Guangxi: Encourage the construction of a certain proportion of energy storage in incremental distribution networks and promote the development of integrated green power supply parks that integrate sou

On December 10th, the Development and Reform Commission of Guangxi Zhuang Autonomous Region issued a notice on further improving the reform of incremental distribution business in our region. The notice pointed out that centralized new energy access to incremental distribution networks should, in principle, adopt the integrated development model of source, grid, load and storage in accordance with relevant national requirements. Encourage the construction of a certain proportion of energy storage facilities in incremental distribution networks, and encourage the construction of green power supply parks that integrate source, grid, load, and storage in incremental distribution networks, in order to promote clean and low-carbon development.

Notice from the Development and Reform Commission of Guangxi Zhuang Autonomous Region on Further Improving the Reform of Incremental Distribution Business in Our Region

Guangxi Power Grid Company, Guangxi Electric Power Trading Center, Development and Reform Commissions of various cities, and owners of incremental distribution business projects:

In order to implement the spirit of the "Opinions of the Central Committee of the Communist Party of China and the State Council on Fully, Accurately, and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Peak and Carbon Neutrality", the "Notice of the National Development and Reform Commission and the National Energy Administration on Further Promoting the Reform of Incremental Distribution Business" (NDRC Jing Ti [2019] No. 27), and the "Notice of the National Development and Reform Commission and the National Energy Administration on Launching the Fifth Batch of Pilot Reforms of Incremental Distribution Business" (NDRC Run [2020] No. 1310), better guide market entities to invest in an orderly manner, stimulate social investment vitality, standardize the construction of incremental distribution networks, and standardize the operation of incremental distribution business, the relevant matters are hereby notified as follows:

1、 Further clarify the positioning of incremental distribution networks

（1） Market entity positioning. Incremental distribution network enterprises have equal market subject status with Guangxi Power Grid Company, Guangxi New Electric Power Company, Guidong Electric Power Company, and Baise Electric Power Company (hereinafter referred to as "interconnected power grid enterprises"), all of which are public power grids and bear equal obligations, and are not considered as power users. Incremental distribution network enterprises and interconnected power grid enterprises have a network interconnection relationship. Incremental distribution network enterprises that have obtained the "Electricity Business License (Power Supply Category)" in accordance with the law enjoy the rights and fulfill corresponding obligations granted by laws and regulations such as the "Electricity Law" and the "Renewable Energy Law".

（2） Market transactions. After completing the registration of market entity qualifications in accordance with relevant national and autonomous region policies, incremental distribution network enterprises and their users within the network area may comply with relevant regulations to carry out market-oriented electricity transactions.

（3） Power connection. In principle, centralized new energy access to incremental distribution networks should adopt an integrated development model of source grid load storage in accordance with relevant national requirements. Encourage distributed power sources such as rooftop photovoltaics within the incremental distribution network area to be connected to the incremental distribution network nearby. Under the premise of having consumption space, allow the incremental distribution network to be appropriately connected to renewable power sources such as wind power, photovoltaic power, biomass power that meet planning requirements. Encourage the construction of a certain proportion of energy storage facilities in the incremental distribution network. Waste heat, pressure and gas power generation projects can be planned and constructed within the incremental distribution area. It is strictly prohibited to construct conventional coal-fired self owned units under the name of waste heat, pressure and gas. Encourage the construction of green power supply parks that integrate source, grid, load, and storage in incremental distribution networks, and move towards clean and low-carbon development.

（4） Electricity bill settlement. Incremental distribution network enterprises can settle with the power generation enterprises they dispatch and manage on their own. Based on the settlement basis provided by the autonomous region level power trading institutions, they can settle with relevant parties according to market trading contracts and market rules, and fully pay government funds and surcharges in accordance with regulations.

Autonomous region level electricity trading institutions and incremental distribution network enterprises should provide technical support to electricity users or sales companies within the incremental distribution network area in accordance with market trading rules, and provide basic conditions for settlement. The price of transmission and distribution between incremental distribution network enterprises and interconnected power grid enterprises shall be implemented in accordance with relevant regulations of the autonomous region.

（5） Measurement management. Incremental distribution network enterprises shall carry out measurement device calibration work under the authorization of local market supervision departments, or entrust local authorized institutions to carry out calibration work.

2、 Further clarify the development process of incremental distribution business projects

The incremental distribution business projects include the establishment of new incremental distribution business projects and the conversion of existing assets of non grid enterprises into incremental distribution business projects.

（1） Project application

The municipal development and reform department shall submit an application to the Development and Reform Commission of the autonomous region to carry out an incremental distribution business project, specifying the implementation steps of the project and the specific content of the connection point with the interconnected power grid enterprise. The application form for incremental distribution business project, the application form for incremental distribution business project (see Annex 1 for details), and relevant opinions of the power grid enterprise shall be attached. After evaluation by the Development and Reform Commission of the autonomous region and relevant departments, an opinion on whether to agree shall be issued.

（2） Project owner confirms

The incremental distribution business project is determined by the development and reform department of the city through market-oriented mechanisms such as bidding in accordance with laws and regulations, and the project owner is selected in an open, fair, and just manner. The project construction content, duration, power supply scope, power supply quality, and indicators such as the power index obtained, as well as the operating period of the incremental distribution business, are clearly defined, and an agreement is signed (see Annex 2 for details).

（3） Distribution area division

The division of distribution areas should adhere to the basic principles of fairness, justice, safety and reliability, economic rationality, clear boundaries, and clear responsibilities, in order to avoid situations of duplicate and cross power supply. The division of distribution areas should be clarified before the planning and project approval (filing) of the distribution network, and the project scope should not be expanded or changed without authorization. The division of distribution areas can be agreed upon by relevant parties in advance and a distribution area division agreement can be signed. If consensus cannot be reached, in accordance with the Implementation Measures for the Division of Distribution Areas in Incremental Distribution Business (Trial) (NDRC Energy Regulations [2018] No. 424), the municipal development and reform department shall coordinate and issue a reasonable distribution area division opinion, submit it to the Southern Supervision Bureau of the National Energy Administration and the Autonomous Region Development and Reform Commission (Energy Bureau), and apply for compulsory license to the Southern Supervision Bureau of the National Energy Administration.

（4） Preparation of distribution network planning

After being listed as an incremental distribution business project, the municipal development and reform department should organize the municipal industry and information technology department, relevant park management committees, potential investment entities, and other units to prepare an incremental distribution network plan. After fully soliciting and absorbing reasonable suggestions from relevant parties such as interconnected power grid enterprises and potential investment entities, the development and reform departments of each city shall submit them to the Development and Reform Commission (Energy Bureau) of the autonomous region for evaluation.

（5） System access

The project owner entrusts a qualified professional organization to prepare a project access system design report, and the process of power grid interconnection is strictly implemented in accordance with the "Regulations on the Fair and Open Supervision of Power Grids". After the completion and acceptance of projects with a voltage level of 110 kV or above that integrate the incremental distribution network into the interconnected power grid enterprise, the owner of the incremental distribution business project shall apply to the interconnected power grid enterprise for system access (see Annex 5 for details).

The municipal development and reform department is responsible for organizing and coordinating the design of the access system. After consultation and agreement between the incremental distribution project owner and the interconnected power grid enterprise, the design report of the access system shall be reviewed and confirmed by the municipal development and reform department. The interconnected power grid enterprise shall provide convenient, timely, and efficient grid connection services to the incremental distribution project owner, and shall not refuse or delay grid connection without justifiable reasons. The operation of the incremental distribution network shall accept the unified management of safety and stability by the interconnected power grid enterprise. If the owner of the incremental distribution project and the interconnected power grid enterprise cannot reach an agreement through negotiation, the municipal development and reform department shall entrust a qualified consulting agency to review and determine, and submit it to the Development and Reform Commission (Energy Bureau) of the autonomous region and the Southern Supervision Bureau of the National Energy Administration.

（6） Project approval

After the incremental distribution network planning is approved by the Development and Reform Commission (Energy Bureau) of the autonomous region, the project owner should actively carry out the preliminary work of the project, obtain relevant supporting documents, and apply for project approval from the municipal development and reform department in accordance with the project approval regulations. The cross district and city 220 kV and 110 kV AC distribution network projects are approved by the Development and Reform Commission of the autonomous region.

（7） Project construction

The project owner follows the principle of "overall planning and step-by-step implementation", organizes project design, bidding, and construction in accordance with relevant regulations and technical standards of power construction management, and carries out project investment and construction in accordance with project approval requirements.

（8） Project acceptance

After the incremental distribution network is integrated into the interconnected power grid enterprise and the project with a voltage level of 110 kV or above is approved for completion, the municipal development and reform department shall organize the acceptance of the project, and the interconnected power grid enterprise shall participate in the acceptance work (see Annex 3 for the scope, regulations, and process of acceptance).

（9） Formal operation

Owners of incremental distribution projects may entrust other qualified entities to operate incremental distribution business projects. Before delivering electricity to users for the first time, incremental distribution business projects should report to the Development and Reform Commission (Energy Bureau) of the autonomous region. The specific process is as follows:

1. Obtain a power business license.

Owners of incremental distribution projects must apply to the Southern Regulatory Bureau of the National Energy Administration for obtaining the "Electricity Business License (Power Supply Category)".

2. Distribution price.

The management of incremental distribution network distribution prices shall be implemented in accordance with the relevant provisions of the "Notice of the Development and Reform Commission of Guangxi Zhuang Autonomous Region on Relevant Matters of Incremental Distribution Network Distribution Price Management" (Gui Fa Gai Jia Gui [2019] No. 348). In case of policy adjustments, the latest policies shall prevail.

3. Grid connected operation.

After obtaining the "Electricity Business License" and passing the acceptance, the incremental distribution project can officially start grid connected operation. The project owner must strictly operate in accordance with national laws, regulations, and relevant standards such as the "Regulations on Power Dispatching Management", "Power Grid Operation Rules", and "Guidelines for Power System Safety and Stability".

3、 Further clarify the project exit mechanism

The Development and Reform Commission (Energy Bureau) of the Autonomous Region, together with the Southern Supervision Bureau of the National Energy Administration, will carry out the implementation, supervision, and evaluation of incremental distribution projects. If the owner of an incremental distribution project is unable to fulfill their responsibilities and obligations, the power supply quality does not meet the requirements, the construction progress is slow, or the mandatory withdrawal conditions in the agreement signed with the local government are met, the project owner's qualification should be cancelled depending on the situation. The municipal development and reform department should withdraw their power business license to the Southern Supervision Bureau of the National Energy Administration and report to the Autonomous Region Development and Reform Commission (Energy Bureau). Local governments shall designate local power grid enterprises to provide guaranteed power supply services on their behalf in accordance with the law, and shall report to the Development and Reform Commission (Energy Bureau) of the autonomous region and the Southern Supervision Bureau of the National Energy Administration. The distribution grid assets shall be properly transferred to the designated local power grid enterprise through reasonable means such as agreement.

For the first five batches of approved incremental distribution projects, if they are assessed by the Development and Reform Commission (Energy Bureau) of the autonomous region in conjunction with the Southern Supervision Bureau of the National Energy Administration and no longer meet the conditions for implementation, their project qualifications can be cancelled after approval by the National Development and Reform Commission and the National Energy Administration.

4、 Other matters

（1） The municipal development and reform department is the responsible entity for the incremental distribution business work. We must fulfill our duties and responsibilities effectively, including planning and preparation of incremental distribution projects, determination of owners, division of distribution areas, project approval, project acceptance, review of access system reports, and organization and coordination. Local power grid enterprises should coordinate with the development and reform departments of each city to carry out various tasks in accordance with work requirements and schedule arrangements.

（2） Incremental distribution network enterprises and interconnected power grid enterprises should timely provide necessary information such as the current status of the local power system (including the load rate and interval of relevant main transformers), operation mode, power grid planning (including power grid investment and construction plans, etc.), power distribution, networking conditions, available capacity, actual usage capacity, outgoing line mode, available interval quantity, line channels, technical specification requirements, etc., in accordance with the requirements of the municipal development and reform department, to ensure the coordinated development of incremental distribution network enterprises and interconnected power grid enterprises.

（3） After the approval of the incremental distribution project, the interconnected power grid enterprise must provide construction power according to the reasonable time limit and access point requirements proposed by the municipal development and reform department. The period from project approval to obtaining the power business license within six months is a transitional period. During this period, if customers have already settled in, local power grid enterprises can invest in the construction and operation of distribution facilities with the approval of the municipal government, or designated enterprises by the local government can invest in the construction first. After the grid connection of 110 kV and above interconnection projects, designated enterprises can choose to dispose of the distribution facilities constructed in advance through asset investment, sale, property rights exchange, and other methods.

（4） After obtaining approval for the application of incremental distribution projects, they must be completed and put into operation within 24 months of project approval. The Development and Reform Commission (Energy Bureau) of the autonomous region will strengthen supervision and supervision with relevant departments, report on projects with slow progress, and hold talks with relevant responsible units.

（5） This notice shall come into effect on December 16, 2021. In the future, if the country introduces new policies, adjustments shall be made in accordance with national policies.