On Monday, the National Energy Administration issued a notice on matters related to self built supporting transmission projects for power grid enterprises to repurchase power supply projects (hereinafter referred to as the "notice"), which pointed out that for large and medium-sized renewable energy transmission projects that are explicitly required by national approval documents to be constructed by power grid companies or required by national policies to be constructed by power grid companies, or self built supporting transmission projects that are first funded by power generation enterprises through negotiations between the power grid and the power grid, and for which current power generation enterprises submit repurchase applications, the repurchase work should be completed by the end of 2015 in principle.

The Notice requires a few provincial-level power grid enterprises facing operational difficulties to complete the project by the end of 2018 at the latest. For small-scale renewable energy projects supporting self built transmission projects, negotiations between power plants and the grid should be strengthened, and eligible power grid enterprises should be encouraged to arrange repurchase work based on actual situations. Power grid enterprises and power generation enterprises should jointly carry out the approval work for the access to the power grid project. In the later stage, if the public power plant access system project constructed by power grid enterprises is approved, they should negotiate and complete the repurchase as soon as possible according to the principle of voluntary preferential treatment. For the transmission projects that cannot be repurchased temporarily (including transmission projects built by power generation enterprises before the power system reform in 2003), the power generation enterprises and power grid enterprises can negotiate independently and transfer assets to power grid enterprises free of charge in accordance with relevant regulations on state-owned asset management.

The Notice clarifies the management and operation and maintenance responsibilities of the power supply supporting transmission project: before the completion of the repurchase work, the management and operation and maintenance responsibilities of the power supply supporting transmission project should be borne by the power generation enterprise according to the existing property rights, and after the formal transfer of assets, the power grid enterprise should be responsible.

In January 2013, the former State Electricity Regulatory Commission issued the "Supervision Notice on Self built Supporting Transmission Projects of Power Projects", which reported the problems existing in self built supporting transmission projects and proposed regulatory opinions such as power grid enterprises accelerating repurchase. Overall, the repurchase work in provinces such as Fujian and Shandong has been well implemented, while the repurchase work in other provinces has not yet been fully implemented.

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