Shandong Energy Storage Peak-Valley Time-of-Use Electricity Price Policy Pilot Will Be Officially Implemented in June

The Shandong Provincial Development and Reform Commission officially issued the "Notice on the Pilot of Energy Storage Peak-Valley Time-of-Use Electricity Price Policy", which states that for users participating in the energy storage peak-valley time-of-use electricity price policy pilot, the valley electricity price of power storage technology devices will be reduced by 3 cents per kilowatt-hour (including tax) on the basis of the current standard. The document will be implemented on a trial basis from June 1, 2020 and will be valid until May 31, 2022.

Pilot projects that participate in direct transactions in the electricity market will automatically withdraw from the pilot program of the energy storage electricity price policy and settle electricity charges in accordance with market trading rules.

Notice of the Shandong Provincial Development and Reform Commission on the pilot of energy storage peak-valley time-of-use electricity pricing policy

Shandong Development and Reform Price [2020] No. 618

Development and Reform Commissions of all cities, State Grid Shandong Electric Power Company:

In order to give full play to the role of price in guiding energy conservation and emission reduction, mobilize the enthusiasm of power users to avoid peak hours and use electricity reasonably, and ensure the stable operation of power grids and generators, according to the "Opinions of the National Development and Reform Commission on Innovating and Improving the Price Mechanism to Promote Green Development" (Fagai Price Regulation [2018] No. 943), it is decided to carry out a pilot project on the peak and valley time-of-use electricity price policy for energy storage. The relevant matters are hereby notified as follows:

1. Electricity Price Policy

For users who participate in the pilot program of the energy storage peak-valley time-of-use electricity price policy, the off-peak electricity price of power storage technology devices will be reduced by another 3 cents per kilowatt-hour (tax included) on the basis of the current standard.

II. Scope and requirements of the pilot program

The scope of the pilot units is tentatively set as: commercial complexes, office buildings. The pilot units shall meet the following conditions at the same time: implement the "industrial, commercial and other electricity" category; implement the peak and valley time-of-use electricity price policy; not participate in electricity market transactions (use the same method to execute the contract in the form of power generation and power dispatch curve consistency, the same below); not implement other electricity price preferential policies (such as "coal-fired boiler electric energy replacement power reward policy"); use electric boilers and cold storage (ice, water) air conditioners (collectively referred to as "electric energy storage technology devices") with a capacity of 50 kilowatts or more and metering conditions; strictly implement the electricity price policy of the power transfer link, and charge electricity fees to "non-direct reading users" according to regulations.

III. Application Process

(I) Qualified users may apply to the local development and reform department and provide a feasibility study report (or design documents and other project materials) and a self-inspection report on the implementation of the power supply price policy. The Development and Reform Commission of each city will conduct a preliminary review of the project together with the local power grid company and organize on-site verification. Qualified projects will be submitted in writing (including electronic versions of relevant materials) to the Provincial Development and Reform Commission.

(2) After reviewing the reports submitted by various cities, the Provincial Development and Reform Commission will notify State Grid Shandong Electric Power Company in writing for implementation.

(III) State Grid Shandong Electric Power Company shall implement relevant electricity price policies based on the list of enterprises notified in the letter.

IV. Other matters

(I) The electric energy storage technology devices of pilot users shall be metered separately. If metering is not implemented or the conditions for installing a separate meter are not met, the power grid company and the pilot users shall calculate and charge separately by fixed quantity or fixed ratio.

(II) The income generated by reducing electricity costs through the construction of energy storage facilities in commercial complexes and office buildings shall not be included in the calculation of "the monthly household electricity price for non-direct users". Pilot units shall truthfully record the information such as electricity consumption, electricity price and electricity fee during the relevant period and accept supervision and inspection by relevant units. If the power supply transfer policy is violated, the pilot qualification shall be suspended and no application will be accepted within 1 year.

(III) Pilot projects that participate in direct transactions in the electricity market will automatically withdraw from the pilot program of the energy storage electricity price policy and settle electricity charges in accordance with market transaction rules.

(IV) Please report any problems and suggestions encountered during policy implementation to the Provincial Development and Reform Commission (Price Management Office) in a timely manner.

This notice will be implemented on a trial basis from June 1, 2020 and will be valid until May 31, 2022.

Shandong Provincial Development and Reform Commission

April 28, 2020