CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
Planning Inclusion Distribution network projects must be incorporated into the relevant provincial distribution network devel- opment plan before any approval process commenc- es. Project Owner Selection and Approval For incremental distribution network projects, the pro- ject owner is selected through open tender conducted in accordance with the Tendering and Bidding Law (effective 1 January 2000, most recently amended in 2017), organised by the relevant local energy authority or development and reform commission. The project is then subject to government approval or filing depend- ing on the voltage level and scale of the project. Construction-Stage Approvals The construction-stage approvals and acceptance inspection requirements for distribution projects follow the general framework described in 3.1 Constructing Distribution projects are subject to environmental review under the framework described in 3.2 Obtain- ing Approvals to Construct and Operate Generation Facilities . Given their typically smaller scale, many distribution projects will qualify for the less onerous Environmental Impact Assessment Form rather than a full report. Licensing Upon completion of construction and acceptance inspections, the project owner must obtain an Elec- tric Power Business Licence for Power Supply before commencing distribution operations. Under the Notice of the General Affairs Department of the NEA on Simplifying and Optimising Licensing Conditions and Accelerating the Processing of Electric Power Business Licences for Incremental Distribution Pro- jects (NEA, effective 11 July 2018), project owners are not required to have completed construction of the full distribution network prior to applying; it is sufficient to demonstrate the capability to supply existing users and provide a construction plan for the remainder of the network. and Operating Generation Facilities . Environmental Impact Assessment
enterprises. Under this reform, implemented through the Measures for the Administration of Incremental Distribution Network Business (NDRC and NEA, effec- tive 8 October 2016), the Notice on Further Promoting the Reform of Incremental Distribution Network Busi- ness (NDRC and NEA, effective 14 January 2019) and the Implementation Measures for the Division of Dis- tribution Areas for Incremental Distribution Network Business (NDRC and NEA, effective 2 April 2024), qualified investors may obtain the exclusive right to provide distribution services within designated areas, upon obtaining the requisite Electric Power Business Licence for Power Supply. Eligible projects cover dis- tribution networks at 110 kV and below in general are- as, and 220 kV (330 kV in certain north-west regions) and below in industrial parks, as well as existing dis- tribution networks not owned by the three major grid enterprises. Regarding storage as an associated facility, storage projects are subject to filing management at the pro- vincial level under the New Energy Storage Project Management Rules (Interim), and distribution network operators are required to provide fair and non-dis- criminatory connection services to qualifying storage projects. Intelligent microgrids are recognised as a distinct cat- egory of electricity infrastructure under current PRC policy. The Guidance on Promoting High-Quality Grid Development (NDRC and NEA, effective 31 December 2025) expressly defines intelligent microgrids as a new form of electricity business carrier with self-balancing and self-regulating capability, supporting their flexible grid-connected and off-grid operation in scenarios including remote areas, industrial parks and end-user green energy applications.
5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities
The regulatory process broadly mirrors the frame- work applicable to transmission projects described in 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities , with certain modifications for the distribution context.
92
CHAMBERS.COM
Powered by FlippingBook