Recently, the National Development and Reform Commission ("NDRC") and the National Energy Administration ("NEA") have jointly issued the Circular on Establishing and Improving the Mechanism for Guaranteeing the Consumption of Electricity from Renewable Energy Sources (the "Circular").
The Circular states that the competent energy authority under the State Council will assign quotas concerning the consumption of electricity from renewable energy sources (RES-E), including quotas concerning the total RES-E consumption and quotas concerning the non-hydroelectricity consumption, according to provincial-level administrative regions. As regards two types of quota mentioned above, a minimum consumption quota and an incentive consumption quota are set respectively on a yearly basis. Further, the Circular expressly states that the fulfillment of the said consumption quotas will be monitored, evaluated and assessed at two different levels. On one hand, provincial-level competent energy authorities will take charge of the assessment of market players obligated to guarantee the consumption. On the other, the State will monitor and evaluate the status of fulfillment in each provincial-level administrative region. In addition, the Circular calls on all provincial-level competent energy authorities to conduct self-checks with reference to 2018 quotas concerning RES-E consumption, perform a simulation operation for the year 2019 and carry out the trial assessment over market players. It is stated that the all-round monitoring and evaluation and the official assessment will commence from January 1, 2020, and this Circular will remain effective for five years.