Energy Agency Exempts Distributed Photovoltaic Power Generation Licensing

Recently, the National Energy Administration issued a notice to exempt some of the electricity business license for power generation projects, simplifying the application process and creating a relatively relaxed environment for the development of distributed energy and clean energy.

According to the “Notice on Clearly Explaining Matters Concerning Power Business License Management” of the Energy Administration, the power generation licenses for the new energy power generation projects such as solar energy and wind power that are registered (approved) for distributed energy projects and 6MW (excluding) will be exempted.

The power business licensing system is the legacy of the State Electricity Regulatory Commission. On December 1, 2005, the Regulations for the Administration of Electric Power Business Licensing was formally implemented. According to regulations, businesses must obtain a power business license to engage in electric power business in China. This move is to learn from the experience of power market reforms in countries such as Europe and the United States, and regulate the power industry through the power business licensing system.

Under the requirement of national decentralization, power business license management is gradually decentralized by highly centralized power. In December 2013, the National Energy Administration delegated responsibility for issuing power business licenses to dispatch agencies. The Energy Bureau issued a document to exempt certain power generation project business licenses and reduce unnecessary administrative intervention.

Exempted from partial power business license

According to information from electric power companies, the original supervisory and regulatory authority has always been weak in permit management of small hydropower and small wind power. For example, there are thousands of small hydropower stations in Yunnan, and there are no statistics on the specific amount. These small power plants have been connected to the grid without obtaining a license.

In 2012, the former State Electricity Regulatory Commission survey showed that 551 grid-connected power generation enterprises did not obtain power generation licenses in the year, and most of them were self-provided power plants and small hydropower enterprises. In recent years, a large number of new energy projects have been connected to the grid, and it has been impossible for the energy management department to make detailed approvals.

The exempted power business licenses include: distributed power generation projects that are clearly identified by the competent authority of energy in the form of filing (approval); small hydropower stations with a single station installed capacity of 1MW (excluding); and solar power below 6MW (excluding) New energy power generation projects such as wind energy, biomass energy, ocean energy, and geothermal energy; 6MW (excluding) waste heat and pressure resource comprehensive utilization power generation projects; non-fossil fuel direct combustion dispatched by prefecture (city) level and below dispatching agencies Bring your own power station.

The Energy Bureau notice stipulates that related units and individuals do not require a power generation business license to operate the aforementioned power generation business. When the project operating entity deals with grid-connected operations with grid companies, it no longer requires the provision of a power generation business license or other certification.

Excluding some of the exempted items, enterprises with a total installed capacity of 6MW (excluding) of small hydropower; solar energy, wind energy, biomass energy, ocean energy, geothermal energy, and other new energy power generation and waste heat and pressure resource comprehensive utilization power generation businesses can simplify power generation. Power business license application requirements.

Simplified content is reflected in both financial and personnel aspects: For those who have been established for more than two years, they are no longer required to provide annual financial reports and financial status audit reports for the last two years. Companies can provide financial statements for the last two years; they are established for less than two years. The financial reports, capital verification reports and financial status audit reports since the establishment of the enterprise are no longer required, and the company can provide financial statements since its establishment.

In addition, the person in charge of corporate security, the person in charge of production operations, the person in charge of technology, and the person in charge of finance shall allow one person to serve two or more positions.