The document defines the concept and scope of the new business entity. The new type of business entity is all kinds of resources in the distribution link with power and electricity regulation ability, new technical characteristics and new operation mode, which is divided into a single type of new technology business entity and a new type of resource aggregation business entity. Among them, single technology new business entities mainly include distributed photovoltaic, distributed wind power, energy storage and other distributed power sources and adjustable loads; Resource aggregation new business entities mainly include virtual power plants (load aggregators) and smart microgrid. Virtual power plant is a power operation organization mode that uses advanced technologies such as digitalization and intelligence, aggregates distributed power sources and adjustable loads, and collaboratively participates in system operation and market transactions. Smart microgrid is a small power distribution system with new energy as the main power source, with certain intelligent regulation and self-balancing capabilities, and can operate independently or in network with large power grid. The integration project of source network, load and storage with corresponding characteristics in the distribution link can be regarded as smart microgrid.

The original text is as follows:

guiding Opinions of National Energy Administration on supporting innovation and development of new business entities in electric power field

guoneng law reform [2024] No. 93

energy administration of all provinces (autonomous regions and municipalities directly under the central government), Development and Reform Commission of relevant provinces (autonomous regions and municipalities directly under the central government) and Xinjiang Production and Construction Corps, Tianjin, Liaoning province, Shanghai, Chongqing, Sichuan province, gansu Provincial Economic and Information Commission (Industry and Information Commission, Industry and Information Department), National Energy Administration agencies, State Grid Co., Ltd., China Southern Power Grid Co., Ltd., China Huaneng Group Co., Ltd., China Datang Group Co., Ltd, china Huadian Group Co., Ltd., National Energy Investment Group Co., Ltd., National Electric Power Investment Group Co., Ltd., China mayorJiang Sanxia Group Co., Ltd., National Development and Investment Group Co., Ltd., China Nuclear Industry Group Co., Ltd., China Nuclear Power Group Co., Ltd., China Resources (Group) Co., Ltd., Inner Mongolia Electric Power (group) limited liability company, Beijing, Guangzhou electric power trading center:

in order to thoroughly implement the relevant arrangements of the Third Plenary Session of the 20th CPC central committee on energy reform, give full play to the new business entities in improving the regulation ability of the power system, promoting the absorption of renewable energy, ensure the safe supply of electricity and other aspects, encourage the innovative development of new models and new formats, cultivate new quality productivity in the energy field, accelerate the construction of new power systems, and according to relevant laws and regulations such as the energy law, put forward the following opinions.

I. The concept and scope of the new business entity. The new type of business entity is all kinds of resources in the distribution link with power and electricity regulation ability, new technical characteristics and new operation mode, which is divided into a single type of new technology business entity and a new type of resource aggregation business entity. Among them, single technology new business entities mainly include distributed photovoltaic, distributed wind power, energy storage and other distributed power sources and adjustable loads; Resource aggregation new business entities mainly include virtual power plants (load aggregators) and smart microgrid. Virtual power plant is a power operation organization mode that uses advanced technologies such as digitalization and intelligence, aggregates distributed power sources and adjustable loads, and collaboratively participates in system operation and market transactions. Smart microgrid is a small power distribution system with new energy as the main power source, with certain intelligent regulation and self-balancing capabilities, and can operate independently or in network with large power grid. The integration project of source network, load and storage with corresponding characteristics in the distribution link can be regarded as smart microgrid.

Second, support the innovation and development of new business entities. New business entities should continuously improve their technical management level and regulation ability to better meet the needs of new power systems. Virtual power plants are encouraged to aggregate distributed photovoltaic, distributed wind power, new energy storage, adjustable load and other resources to provide flexible adjustment capability for the power system. Support qualified industrial enterprises, industrial parks, etc. to carry out the construction of smart micro-grid and improve the on-site consumption level of new energy. Explore the establishment of a mechanism to increase the green power supply of enterprises through direct connection of new energy. In principle, new business entities can be exempted from applying for power business licenses, unless otherwise stipulated. Power grid enterprises should do a good job in new business entities and (joint) NetworkServices such as platform access, clear service processes, accessible capacity, and other information to improve service efficiency.

Third, improve the scheduling and operation management of new business entities. New business entities shall implement relevant policies and requirements of safety production and network-related safety management to meet relevant national and industry technical standards. All regions accelerate the promotion of new business entities to achieve considerable, measurable, adjustable and controllable. Encourage new business entities that adjust the capacity of 5 MW or more and meet the requirements of corresponding technical indicators to provide electrical energy and auxiliary services. All regions can further reduce the regulation capacity requirements by combining the regulation demand of the power system and the operation capability of the power market. Power grid enterprises shall assist the new business entities to access the new power load management system or power dispatching automation system according to the service requirements provided to meet the relevant requirements of information network security protection. The new business entity and the power grid enterprise shall define the boundary of rights and responsibilities in terms of assets, regulation and safety through agreements. When unexpected situations such as natural disasters and equipment failures affect the safe and stable operation of the power system, the new operating entity and aggregated resources shall be under the unified command of the power dispatching organization.

IV. Encourage new business entities to participate in the electricity market equally. New business entities participate in the market and enjoy equal market status with other business entities, and fairly bear the related expenses such as deviation settlement and unbalanced capital allocation according to relevant regulations, and pay the transmission and distribution price, system operating expenses, government funds and additional funds, etc. Encourage new business entities of resource aggregation to integrate and adjust resources with small capacity, participate in the electricity market as a whole and realize collaborative scheduling. The new business entity of resource aggregation shall negotiate with the aggregated resources to determine the rights and obligations, sign the agency service contract, and apply for the record in the power trading institution. In principle, aggregated resources can only be represented by a new type of business entity of resource aggregation within the same contract period.

V. Optimize the market registration of new business entities. Local power trading institutions should set up registration categories for new business entities, and no registration threshold should be added. If a qualified new type of business entity enters or exits the electricity market, the formalities shall be handled in accordance with the relevant rules for the registration of the electricity market. Among them, the new business entities of resource aggregation and the aggregated resources should perform the registration procedures, and encourage the new business entities of resource aggregation to go through the registration procedures in a centralized manner.

6. Improve the electricity market transaction mechanism suitable for new business entities. Improve the flexibility of medium-and long-term trading of electricity, introduce standardized trading products by time, accelerate the realization of transaction settlement by time, and guide new business entities to flexibly participate in medium-and long-term trading of electricity at various time scales according to their own power balance needs. Accelerate the construction of the electric power in stock market, promote new business entities to participate in the electric power in stock market in flexible ways such as quotation or non-quotation, and explore the extension of electric power in stock clearing market nodes to lower voltage level, provide more accurate price signals for new business entities to respond to market demands. Improve the auxiliary service market, promote the fair participation of new business entities in the auxiliary service market, and study the timely introduction of new auxiliary service varieties such as standby and climbing. Improve the timeliness and accuracy of information disclosure, and promote the price signals of the electricity market to be disclosed to the public in an appropriate way.

VII. Do a good job in measurement and settlement. According to the transaction types of participating in electric energy and auxiliary services, the new business entity shall settle according to the electric energy metering device, and the electric power trading institution shall issue the settlement basis of the new entity. The settlement data of new business entities of resource aggregation in the wholesale market is formed by aggregate resource measurement data. The new business entities of resource aggregation category are temporarily settled by power grid enterprises.

VIII. Strengthen organizational security. The National Energy Administration, together with relevant departments, timely improves the market mechanism adapted to the development of new business entities, clarifies regulatory requirements, and speeds up the revision of relevant standards for new business entities. The agencies dispatched by the National Energy Administration and the relevant departments of the local government should do a good job in supervising and managing the new business entities according to the division of responsibilities, and formulate and issue technical requirements and transaction rules to adapt to the development of the new business entities in a timely manner according to the actual situation, continuously standardize the electricity market transaction behavior of new business entities to prevent market manipulation. Power grid enterprises and power market operators should continuously improve the technical support ability and service level for new business entities to participate in power trading and system operation.

National Energy Administration

november 28, 2024

guoneng law reform [2024] No. 93

energy administration of all provinces (autonomous regions and municipalities directly under the central government), Development and Reform Commission of relevant provinces (autonomous regions and municipalities directly under the central government) and Xinjiang Production and Construction Corps, Tianjin, Liaoning province, Shanghai, Chongqing, Sichuan province, gansu Provincial Economic and Information Commission (Industry and Information Commission, Industry and Information Department), National Energy Administration agencies, State Grid Co., Ltd., China Southern Power Grid Co., Ltd., China Huaneng Group Co., Ltd., China Datang Group Co., Ltd, china Huadian Group Co., Ltd., National Energy Investment Group Co., Ltd., National Electric Power Investment Group Co., Ltd., China Yangtze River Three Gorges Group Co., Ltd., National Development Investment Group Co., Ltd., China Nuclear Industry Group Co., Ltd, china Wide Nuclear Power Group Co., Ltd., China Resources (Group) Co., Ltd., Inner Mongolia Electric Power (Group) Co., Ltd., Beijing and Guangzhou electric power trading centers:

in order to thoroughly implement the relevant arrangements of the Third Plenary Session of the 20th CPC central committee on energy reform, give full play to the new business entities in improving the regulation ability of the power system, promoting the absorption of renewable energy, ensure the safe supply of electricity and other aspects, encourage the innovative development of new models and new formats, cultivate new quality productivity in the energy field, accelerate the construction of new power systems, and according to relevant laws and regulations such as the energy law, put forward the following opinions.

I. The concept and scope of the new business entity. The new type of business entity is all kinds of resources in the distribution link with power and electricity regulation ability, new technical characteristics and new operation mode, which is divided into a single type of new technology business entity and a new type of resource aggregation business entity. Among them, single technology new business entities mainly include distributed photovoltaic, distributed wind power, energy storage and other distributed power sources and adjustable loads; Resource aggregation new business entities mainly include virtual power plants (load aggregators) and smart microgrid. Virtual power plant uses advanced technologies such as digitalization and intelligence to aggregate distributed power sources and adjust them.Load saving, etc., the power operation organization mode that collaborates to participate in system operation and market transaction. Smart microgrid is a small power distribution system with new energy as the main power source, with certain intelligent regulation and self-balancing capabilities, and can operate independently or in network with large power grid. The integration project of source network, load and storage with corresponding characteristics in the distribution link can be regarded as smart microgrid.

Second, support the innovation and development of new business entities. New business entities should continuously improve their technical management level and regulation ability to better meet the needs of new power systems. Virtual power plants are encouraged to aggregate distributed photovoltaic, distributed wind power, new energy storage, adjustable load and other resources to provide flexible adjustment capability for the power system. Support qualified industrial enterprises, industrial parks, etc. to carry out the construction of smart micro-grid and improve the on-site consumption level of new energy. Explore the establishment of a mechanism to increase the green power supply of enterprises through direct connection of new energy. In principle, new business entities can be exempted from applying for power business licenses, unless otherwise stipulated. Power grid enterprises should do a good job in services such as new business entities and (connection) network or platform access, clarify service processes, accessible capacity and other information, and improve service efficiency.

Third, improve the scheduling and operation management of new business entities. New business entities shall implement relevant policies and requirements of safety production and network-related safety management to meet relevant national and industry technical standards. All regions accelerate the promotion of new business entities to achieve considerable, measurable, adjustable and controllable. Encourage new business entities that adjust the capacity of 5 MW or more and meet the requirements of corresponding technical indicators to provide electrical energy and auxiliary services. All regions can further reduce the regulation capacity requirements by combining the regulation demand of the power system and the operation capability of the power market. Power grid enterprises shall assist the new business entities to access the new power load management system or power dispatching automation system according to the service requirements provided to meet the relevant requirements of information network security protection. The new business entity and the power grid enterprise shall define the boundary of rights and responsibilities in terms of assets, regulation and safety through agreements. When unexpected situations such as natural disasters and equipment failures affect the safe and stable operation of the power system, the new operating entity and aggregated resources shall be under the unified command of the power dispatching organization.

IV. Encourage new business entities to participate in the electricity market equally. New business entities participate in the market and enjoy equal market status with other business entities, and fairly bear the biased settlement and unbalanced funds according to relevant regulations.Allocation and other related expenses, payment of transmission and distribution price, system operation expenses, government funds and surcharges, etc. Encourage new business entities of resource aggregation to integrate and adjust resources with small capacity, participate in the electricity market as a whole and realize collaborative scheduling. The new business entity of resource aggregation shall negotiate with the aggregated resources to determine the rights and obligations, sign the agency service contract, and apply for the record in the power trading institution. In principle, aggregated resources can only be represented by a new type of business entity of resource aggregation within the same contract period.

V. Optimize the market registration of new business entities. Local power trading institutions should set up registration categories for new business entities, and no registration threshold should be added. If a qualified new type of business entity enters or exits the electricity market, the formalities shall be handled in accordance with the relevant rules for the registration of the electricity market. Among them, the new business entities of resource aggregation and the aggregated resources should perform the registration procedures, and encourage the new business entities of resource aggregation to go through the registration procedures in a centralized manner.

6. Improve the electricity market transaction mechanism suitable for new business entities. Improve the flexibility of medium-and long-term trading of electricity, introduce standardized trading products by time, accelerate the realization of transaction settlement by time, and guide new business entities to flexibly participate in medium-and long-term trading of electricity at various time scales according to their own power balance needs. Accelerate the construction of the electric power in stock market, promote new business entities to participate in the electric power in stock market in flexible ways such as quotation or non-quotation, and explore the extension of electric power in stock clearing market nodes to lower voltage level, provide more accurate price signals for new business entities to respond to market demands. Improve the auxiliary service market, promote the fair participation of new business entities in the auxiliary service market, and study the timely introduction of new auxiliary service varieties such as standby and climbing. Improve the timeliness and accuracy of information disclosure, and promote the price signals of the electricity market to be disclosed to the public in an appropriate way.

VII. Do a good job in measurement and settlement. According to the transaction types of participating in electric energy and auxiliary services, the new business entity shall settle according to the electric energy metering device, and the electric power trading institution shall issue the settlement basis of the new entity. The settlement data of new business entities of resource aggregation in the wholesale market is formed by aggregate resource measurement data. The new business entities of resource aggregation category are temporarily settled by power grid enterprises.

VIII. Strengthen organizational security. The National Energy Administration, together with relevant departments, timely improves the market mechanism adapted to the development of new business entities, clarifies regulatory requirements, and speeds up the revision of relevant standards for new business entities. The agencies dispatched by the national energy administration and the relevant departments of the local government should do a good job in supervising and managing the new business entities according to the division of responsibilities, and formulate and issue technical requirements and transaction rules to adapt to the development of the new business entities in a timely manner according to the actual situation, continuously standardize the electricity market transaction behavior of new business entities to prevent market manipulation. Power grid enterprises and power market operators should continuously improve the technical support ability and service level for new business entities to participate in power trading and system operation.

National Energy Administration

november 28, 2024