The Notice on Relevant Matters Concerning the Orderly Promotion of Green Power Direct Connection Development, issued in May 2025 (NDRC Energy [2025] No. 650, hereinafter referred to as "Document 650"), clarifies the basic concepts and management norms of green power direct connection at the national level. The Notice on Improving the Price Mechanism to Promote the Local Consumption of New Energy Power Generation, issued in September of the same year (NDRC Price [2025] No. 1192, hereinafter referred to as "Document 1192"), further clarified the pricing mechanism for the local consumption of new energy, including green power direct connection.

      According to statistics from the National Energy Administration, currently, 99 green power direct connection projects have been approved nationwide, involving a new energy installed capacity of 34.05 million kilowatts, distributed in multiple provinces across the country, covering various scenarios such as traditional high energy consuming industries, new manufacturing industries, green hydrogen ammonia alcohol industries, and large-scale computing facilities.

      However, in the process of project implementation, the early policies are applicable to a single user, which poses challenges such as high investment risks, difficulty in matching source and load, and difficulty in meeting the construction needs of green industrial parks and zero carbon parks. The project implementation still faces constraints.

      In this context, the Notice on Relevant Matters Concerning the Orderly Promotion of Multi User Green Power Direct Connection Development (NDRC Energy [2026] No. 688, hereinafter referred to as "Document 688") has emerged. Compared with previous policies, Document 688 has new changes in three aspects: applicable scenarios, investment models, and mechanism innovation.

      One is the significant expansion of applicable scenarios.

      The extension of document 688 from a single user to multiple users not only expands the scope of policy application, but also effectively eliminates concerns about high load uncertainty in the previous single user mode. Multiple users can also enhance their regulatory capabilities through load complementarity. At the same time, the document clearly supports emerging industries such as computing power facilities and green hydrogen ammonia alcohol.

      The second is to optimize and upgrade the investment model.

      Document No. 688 specifies that the project must be led by an independent legal entity as the main responsible unit. This entity can be jointly established by the power source and load party, or managed separately by a single entity. The document specifically states that the park management committee, third-party organizations, etc. can invest in the establishment of such entities.

      Thirdly, innovative regulation incentives and green power traceability mechanisms have been developed to adapt to multiple users.

      Document No. 688 established an incentive mechanism for regulating ability. The mechanism encourages the main responsible unit of the project to organize internal power supply and load based on the agreement, optimize the internal operation mode according to the adjustment ability of the internal subject and the agreed compensation standards, and promote the coordinated operation of the source and load.

      As a continuation of the policy, the "unchanged" reflected in Document 688 is more worthy of attention. The preserved underlying logic means that from pilot exploration to institutional norms, the core goals and basic principles remain unchanged, and market parties will also form expectations based on this.

The basic connotation of green power direct connection remains unchanged.

      Document No. 688 has been expanded to a multi-user scenario based on this, but its connotation remains unchanged: in terms of power supply, new energy sources such as wind power, solar power, and biomass power are the main suppliers; In terms of transmission, direct connection between the power source and the power user must be achieved through dedicated lines; In terms of development goals, we aim to explore innovative integrated development models for new energy production and consumption, meet the needs of green development for enterprises, improve the level of local consumption of new energy, and require green power direct connection projects to fairly and reasonably assume safety, economic, and social responsibilities.

      The second principle remains unchanged, which is to determine the source based on the load and consume nearby.

      Whether it is Document No. 650 or Document No. 688, the key principle of "using the load to determine the source and nearby consumption" revolves around three indicators.

      Thirdly, the operational management requirements remain unchanged.

      First, take a look at the responsibility interface. Both grid connected projects and public power grids fulfill their respective responsibilities for power safety risk control within their respective responsibility interfaces. Off grid projects are responsible for the safety risk control within the project scope on their own.

      Next, let's look at safety operation management. Both documents specify that the project must be equipped with secondary systems such as relay protection, safety and stability control devices, communication equipment, etc. according to standards, and network security facilities such as network security monitoring and isolation devices must be installed. The network performance of each internal facility must meet relevant standards.

      Take another look at scheduling management. Grid connected projects are connected to the new power load management system or power dispatch automation system according to the type of service provided to the system. The overall and internal power sources of the project are uniformly managed by the corresponding dispatch agency based on the connected voltage level and capacity scale. The dispatch agency issues dispatch plans based on the clearing results of the project's spot market.

      Fourthly, the trading and pricing mechanisms remain unchanged.

      In terms of market participation methods, grid connected projects can be registered as a new type of operating entity in the market, and internal entities can also be registered separately. In the initial stage, they can participate in the spot market through a "quantity without quotation" method, and the project cannot be purchased by power grid enterprises as agents. The above requirements are clearly and consistently stated in the document.

In terms of pricing mechanism, the spirit of Document 688 is consistent with Document 1192, following the principle of "fair burden".

      It can be seen that from Document No. 650 to Document No. 1192 and then to Document No. 688, the policy has always been committed to building a fair and reasonable pricing mechanism for green power direct connection projects, ordinary users, and power grid enterprises.

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