Offshore Wind Worldwide 2022 edition - Flipbook - Page 45
Offshore Wind Worldwide 2022
and specifications; and (iv) charging
unreasonable service fees in violation of
regulations. The Grid Opening Measures
additionally provide that if the Grid
Companies fail to provide grid connection
services as required, the NEA and its local
counterparts shall order the Grid Companies
to take corrective actions within a time limit;
if they refuse to take corrective actions, an
administrative fine from RMB 100,000 to
RMB 1,000,000 shall be imposed and
penalties might be imposed on the directly
in-charge person and other directly
responsible persons.
Additionally, the grid connection and
despatching agreement requires the Grid
Companies to ensure the timely connection
to the grid and the stable operation of the
grid, and provides corresponding liabilities
for the Grid Companies in the event of a
breach of such obligations. In particular,
according to the latest available template of
grid connection and despatching agreement
applicable to wind power projects, published
in 2021, if the Grid Companies cause delays
or disruptions to the GCS, they are liable to
compensate the wind power generation
companies for the direct economic losses,
facility repair costs and other direct losses
suffered as a result of the delay or disruption.
Nonetheless, this is a template agreement
and Grid Companies and wind power
generation companies are allowed to
supplement or revise its terms through
negotiation.
45
E. O
nshore grid congestions,
prioritisation of renewable energy
resources and compensation
mechanisms
The curtailment of wind power energy
production has been an issue for the wind
power industry in China, especially for
onshore wind power in northern areas of
China. Scholars suggested there are
institutional causes behind the scene
(different from power congestions caused by
the excessive production of energy from
conventional sources). In particular, there is
lack of co-ordination in the administration of
the Chinese electric power system, meaning
that there are severe co-ordination problems
among multiple players, including central
and local governments, Grid Companies,
wind power generation companies and large
electricity consumers, and that lack of
co-ordination results in transmission
constraints, system imbalances, as well as
overcapacity, ultimately leading to wind
power curtailment.11
So far, several regulations have been
promulgated to mitigate this issue, such as
the Measures for the Administration of the
Guaranteed Full Purchase of Electricity
Generated by Renewable Energy Resources
in 2016, the Circular on Administrative
Tasks for the Guaranteed Full Purchase of
Power from Wind and PV Power Generation
in 2016, and the Implementation Plan to
Solve the Problem of Wind, Water and PV
Power Curtailment in 2017. The
Implementation Plan, in particular,
11 “Fixing Wind Curtailment with Electric Power System Reform in China”, published by Brookings-Tsinghua Centre for Public Policy
on 9 April 2018 (https://www.brookings.edu/wp-content/uploads/2018/04/fixing-wind-curtailment-with-electric-power-system-reformin-china.pdf).