Distributed generation is expected to usher in explosive growth

In order to accelerate the development of distributed energy, the National Development and Reform Commission and the National Energy Administration jointly released the Notice on Piloting Market-Oriented Distributed Generation Power Generation Business recently, clarifying that before 31 January 2018, the pilot areas will complete the market-oriented distributed generation Platform construction, formulating trading rules and other related work, starting from February 1, 2018 trading.

In order to further enhance the degree of marketization, the "Circular" has clarified several mechanisms for market-oriented distributed generation:

- Distributed generation projects deal directly with electricity users and pay "over-charges" to power grid enterprises. The scope of the transaction is first realized in the near future and in principle should be limited to the level of the

transformer on the upper level of the access point.

-Distributed generation project commissioned the power grid enterprises to sell electricity and electricity. The power grid companies sold the electricity sold at the price of integrated electricity sales, after deducting the "over-fee" (including grid loss), and transferred the remaining electricity sales income to distributed generation Project Unit.

- The power grid enterprises purchase electricity at the benchmark electricity price of all kinds of power generation approved by the state, but the national electricity subsidies to the power grid enterprises deduct the transmission and distribution prices corresponding to the users with the highest voltage level in the distribution network area.