National Energy Administration Reports Seven Typical Problems Including Distributed Photovoltaic Grid Connection and Access

Digital Energy Storage Network News: Since May this year, the National Energy Administration has launched the comprehensive power sector supervision campaign of 2024. Focusing on supervision priorities including grid connection and access of distributed photovoltaics, it has identified seven typical problems constraining the development of distributed PV, covering pre-project record-filing and grid connection. These cases were publicly notified on October 18, sending a clear signal of strengthened and rigorous supervision to promote high-quality development.

The full text of the circular is as follows:

Circular of the National Energy Administration on Seven Typical Problems Including Grid Connection and Access of Distributed Photovoltaic Power Generation
In accordance with the 2024 energy supervision work plan, the National Energy Administration has strengthened supervision over grid connection and access of distributed photovoltaics in the context of overall energy development. Grid connection and access of distributed PV have been listed as key contents of the comprehensive power sector supervision and routine supervision in 2024. To further advance the sound development of distributed photovoltaics and give full play to the warning and educational role of typical problems, the seven typical problems concerning grid connection and access of distributed PV discovered in the 2024 comprehensive power sector supervision and routine supervision are notified below:

Widespread overdue handling of grid connection approval for distributed PV projects, hindering project construction progress. Since 2023, a power supply enterprise in Yantai City, Shandong Province has accepted applications for 597 distributed photovoltaic power generation projects. Among them, 400 applications (67%) took more than 20 working days to issue grid connection opinions, and 339 applications (57%) exceeded 30 working days. For instance, a distributed PV project in Yantai submitted its grid connection application on December 29, 2022, yet the power supply enterprise did not accept the application until March 21, 2023, taking as long as 83 days. Such acts violated the provisions on the time limit for replying to grid connection opinions specified in the Interim Measures for the Administration of Distributed Photovoltaic Power Generation Projects (Guo Neng Xin Neng [2013] No.433).
Illegally expanding the red zone for distributed PV access and restricting grid connection of distributed PV projects. Due to reverse power delivery from centralized new energy power plants such as biomass power plants to power grids of 220 kV and above, a power supply enterprise in Harbin City, Heilongjiang Province judged the hosting capacity for distributed photovoltaics in corresponding areas as zero. For example, on April 23, 2024, a 220 kV substation in Harbin experienced main transformer reverse power flow caused by increased output of a biomass power plant and load reduction from scheduled line maintenance. The county where the substation is located was designated as a red zone in Q2 2024, and no distributed PV access was permitted. This conduct violated the requirement of Technical Guideline for Evaluating Power Grid Hosting Capacity of Distributed Resources Connected to Network (DL/T 2041—2019), which stipulates that an area shall be classified as red only if reverse power delivery to grids of 220 kV and above is caused by distributed resources.
Non-standard handling of name change and transfer procedures for distributed PV projects, undermining fair grid access. A power supply enterprise in Zhumadian City, Henan Province had loopholes in meter management. It allowed photovoltaic companies to collect electric meters and open accounts directly even though relevant projects had not been completed and energized, resulting in the transfer of meter quota among some PV users. The administration of name change and transfer for PV projects was non-standard. After formal meter installation and power connection for some projects, name change and transfer were illegally processed, enabling the transfer of grid-connected meter quotas under the pretext of ownership transfer and successful grid connection within areas with restricted application quotas. These practices violated the provisions of the Regulations on Electric Power Supervision (Decree No.432 of the State Council) and the Measures for the Supervision of Fair Grid Access (Guo Neng Fa Jian Guan Gui [2021] No.49), which require power grid enterprises to provide grid access services to power owners in a fair and non-discriminatory manner.
Failure to provide entrusted record-filing services for residential rooftop PV users as required, increasing the record-filing burden for individual distributed PV projects. Since 2022, a power supply enterprise in Shizuishan City, Ningxia Hui Autonomous Region failed to provide entrusted record-filing services for individual residential PV users in accordance with regulations. All individual household PV projects within its service area, covering 917 households, required users to complete record-filing at competent authorities by themselves. This violated the stipulation in the Interim Measures for the Administration of Distributed Photovoltaic Power Generation Projects (Guo Neng Xin Neng [2013] No.433) that distributed photovoltaic projects constructed by individuals on their own residential buildings and within residential zones shall be directly registered by local power grid enterprises and centrally filed with local energy authorities.
Requiring project owners to invest in and construct grid connection system works of distributed PV projects, raising investment costs for project owners. Since 2023, a power supply enterprise in Nanning City, Guangxi Zhuang Autonomous Region has issued 10kV medium-voltage grid connection system schemes for 37 distributed PV projects. Due to reasons including the enterprise’s inability to meet owners’ construction schedule requirements, 22 of these grid connection projects (59%) were invested and built by project owners without repurchase, adding approximately 29.35 million yuan in investment burdens for distributed PV owners. This practice was inconsistent with the rule in the Interim Measures for the Administration of Distributed Photovoltaic Power Generation Projects (Guo Neng Xin Neng [2013] No.433) that grid connection system works for distributed photovoltaic power generation projects shall be invested and constructed by power grid enterprises.
Overdue settlement of distributed PV electricity charges, affecting project revenue. A power supply enterprise in Hefei City, Anhui Province delayed the settlement of distributed PV electricity charges totaling 91.67 million yuan in 2023 (53.65 million yuan due to non-grid reasons), with part of the payment delayed for more than one year. Examples include the settlement of 720,000 yuan for electricity generated from January to July 2023 with a new energy technology company in Hefei on September 26, 2023, and the settlement of 60,000 yuan for electricity generated from June 2022 to November 2023 with an engineering management company in Hefei on January 29, 2024. Such acts violated the time limit provisions for electricity charge settlement specified in the Measures for Electricity Charge Settlement between Power Generating Enterprises and Power Grid Enterprises (Guo Neng Fa Jian Guan [2020] No.79).
Illegal record-filing of distributed PV projects, creating market barriers in the distributed PV sector. Since 2016, the Development and Reform Bureau of a district in Meishan City, Sichuan Province has completed record-filing for 153 distributed PV projects with a total capacity of 210 MW, among which 133 projects with a capacity of 204 MW belonged to a grain company in Meishan. In the record-filing process, the bureau arbitrarily added the undisclosed precondition of “access point and line capacity”. It also adopted discriminatory treatment against private enterprises: formally submitted record-filing applications from private enterprises were rejected without reason or left pending for up to two months. After rejecting private enterprises’ applications, the bureau approved record-filing for its subordinate grain company in Meishan. These acts violated the provisions on project record-filing administration set out in the Measures for the Administration of Verification and Record-filing of Enterprise Investment Projects (Order No.2 of the National Development and Reform Commission).
The seven typical problems in grid connection and access of distributed PV exposed deficiencies of some power enterprises and local energy authorities in pre-project record-filing, grid access and other links. These issues constrain the development of distributed photovoltaics and are typical and representative. All power enterprises and relevant entities shall draw profound lessons from these notified cases, conduct thorough self-inspection and take warning from them. They shall raise political awareness, resolutely implement the decisions and arrangements of the Party Central Committee and the State Council on green and low-carbon energy development, further strengthen the development and construction management of distributed photovoltaics, optimize the business environment, improve the efficiency of grid access services, and promote the high-quality development of distributed photovoltaics.