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CGN completes first green certificate trading in Yunnan

2018-01-18
 

The Lancang Jialaibo Wind Power Station in Pu’er, Yunnan province, constructed by China General Nuclear Power Corporation (CGN), sold its green electricity certificates on Jan 12, 2018, the first transaction of its kind in Yunnan.

A green certificate is a tradable commodity issued by China National Renewable Energy Center, proving that 1 megawatt-hour (MWh) of electricity has been generated using renewable energy sources (non-water).

Solar and wind power companies can claim green certificates themselves by submitting an application form and electricity billing, payment receipt and proof of bank transfer, to the information management system of renewable energy power projects. The China National Renewable Energy Center is responsible for reviewing applications and issuing certificates every month.

In 2017, the National Development and Reform Commission (NDRC) issued a notice on piloting the trading of green certificates for solar and wind power.

Under the pilot program, the solar and wind producers are issued tradable certificates. On a voluntary basis, power grid enterprises and social institutions are encouraged to buy the certificates, as proof of their consuming green electric power, contributing to environmental protection and fulfilling corporate social responsibility. Solar and wind power producers who have sold their certificates will no longer receive a direct subsidy for renewable generation.

China has been suffering a wide financial gap caused by heavy subsidies on renewable energy since 2006. The certificates are expected to help reduce government subsidies to the renewable sector and also improve the flexibility of consumption of green electric power.

The Lancang Jialaibo Wind Power Station was undertaken by CGN with installed capacity of 48 MW. The first 11 units were put into operation in 2015. It is the first green wind power project in Pu’er, as well as CGN’s second wind power station in a border county, following the first in Menghai county of the Xishuangbanna Dai autonomous prefecture.