Energy Cloud (for centralized new energy projects) and Online State Grid (for distributed new energy projects), with qualification review, bidding clearing, and result announcement conducted on the bidding platform.

 

(2) Scope of Application

 

These implementation rules apply to new energy projects fully connected to the grid on or after June 1, 2025 (inclusive), including centralized photovoltaic, centralized wind power, distributed photovoltaic, dispersed wind power, and solar thermal power projects within the province.

 

(3) Full Capacity Grid Connection Time Recognition

 

The commissioning time of new energy projects is based on the time when the approved (filed) capacity is fully built and connected to the grid. The full capacity grid connection recognition time: for centralized photovoltaic, centralized wind power, and solar thermal power projects, it is based on the grid connection time specified in the power business license; if a single project obtains multiple power business licenses, the latest license's specified grid connection time shall prevail; for distributed photovoltaic projects, it is based on the grid connection time determined by the power grid enterprise's marketing system; for dispersed wind power projects, it is based on the trial operation end time recognized by the power grid dispatching agency as the commissioning time. If the grid-connected capacity in the power business license or power grid enterprise marketing system, or the trial operation end commissioning capacity recognized by the power grid dispatching agency is less than the approved (filed) capacity, the project is considered not fully connected to the grid and must complete the entire approved (filed) capacity commissioning or change the approved (filed) capacity before being recognized as fully connected.

 

(4) Bidding Organization Time and Cycle

 

In principle, the bidding work for the next year is organized before the end of October each year. The Provincial Development and Reform Commission, together with the Provincial Department of Industry and Information Technology, the Provincial Energy Bureau, and the Gansu Energy Regulatory Office, clarifies relevant matters such as the scale of bidding electricity volume, scope of bidding projects, bidding upper and lower limits, and supervision and management requirements within the bidding cycle before the end of September each year. The first bidding cycle is from June 1, 2025, to December 31, 2025, and from January 1, 2026, to December 31, 2026. For subsequent years, the bidding cycle is from January 1 to December 31 of the following year.

 

(5) Bidding Entities and Qualifications

 

1. Conditions for Bidding Entities

 

Bidding entities are enterprises with legal person qualifications or authorized by legal entities engaged in power generation business. Natural person users for distributed photovoltaic bidding entities can be natural persons or distributed power aggregators.

 

2. Scope of Bidding Entities

 

(1) New energy projects that have been put into operation from June 1, 2025 (inclusive) to the time of the bidding announcement and have not been included in the mechanism execution scope. New energy projects that have been included in the mechanism and have expired or applied for withdrawal during the execution period will no longer be included in the mechanism execution scope and are not allowed to participate in bidding.

 

(2) New energy projects not yet put into operation at the time of the bidding announcement but assessed by the project construction unit to be able to be put into operation within the bidding cycle and have not been included in the mechanism execution scope.

 

(3) Distributed power aggregators. Distributed photovoltaic projects represented by distributed power aggregators participating in bidding must meet the above conditions (1) and (2).

 

3. Qualification Requirements for Bidding Entities

 

(1) Projects already put into operation

 

Centralized photovoltaic, centralized wind power, decentralized wind power, and solar thermal power projects need to provide: documents included in the annual implementation (development and construction) plan or project planning by provincial or higher-level energy authorities, project approval (filing) documents, business license, project grid connection acceptance opinions, project grid connection dispatch agreements, project power business licenses (excluding decentralized wind power), and other materials.

 

Distributed photovoltaic projects need to provide: project filing documents, power purchase and sale contracts, distributed project account numbers, proof of entity qualifications (natural person ID card, business license, organization code certificate, etc.), and other materials.

 

(2) Projects not yet put into operation

 

Centralized photovoltaic, centralized wind power, decentralized wind power, and solar thermal power projects need to provide: documents included in the power development plan or special plan approved by the government energy authorities, business license, project approval (filing) documents, and other materials.

 

Distributed photovoltaic projects need to provide: project filing documents, distributed project account numbers, proof of entity qualifications (natural person ID card, business license, organization code certificate, etc.), and other materials.

 

(3) Distributed Power Aggregators

 

Distributed power aggregators should be power sales companies or virtual power plants registered with Gansu Electric Power Trading Center Co., Ltd. They need to provide: business license, agency agreement entrusting the aggregator to participate in bidding for the represented projects, and materials of the represented distributed projects in accordance with the relevant requirements for "distributed photovoltaic projects" in these implementation rules. In the same bidding session, any distributed photovoltaic project can only choose one aggregator as its bidding agent.

 

(6) Mechanism Electricity Volume

 

1. Scale of Mechanism Electricity Volume

 

The Provincial Development and Reform Commission, together with the Provincial Department of Industry and Information Technology, the Provincial Energy Bureau, and the Gansu Energy Regulatory Office, clarifies the scale of mechanism electricity volume for incremental projects before the end of September each year.

 

2. Upper Limit of Mechanism Electricity Volume for Single Project Application

 

To avoid irrational bidding interference in the market after a single project’s entire electricity volume is included in the mechanism electricity volume, the declared electricity volume scale for a single project shall not exceed 80% of its estimated total annual grid-connected electricity volume. The grid-connected electricity volume scale of a single project is determined by multiplying the installed capacity by the average power generation hours of the same type of power source and deducting self-use electricity and plant auxiliary electricity.

 

The upper limit of the project’s declared mechanism electricity volume = project installed capacity × average power generation hours of the same type of power source (wind/photovoltaic) in the previous year × (1 - lower limit of annual self-use electricity proportion) × (1 - average plant auxiliary power rate) × 80%. The proportion of self-use electricity is implemented according to the provincial energy authority’s regulations; if no regulations are made, this value is zero; the average plant auxiliary power rate for natural person household distributed photovoltaic is zero.

 

Distributed power aggregators should declare mechanism electricity volume separately for each project they represent, and the declared electricity volume scale for each project shall not exceed 80% of its estimated total annual grid-connected electricity volume.

 

3. Mechanism Electricity Volume Decomposition Method

 

The electricity volume included in the mechanism for a single project each year is decomposed monthly on a daily average basis. For projects not yet put into operation when selected, decomposition is from the declared operation date to December 31 of that year. For projects already put into operation when selected, decomposition is from January 1 of the bidding cycle to December 31 of that year.

 

(7) Bidding Method and Bidding Upper and Lower Limits

 

1. Bidding Method

 

During the bidding cycle, all types of new energy projects participate equally in bidding. New energy projects declare prices and electricity volumes within the determined bidding upper and lower limits and mechanism electricity volume declaration limits for the current period. Projects are selected based on bids from low to high. The mechanism price is generally determined by the highest bid of the selected projects and must meet the bidding upper and lower limits. If two or more projects are selected at the mechanism price, allocation is based on the proportion of declared electricity volume; if the declared electricity volume does not reach the total mechanism electricity volume scale, allocation is based on the declared electricity volume (rounded to the nearest integer after conversion to mechanism electricity volume).

 

2. Declaration Price Requirements

 

The unit of the declared price is "yuan/kWh", retaining four decimal places, including value-added tax.

 

3. Bidding Upper and Lower Limits

 

The Provincial Development and Reform Commission, together with the Provincial Department of Industry and Information Technology, the Provincial Energy Bureau, and the Gansu Energy Regulatory Office, clarifies the bidding upper and lower limits for incremental projects before the end of September each year.

 

(8) Execution Period

 

The execution period for the mechanism electricity volume of new energy projects is determined as 12 years (the year refers to the calendar year). For the first bidding, projects in the bidding cycle from June 1, 2025, to December 31, 2025, that have been put into operation when selected, the execution period and mechanism electricity volume calculation start from the operation date.

 

II. Bidding Procedures

 

(1) Bidding Preparation Stage

 

State Grid Gansu Electric Power Company shall publish the annual bidding announcement on platforms such as New Energy Cloud and State Grid Online within 5 working days after receiving the bidding arrangement. The announcement mainly includes the scale of annual mechanism electricity volume, qualification requirements for bidding entities, upper and lower limits of declared prices, method of mechanism electricity volume decomposition, execution period, bidding procedure arrangement, bidding platform (website), bidding organization procedures, consultation methods, and other related matters.

 

(2) Qualification Review Stage

 

1. Submit Bidding Materials

 

New energy projects or distributed power aggregators intending to participate in the bidding shall complete the basic information filling and qualification material submission within the specified period according to the bidding organization announcement requirements. The basic information and bidding qualification materials of distributed photovoltaic projects represented by aggregators shall be submitted by the aggregators.

 

2. Review Bidding Qualifications

 

State Grid Gansu Electric Power Company, relying on the bidding platform, will review the completeness and compliance of submitted materials within 5 working days after the submission deadline. Qualification materials that fail the review will be uniformly returned with reasons stated. New energy projects or distributed photovoltaic aggregators participating in the bidding must revise and resubmit within 3 working days. Failure to resubmit on time or failure to pass the review after resubmission will result in disqualification from the bidding.

 

3. Announce Review Results

 

After the project application material review is completed, State Grid Gansu Electric Power Company will publicize the list of projects that passed the review for 5 working days.

 

(3) Bidding Implementation Stage

 

1. Main Entity Bidding Declaration

 

Within 3 working days after the end of the public announcement period, bidding entities shall complete the declaration of mechanism electricity volume and price on the bidding platform. Distributed power aggregators shall declare mechanism electricity volume and price separately for each project they represent. The electricity volume and price information will be automatically sealed after the submission deadline and cannot be changed.

 

2. Price Clearing of Declarations

 

State Grid Gansu Electric Power Company will carry out clearing work on the declared electricity volume and price of each project entity according to the bidding clearing mechanism.

 

3. Announce Bidding Results

 

After the bidding clearing is completed, State Grid Gansu Electric Power Company will publicize information such as project names, project types, mechanism electricity volume, and mechanism electricity price for 5 working days. If bidding entities have objections to the announcement results, they must apply for reconsideration to State Grid Gansu Electric Power Company within the announcement period and provide relevant supporting materials. If no agreement is reached after reconsideration, an appeal can be submitted to the Provincial Development and Reform Commission, which will organize relevant departments to complete the handling within 3 working days. If no objection is raised during the announcement period, the bidding results are deemed accepted.

 

4. Publish Bidding Results

 

After the announcement period ends and no objections are raised, State Grid Gansu Electric Power Company will publish the bidding results on the bidding platform.

 

5. Monthly Decomposition of Mechanism Electricity Volume

 

Within 3 working days after the announcement of the bidding results, State Grid Gansu Electric Power Company shall complete the decomposition of mechanism electricity volume for bidding projects according to the decomposition method specified in these implementation rules.

 

6. Sign Price Difference Agreement

 

Within one month after the announcement of the bidding results, State Grid Gansu Electric Power Company shall sign price difference settlement agreements with the selected new energy projects.

 

7. Rights of Non-selected Projects

 

Projects not selected in the current bidding may continue to participate in subsequent biddings. Projects selected and announced in the current bidding cannot participate in subsequent biddings again. For new energy projects that have been included in the mechanism, capacity expansion and reconstruction can participate in subsequent biddings as incremental projects after review and approval by the Provincial Energy Bureau for the expanded part.

 

3. Safeguard Measures

 

(1) Assessment Mechanism

 

New energy projects participating in the bidding shall submit bidding materials according to the requirements of these implementation rules. If there are situations such as incomplete bidding materials, overdue submission, falsification, or failure to supplement materials as required, the bidding qualification for the current year will be canceled.

 

New energy projects participating in the bidding shall consciously maintain bidding order, strictly comply with national regulations, participate in new energy mechanism electricity volume bidding legally and compliantly, and shall not abuse dominant position to manipulate bidding prices, collude on quotations, inflate prices, or disrupt market order. If such behaviors are identified by the Provincial Market Supervision Bureau together with the Gansu Energy Regulatory Office, they will be dealt with according to laws and regulations. The bidding results of all new energy projects invested by the project enterprise for the current bidding will be invalidated.

 

New energy projects included in the mechanism must strictly follow the declared production time. If the actual production time is 6 months or more later than the declared production time, the bidding result for the current project will be invalidated. Specific matters shall be handled according to the price settlement mechanism price difference agreement for sustainable development of new energy.

 

(2) Confidentiality and Information Security

 

Bidding organizers and participants must strictly observe confidentiality regulations, fully utilize market self-discipline and social supervision. Relevant competent departments shall fulfill market monitoring and risk prevention responsibilities, and monitor violations of bidding rules, collusive bidding, and other irregularities according to regulations.

 

Source: Gansu Provincial Development and Reform Commission