Notice from the General Office of the National Energy Administration on soliciting public opinions on the "Basic Rules for the Electricity Ancillary Services Market", independent energy storage, virtual power plants, etc. participate in the sharing of ancillary service costs!

On October 10, the National Energy Administration issued a notice on soliciting public opinions on the "Basic Rules of the Electricity Ancillary Services Market".

The document points out that an operating entity refers to an entity that meets the requirements of the electricity market and has observable, measurable, adjustable and controllable capabilities, mainly including thermal power, hydropower, energy storage, virtual power plants, etc.

Independent energy storage, self-owned power plants, virtual power plants and other "generation and use in one" entities participate in the sharing of auxiliary service costs on the power generation side (user side) according to the comprehensive online (off-grid) electricity volume during the settlement period.

The following is the original text:

Notice of the General Office of the National Energy Administration on soliciting opinions on the Basic Rules of the Electricity Ancillary Services Market

In order to implement the important spirit of the Party Central Committee to deepen the reform of the energy management system and build a unified national electricity market, unify and standardize the operation and management of the electricity auxiliary service market, and safeguard the legitimate rights and interests of market operators, the National Energy Administration has organized the drafting of the "Basic Rules of the Electricity Auxiliary Service Market (Draft for Comments)" and is now soliciting public opinions.

Relevant units and people from all walks of life are welcome to provide valuable opinions and suggestions. Please fax them to 010-81929559 within 30 days from the date of this announcement, or send them via email to jianguansi@nea.gov.cn.

Thank you for your participation and support!

Appendix: Basic Rules for the Electricity Ancillary Services Market (Draft for Comments)

General Office of the National Energy Administration
October 8, 2024

Basic rules for the power ancillary services market (draft for comments)

Chapter I General Provisions

Article 1 [Policy Basis] These rules are formulated to accelerate the construction of a unified national electricity market, standardize the operation and management of the electricity ancillary services market, and safeguard the legitimate rights and interests of market operators in accordance with the Electricity Law, the Electricity Supervision Regulations and other relevant laws, administrative regulations, the Several Opinions of the CPC Central Committee and the State Council on Further Deepening the Reform of the Electricity System, the Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Deepening the Reform of the Electricity System and Accelerating the Construction of a New Electricity System, and the Notice of the National Development and Reform Commission and the National Energy Administration on Establishing and Improving the Price Mechanism of the Electricity Ancillary Services Market.

Article 2 [Overall Idea] Based on the safe and stable operation of the power system and guided by the construction of new power systems, the market demand for ancillary services shall be scientifically determined, and the transaction varieties of ancillary services market shall be reasonably set. In accordance with the principle of "who provides, who profits, who benefits, and who bears", the price formation mechanism of various types of ancillary services shall be optimized, the transmission mechanism of ancillary service fees shall be improved, the market connection mechanism shall be improved in a coordinated manner, and the construction of the power ancillary services market shall be promoted and improved.

Article 3 [Basic Definition] Power auxiliary services refer to peak load regulation, frequency regulation, standby, ramping, black start and other services provided by adjustable resources in order to maintain the safe and stable operation of the power system and ensure the quality of electric energy, in addition to normal electric energy production, transmission and use. The power auxiliary service market referred to in these rules is a market-based allocation method for the adjustable resources of the system, and provides economic compensation for the power auxiliary service entities in accordance with market principles.

Article 4 [Scope of Application] These rules apply to the establishment, registration, operation, settlement and supervision and management of power auxiliary service markets at the provincial level and above.

Chapter II General Requirements

Article 5 [Construction Objectives] Establish and optimize the market mechanism for power auxiliary services, fully mobilize the enthusiasm of adjustable resources to actively participate in system regulation, standardize the construction of power auxiliary service markets at all levels, strengthen the coordinated connection between the power auxiliary service market and the electric energy market, realize the coordinated operation of multi-level markets, promote the standardized formation of power auxiliary service prices and the orderly transmission of costs, and serve the high-quality development of the economy and society.

Article 6 [Basic Principles] The construction and operation of the power auxiliary service market should adhere to the principles of unified openness, fairness, justice and orderly competition.

Article 7 [Basic Requirements] The construction of the power auxiliary service market insists on safety as the premise to ensure the safe and stable operation of the power system; guided by the market mechanism, it promotes the efficient and optimal allocation of adjustable resources; with green and low-carbon as the goal, it assists in the construction of new power systems and serves the clean energy transformation.

Chapter 3 Market Members

Section 1 Market Membership Composition

Article 8 [Market Members] Market members of power ancillary services include business entities, power grid companies and market operating institutions.

Article 9 [Operating Entity] An operating entity refers to an entity that meets the requirements of the electricity market and has observable, measurable, adjustable and controllable capabilities, mainly including thermal power, hydropower, energy storage, virtual power plants, etc.

Article 10 [Grid Enterprise] Grid enterprise refers to the entity that provides the necessary grid structure and related services for the construction and operation of the power auxiliary service market.

Article 11 [Market operating institutions] Market operating institutions refer to institutions and organizations responsible for the construction and operation of the power auxiliary service market, including power dispatching institutions and power trading institutions.

Section 2 Rights and Obligations of Market Members

Article 12 [Operating Entity] As the provider of power auxiliary services, the operating entity shall perform auxiliary service transaction results in accordance with the rules and obtain auxiliary service income.

Article 13 [Grid Enterprises] Grid enterprises provide business entities with services such as power transmission and distribution, grid access, and electricity fee settlement, and build, operate, maintain, and manage technical support systems related to the ancillary services market.

Article 14 [Electricity Dispatching Organization] As the purchaser of electricity auxiliary services, the electricity dispatching organization is responsible for proposing electricity auxiliary service requirements that meet the requirements for safe operation of the system and for purchasing various types of electricity auxiliary services in a unified manner. It is responsible for the organization of auxiliary service transactions, market clearing, service call, service metering, fee calculation and other businesses, and carries out the operation and monitoring of the auxiliary service market.

Article 15 [Electricity Trading Institutions] Electricity trading institutions are responsible for services related to market registration, information change and exit of business entities, declaration and information disclosure of the auxiliary service market, and providing the basis for settlement of the auxiliary service market, and cooperating with electricity dispatching institutions to carry out related work.

Section 3 Market Member Registration

Article 16 [Basic Conditions] In principle, the operating entity should have legal person status (or obtain authorization from a legal person), obtain an electricity business license in accordance with laws and regulations (except for those that meet exemption policies), have independent financial accounting, and have good credit qualifications.

Article 17 [Technical Conditions] Business entities participating in the auxiliary service market should have the technical capabilities to receive and execute dispatch instructions.

Article 18 [Access Principles] All types of business entities with the ability to provide ancillary services shall participate equally in the ancillary service market. In principle, business entities that receive capacity electricity charges shall participate in the ancillary service market to provide services.

Article 19 [Delisting Principles] In principle, business entities shall not withdraw from the auxiliary service market on their own. Business entities that are unable to continue to provide auxiliary services due to retirement, bankruptcy, policy adjustments, system constraints and restrictions, etc. may withdraw from the auxiliary service market only after review.

Article 20 [Responsibilities of delisted entities] Business entities exiting the market shall pay all fees related to ancillary services, and unfulfilled ancillary service contracts shall be handled through transfer or termination.

Article 21 [Market Registration] All types of business entities must complete the market registration procedures with the power trading institution before they can participate in the ancillary service market transactions. Business entities shall ensure the authenticity and completeness of the materials submitted for registration, and after fulfilling the relevant procedures such as commitment, publicity, registration, and filing, the power trading institution shall promptly release the registration information of the business entity to the public.