(UNOFFICAL TRANSLATION. NO RESPONSIBILITY TAKEN FOR ACCURACY OF CONTENTS)

(No. 1381 [2013] of the National Development and Reform Commission)

The development and reform commissions and energy administrations of all provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning and Xinjiang Production and Construction Corps; and China Huaneng Group, China Datang Corporation, China Guodian Corporation, China Huadian Corporation, China Power Investment Corporation, State Grid Corporation of China, China Southern Power Grid Co., Ltd., China General Nuclear Power Corporation, China Energy Conservation and Environmental Protection Group, State Development & Investment Corporation, China National Petroleum Corporation, China Petrochemical Corporation, China National Offshore Oil Corporation, Shenhua Group Corporation Limited, China National Coal Group Corporation, and China United Coalbed Methane Co., Ltd.:

In order to advance the application of distributed generation, and promote energy conservation, emission reduction and development of renewable energy, this Commission has organized the formulation of the Interim Measures for Management of Distributed Generation, which are hereby issued to you for implementation.

Annex: Interim Measures for Management of Distributed Generation

National Development and Reform Commission

July 18, 2013

Annex

Interim Measures for Management of Distributed Generation

Chapter I General Provisions

Article 1 In order to promote the growth of distributed generation, accelerate development and utilization of renewable energy, increase energy efficiency, and protect the ecological environment, these Measures are formulated in accordance with the Renewable Energy Law of the People's Republic of China, Energy Conservation Law of the People's Republic of China and other provisions.

Article 2 The term “distributed generation” under these Measures refers to power generation facilities constructed or installed in or near the sites where users are located, relying primarily on self-generation of power at the users' end for self-use and utilization of surplus power in the grid, and with the feature of balance regulation in the power distribution network system, or multi-cogeneration facilities with comprehensive cascade energy utilization and electricity output.

Article 3 These Measures shall apply to the following forms of distributed generation:

(1) A small hydropower station with total installed capacity at or below 50,000kw.

 (2) Generation of power with wind energy, solar energy, biomass energy, ocean energy, geothermal energy or other new energy accessing power distribution networks in various voltage classes.

(3) Power generation with various waste materials except direct combustion of coal, hybrid power generation with multiple energy sources, power generation with residual heat, pressure or gas, power generation with coal mine gas, and other forms of power generation featuring comprehensive utilization of resources.

 (4) Coal-bed methane power generation with total installed capacity at or below 50,000kw.

(5) Combined natural gas, cooling, heating and power with comprehensive energy utilization rate over 70% and local consumption of electricity, and other forms of distributed generation.

Article 4 With regard to distributed generation, the principle of adaptation to local conditions, cleanness, efficiency, dispersed layout and utilization of nearby resources shall be followed. Use of local renewable energy shall be maximized and resources shall be comprehensively utilized to replace or reduce fossil energy consumption.

Article 5 An open and fair market competition mechanism shall be implemented in investment, design, construction, operation and other aspects of distributed generation in accordance with law. Distributed generation projects shall comply with relevant management requirements to ensure project quality and production safety.

 Article 6 Competent energy authority under the State Council shall, jointly with other relevant authorities, formulate the national industrial policy on distributed generation, issue technical standards and engineering specifications, and provide guidance and supervision for management of development planning, construction and operation of distributed generation in various regions.

Chapter II Resource Evaluation and Comprehensive Planning

 Article 7 Areas in which distributed generation shall be developed include:

(1) various enterprises, industrial parks, economic development zones;

 (2) buildings or facilities of governments and public institutions;

(3) public buildings or facilities for cultural activities, sport events, medical care, education, and transportation hubs;

 (4) shopping malls, hotels, office buildings and other commercial buildings or facilities;

(5) residential complexes and residential buildings in cities, and independent residential buildings;

 (6) villages and towns in rural areas;

(7) remote agricultural and pastoral areas and islands; and

(8) other areas appropriate for distributed generation.

Article 8 Technologies currently applicable to distributed generation include:

(One) made for the use of small hydropower integration technology;

(Two) combined with the user side of the building photovoltaic technology;

(Three) scattered layout of the building and network-based wind power, solar power technology;

(Four) small complementary scenery storage and other energy generation technology;

(Five) of industrial waste heat and pressure than gas power generation and cogeneration technologies and more;

(Six) to agricultural and forestry residues, livestock waste, organic waste and garbage as raw materials gasification, direct combustion and biogas power generation and cogeneration technologies and more;

(Seven), geothermal energy, ocean energy power generation and cogeneration technologies and more;

(Eight) and more natural gas cogeneration technology, coal bed methane (CMM) power generation technologies;
(Nine) other distributed generation technologies.

Article IX provincial energy department in conjunction with the relevant departments, could be used for distributed generation resources survey and evaluation for distributed generation planning and project construction to provide a scientific basis.

Article X provincial energy department in conjunction with the relevant departments, can be used for distributed generation based on a variety of resources and the local use of energy needs, the preparation of the province, autonomous region or municipality distributed generation integrated planning, a clear focus areas of distributed generation development goal, the construction scale and overall layout of the State Council in charge of energy department.

Article XI shall be distributed generation integrated planning and economic and social development planning, urban planning, natural gas pipeline network planning, distribution planning and construction areas without electricity power construction planning phase of convergence.

Chapter III project construction and management

Article XII encourage enterprises, specialized energy service companies, and individuals, and others to investment in the construction and operation of power as users of distributed generation projects; distributed generation projects are exempted from business license requirements.

Article XIII of the provincial department in charge of investment and energy departments in charge of the implementation of the construction of distributed generation in the region. Pursuant to simplify procedures, improve efficiency principles, different levels of management.

Of the State Council department in charge of organization of energy distributed power generation demonstration projects to promote the development of distributed generation and management innovation, and promote technological progress and industrialization.

Chapter IV grid access

Article 15 With the energy department in conjunction with stakeholders to establish access to the distribution network of distributed generation technology standards, engineering specifications and related management practices.

Article XVI external grid enterprises responsible for grid connection of distributed generation facilities and the public caused by the access portion of the investment in the construction of power grids and distributed generation to provide convenient, timely and efficient access to grid services, and investment management distributed generation facilities project units (or self-employed, home users) and network protocols and signed power purchase contract.

Article XVII grid enterprises should develop distributed power generation and network workflows to the city or county as the unit set up and publish to accept distributed generation investor reporting location and contact information, improve service efficiency, and ensure barrier-free access.

For 35 kV and below voltage distribution grid connected distributed generation, grid enterprises should apply specifically set streamline processes and network applications and provides consulting, commissioning and grid inspection and other services.
For small hydropower and above voltage level of 35 kV distribution grid connected distributed generation, power grid enterprises should be based on its access, use of electricity, in line with the principles of simplicity and good and timely and efficient network management, to provide relevant services.

Article XVIII encouraged to integrate distributed generation applications Smart Grid and micro grids, improve energy efficiency and distributed safe and stable operation level.

Article XIX agencies of the State Council department in charge of energy are responsible for creating distributed generation and grid regulatory dispute resolution mechanisms, and effectively protect the interests of all parties.

Chapter V operation management

Article XX and network protocols for distributed generation, power purchase contract enforcement and excess grid electricity acquisitions, transfers and other matters, by the agency of the State Council department in charge of energy in conjunction with the provincial department in charge of coordinating the energy, or commission a lower sectoral coordination.

Distributed generation involving supply business range adjustment, by the State Council in conjunction with the energy agency of the provincial department in charge of the energy department under the relevant laws and regulations to be clear.

Article XXI to spontaneously occupied mainly distributed generation, excess electricity access, power surplus and deficiency. Two-way metering electricity consumption or net settlement clearing the way, and may consider TOU factor. Billing cycle in the contract agreed in principle on a monthly basis. Distributed generation power grid enterprises should ensure priority access and full acquisition of redundant power.

Article XXII, the State Council in conjunction with the energy agency of the provincial department in charge of energy distributed generation sector organizations to establish monitoring, statistics, information exchange and information disclosure system, could be entrusted to bear the information grid enterprises statistical work, distributed generation projects units (or self-employed, home users) should be provided with information.

Article XXIII, distributed generation investors to establish a sound operational management rules and regulations. Including personal and home users, including all investors, companies have an obligation under the guidance of the grid coordinate or participate in operation and maintenance to ensure safe and reliable operation of the project.

Article XXIV, distributed generation facilities and network access point energy metering device should be installed to meet the settlement needs to grid electricity. Grid companies responsible for energy metering management. Distributed generation during operation should be kept intact energy output and fuel consumption metering data.

Article XXV, projects with distributed generation facilities units, individuals and home users should receive the energy authorities and relevant departments of supervision and inspection, and truthfully provide, including raw data, including the operating record.

Article XXVI shall meet the relevant power of distributed generation, power quality requirements, operation and management should meet the relevant technical, management regulations and procedures specifications.
And power grid operation and management agencies should give priority to safeguard the normal operation of distributed generation. The conditions of the distributed generation in case of emergency should accept and obey the electricity to run the regulatory agencies emergency dispatch.

Chapter VI Policies and measures 

Article XXVII in accordance with relevant laws, regulations and policies, in line with the conditions of grant funds for construction of distributed generation unit generating capacity of subsidies or subsidies. Construction funds for subsidies is limited to the scope of universal electricity service. Enjoy construction funds subsidies, subsidies for power generation units are no longer given.

Subsidized distributed power generation include: wind power, solar power, biomass, geothermal power, ocean energy and other new energy power generation. Other distributed generation subsidy policy in accordance with relevant regulations.

Article XXVIII Provide rural and pastoral areas, remote areas and islands of distributed power generation, and distributed generation of scientific and technological research, standards development and demonstration projects, with the state financial support.

Article XXIX Strengthen science and technology popularization and propaganda work to create an environment conducive to accelerate the development of distributed generation social atmosphere.

Chapter VII Supplementary Provisions
Article XXX of the provincial energy departments of the State Council department in charge of the agency and energy prices, fiscal and other competent authorities, under this approach to develop distributed generation management implementation details.

Article XXXI These Measures shall come into force from the date.