China’s Multi-User Green Power Model: From Renewable Supply to Hourly Traceability

China has formally expanded its green electricity direct-connection framework from a single-user model to a multi-user model. The change allows renewable electricity from wind, solar, biomass and other new-energy sources to be supplied through dedicated lines and substations to several legal-entity users, while keeping generation, consumption and allocation traceable.

The policy was issued by the National Development and Reform Commission and the National Energy Administration under Document No. 688. Its purpose is clear: improve local renewable energy absorption, support low-carbon energy transition needs, and create a more disciplined structure for projects where renewable power is consumed close to where it is produced.

At the centre of the policy is a practical shift in how green electricity is organised. Instead of treating a direct-connection project as a relationship between one renewable power source and one consumer, the new framework allows multiple companies to share dedicated renewable supply infrastructure. This is especially relevant for industrial parks, zero-carbon parks, incremental distribution networks, export-oriented enterprises and companies with explicit green electricity consumption requirements.

What the Policy Actually Introduces

The notice defines multi-user green electricity direct connection as a model where renewable electricity does not directly enter the public grid, but is delivered to multiple users through dedicated lines and transformation facilities. The users must be different legal entities. Residential and agricultural users are excluded.

The framework covers both grid-connected and off-grid projects. In grid-connected projects, the project as a whole connects to the public grid through a clearly defined physical and responsibility boundary. The renewable power source is connected internally to the project, while the public grid remains responsible only within its agreed interface.

The Policy Logic: Let Demand Shape Renewable Capacity

The planning principle is “load determines source”. This is a critical point. China is not simply encouraging more renewable capacity; it is requiring project developers to size renewable generation according to actual local demand and consumption capability.

The notice sets three quantitative thresholds that define the operational discipline of the model. Annual self-generated and self-consumed electricity must account for at least 60% of total available generation. It must also cover at least 30% of the project’s total electricity consumption, rising to at least 35% before 2030. For grid-connected projects, annual electricity exported to the public grid should in principle not exceed 20% of total available generation.

This makes the policy materially different from a generic renewable expansion policy. It is designed to reduce pressure on the public grid, increase local consumption, and discourage projects that use a direct-connection label while still pushing most renewable power back into the grid.

Why This Matters for Renewable Absorption

The notice explicitly supports renewable projects that have not yet started grid-connection construction, as well as projects that cannot connect to the grid because of renewable absorption constraints. Distributed solar PV may also participate through centralised aggregation.

This is an important policy signal. China is not only building renewable capacity; it is addressing the operational problem of where that capacity can be consumed, how it can be balanced, and how much pressure it places on the public grid. The multi-user model gives renewable projects another route to market when conventional grid integration becomes constrained.

For grid-connected projects, the notice adds a further safeguard. During periods identified by provincial authorities as difficult for renewable absorption, projects may not reverse power flow back to the public grid. This reinforces the policy’s core idea: the project should primarily serve local demand, not become an uncontrolled export channel.

The Certificate-Relevant Part: Hourly Traceability

The most important element for the granular certificate market is the traceability mechanism. The policy requires metering conditions across internal generation, plant use, grid-connection points, internal users and storage. These points must be equipped with recognised bidirectional time-of-use meters.

For grid-connected projects, the project’s self-generated and self-consumed green electricity is calculated by deducting electricity exported to the public grid from actual internal renewable generation, including renewable electricity released from storage. Internal users may then be allocated self-generated and self-consumed electricity according to their electricity consumption share in each time period.

This creates hour-level matching between renewable generation and electricity consumption inside the project. The notice also states that traceability results should, after verification, be pushed to the national green certificate issuance and trading system. The corresponding green certificates for self-generated and self-consumed electricity are then issued, transferred and cancelled according to relevant rules.

In practical terms, the policy connects four layers that are often treated separately: physical renewable supply, internal metering, user-level allocation and green certificate administration. That makes the framework highly relevant for the future of granular electricity claims.

Market Participation and Responsibility

The notice also clarifies how these projects should interact with electricity markets. Grid-connected projects register as new-type business entities, while internal entities may also register separately. In principle, the project participates in electricity market transactions as a whole, with the main project-responsible entity submitting unified declarations.

At the initial stage, projects may participate in the electricity spot market by reporting quantities without prices. When conditions mature, they can gradually transition to reporting both quantities and prices. The notice also states that these projects may not rely on grid enterprises as agents for power purchase.

This structure matters because it assigns responsibility. The main project entity is responsible for internal balancing, settlement with the public grid, internal agreements, operating responsibilities, and coordination between generation, storage and load. In other words, the model is not only an electricity sourcing mechanism; it is also a governance framework for multi-party renewable electricity consumption.

A Step Toward More Credible Green Electricity Claims

The policy does not present itself as an international carbon-accounting standard. It does, however, strengthen the domestic infrastructure needed for more credible green electricity claims: defined boundaries, time-of-use metering, internal allocation rules, renewable traceability and connection to the national green certificate system.

That is why the policy is significant for companies with green electricity consumption obligations, high energy use, high carbon emissions, and export-oriented supply chains. It gives such users a clearer framework for consuming renewable power in a way that can be traced more precisely than conventional annual procurement claims.

The key development is not only that more companies can access renewable electricity. It is that multiple users can be linked to renewable generation under a structured, measurable and certificate-relevant system. This is the direction in which credible electricity-based decarbonisation claims are moving: from annual volumes toward time-based evidence.