CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
The SAMR is the central anti-monopoly enforcement authority, responsible for monitoring, investigating, reviewing and penalising anti-competitive conduct across all industries, including the power sector. Penalties Penalties for violations include an order to cease the unlawful conduct and confiscation of unlawful gains. Undertakings found to have concluded monopoly agreements or abused a dominant position are sub- ject to a fine of between 1% and 10% of the preced- ing year’s turnover. Unlawful concentrations may be ordered to dispose of shares, assets or businesses, with fines of up to 10% of the preceding year’s turno- ver or CNY5 million, as applicable. In cases of par- ticularly serious circumstances, fines of two to five times the above amounts may be imposed. Where an undertaking obstructs an investigation, fines of up to 1% of the preceding year’s turnover, or up to CNY5 million where turnover is unavailable, may be imposed, with responsible individuals subject to fines of up to CNY500,000. 3. Generation Facilities 3.1 Constructing and Operating Generation Facilities The construction and operation of generation facilities is governed by a multi-layered regulatory framework comprising both general construction regulations and facility-specific rules. Core legislation includes the Electricity Law, the Renewable Energy Law, the Construction Law (effec- tive 1 March 1998, most recently amended in 2019), the Land Administration Law (effective 1 January 1987, most recently amended in 2019), the Environ- mental Impact Assessment Law (effective 1 Sep- tember 2003, most recently amended in 2018, to be consolidated into the Ecological Environment Code effective 15 August 2026), the Work Safety Law (effective 1 November 2002, most recently amended in 2021) and the Law on Prevention and Control of Occupational Diseases (effective 1 May 2002, most recently amended in 2018).
Key administrative regulations and departmental rules include the Regulations on the Approval and Filing Management of Enterprise Investment Projects, the Construction Project Safety Facilities “Three Simul- taneities” Supervision and Administration Measures (former State Administration of Work Safety or SAWS, effective 1 February 2011, most recently amended in 2015), the Construction Project Occupational Disease Prevention Facilities “Three Simultaneities” Supervi- sion and Administration Measures (former SAWS, effective 1 May 2017), and the facility-specific instru- ments identified in 1.1 Law Governing the Structure and Ownership of the Power Industry . Incorporation into Plans Generation projects must be incorporated into nation- al and provincial power development plans. Renew- able energy projects must additionally be included in the annual development and construction plan issued by the provincial energy authority before any approval process commences. Project Approval or Filing The applicable investment management regime var- ies by project type. Coal-fired power projects are subject to government approval under the Govern- ment-Approved Investment Project Catalogue (2016 Edition) (State Council, effective 12 December 2016), with approval authority exercised at provincial or local level depending on project scale. Solar projects have been subject to filing management since 2014. Wind power projects remain subject to government approv- al at the national institutional level, though policy since 2022 has been directed towards transitioning wind projects to filing management, with some provinces having already implemented this. Construction-Phase Approvals Principal approvals required prior to commencement of construction include: • fixed asset investment project approval or filing documents; • preliminary land use review opinion and site selec- tion opinion; • construction land planning permit; • construction project planning permit; • construction works commencement permit;
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