Liaoning Province has formally kicked off its competitive bidding process for incremental renewable energy projects slated for 2027, with the provincial development and reform commission issuing the official notice on September 20. The auction targets new energy installations that achieve full-capacity grid connection between June 1, 2025, and December 31, 2027, while remaining outside the existing mechanism implementation scope. Eligible participants span centralised wind farms (both onshore and offshore), centralised solar photovoltaic plants, distributed wind facilities, and distributed solar PV projects, with separate bidding and clearing tracks organised for wind and solar respectively.
The total electricity volume to be included under the mechanism in this auction round stands at 5.308 billion kilowatt-hours, comprising 3.956 billion kWh for wind power and 1.352 billion kWh for solar PV. Both categories carry a minimum bid sufficiency ratio of 140%, with the upper price ceiling set at 0.30 yuan per kWh and the floor at 0.18 yuan per kWh for both wind and solar. The mechanism electricity price will remain in effect for a fixed term of 12 years across both technology types.
Regarding bid volume caps, centralised projects in either wind or solar may not apply for amounts exceeding 60% of their total grid-connected generation, while distributed projects are limited to a maximum of 80%. For individual projects, the mechanism volume ceiling is calculated on a formulaic basis: centralised wind farms use installed capacity (AC side) multiplied by 2,324 hours, adjusted by a 2.42% auxiliary power consumption rate, then by 60%; distributed wind follows the same formula but applies an 80% factor including self-consumed generation. Centralised solar PV projects use 1,361 hours with a 1.86% auxiliary power rate, again multiplied by 60%, while distributed solar applies 80% with the same hour count. All bids must be quoted inclusive of VAT, expressed in yuan per kWh with three decimal places, while declared volumes are measured in megawatt-hours with the same precision; if applying on a proportional basis, percentages must be submitted as whole integers.
Clearing will follow a model combining price priority, time priority, and marginal threshold control. All projects within each category are first ranked by quoted price in ascending order, with earlier applications breaking any price ties, ensuring that only a single marginal project emerges at the clearing point. Should the marginal project receive an allocated volume less than 50% of its declared amount, it loses eligibility, and the clearing price reverts to that of the immediately preceding accepted project. If the clearing price reaches the lower bid limit, the session is automatically voided. Qualified natural-person distributed PV projects that pass review may elect, at their own discretion, to obtain mechanism electricity as price takers at the final wind or solar clearing price, granting them priority access during bidding in the solar category.
To maintain a fair and transparent competitive environment, projects that participate in bidding but ultimately fail to secure allocation will face a three-year suspension from future auctions if both conditions are met: their application was submitted later than the accepted projects at the clearing price, and their full-capacity grid connection falls more than six months behind the commissioning date committed in their bid. Performance guarantees must specify the guarantee number, issuance date, guaranteed amount, names of the applicant and beneficiary, complete bank branch address and contact details, validity period, and conditions of use, with the amount no less than that stipulated in the broader competitive bidding plan. Offshore wind projects calculate their guarantee amount using an upper bound of 0.3749 yuan per kWh for the relevant power price.
Individual household distributed PV projects that have not yet reached commercial operation and participate voluntarily are generally exempt from posting performance guarantees. However, when such projects engage a bidding agent, that agent must submit the required guarantee in accordance with the established plan. Each individual project is limited to a single guarantee instrument, though a single power generation enterprise applying for multiple uncommissioned projects, or an agent representing multiple projects, may issue either separate guarantees per project or one consolidated guarantee. In the case of a consolidated guarantee that fails review, all associated projects will be returned to the either the distributed PV agent or the generation enterprise. Following the auction, unsuccessful projects holding individual guarantees may apply for the return of their instruments, as can successful projects once they achieve full-capacity grid connection; for agent-represented portfolios or consolidated guarantees, refunds become available only after all winning projects reach full connection.
Within three working days of this notice, the provincial power company will publish the auction announcement detailing procedures, timelines, and required submission materials, while standardising templates for documentation and price differential agreements, and ensuring that all incremental renewable project participants are properly informed of both the notice and the announcement. This auction round will not entertain aggregation of distributed PV projects. The provincial development and reform commission will release the final results separately, and the provincial power company will periodically file guarantee execution reports while promptly flagging any issues that surface during implementation.
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