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Policy: NDRC Sends Notification of Electric Power Operation Adjustment Work
2016 is the first year of the 13th Five-Year plan and the NDRC sent out reform number 413 to begin new reforms in line with the new plan. Major interest areas include: actively promote direct power trading, increase pilot projects, energy conservation, and low carbon power dispatching. The low-carbon energy power dispatch program includes all carbon reduction technologies, such as ultra-low emission coal, energy power scheduling, and wastewater reuse. (SDPC CN)
Direct power trading is a key topic that is of great interest, as it pushes the marketization of electricity trading in China. Participating generators may be able to maximize their utilization hours, and local industries have the opportunity to create better deals for their energy consumption.
Transmission: NDRC Requires 30% Renewables on 660 kV HVDC Yindong Line
The NDRC released a requirement for the Yindong 660kV HVCD line to have 30% or more of its transmission capacity to be utilized by renewable energy sources. Annual power transmission capacity on the line is 29.5TWh. State Grid agreed in principle to the requirement. (SDPC CN)
Source: State Grid, Azure International
HVDC power transmission lines provide the opportunity to send large amounts of power of large distances, however, there are no intermediary step-down points. By requiring 30% of the transmission power to come from renewables, there is at least some guarantee of renewable energy utilization in the long term. How NDRC plans to enforce the rule, however, remains to be seen.
Transmission: T&D Pilot Projects Expand to 18 Provincial-Level Power Grids
Transmission and distribution pilot projects on price reform are expanding to 18 different provincial-level power grids over the coming three years. Provinces are shown in the table below. Price reforms are of keen interest to energy market participants, as they may aid in the developmentment of electricity market transactions. (SDPC CN)
Source: SPDPC, Azure International