Recently, several significant notifications issued by the Chinese government have had a profound impact on the photovoltaic (PV) industry, promising a favorable environment for its growth.
On January 6th, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) released the “Implementation Plan for Optimizing Power System Regulation Capabilities (2025-2027).” This document outlines requirements for power system regulation at all stages, from planning to market implementation, and emphasizes the need for regions to formulate systemic plans for regulation capabilities based on local conditions. It calls for innovations in the utilization of new energy sources and advanced energy storage to improve the effectiveness of regulation, addressing the current reliance on relatively simple methods of regulation.
The plan focuses on the rational consumption and utilization of renewable energy, offering a scientific analysis of the demand for regulation capabilities. It proposes optimal configurations and combinations of various regulatory resources, including new energy sources and storage systems. It also aims to accelerate the construction of a new type of power system. By 2027, the plan anticipates significant improvements in regulation capabilities, with a more complete market environment and business models for various types of regulatory resources. It also seeks to ensure the efficient consumption of over 200 million kilowatts of new energy annually and aims for a national renewable energy utilization rate of no less than 90%.
On January 7th, the NDRC issued the “Guidelines for the Construction of a Unified National Market (Trial).” This policy sets the goal of building a nationwide unified energy market system, stating that localities cannot impose restrictions on business entities, such as requiring local registration, subsidiaries, or industrial support, as prerequisites for receiving subsidies, conducting business, or enjoying other supportive policies. The guidelines establish a common set of action rules and standards across the nation, helping to regulate market competition and prevent inappropriate market interventions, thus safeguarding the market mechanism.
These two policies from the NDRC are undoubtedly a major boost to the photovoltaic industry. They not only provide clear direction and strong assurances for the industry’s future development but also create a more equitable and open market environment.
Additionally, in response to suggestions raised during the 14th National People’s Congress, the National Energy Administration (NEA) has issued a reply concerning the development of distributed energy, with particular focus on distributed photovoltaic energy.
The NEA responded to suggestion No. 4991 from the 14th National People’s Congress, which proposed strengthening coordination, regulation, and sustainable development of distributed renewable energy. The NEA is working on revising the “Interim Measures for the Management of Distributed Photovoltaic Power Generation Projects” to clarify the definitions and classifications of distributed photovoltaic energy. This revision will further refine the management requirements, covering aspects such as investment, construction sites, voltage levels, and capacity, as well as procedures for record-keeping, development, grid connection, and operational management.
In the future, the NEA plans to release the “Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation,” aiming to regulate the development of distributed photovoltaic projects. The NEA also pointed out that as the rapid growth of distributed photovoltaic energy introduces challenges such as insufficient grid capacity and limited local consumption, more emphasis is needed on planning and coordination. This includes optimizing the distribution of renewable energy and accelerating the development of flexible energy storage systems to support coordinated development between power generation, grids, consumption, and storage.
Furthermore, the NEA responded to suggestion No. 7167 from the 14th National People’s Congress, which focused on improving the market mechanisms for distributed photovoltaics and enhancing the role of the market in guiding development. The NEA is conducting research on integrating renewable energy into the electricity market and exploring the potential for new entities, such as virtual power plants and demand aggregators, to participate in the market. The NEA intends to refine market mechanisms and, where possible, enable distributed photovoltaics to engage in electricity market transactions, supporting the healthy and orderly development of distributed PV energy.
Lastly, the NEA emphasized the importance of standardizing the integration of distributed photovoltaics into the grid to improve adaptability and system support. This includes promoting the flexibility, intelligence, and digitization of distribution networks, and pushing for distributed photovoltaic systems that are observable, measurable, adjustable, and controllable. These efforts aim to ensure the efficient and reliable use of distributed photovoltaics while maintaining the stability and security of the national power system.
In conclusion, the recent government policies offer clear and comprehensive support for the continued expansion of the photovoltaic industry, providing a solid foundation for future growth and integration into the broader energy system.
