China recently introduced new rules to boost electricity
generated from renewable energy. The latest 'Measures for
the Administration of Power Grid Enterprises' Full
Acquisition of Renewable Energy Power' (administration
measures) were adopted on 17 July by the State Electricity
Regulatory Commission and came into effect on 1 September
According to the administration measures six technologies,
namely hydropower, wind power, biomass, solar power, ocean
energy generation and geothermal power, will enjoy priority
scheduling in grid network access. Grid enterprises are obliged
to fully purchase electricity from renewable energy, the
producers of which are covered by the grid enterprises'
respective grid network.
In addition, with the exception of large-scale hydroelectric
power, renewable energy power projects are not required to
participate in bidding for connection with the grid. Grid
enterprises are responsible for construction of the necessary
facilities according to approved plans to ensure that renewable
energy power will be connected to the power grid.
Grid enterprises will be held liable if they provide no
priority scheduling to electricity sourced from renewable
energy, or fail to provide full acquisition of renewable
energy, which causes economic losses to renewable energy
Andrew Halper, head of the China business group at
Eversheds, comments 'The principle of "full
acquisition of renewable energy power" was introduced in
the Renewable Energy Law back in 2005. However, due to the lack
of implementing rules the principle has not really been
The introduction of the administration measures is expected
to tackle the problems of grid connection for renewable energy
generation enterprises and undoubtedly these enterprises, and
also equipment manufacturers, are expected to benefit.'
Eversheds LLP is a foreign law firm registered with the
Ministry of Justice of the People's Republic of China.
Under current Chinese regulations, we are allowed to provide
information concerning the impact of the Chinese legal
environment, but, like all international law firms with offices
in the PRC, we are not authorized to issue opinions,
determinations, or certifications in respect of, the
application of PRC law. We work in cooperation with a number of
Chinese law firms. Should you require a legal opinion in
respect of any Chinese law matter, we would be happy to assist
you in obtaining such an opinion from a Chinese firm.
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should
be sought about your specific circumstances.
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