In recent years, China's photovoltaic industry has undergone significant changes in its development landscape. Photovoltaic power generation has transitioned into a new era of subsidy-free growth, marking the end of financial subsidies from the central government. The nation has shifted away from a scale-focused approach and introduced a planning and priority guidance mechanism. Under this framework, each province, region or city coordinates project construction scales and allocations, devising annual development and construction plans that leverage market dynamics to determine project investors and construction magnitudes. The expansion of photovoltaic power generation now hinges on effective grid connection and absorption, emphasising the importance of enhanced synchronization between the power grid and photovoltaic sources. Moreover, the sector faces increased scrutiny in line with China's heightened commitment to ecological and environmental preservation, as well as elevated safety standards.
In response to these shifts, the National Energy Administration (NEA) unveiled the newly revised "Management Measures for the Development and Construction of Photovoltaic Power Stations" in December 2022. These Measures delegate the authority to local energy authorities for determining project lists and construction plans for photovoltaic power stations. Projects with guaranteed grid connection are generally selected through competitive allocation overseen by provincial-level energy authorities, while market-oriented grid-connection projects adhere to pertinent national and provincial regulations. The Measures also introduce a system of record management for photovoltaic power stations, with recorded capacity predominantly based on alternating current-side capacity. Furthermore, photovoltaic power station projects must secure an electricity business license within six months following grid connection.
Regarding the construction of large-scale photovoltaic power bases in China, land availability has consistently stood as a pivotal factor influencing the development of photovoltaic projects. To provide clarity on permissible land types for photovoltaic power projects and requisite land procedures, the Chinese Ministry of Natural Resources, in collaboration with the National Forestry and Grassland Administration and the NEA, issued the "Notice on Supporting the Development of the Photovoltaic Power Generation Industry and Regulating Land Management" on March 20, 2023 (Notice). This Notice introduces a classification-based approach to land management for photovoltaic power projects.
The scope of land for photovoltaic power projects encompasses land for photovoltaic arrays, which includes land for photovoltaic panels and collector lines using direct-buried cable laying methods. It also includes land for supporting facilities, such as substations, operation management centers, collector lines, on-site and off-site roads, etc., categorized according to the “Control Indicators for Land Use of Photovoltaic Power Plant Projects”. These segments are managed based on specific land-use characteristics. The Notice explicitly prohibits the utilization of arable land for photovoltaic arrays and establishes distinct requirements for land utilization involving non-arable agricultural land, forest land, shrub land, and grassland outside of primary grassland areas. Photovoltaic array land must not alter surface conditions and is subject to land record management procedures. In cases where construction land is needed for photovoltaic power project land, relevant land acquisition protocols can be followed in accordance with land acquisition regulations. Lease arrangements and other methods are also permissible for obtaining photovoltaic array land. Furthermore, for supporting facilities, land management aligns with construction land regulations, necessitating appropriate approval procedures.
Given the extensive and intricate nature of land usage for photovoltaic projects, stakeholders involved in new energy ventures must diligently attend to land-related matters throughout the development process and expeditiously address relevant land procedures to ensure compliance with legal requirements.
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