Summary of Key Points
This news article focuses on the upgrade of the green electricity direct connection policy: Document No. 650 (version 1.0) from 2025 introduced a new model where renewable energy is supplied directly to enterprises on a one-to-one basis, but this was only available for large companies. Document No. 688 (version 2.0) from 2026 expanded this model to a one-to-many format, allowing industrial parks and clusters of small and medium-sized enterprises (SMEs) to share the benefits of direct green electricity connections. Additionally, five key regulations were established to ensure the orderly implementation of this policy: load capacity, usage ratio, responsibility allocation, market mechanisms, and traceability of energy sources. This change not only addresses the cost and risk issues associated with SMEs using green electricity but also promotes innovation in industrial parks, renewable energy businesses, and the energy storage industry. The actual effectiveness of these new regulations will depend on local implementation details.
Detailed Analysis
Why the shift from one-to-one to one-to-many green electricity connections?
The one-to-one model in version 1.0 was akin to providing each large enterprise with its own dedicated green electricity supply line, which had the advantage of clearly demonstrating the use of green energy (essential for export-oriented companies). However, this approach was limited to large, stable consumers with high electricity demands. If these enterprises reduced production or moved elsewhere, the investment in the dedicated lines and supporting infrastructure would be wasted. The one-to-many model in version 2.0 allows industrial parks to establish a shared green electricity system, enabling multiple companies to share the costs and benefits, thereby reducing the risk for individual businesses while expanding the coverage of green energy.
What are the rules established by Document No. 688 for the one-to-many format?
The policy is not implemented without strict guidelines:
- Rule 1: Meet demand before building power plants (determine power sources based on demand): Power generation facilities (wind or solar) should be planned in areas with confirmed electricity demand, such as industrial parks or data centers, to avoid unnecessary construction.
- Rule 2: Prioritize internal consumption of green energy (minimum usage ratio): At least 60% of the generated green electricity must be used within the project; a maximum of 20% can be sold to the grid. Enterprises are also required to use at least 30% of their total electricity from green sources by 2030, with this figure expected to rise to 35%. Excess energy cannot be fed back into the grid during peak usage times.
- Rule 3: Clarify responsibility (designate a primary entity): To prevent disputes between multiple users and power providers, a designated responsible party must be appointed (either a joint venture of the parties involved or the park management committee); the utility company cannot serve as this role.
- Rule 4: Standardize transactions (market-based management): Projects must participate in the electricity market, with the designated entity handling all transaction processes. The utility company cannot act as an intermediary; enterprises must plan their green energy usage and storage needs independently.
- Rule 5: Traceability of energy usage: When multiple users share green electricity, the distribution is based on the proportion of each user’s consumption. For example, if Company A uses 30% of the total electricity in a given hour, it receives 30% of the corresponding green energy supply. This is crucial for export companies to demonstrate their use of green energy and secure international orders.
Will industrial parks become “green electricity managers”?
In the past, industrial parks attracted businesses based on land and tax incentives; now, they will compete on their ability to provide green energy services:
- Parks can establish their own green electricity supply lines, energy storage systems, and management platforms, allowing SMEs to use these resources as needed while sharing the costs. This is similar to how water supply systems are managed collectively in modern communities.
- Parks can also assist companies with carbon accounting and issuing green energy certificates, which become valuable attractions for businesses looking to reduce their environmental impact. For instance, they can provide detailed usage records for export companies seeking proof of green energy use.
Will renewable energy companies shift from focusing on available resources to targeting specific users?
Previously, renewable energy companies focused on locations with ideal wind and solar conditions for power generation. The new policy allows them to connect directly with nearby industrial parks, data centers, or high-energy-consuming enterprises, even if those sites do not have direct grid access. This opens up new opportunities for projects in regions without existing infrastructure.
Has energy storage become a necessity?
The one-to-many green electricity connection model requires coordination of various aspects: power generation, consumption, energy storage, and transactions.
- Renewable energy sources (such as wind and solar) are often unpredictable; energy storage systems can store excess energy to ensure a steady supply and help companies meet the required usage ratios.
- Effective energy management platforms are essential for tracking energy usage and cost allocation, giving those who manage these processes a competitive advantage in the new market landscape.
Conclusion
Document No. 688 may seem like a simple expansion of green electricity connections from one user to multiple users, but it represents a significant shift in the focus of renewable energy policies. In the future, companies will need to provide proof of their green energy usage, and industrial parks will play a vital role as providers of these services. Renewable energy businesses will need to target specific consumers, while energy storage becomes an essential component of their operations. This marks a crucial step towards the widespread adoption of green energy.