Hainan Issues Consultation Draft to Regulate High-Quality Development of Grid-Side Independent New Energy Storage
Hainan Provincial Development and Reform Commission released a consultation draft on April 16, aiming to systematically regulate the high-quality development of grid-side independent new energy storage projects. The draft covers project filing, grid connection, construction time limits and exit mechanisms, with a consultation period running from April 16 to April 30.
The consultation draft, titled "Notice on Matters Concerning Promoting the High-Quality Development of Grid-Side Independent New Energy Storage in Our Province (Public Consultation Draft)", clarifies that grid-side independent new energy storage projects will be managed through a dynamic list system. China Government Network notes that such a list-based management model is in line with the national policy orientation for new energy storage development, which emphasizes standardized project management to ensure safe and efficient operation.
Specifically, projects that have been connected to the grid and put into operation, or have completed project filing and obtained valid grid connection opinions, will be uniformly included in the dynamic list. Projects not on the list will be excluded from the scope of subsequent capacity price compensation. The National Development and Reform Commission and the National Energy Administration have previously clarified that grid-side independent new energy storage stations serving the safe operation of the power system may be granted capacity prices, which provides a policy basis for Hainan’s relevant arrangements.
In addition, the draft encourages energy storage projects supporting new energy to be converted into grid-side independent energy storage projects through technological transformation, provided that they meet relevant technical conditions and safety standards. Such transformation is intended to improve equipment utilization efficiency, though converted projects will also not be eligible for capacity price compensation. This initiative aligns with the National Energy Administration’s requirement to encourage technological transformation of existing energy storage to enhance its regulatory capacity.
Stringent requirements are also set for the construction time limit of projects. In principle, projects shall substantially start construction and be included in the statistical system within one year. The substantial start-up is marked by the pouring of the first batch of concrete for key facilities such as booster stations, main control buildings and energy storage systems. Projects that fail to start substantially and be included in the statistical system within one year will have their original recommendation qualifications revoked, and their grid connection opinions will automatically become invalid. If a project intends to proceed, it needs to be re-included in the municipal and county recommendation plan and go through relevant procedures.
For projects included in the dynamic list, the proportion of shareholders’ equity shall not be changed, nor shall the investment entity be altered in any way before grid connection and operation. Any unauthorized change will result in the project being removed from the list by Hainan Provincial Development and Reform Commission in conjunction with Hainan Power Grid Company, and the project owner will be disqualified from applying for inclusion in the dynamic list in the future.
According to the draft, Hainan Provincial Development and Reform Commission, together with Hainan Power Grid Company, will publicly announce the annual open access capacity to the society by the end of June each year in principle, and simultaneously release the list of projects with invalid grid connection opinions. Municipal and county governments will form recommendation plans from filed projects within the announced capacity and submit them to the provincial commission and Hainan Power Grid Company. Hainan Power Grid Company will accept project grid connection applications in accordance with the recommendation plans and issue grid connection opinions in accordance with laws and regulations.
Jiang Hong from Hainan Provincial Development and Reform Commission stated that the consultation draft is an important measure to support the construction of Hainan’s "Clean-Energy Island" new power system, which is conducive to standardizing the development order of new energy storage and providing strong support for the province’s low-carbon transformation. China Daily reports that Hainan is striving to build a provincial demonstration zone for a clean and modernized power grid by 2030.
