Gansu Province issues the "Implementation Rules for Direct Transactions between Power Users and Power Generation Enterprises in 2020"

China Energy Storage Network News: On March 25, the Gansu Provincial Development and Reform Commission issued the "Gansu Province 2020 Direct Transactions between Electricity Users and Power Generation Enterprises Implementation Rules", requiring electricity users who meet the access conditions to complete, accurately and truthfully fill out the "Gansu Province Electricity Users and Power Generation Enterprises Direct Transactions Electricity User Application Form" and submit applications through the power supply company of the city or prefecture where they are located before April 1, 2020. The results are expected to be announced on the Gansu Power Exchange Center Information Platform website before April 15.

The "Implementation Rules" clearly state that we must adhere to the principles of promoting the stabilization and recovery of the industrial economy, guiding industrial transformation and upgrading, absorbing new energy electricity, and promoting win-win cooperation among the three parties of power generation, transmission and use, and establish an incentive and punishment mechanism.

The access conditions stipulate that the power users participating in the transaction must be large industrial power users that comply with industrial and environmental protection policies; centralized electric heating users with an annual power consumption of 300,000 kWh or more; power consumption of 5G communication base stations in the province and power consumption of incremental power distribution and sales enterprises. Power generation enterprises must be public thermal power enterprises in the province other than self-owned power plants; hydropower enterprises with an installed capacity of 15,000 kilowatts or more in the province, excluding the Liujiaxia Hydropower Plant in the network; new energy power generation enterprises in the province (excluding poverty alleviation, household distributed photovoltaic, franchise, and parity demonstration power generation projects). Power sales companies must be power sales companies that have completed the registration, publicity, and filing procedures as required.

The Implementation Rules have formulated an exit and incentive mechanism. First, according to the principle of supporting large, excellent and strong enterprises, high-energy-consuming industries will be guided to accelerate transformation and upgrading step by step. For the incremental electricity consumption in 2020, a certain proportion of new energy electricity will be allocated when organizing monthly incremental direct power purchase transactions; starting from 2021, enterprises (or production capacity) with annual electricity consumption reaching a certain scale or a single electric furnace capacity of 4,000 kVA or above will be allocated a certain proportion of new energy electricity in direct transactions.

The "Implementation Rules" clearly state that the electricity volume reported by power users for transactions is the electricity consumption of the enterprise's production, and the electricity volume reported by users shall refer to the actual production electricity consumption in 2019 in principle. The electricity volume reported by power generation enterprises for transactions is the grid-connected electricity volume. Thermal power companies and hydropower companies must participate in proportion to the direct transaction demand on the electricity consumption side within the province. The participation of new energy power generation companies in transactions shall not affect the completion of guaranteed electricity volume. The electricity volume reported by power generation enterprises shall not exceed the upper limit of the electricity volume that can be directly traded by each power generation enterprise. The trading cycle is mainly annual trading, supplemented by monthly trading. Power generation enterprises and power users (power sales companies) that meet the access conditions trade through the trading platform of the trading center, and can specifically adopt autonomous bilateral negotiation transactions, centralized transactions or listing transactions.

The "Implementation Rules" provide detailed provisions for transaction settlement. Direct transactions are settled uniformly by the provincial power company with power generation enterprises, power users, and power sales companies. The trading center temporarily provides the basis for transaction settlement on the power generation side (provincial unified dispatch). The transaction price between power users (power sales companies) and power generation companies is temporarily determined by the equal transmission of the price difference between the power user's household electricity price and the power generation company's on-grid electricity price on both sides of the purchase and sale. Annual transactions of power users are settled monthly, and settled quarterly or annually. Monthly settlement is made in the order of "first annual and then monthly". The transaction volume of power generation enterprises is settled on a rolling basis within the year, and the annual total settlement is made.