Energy Bureau relax license control

Recently, the National Energy Administration issued a notice to exempt some of the electricity business license for power generation projects, simplifying the application process and creating a relatively relaxed environment for the development of distributed energy and clean energy.

According to the “Notice on Clearly Explaining Matters Concerning Power Business License Management” of the Energy Administration, the power generation licenses for the new energy power generation projects such as solar energy and wind power that are registered (approved) for distributed energy projects and 6MW (excluding) will be exempted.

The power business licensing system is the legacy of the State Electricity Regulatory Commission. On December 1, 2005, the Regulations for the Administration of Electric Power Business Licensing was formally implemented. According to regulations, businesses must obtain a power business license to engage in electric power business in China. This move is to learn from the experience of power market reforms in countries such as Europe and the United States, and regulate the power industry through the power business licensing system.

Under the requirement of national decentralization, power business license management is gradually decentralized by highly centralized power. In December 2013, the National Energy Administration delegated the issuance of power business licenses to dispatch agencies. The Energy Bureau issued a document to exempt certain power generation project business licenses and reduce unnecessary administrative intervention.

Exempted from partial power business license

According to information from electric power companies, the original supervisory and regulatory authority has always been weak in permit management of small hydropower and small wind power. For example, there are thousands of small hydropower stations in Yunnan, and there are no statistics on the specific amount. These small power plants have been connected to the grid without obtaining a license.

In 2012, the former State Electricity Regulatory Commission survey showed that 551 grid-connected power generation enterprises did not obtain power generation licenses in the year, and most of them were self-provided power plants and small hydropower enterprises. In recent years, a large number of new energy projects have been connected to the grid, and it has been impossible for the energy management department to make detailed approvals.

The exempted power business licenses include: distributed power generation projects that have been clearly identified by the competent authority of energy in the form of filing (approval); small hydropower stations with a single station installed capacity of 1MW (excluding); and solar power below 6MW (excluding) New energy power generation projects such as wind energy, biomass energy, ocean energy, and geothermal energy; 6MW (excluding) waste heat and pressure resource comprehensive utilization power generation projects; non-fossil fuel direct combustion dispatched by prefecture (city) level and below dispatching agencies Bring your own power station.

The Energy Bureau notice stipulates that related units and individuals do not require a power generation business license to operate the aforementioned power generation business. When the project operating entity deals with grid-connected operations with grid companies, it no longer requires the provision of a power generation business license or other certification.

Excluding some of the exempted items, enterprises with a total installed capacity of 6MW (excluding) of small hydropower; solar energy, wind energy, biomass energy, ocean energy, geothermal energy, and other new energy power generation and waste heat and pressure resource comprehensive utilization of power generation businesses, can simplify power generation Power business license application requirements.

Simplified content is reflected in both financial and personnel aspects: For those who have been established for more than two years, they are no longer required to provide annual financial reports and financial status audit reports for the last two years. Companies can provide financial statements for the last two years; they are established for less than two years. The financial reports, capital verification reports, and financial status audit reports since the establishment of the enterprise are no longer required, and the company can provide financial statements since its establishment.

In addition, the person in charge of corporate security, the person in charge of production operations, the person in charge of technology, and the person in charge of finance shall allow one person to serve two or more positions.

Distributed energy benefits the most

Distributed energy and clean energy are the beneficiaries of license exemptions for power generation business, which solved the problem of license approval. The state has also gradually deregulated the management of clean energy, and has paid more attention to post-event management of mergers and acquisitions and market operations.

The 21st Century Business Herald reporter learned that the domestic power generation license application process is: enterprise application, application acceptance, preliminary review, reexamination, on-site verification, appraisal committee appraisal, public notice, commissioner issued, and certificate. In this process, it is necessary to submit business licenses, corporate approvals, environmental protection, safety evaluations, financials, quality supervision and inspections, and project construction, etc.

However, before the issuance of the exemption documents of the State Council and the National Energy Administration, the management department still adopted the above-mentioned processes for small-scale clean energy projects, making it difficult for distributed energy sources to obtain legitimate power generation qualifications.

Taking distributed photovoltaic power generation as an example, most of the projects are mostly small-capacity or residential roof-top power generation projects. They do not qualify as legal persons, and it is difficult to obtain project approval data or project approvals, and the cost of acquiring power generation permits is high.

According to a survey conducted by the Zhejiang Energy Regulatory Office of the National Energy Administration, even if distributed photovoltaic power generation technology and economic factors are feasible, due to the high administrative cost, residents can easily abandon the installation and use of photovoltaic power generation.

The research group recommends that residents' home photovoltaic power generation projects do not need to obtain a power business license, operators do not need to obtain an electrician's license for network access, and distributed photovoltaic power generation equipment with a simple installation process below a certain capacity can guarantee project quality and safety. , you can gradually cancel the qualification requirements for the installation units and personnel.

The above recommendations were answered in the Energy Bureau and State Department documents. In accordance with the State Council's “Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry”, the distributed photovoltaic power generation project is implemented for record management, and the power generation business license for distributed photovoltaic power generation applications is exempted.