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National Development and Reform Commission: Uniform Benchmark Waste Incineration Power Tariff at RMB0.65/kWh in China

Author:  Source: China Economic Net  Published time: April 13, 2012


The National Development and Reform Commission recently released the notice on perfecting the waste incineration power tariff policy, which came into effect as of April 1. According to the notice, a ton of waste inbound to the waste incineration power plant is converted into 280kWh of feed-in power at RMB0.65/kWh, a uniform benchmark waste incineration power tariff in China; the remaining feed-in power is subject to the feed-in tariff for the local power from coal generator units. Below is the whole notice:


To: Development and Reform Commissions and Administrations of Commodity Prices of Provinces, Autonomous Regions, and Municipalities


To promote the healthy development of the waste incineration power generation industry, resource efficiency, and environmental protection, we at the National Development and Reform Commission decide to further perfect the waste incineration power tariff policy. The notice about the relevant items is as follows:


1. Further Standardizing Waste Incineration Power Tariff Policy


As for domestic waste incineration power generation projects, the amounts of waste processed by them are first converted into feed-in power for settlement. As a temporary arrangement, a ton of domestic waste converts into 280kWh of feed-in power at RMB0.65/kWh, a uniform benchmark waste incineration power tariff in China; the remaining feed-in power is subject to the feed-in tariff for the local power from coal generator units.


2. Perfecting the Waste Incineration Power Expenditure Apportionment System


The part of waste incineration feed-in tariff excessive of the benchmark desulfurized coal generator unit feed-in tariff is apportioned at two levels. The local provincial grid is responsible for RMB0.1/kW in apportionment, while the additional power purchase cost thus incurred to the grid enterprise will be set off in its power sales prices; the other part will be absorbed in the renewable energy tariff collected nationwide as a solution.


3. Effectively Reinforcing Supervision of Waste Incineration Power Tariff


1) The provincial price authority will regularly check the amounts of waste disposal according to the approval document for the waste incineration power generation project, waste disposal contract, bank statements of payments for waste disposal by relevant local authorities, and so on. The grid enterprise will pay for the electric power according to the amount of waste incineration feed-in power reviewed and approved by the provincial price authority and the amount of on-grid power generated from conventional energy.


2) When the amount of feed-in power converted on the basis of the amount of waste processing is lower than the actual amount of on-grid power by 50%, the project involved is regarded as a conventional one and will not be subject to any subsidy for waste incineration power tariff; When the amount of feed-in power converted on the basis of the amount of waste processing is 50% higher than the actual amount of on-grid power and is still lower than the total on-grid power, the converted amount of power is regarded as the amount of waste incineration feed-in power. When the converted amount of feed-in power is higher than the actual amount of on-grid power, this actual amount of on-grid power is regarded as the amount of waste incineration feed-in power.


3) Price authorities of various levels will strengthen their regulation of the implementation of the waste incineration power feed-in tariff and tariff surcharge subsidy settlement, effectively carry out statistics and checks of the amount of waste disposal, feed-in power, and tariff subsidy, and ensure the proper implementation of the power tariff policy. Power generation enterprises and grid enterprises must truly and completely record and store information such as the amount of feed-in power from waste incineration power projects, prices, subsidies, and amount of waste disposal and are ready to accept the supervision and inspection of relevant agencies.


4) Any enterprise that makes any false statement of waste disposal and/or fails to verify such disposal and the amount of feed-in power will be harshly punished: it will be deprived of the privilege of receiving relevant power tariff subsidies as a waste incineration power generation enterprise while the person(s) involved in such misconduct will be held legally responsible.


5) The grid enterprise shall, as per Renewable Energy Law and relevant rules, be responsible for the construction of the waste incineration power generation project access system and its management.


4. Implementing Time


This notice will come into effect as of April 1, 2012. All waste incineration power generation projects are subject to the above rules.