The Chinese National Energy Administration (NEA) has ordered local authorities to relieve renewable power generation companies by strengthening guaranteed purchase agreements and offering them priority access to new grid capacity.
As per the current renewable energy regulations, power transmission companies (TSOs) have to take all the power generated by renewable energy sources (such as wind and solar power) but many projects do not have proper grid access ("curtailment" issue). The NEA plans to ensure a stricter implementation of the law and will slow the pace of projects under construction failing to secure guaranteed PPAs.
According to the NEA, China lost nearly 42 TWh of wind power in 2017 (12%) of total wind generation and 7.3 TWh (6% of total solar generation) due to curtailment. In the first quarter of 2018, wind curtailment rate fell to 8.5% and solar curtailment rate to 4.3%.
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