1.4 Relevant Policies and Measures Promoting the Development of China's Wind Power Industry

1.4.1 Policies and Measures on Industry Development and Management

2011 was the first year of China's "Twelfth Five-Year Plan". In order to regulate the wind power industry towards stable and rapid development, the National Energy Administration issued a series of industry management standards and technical requirements intended to strengthen wind farm construction planning and management.

1) The National Energy Administration issued the "Interim Measures for the Management of Wind Power Development and Construction", further strengthening and improving wind power construction management systems and mechanisms, reinforcing management of all elements of wind power projects ranging from planning to project early stage tasks, development rights, project approval, engineering construction, completion and operation, regulating and guiding nationwide wind power projects to advance on a healthy and orderly basis.

2) Implementing annual approval and planning management for wind power development. In order to control the wind power development pace and effectively realize wind power generation benefits, the National Energy Administration started to implement approval and planning management for wind power projects in 2011, issuing the "Notice on the Planning and Arrangement of the First Group of Tentatively Approved Wind Power Projects for the 'Twelfth Five-Year Plan' Period" in July 2011, which will implemented in the period of 2011-2015,contains a total scale of 26.83 million kW for tentatively approved wind power projects nationwide, including 12.75 million kW for state-approved projects and 14.08 million kW for locally approved projects. The "Notice" required that those projects not listed in the approved programs must not be approved. For the four provinces and regions of Hebei, Heilongjiang, Jilin and Inner Mongolia, the Notice had specifically raised requirements that the study of regional wind power electricity planning and consumption plans must be accelerated, the electricity outgoing transmission projects must be completed, and coordinated development of wind power and power grids must be maintained. Last April, the "Plan for Second Group of Approved Wind Power Projects for the 'Twelfth Five-Year Plan' Period" was also issued, including a total of 14.92GW.

3) The "Implementation Rules of the Interim Measures for the Management of Development and Construction of Offshore Wind Power" (Guo Neng Xin Neng #[2011] 210) was issued in July 2011.

The National Energy Administration studied and formulated the "Implementation Rules of the Interim Measures for the Management of Development and Construction of Offshore Wind Power", with regard to the "Interim Measures for the Management of Development and Construction of Offshore Wind Power" issued in 2010, which was enacted through a joint document with the State Oceanic Administration. The document provided specific provisions regarding the work contents and requirements during offshore wind farm planning, a pre-feasibility study and feasibility study stages and clearly defined the duties of individual management departments. Moreover, it also raised requirements regarding the construction and operation of offshore wind farms. The Rules expressly specified that offshore wind farms must, in principle, be deployed in sea areas that are no less than 10km from the coast and where the seawater depth is no less than 10m when the tidal flat width is over 10km and that such locations must be suitable for avoiding sea-use conflicts between different industries and reducing development enterprises' investment risks. The implementation of these policies increased the difficulty of developing offshore wind power and forced all 4 offshore wind power concession tendering projects of 2010 to re-determine their locat ions, a very expensive undertaking which underscores the need for planning coordination between different government agencies.

4) The "Notice on Decentralized Access Wind Power Development" and the "Guidance on Development and Construction of Decentralized Access Wind Power Projects".

In July 2011, the National Energy Administration issued the "Notice on Decentralized Access Wind Power Development" (Guo Neng Xin Neng #[2011] 226), requiring the competent energy department of each province (region, city) to investigate and study the wind energy resources required for decentralized wind power, proposing a preliminary plan for near-term decentralized wind power development, and actively exploring the rules and experiences of management in development and construction of decentralized wind power projects. The document had for the first time proposed boundary conditions for decentralized wind power development.

In November 2011, the National Energy Administration issued the "Guidance on Development and Construction of Decentralized Access Wind Power Projects" (Guo Neng Xin Neng #[2011] 374), providing provisions regarding conditions, project site selection, early stage tasks and approval, access system technical requirements and operation management, engineering construction and acceptance of decentralized access wind power projects.

The issuance of the above documents indicated that China's future wind power development would focus on both decentralized and centralized models to mitigate power grid access pressure.

5) The "Interim Measures for the Management of Power Prediction and Forecast at Wind Farms" (Guo Neng Xin Neng #[2011] 177), was issued in June 2011.

In order to strengthen and regulate wind farm operation management, it proposed that all wind farms must have wind power prediction and forecasting capabilities and that wind power prediction and forecasting must be conducted as required. Each wind farm's prediction and forecasting system shall be formally up and running starting from July 1, 2012. The document also raised requirements regarding such aspects as operation management, supervision, and examination, etc.

6) The "Notice on Strengthening Grid-Connected Wind Power Operation Management" (Guo Neng Xin Neng #[2011] 182) was issued in June 2011.

With regard to the multiple occurrences of large-scale wind turbine generator system grid disconnection accidents since 2011, this document proposed such requirements as strengthening wind farm construction management, strengthening wind farm grid-connecting operation management, enhancing the low-voltage ride-through ability of grid-connected operational wind turbine generator systems, and strengthening safe operation management of electrical systems. It also included the deployment of such work as monitoring of the low-voltage ride through, wind power grid-connection operation design specifications, etc.

7) The "Notice on Strengthening Wind Farm Safety Management" (Guo Neng Xin Neng #[2011] 373) was issued in November 2011.

In consideration of issues such as the frequent occurrence of safety incidents during wind farm construction and operation as well as weak safety management in the wind power industry, this document proposed requirements that each wind power development enterprise must strengthen safety management in all elements of wind farm construction, as well as strengthening incident information reporting and management, that each equipment manufacturer must enhance its equipment reliability and technological level, and that qualification management in the wind power industry must be strengthened.

8) The "Notice on Issuing the Interim Measures for the Management of Wind Power Information" (Guo Neng Xin Neng #[2011] 136)

In order to improve wind power information management and regulate the work of wind power information reporting, examination, statistics and release, this Notice expressly specified that the National Energy Administration authorize the National Wind Power Information Administration Center, a center established under the Hydropower and Water Resources Planning and Design Institute, to be responsible for wind power information management and each province (region, city) to be responsible for supervising and coordinating its wind power information submission work. This Notice made provisions regarding information collection and submission as well as information application, analysis and evaluation, and further made clear systems for information personnel. Currently, the National Wind Power Information Administration Center has already organized development of the "Wind Power Generation Information Reporting System" and "Wind Power Information Person Training & Certification Management System", both of which are already formally in operation.

9) Issuance of the Wind Power "Twelfth Five-Year" Plan

As authorized by the National Energy Bureau, the Hydropower and Water Resources Planning and Design General Institute was responsible for drafting the special wind and solar power generation program for the "Twelfth Five-Year Plan" period. After more than a year, with 3 collective working meetings, and multiple consulting sessions and modifications being made, both programs have been included in the "Renewable Energy 'Twelfth Five-Year' Development Plan".

10) The Ministry of Finance, the National Development and Reform Commission and the National Energy Bureau jointly stipulated the "Interim Measures for the Management of Collection and Use of the Renewable Energy Development Fund" (Cai Zong #[2011] 115). China's renewable energy electricity price surcharge has been increased from RMB 0.4 cents/kWh today to 0.8 cents.

1.4.2 Technical Standards

In 2010, the National Energy Bureau began to develop and revise standards for the wind power industry. It organized and set up the Energy Industry Wind Power Standardization Technical Committee, initiated the China wind power standards system framework, and preliminarily planned to establish 183 standards, which mainly included 6 major system frameworks covering wind farm planning and design, construction and installation, operation & maintenance management, grid-connection management technology, wind power machinery and equipment, and wind power electrical equipment.

In early August, the National Energy Bureau issued 18 wind power technical standards drafted by the Wind Power Standardization Technical Committee that covered wind power grid-connecting, project estimates, and generator unit equipment, which further improved and supplemented Chinese technical standards in areas of wind turbine generator system manufacturing, project construction costs, quality assurance, installation and operation, and maintenance management. For details, see Table 1-6.

Moreover, multiple technical standards and administrative measures drafted by the Hydropower and Water Resources Planning and Design General Institute, including the Land Use Indexes for Wind Farm Construction, "Code for Geologic Examination of Wind Farm Projects", "Design Specifications for Tendering of Wind Farm Projects", and design and technical specifications for planning, the pre-feasibility study, feasibility study and construction organizing of offshore wind farm projects, have been submitted to the National Energy Bureau for official written replies.

Table 1-6 Summary of 18 wind power technical standards issued in 2011