To the Development and Reform Commissions and Energy Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and the Xinjiang Production and Construction Corps; the Beijing Municipal Commission of Urban Management, Tianjin Bureau of Industry and Information Technology, Liaoning Department of Industry and Information Technology, Shanghai Municipal Commission of Economy and Informatisation, Chongqing Municipal Commission of Economy and Informatisation, Gansu Department of Industry and Information Technology; all dispatched offices of the National Energy Administration; State Grid Corporation of China, China Southern Power Grid Company Limited; and relevant central state-owned enterprises:

To implement the spirit of the 20th National Congress of the CPC and all plenary sessions of the 20th CPC Central Committee, improve policies and measures for new energy absorption and regulation, facilitate local on-site consumption of new energy, better meet the demand for the green and low-carbon transition of energy, and actively advance the achievement of carbon peaking and carbon neutrality targets, this Circular sets out provisions on the orderly development of multi-user green power direct connections, building on the *Circular on the Orderly Promotion of Green Power Direct Connection Development* (NDRC Energy〔2025〕650).

 I. Scope of Application

A multi-user green power direct connection refers to a model whereby power generated from new energy sources such as wind power, solar power generation and biomass power generation is not fed directly into the public power grid. Instead, green electricity is supplied to multiple users via dedicated transmission lines and transformer facilities, enabling traceability and allocation of supplied power. The term “multiple users” means multiple separate legal entities, excluding residential and agricultural users.

Multi-user green power direct connection projects (hereinafter referred to as “Projects”) fall into two categories according to grid connection status: grid-connected projects and off-grid projects. Grid-connected projects are connected as a whole to the public grid, forming clear physical and accountability boundaries with the public grid; power sources shall be located within the project boundary.

New electricity loads may be matched with newly built new energy power sources to form multi-user green power direct connection projects. For existing loads, single-user green power direct connection projects may accommodate additional new loads together with expanded new energy generation capacity to become multi-user projects. Users with green electricity consumption requirements (including enterprises subject to green power consumption ratio requirements, major energy-consuming and carbon-emitting enterprises, export-oriented enterprises with decarbonisation needs and their upstream and downstream partners) may explore multi-user green power direct connections using nearby new energy resources. All or part of the loads in industrial parks, zero-carbon parks and incremental distribution networks may be connected to nearby new energy sources to form such projects.

Support is available for new energy power generation projects that have not commenced grid connection works, and those unable to connect to the grid due to new energy absorption constraints, to adopt multi-user green power direct connections after completing relevant modification formalities. Distributed photovoltaic power may participate in multi-user green power direct connections through centralised convergence. Priority support is given to emerging and future industries such as computing power facilities and green hydrogen-ammonia-methanol production. Projects shall comply with national industrial policies; enterprises are prohibited from engaging in illegal or irregular activities via green power direct connections.

 II. Planning, Investment and Construction

 (1) Project Planning

Provincial energy authorities shall strengthen overall planning for Projects. New energy installed capacity shall be rationally planned under the principle of **matching generation to load**. The annual on-site self-consumed electricity shall account for no less than 60% of total available generation output, and no less than 30% of total electricity consumption, rising to no less than 35% before 2030.

The installed capacity of wind and solar power for Projects shall be incorporated into the new energy development plan formulated by the provincial energy authority. Relevant planning requirements shall follow the *Circular on the Orderly Promotion of Green Power Direct Connection Development* (NDRC Energy〔2025〕650). Projects and their internal facilities are exempt from electricity business licences unless otherwise stipulated.

 (2) Investment Model

Each Project shall designate an independent legal entity as the primary responsible entity. It shall normally be a joint venture between power suppliers and load users; alternatively, it may be invested solely by either party. For park-based projects, the primary responsible entity may be established by the park management committee or a third-party body (excluding public grid enterprises engaged in transmission operations).

The connecting lines, transformer facilities, energy storage systems and operation platforms shall in principle be invested and constructed by the primary responsible entity. The entity shall make full use of existing power facilities. Subject to maintaining the accountability boundary with the public grid, it may lease existing facilities owned by other parties through negotiation. If agreement cannot be reached, the responsible entity may construct the required facilities.

Agreements shall be signed between the primary responsible entity and internal power/load parties covering ownership division, operation and maintenance, balance responsibility, internal tariff rules, settlement and liability for breach of contract.

 (3) Construction Administration

Projects shall be planned, coordinated and constructed in tandem, matching the commissioning timeline and scale of loads and power sources.

If the grid-connection capacity is altered after commissioning, reassessment and other grid-access procedures shall be completed. Any additional new energy generation capacity within the Project shall be approved by the provincial energy authority and included in the new energy development plan. Grid enterprises shall provide non-discriminatory grid connection services to eligible Projects.

 III. Operational Management

 (4) Accountability Boundaries

The primary responsible entity shall bear liability for power outages caused by internal factors within the Project. Responsibilities shall be allocated fairly under the principle of **who generates the risk, who takes responsibility**, in accordance with internal agreements and actual operating conditions.

Grid-connected projects and the public grid shall each undertake power safety risk control within their respective accountability boundaries. Grid-connected projects shall independently determine their grid interconnection capacity after considering internal source-load characteristics, balancing capacity and economic returns. The public grid shall fulfil its supply obligations according to the contracted interconnection capacity and relevant agreements. The primary responsible entity of a grid-connected project shall establish internal regulation mechanisms for power sources and loads to ensure that the power exchange with the public grid does not exceed the approved interconnection capacity.

Off-grid projects shall independently assume all safety risk control responsibilities within their scope.

(5) Safe Operation Management

Projects shall be equipped with secondary systems including relay protection, security and stability control devices and communication equipment in compliance with standards. The primary responsible entity shall strengthen operational management, optimise internal resources such as power sources and energy storage, prepare contingency plans for regulated power supply under emergency conditions, define safety and commercial liabilities, and file the documents with the provincial energy authority.

Grid-connected projects shall install monitoring and control facilities according to voltage level and capacity tier, monitor exchange power with the public grid, and deploy cybersecurity monitoring and isolation devices. Grid-connected performance of internal equipment shall meet relevant standards, and relevant data shall be submitted to power dispatch organisations as required.

Grid-connected projects shall connect to the new-type power load management system or power dispatch automation system according to the service types they provide to the grid. The whole project and its internal power sources shall be managed by the corresponding dispatch authority according to voltage level and capacity. Dispatch plans are issued based on spot market clearing results. Where a grid-connected project participates in the electricity spot market as a single entity, the primary responsible entity manages internal power balance in line with dispatch instructions.

 (6) Local Consumption Requirements

Projects shall improve local absorption capacity by deploying energy storage, enhancing centralised control, tapping flexible load regulation potential and adopting multi-energy complementary schemes. Curtailed new energy power within the Project is excluded from new energy utilisation statistics.

The planning scheme for grid-connected projects shall specify a maximum load peak-valley ratio. The peak-valley ratio of power exchanged with the public grid shall not exceed the planned value. To avoid excessive pressure on public grid absorption, annual grid feed-in electricity shall in principle not exceed 20% of total available generation output; the exact ratio may be set by provincial energy authorities. Grid-connected projects are prohibited from feeding power back to the public grid during periods identified by provincial energy authorities as difficult for new energy absorption.

IV. Trading and Pricing Mechanisms

(7) Market Participation

Grid-connected projects shall register in the electricity market as new market participants under the *Basic Rules for Electricity Market Registration*. Internal entities may also register separately. Projects shall in principle participate in market trading as a single entity, with unified bidding submitted by the primary responsible entity. At the initial stage, projects may join the spot market under the “declare quantity only, no price” model, transitioning gradually to “declare quantity and price” once conditions mature. Grid enterprises are not permitted to purchase electricity on behalf of the Projects.

 (8) Metering Administration

Projects shall be fitted with separate metering points. Grid enterprises shall install approved bi-directional time-of-use meters at key nodes including internal generation points, auxiliary power consumption points, grid connection points, user supply points and energy storage connections. Bypassing metering devices is prohibited.

For grid-connected projects, the grid interconnection point serves as the reference point for metering and settlement, and the whole project settles electricity charges with the public grid as one entity.

(9) Internal Project Administration

The primary responsible entity shall conclude agreements with internal parties based on matched rights and obligations and fair cost allocation, setting out internal settlement rules, which shall be renegotiated periodically to reflect external market price changes and actual load flexibility. The responsible entity is encouraged to coordinate internal power sources and loads to optimise operation based on agreed compensation rates for regulation, so as to realise coordinated source-load operation.

 (10) Pricing Mechanisms

Grid-connected projects shall comply with the *Circular on Improving Pricing Mechanisms to Promote Local Consumption of New Energy Generation* (NDRC Price〔2025〕1192). They shall fairly bear transmission and distribution charges, system operation charges and policy cross-subsidies. The primary responsible entity settles electricity bills with the public grid in a unified manner. Both grid-connected and off-grid projects shall pay government surcharges in accordance with current policies. Power generated by the Project’s new energy sources is not eligible for settlement under the renewable energy feed-in tariff mechanism.

(11) Green Power Traceability Mechanism

For grid-connected projects, self-consumed electricity is calculated as total internal new energy generation (including new energy electricity discharged from storage) minus electricity fed into the grid, yielding the overall green power traceability result for the Project. Individual internal users are allocated self-consumed electricity according to their share of consumption in each hour, enabling hourly matching of new energy generation and consumption.

Internal power sources shall be registered on the National Renewable Energy Generation Project Information Platform. Grid enterprises shall calculate green power traceability results based on metering data, verify the records and upload them to the National Green Certificate Issuance and Trading System. Issuance, transfer and cancellation of green certificates corresponding to self-consumed electricity shall follow relevant regulations.

V. Organisational Safeguards

The National Development and Reform Commission and the National Energy Administration shall provide guidance on the green power direct connection model, evaluate outcomes promptly and promote its steady and orderly roll-out.

Provincial energy authorities shall refine requirements applicable to local conditions, including eligible participants, user boundaries, local consumption distance and feed-in power ratio, and define exit rules for power sources, loads, lines and transformer facilities. They shall optimise approval and filing procedures suited to multi-entity projects, organise qualified third-party reviews, solicit opinions from grid enterprises and dispatched offices of the National Energy Administration, and track operational performance while strengthening safety supervision of construction and operation.

Dispatched offices of the National Energy Administration shall conduct supervision within their remit, monitor project progress and policy implementation, and promote compliant construction and operation.

Grid enterprises and electricity market operators shall enhance technical support and service capacity for project grid connection and market participation.

National Development and Reform Commission

National Energy Administration

14 May 2026

Source: Website of the National Energy Administration