CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
land and reserve prices for state-owned construction land-use rights based on market conditions. Secondary transfers of state-owned construction land-use rights are also permitted, allowing investors to acquire land-use rights directly from existing right holders, subject to applicable prerequisites and regu- latory requirements. Compensation for compulsory acquisition of agri- cultural land is determined under the Land Adminis- tration Law based on composite land prices for dis- tricts formulated by provincial governments, taking into account original land use, resource conditions, output value and locational factors, and reviewed at least every three years. Compensation for above- ground attachments and standing crops is paid to their respective owners under the Regulations on the Implementation of the Land Administration Law (State Council, effective 1 September 2021). 3.5 Decommissioning a Generation Facility There are currently no laws or regulations in China specifically governing the decommissioning of gen- eration facilities, and project approvals do not gener- ally attach decommissioning requirements. China is however exploring and researching the development of unified decommissioning standards. 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities The construction and operation of transmission lines and associated facilities is governed by a multi-lay- ered legislative framework. The Electricity Law estab- lishes the general principles for power construction, grid management, land use and facility protection. The Energy Law provides a higher-level framework requir- ing co-ordinated source-grid construction, smart grid upgrades and non-discriminatory transmission net- work access. At the administrative regulation level, the Regulations on the Protection of Power Facilities (State Council, effective 15 September 1987, most recently amended
in 2011) and their Implementation Rules (NDRC, effec- tive 1 March 2024) establish physical protection zones for transmission infrastructure and define compensa- tion obligations. Other relevant administrative regula- tions include the Regulations on the Administration of Power Grid Scheduling and the Regulations on Electric Power Supervision. The Renewable Energy Law and the Guaranteed Purchase Measures further require grid enterprises to provide grid connection services for renewable energy generation enterprises. In practice, China’s transmission network is owned and operated primarily by the three principal state- owned grid enterprises, each holding a transmission electric power business licence issued by the NEA and operating within its designated service area. For foreign-invested generation enterprises, the practi- cal focus is typically on accessing the existing grid rather than constructing independent transmission infrastructure. Regarding storage as an associated facility, new energy storage projects are regulated under the New Energy Storage Project Management Rules (Interim) and are generally subject to provincial filing manage- ment. Grid enterprises must provide fair and non-dis- criminatory grid connection services to storage pro- jects that have completed filing and meet technical requirements. Transmission projects are subject to environmental review under the Environmental Impact Assessment Law, as described in 4.2 Obtaining Approvals to Con- struct and Operate Transmission Lines and Associ- ated Facilities . 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities Incorporation into Plans Transmission network projects must be incorporated into the relevant power development plans before any approval process commences. Cross-provincial or cross-regional transmission networks, and intra- provincial transmission networks at 500 kV and above, are generally required to be incorporated into national power development plans. Transmission networks at 110 kV (or 66 kV) and above are generally required to
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