China’s National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have jointly issued a notice aimed at promoting the orderly development of direct green power supply projects.
Source: People's Daily
China’s National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have jointly issued a notice aimed at promoting the orderly development of direct green power supply projects. The initiative is designed to meet rising corporate demand for clean energy, enhance local consumption of renewables, and ensure that projects are developed and operated in accordance with the principles of prioritizing safety, environmental sustainability, balanced responsibilities and rights, and matching power generation with demand.
Direct green power supply refers to a setup in which electricity is transmitted directly from the power source to a single end user via dedicated lines, bypassing the public grid. The power delivered can be physically and transparently traced back to its source. According to an NEA official, eligible power sources under the scheme include wind, solar, and biomass energy, covering both newly constructed facilities and existing renewable energy projects.
The official noted that as China’s renewable energy sector continues to expand rapidly, pressure on the grid to absorb new energy is growing. While long-distance transmission remains essential, direct supply projects can help unlock localized demand, broaden the application scenarios for renewables, and improve the efficiency of renewable resource utilization. These projects also support businesses in their transition toward green and low-carbon operations, while offering more flexible and potentially lower-cost electricity options.
Under the new guidelines, the annual share of self-consumed renewable electricity must account for at least 60% of a project’s total power generation. In addition, the proportion of renewable electricity in a user’s overall power consumption must reach no less than 30% by 2025 and gradually increase to at least 35% by 2030. The policy is intended to encourage projects to prioritize local consumption of renewable power wherever possible.
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