Green Certificates Help the Development of Renewable Energy in the Power Industry

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On June 30, 2024, the National Energy Administration (NEA) officially launched the National Green Certificate Issuance and Trading System (NGCITS). This aims to fully implement the requirements set by  the National Development and Reform Commission, the Ministry of Finance and the National Energy Administration for  the comprehensive  coverage of renewable energy green power certificates (the green certificates).

Starting July 1, 2024, power generation companies or project owners can access the system through the “Online Services” section  of the NEA website  using their existing  accounts and passwords. The system will issue green certificates based on  electricity consumption  data provided by power grid companies and power trading institutions for registered projects.

According to NEA data, by the end of May 2024, China’s  installed capacity of renewable energy power generation  reached 1.12 billion kilowatts, marking a year-on-year increase of 15.5%. This includes wind power installations reaching 330 million kilowatts (up 17.8% year on year) and  solar power installations reaching 350 million kilowatts (up 17.8%  year-on-year). These renewable energy sources will provide substantial  data support for the issuance of green certificates.

Moreover,  the activation of the NGCITS will  positively impact  China’s carbon emission quota trading market. From January to May 2024, the market’s transaction volume  reached 130 million tons, a 30.2% year-on-year increase,  with  renewable energy power companies accounting for  58 million tons, a 36.8% year-on-year increase.

To ensure the smooth operation of the NGCITS, the  NEA will enhance system  maintenance and management to quarantee  safe and stable functionally. Additionally,  training will  be provided to power generation companies and project owners to improve their proficiency in using the system.