Shandong Provincial Development and Reform Commission recently issued the "Notice on Actively Using Price Policy to Support the Stable and Healthy Development of Biomass Power Generation" to further improve the electricity price subsidy policy for biomass power generation.
The "Notice" makes it clear that the State will subsidize expired biomass power generation projects. Set a three-year transition period, and give temporary electricity price subsidies to biomass power generation projects (agricultural and forestry biomass, bio-natural gas) that reach the reasonable utilization hours (82,500 hours) in the whole life cycle before the end of 2023. Among them, the subsidy standard for agricultural and forestry biomass power generation projects in 2021 is 0.28 yuan per kWh (including tax); The subsidy standard of bio-natural gas (livestock manure and straw) power generation project is 0.1991 yuan per kWh.
According to the Notice, before the end of 2023, the on-grid electricity price of biogas power generation projects will be subsidized to 0.75 yuan on the basis of the national biomass benchmark electricity price of 0.594 yuan per kWh.
The Notice shall be implemented as of the date of issuance and shall be valid until December 31, 2023.
The full text is as follows:
Municipal Development and Reform Commission, State Grid Shandong Electric Power Company:
In order to implement the opinions of the provincial party committee and the provincial government on accelerating the healthy development and transformation of county economy and strengthening the construction of sewage and garbage treatment facilities in villages and towns, and promote the stable and healthy development of biomass power generation in our province, it is decided to further improve the subsidy policy for biomass power generation price. The relevant matters are hereby notified as follows:
I. Electricity price policy
(1) The State subsidizes expired biomass power generation projects. Set a three-year transition period, and give temporary electricity price subsidies to biomass power generation projects (agricultural and forestry biomass, biological natural gas, the same below) that have reached the reasonable utilization hours (82,500 hours) in the whole life cycle before the end of 2023. Among them, the subsidy standard for agricultural and forestry biomass power generation projects in 2021 is 0.28 yuan per kWh (including tax, the same below) to ensure the normal operation of power generation enterprises at this stage, implement heating transformation as soon as possible, expand the heating market, and increase income sources; The subsidy standard of bio-natural gas (livestock manure, straw, the same below) power generation project is 0.1991 yuan per kWh, which realizes the smooth transition from "government subsidy" to "parity internet access" for power generation enterprises.
(2) Coal-fired sludge coupling power generation project. In view of the gradual establishment of the price mechanism of sewage treatment fees covering the cost of sludge disposal in various cities and towns, the temporary electricity price subsidy for domestic sludge disposal by coal-fired power generation enterprises will be reduced, and the sludge subsidy standard will be reduced to 100 yuan per ton in 2021.
(3) Bio-natural gas power generation projects. Support the orderly development of bio-natural gas projects. Before the end of 2023, its on-grid electricity price will be subsidized to 0.75 yuan on the basis of the national biomass benchmark electricity price of 0.594 yuan per kWh. The overdue projects in China shall be implemented only according to Item (1) of this article.
Second, the declaration procedure
(a) within one month after the end of each quarter, the relevant power generation enterprises may apply to the local development and reform department for electricity price subsidies, and provide the following information:
1. Subsidy application (basic information of the project, production and operation, the amount of biomass fuel purchased or imported into the plant, the amount of online electricity, the amount of subsidy applied for, etc.) and project approval (filing) documents.
2. Relevant certification materials of biomass fuel purchase amount and on-grid electricity consumption in the last quarter (this item is applicable to biomass power generation projects and bio-natural gas power generation projects due to state subsidy, and the certification materials mainly include fuel purchase invoices and electricity bill settlement invoices, etc.).
3. Relevant certification materials of sludge inflow in the last quarter (this item is applicable to coal-fired sludge coupling power generation projects, and the certification materials mainly include sludge treatment agreements, bank transfer bills paid by the government for sludge treatment fees, and government verification certificates for sludge inflow, etc.).
(two) the municipal development and reform departments put forward a written application for subsidies after the first instance, and report to the provincial development and Reform Commission within 2 months after the end of each quarter. The electricity price subsidy in the first quarter of 2021 shall be submitted by the municipalities before May 31, 2021.
(three) the provincial development and Reform Commission according to the declaration of the municipalities, after the audit, notify the power grid enterprises to settle the subsidy for electricity. Subsidy funds are issued quarterly and will not be accepted after the deadline.
III. Other matters
(1) If the biomass power plant disposes of sludge, its electricity price subsidy shall be implemented in accordance with the relevant provisions of the state, and the provincial level will no longer subsidize it. In 2022 and 2023, the electricity price subsidy standards for biomass power generation projects and coal-fired sludge coupling power generation projects due to state compensation will be implemented year by year according to the development of the projects, and the specific standards will be notified separately.
(two) the relevant power generation enterprises should make full use of the electricity price subsidy policy, speed up the technological upgrading, further strengthen internal management, and strive to reduce operating costs and improve economic efficiency.
(three) the problems and suggestions encountered in the process of policy implementation, please report to the Provincial Development and Reform Commission (Price Management Office) in a timely manner.
This notice shall be implemented as of the date of issuance and shall be valid until December 31, 2023.
Shandong Provincial Development and Reform Commission
April 2, 2021
Source: Shandong Provincial Development and Reform Commission
Original title: "Energy Place | Shandong: Temporary Electricity Price Subsidy for State-subsidized Maturity Biomass Power Generation Project"
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