Selling electricity over the wall is about to be fully implemented!

Mondo Social Updated on 2024-01-31

"Electricity is sold over the wall"The model is not only conducive to the nearby consumption of distributed energy, but also greatly reduces the cost of transmission and distribution, bringing tangible benefits to both parties to the transaction. A win-win situation was achieved.

Text: Ne-Salon New Energy Gathering Group.

On December 21, the Development and Reform Commission of Chengmai County, Hainan Province issued a notice on promoting the sustainable and healthy development of the photovoltaic power generation industry.

The document said that the construction of distributed photovoltaic power generation projects is encouraged. For household photovoltaic power stations with a single project capacity of no more than 50 kilowatts, village-level photovoltaic power stations with a single project capacity of no more than 500 kilowatts, fixed building (structure) rooftop distributed photovoltaic power stations with a single project capacity of no more than 20,000 kilowatts, and composite distributed photovoltaic power stations promoted by the whole village, are not subject to the restrictions of grid-connected indicators.

It is worth noting that the notice also mentions,Explore PV regional power trading. Distributed photovoltaic power generation projects are allowed to directly sell electricity to power users who meet the policies and conditions in the same substation areaThe electricity price shall be negotiated by the supply and consumption parties, and the energy service agreement shall be signed, and the power grid enterprise shall be responsible for the transmission and settlement of electricity charges, and the photovoltaic power generation project shall give preferential electricity prices to the nearest electricity users。

This measure will undoubtedly accelerate the implementation of the "wall-to-wall electricity sales" model.

What is the "wall-to-wall electricity sales" model and what are the benefits?

"Selling electricity over the wall" = distributed generation market-based transactions, the former is a popular term for the latter. It is to allow distributed photovoltaic power stations to sell electricity directly to surrounding power users through the distribution network, rather than selling it to the grid at a low price first, and then buying it back from the power grid by the user.

Electricity is sold over the wall"The gradual advancement of the model means that everyone has the opportunity to become a power supplier. Just imagine, just sit at home, and the photovoltaic power station overhead will silently create wealth for you. You can sell the excess electricity you produce to your neighbors, which in the old fossil fuel era was a dream. But in the new energy era, it is gradually becoming a reality.

It is estimated that under the mode of "full self-consumption", the internal rate of return (IRR) of distributed photovoltaic power generation projects can reach 19%, and the investment period is about 6 yearsIn the "full grid" mode, the IRR is 12%, and the investment** period is about 11 years. It can be seen that the partition wall power sales strategy has great potential to improve the overall economic benefits of enterprise microgrid projects.

At the same time, for owners with large roof area and low electricity consumption, the partition wall power sales model can make more reasonable use of roof resources, thereby improving the return on investment of distributed photovoltaic power generation projects.

Electricity is sold over the wall"The model is not only conducive to the nearby consumption of distributed energy, but also greatly reduces the cost of transmission and distribution, bringing tangible benefits to both parties to the transaction. A win-win situation was achieved.

Although the advantages are fully revealed, the journey is difficult

As early as 2017, the National Energy Administration (NEA) issued a notice on the pilot of market-based trading of distributed power generation, allowing distributed generation project units to conduct electricity trading with nearby power users in the distribution network. This also marks the launch of the "Electricity Sold Through the Wall" pilot project, however, the development of this pilot project has not been smooth sailing. It was not until four years later, in December 2021, that the 5 MW distributed generation market-based trading pilot project in Zhenglu Industrial Park, Tianning District, Changzhou City, Jiangsu Province, was successfully connected to the grid for power generation.

In the previous "full grid" model, it was completely covered by the power grid. However,If the method of selling electricity through the wall is adopted, the profit of the grid will be damaged, and the liability will be magnified. Therefore, this is also a major difficulty in promoting this model.

In order to make the "wall-to-wall electricity sale" project happen as soon as possible, we really need to dig deeper into its core issues. In the "wall-to-wall sales" model, how should we re-examine the distribution of responsibilities and benefits between the two parties to the transaction and the power grid enterprises?At the same time, core issues such as network fees and cross-subsidies also need to be resolved。To this end, we must seek a solution that can fully consider the interests of both parties and the power grid enterprises, and reasonably balance the costs and benefits of all parties, so that the power grid will not only not become an obstacle to "selling electricity through the wall", but will become an active participant and promoter of this model.

Local ** encouragement, "selling electricity through the wall" is imperative

In March this year, Shandong Province issued the "Shandong Provincial Power Market System Construction Work Division Plan" also proposed to improve the distributed generation market-oriented trading mechanism, encourage distributed photovoltaic, distributed wind power and other entities to directly trade with surrounding users, and improve the transaction settlement, operation and scheduling mechanisms between microgrids, stock small power grids, incremental distribution networks and large power grids.

On December 7, Shanghai issued a document clarifying the construction of an energy storage development model covering the integration of wind, solar, storage, hydrogen and other sources, grid, load and storage and multi-energy complementarity in the Lingang New Area, and carrying out a pilot trial of a new model of selling electricity through the wall.

Conclusion: At present, the "wall-to-wall electricity" is still in its infancy, and Chengmai County has taken an important step forward for the "wall-to-wall power-selling" of distributed photovoltaics, but we also need to pay attention to how to implement the relevant policies in the follow-up local power grid, as well as how to collect the network fee. **Ne-Salon New Energy Hui ly

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