Pilot program seeks public input on market-based distributed generation, enabling local transactions with users.

One can We've exclusively learned that the Comprehensive Department of the National Energy Administration recently issued a letter seeking feedback on the "Notice on Launching a Pilot Program for Market-Based Trading of Distributed Power Generation."

Here are the key points of the notice:

1. Market-based trading mechanism ： The distributed generation project entity trades electricity directly with nearby users within the distribution network, while the grid company charges a transmission fee.

2. Transaction Model:

1) Direct Electricity Trading

2) Entrust the grid company to act as an electricity retailer.

3) Grid companies will purchase all of the electricity generated and fed into the grid at a rate equal to the local benchmark coal-fired power price plus the 110-kV transmission and distribution tariff.

3. Trading Platform ： Leveraging the dispatching organizations of city- or county-level grid companies, establish a distributed power trading platform, or set up city- or county-level regional sub-modules for distributed power trading within the provincial grid company's dispatching structure.

4. Interconnection Fee Standards: Electricity users (including those within microgrids) generate and consume power themselves, as well as in For voltage levels of 10 (20) kV consumed within the same substation area, no transmission charges will be applied. For connections ranging from 35 to 100 kV integrated into the grid and also consumed within the same substation area, the transmission charge will be calculated as the region’s nationally approved maximum transmission and distribution tariff, minus the specific transmission and distribution tariff applicable to the electricity user’s voltage level.