Offshore Wind Worldwide 2022 edition - Flipbook - Page 35
Offshore Wind Worldwide 2022
Works. No developer has been preidentified for these projects. The
developer is determined through
competitive tender, announced by the
Local NEA.
The evaluation standards used by the Local
NEA to assign a score to Pre-identified
Developer Projects and to select the
developers of Non Pre-identified Developer
Projects are provided by the competitive
rules adopted by the Local NEA and
therefore vary from province to province.
Generally speaking, the Local NEA uses a
comprehensive scoring method that takes
into account various factors (technical
capabilities of the applicant, track record,
technology and equipment used, conclusion
of Preliminary Works, and the tariff) –
among these parameters, the tariff bears a
weighting factor of no less than 40% (but it is
not the decisive factor). Alternatively, for
Pre-identified Developer Projects, the Local
NEA can adopt a method whereby the
technological aspects of the project are
considered in the first instance and the tariff
in the second instance.
C. Incentives for investments
In China, the state power network operators
that operate the power grids to which
offshore wind power plants are connected
(Grid Companies) (i.e., the State Grid
Corporation of China, the China Southern
Power Grid, and certain local independent
grid companies) are required to purchase the
entire output of the offshore wind power
plant. This is different from onshore wind
power projects in which (depending on the
35
case) the Grid Companies may be required to
purchase a minimum guaranteed amount as
required by the local NEA.
The Grid Company to which the offshore
wind power plant is connected purchases the
electricity produced by the plant by paying a
fixed feed-in tariff to the plant (On-Grid
Tariff). The NDRC sets and announces the
maximum amount of the On-Grid Tariff
from time to time (it has set this amount in
2014, 2017 and 2019 respectively so far). The
maximum amount of the On-Grid Tariff set
by the NRDC is denominated “benchmark
on-grid tariff” on and before 30 June 2019
(Wind Power Benchmark Tariff) and
“guiding wind power tariff” on and after 1
July 2019 (Guiding Wind Power Tariff),
respectively.
As to the projects awarded pursuant to the
Competitive Allocation Scheme, the On-Grid
Tariff is set out in the bidding documents
and cannot be higher than the applicable
Wind Power Benchmark Tariff or Guiding
Wind Power Tariff (Bid Tariff), as applicable.
The On-Grid Tariff of offshore projects
approved and/or filed after 2021 is decided
by the provincial level price control
authorities; the On-Grid Tariff can be
formulated pursuant to the Competitive
Allocation Scheme if relevant conditions can
be met. If the On-Grid Tariff is higher than
the local benchmark price of coal-fired
power generation, the part within the local
benchmark price of coal-fired power
generation will be settled by the Grid
Company.