Inner Mongolia: Improving renewable energy power consumption capacity through supporting energy storage

On the 25th, the Energy Bureau of Inner Mongolia Autonomous Region issued the "Implementation Plan for the Guarantee of Renewable Energy Power Consumption in Inner Mongolia Autonomous Region", which proposed that the Energy Bureau, together with the Department of Industry and Information Technology, urge all market players to improve the renewable energy power consumption capacity through supporting energy storage facilities, adjustable loads, self-provided units participating in peak load regulation, and thermal power flexibility transformation. The power generated by energy storage projects and the power used by wind power heating projects under the unified dispatching and operation management of the power grid are all recognized as the power consumed by renewable energy.

The following is the original text

Notice of the Energy Bureau of Inner Mongolia Autonomous Region on Issuing the Implementation Plan for Ensuring the Consumption of Renewable Energy Power in Inner Mongolia Autonomous Region

Neineng Electric Power No. 〔2021〕52

All league administrative offices, municipal people's governments, relevant committees, offices, departments and bureaus of the autonomous region, Inner Mongolia Electric Power (Group) Co., Ltd., State Grid Inner Mongolia Eastern Electric Power Co., Ltd., and all relevant market entities:

With the approval of the Autonomous Region People’s Government, the “Implementation Plan for Ensuring the Absorption of Renewable Energy Power in the Inner Mongolia Autonomous Region” is now issued to you. Please implement it conscientiously.

January 22, 2021

(This document is disclosed voluntarily)

Implementation Plan for Renewable Energy Power Consumption Guarantee in Inner Mongolia Autonomous Region

In order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, promote the development and utilization of renewable energy, and implement the renewable energy power consumption guarantee mechanism in the autonomous region, this plan is formulated in accordance with the "Notice of the National Development and Reform Commission and the National Energy Administration on Establishing and Improving the Renewable Energy Power Consumption Guarantee Mechanism" (Fagai Energy [2019] No. 807), "Notice of the General Office of the National Development and Reform Commission and the General Office of the National Energy Administration on Issuing the Outline for the Preparation of Provincial Renewable Energy Power Consumption Guarantee Implementation Plan" (Fagai Office Energy [2020] No. 181), "Notice of the National Development and Reform Commission and the National Energy Administration on Issuing the 2020 Renewable Energy Power Consumption Responsibility Weights of Each Provincial Administrative Region" (Fagai Energy [2020] No. 767), combined with the actual situation of the autonomous region.

I. General requirements

1. Guiding ideology

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the spirit of the 19th National Congress of the Communist Party of China and the second, third, fourth and fifth plenary sessions of the 19th Central Committee of the Communist Party of China, conscientiously implement the spirit of General Secretary Xi Jinping’s important speeches and instructions on Inner Mongolia’s energy work, thoroughly implement the new energy security strategy of “four revolutions and one cooperation”, focus on the “carbon peak-carbon neutrality” energy green and low-carbon transformation and development goals, accelerate the construction of a clean, low-carbon, safe and efficient modern energy system, establish and improve an efficient and binding mechanism to ensure the consumption of renewable energy power, and promote the sustained, healthy and high-quality development of renewable energy in the autonomous region.

(II) Work objectives

In 2020, the annual renewable energy power consumption responsibility weight target issued by the state will be completed. The autonomous region's total consumption responsibility weight will be at least 18.0%, and the non-hydropower consumption responsibility weight will be at least 16.5%; the incentive total consumption responsibility weight will be 19.7%, and the incentive non-hydropower consumption responsibility weight will be 18.2%.

The annual targets and tasks will be adjusted according to the annual consumption responsibility weight targets issued by the state. We will vigorously develop new energy and further increase the consumption capacity of renewable energy power. By 2025, the total consumption responsibility weight of renewable energy power in the region will strive to reach more than 25%, and promote the high-quality development of renewable energy in the autonomous region.

2. Allocation of Consumption Responsibility Weights

1. Allocation Principles

1. The autonomous region's power consumption responsibility weight is divided according to the operating area of ​​Inner Mongolia Electric Power Company and the operating area of ​​State Grid Mengdong Electric Power Company.

2. Each market entity that bears the responsibility for consumption (including self-owned power plants) shall be assigned to the corresponding operating area according to the region where they are located.

3. In principle, the weight of consumption responsibility borne by market entities in the same business area shall be distributed with equal weight.

(II) Distribution plan

The Autonomous Region Energy Bureau formulates an annual consumption responsibility weight allocation plan based on the annual consumption responsibility weight target tasks issued by the state. In 2020, the minimum total consumption responsibility weight in the Inner Mongolia Electric Power Company's operating area is 17.7%, and the minimum non-hydropower consumption responsibility weight is 16.2%; the minimum total consumption responsibility weight in the State Grid Mengdong Electric Power Company's operating area is 22.1%, and the minimum non-hydropower consumption responsibility weight is 21.6%; the incentive consumption responsibility weight is 1.1 times the minimum consumption responsibility weight.

The weighting scheme for each market entity that bears the responsibility for consumption is as follows:

1. Grid companies bear the consumption responsibility weight corresponding to their annual electricity sales.

2. All types of enterprises that directly supply (sell) electricity to electricity users, independent power sales companies, power sales companies with distribution operation rights (referred to as "distribution and sales companies", including incremental distribution project companies), etc., shall bear the consumption responsibility weight corresponding to their annual supply (sales) electricity.

3. Electricity users who purchase electricity through the electricity market (excluding those who purchase electricity through electricity sales companies) shall bear the consumption responsibility weight corresponding to their annual electricity market purchase volume.

4. Enterprises that own their own power plants shall bear the consumption responsibility weight corresponding to their annual electricity consumption.

3. Implementation of the weight of consumption responsibility

1. Main methods of implementation

It mainly includes two ways: purchasing or generating and using renewable energy electricity for one’s own use.

(II) Supplementary fulfillment methods

1. Purchase the excess consumption volume from other market players, and both parties independently determine the price to trade or transfer the consumption volume.

2. Purchase renewable energy green electricity certificates, and the amount of renewable energy electricity corresponding to the green certificate will be recorded as the consumption amount.

(III) Allocation of the corresponding consumption volume of renewable energy electricity purchased with full guarantee

1. Give priority to completing the consumption responsibility weights corresponding to residents, agriculture, important public utilities and public welfare services, and non-market electricity consumption within the business area.

2. If there is any surplus absorption capacity, it will be distributed free of charge in the initial stage according to the power purchase or consumption of each market player (excluding isolated grid self-owned power plants) in the operating area, and will be adjusted in a timely manner according to the progress of the power market reform.

(IV) Calculation of consumption

1. Electricity of renewable energy purchased through the market. (1) Electricity of renewable energy purchased by power grid enterprises with full guarantee shall be allocated to each market entity in the operating area and shall be included in the consumption of the market entity according to the allocated electricity. (2) Electricity of renewable energy traded in the power market shall be included in the consumption of the market entity according to the transaction settlement electricity.

2. Electricity from renewable energy generated and used for self-use. Electricity from renewable energy generated and used for self-use as measured by power grid enterprises (or approved by relevant energy authorities or agencies dispatched by the National Energy Administration) shall be fully included in the consumption of self-generation and self-use market entities.

3. Complete the consumption volume by supplementary (alternative) means. The consumption volume purchased from other market entities that bear the consumption responsibility, or the consumption volume converted from the purchase of green certificates, shall be included in the purchaser's consumption volume. The consumption volume sold or transferred by the market entity that bears the consumption responsibility, as well as the consumption volume corresponding to the sale of green certificates, shall no longer be included in the consumption volume of the market entity.