The National Energy Administration ("NEA") has recently issued the Measures for Regulation of the Guaranteed Purchase of All Electricity from Renewable Energy by Power Grid Enterprises (Revised) (Draft for Comment) (the "Draft for Comment") for public comments by December 21, 2019.
The Draft for Comment is composed of general provisions, regulatory requirements, regulatory measures, legal liability, etc. Among others, the Draft for Comment proposes that in areas where the guaranteed purchase of electricity is stipulated, enterprises generating electricity from renewable energy may participate in competition in the market to trade the surplus electricity not covered by the guaranteed purchase; in areas where there are no limits on the guaranteed purchase of electricity, power grid enterprises shall purchase, as required under applicable laws and regulations, all on-grid electricity generated through renewable energy projects, on the condition that the safety and capacity of the electric system are ensured. Meanwhile, the Draft for Comment expressly states that in case any of the given behavior, such as "failing to construct or timely construct, without justifiable reasons, the grid connection projects associated with the renewable-energy-based power generation projects, as required", that is committed by a power grid enterprise results in economic losses to the enterprise generating power from renewable energy, the power grid enterprise shall bear legal liability for compensation, etc.