China’s first distributed power generation market-oriented trading pilot project was completed and put into operation

China’s first distributed power generation market-oriented trading pilot project was completed and put into operation

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On December 30, the 5MW distributed power generation market-oriented trading pilot project in Zhenglu Industrial Park in the city of Changzhou was successfully connected to the grid for power generation.

The project is invested and constructed by Changzhou Ninghui Solar Power Co., Ltd., a wholly owned subsidiary of Jiangsu Zhenghui Solar Power Co., Ltd., and adopts the model of “agriculture + PV” complementary project.

The project is expected to generate 6.8 million kWh of electricity annually and the electricity generated will be directly traded within the power supply area of the 110kV Wucheng Substation.

The Zhenglu Industrial Park project is the country’s first pilot project for “sale of electricity through partition walls”.

Indeed, in order to accelerate the development of distributed energy, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Launching the Pilot Market-oriented Transaction of Distributed Power Generation" in 2017, agreeing for the first time that pilot projects of "sales of electricity through partition walls" are to be implemented.

The so-called "sale of electricity through partition walls" means that distributed energy projects are allowed to directly sell electricity to neighboring energy consumers through the distribution network, and the grid companies only charge grid fees for transmission and distribution services.

(BJX)