Abstract: The National Development and Reform Commission recently published the Interim Measures for Distributed Generation Management on its website, which clarifies the detailed rules for project construction management, grid access and operation management of distributed generation. The scope of distributed power generation is further defined as small hydropower stations with a total installed capacity of 50000 kilowatts or less, wind energy, solar energy, biomass energy, marine energy, geothermal energy and other new energy power generation.

The National Development and Reform Commission recently released the Interim Measures for the Management of Distributed Generation on its website, which clarifies the detailed rules on project construction management, grid access and operation management of distributed generation.

The scope of distributed power generation is further defined as small hydropower stations with a total installed capacity of 50000 kilowatts or less, wind energy, solar energy, biomass energy, marine energy, geothermal energy and other new energy power generation. Power generation by comprehensive utilization of resources other than direct coal combustion, such as power generation by various wastes, power generation by multiple energy complementation, power generation by residual heat and pressure, and power generation by coal mine gas (coalbed methane) is also within the scope.

The Measures clarifies the principle of "spontaneous self use is dominant, excess electricity is connected to the grid, and the power grid adjusts the surplus and shortage", and adopts two-way metering electricity settlement or net electricity settlement, taking into account the peak and valley electricity price factors. The power grid enterprise shall ensure the preferential access to the grid and full purchase of the surplus electricity generated by distributed generation.

"This is great news for photovoltaic enterprises, which further clarifies the previously ambiguous problems in the construction and operation of distributed power stations." An analyst of a photovoltaic enterprise told the reporter of the First Financial Daily.

From a broader perspective, the above analysts believe that the Measures clarify the general direction of actively supporting distributed photovoltaic power generation by optimizing the grid connection application process, simplifying the grid connection procedure and providing service efficiency, which is conducive to promoting the rapid growth of the domestic photovoltaic market.

However, the small hydropower stations mentioned in the Measures are not so optimistic in the industry. People from a southern power company believe that the grid price of hydropower stations is "one station, one core". There has never been a preferential policy in connection with the grid. The price formation mechanism of hydropower has not been improved, and small hydropower is generally difficult to operate. Therefore, it is necessary to see the details of subsequent policies.

In fact, in the first half of 2012, the Measures were widely circulated in the industry, and there were also supporting policies such as the Measures for the Administration of Distributed Generation Grid Connection and the Renewable Energy Quota System, but so far, the latter policies are still missing. Including the distributed photovoltaic kilowatt hour subsidy standard, the final version has not been seen for a long time.