Recently, the National Development and Reform Commission ("NDRC") and the National Energy Administration ("NEA") have jointly issued the Circular on Positively Promoting the Work on Subsidy-free Grid Price Parity for Wind Power and Photovoltaic Power (the "Circular").
The Circular sets out requirements in respect of "launching the grid price parity program and the pilot program on grid lower price", "improving the investment environment for the grid price parity program and for the pilot program on grid lower price", among others. The Circular expressly states that, local government agencies shall offer their support in the land use and the charge of land-related fees, for the grid price parity program and the pilot program on grid lower price, ensure the interconnection between relevant plans, make use of state-owned untapped land first, and not charge fees of any forms, such as fee for the granting of resources. Meanwhile, for pilot distributed market-based transactions covered by the country's relevant pilot programs, merely power prices for the distribution, via distribution grids, of the voltage class involved in the grid-connection and consumption of power generated from wind power projects or from photovoltaic(PV) power projects, will apply to the volume of power transacted, and power transmission fees for the unrelated voltage class at a higher level will not be charged.