To implement relevant policy requirements and standardize the transfer of green certificates for existing conventional hydropower generation projects in Yunnan Province that commenced operation before January 1, 2023, the Yunnan Provincial Development and Reform Commission, the Yunnan Provincial Energy Bureau, and the Yunnan Office of the National Energy Administration have jointly formulated and issued the "Yunnan Provincial Plan for the Transfer of Green Certificates from Existing Conventional Hydropower (Trial)."
According to national policy, tradable green certificates will not be issued for existing conventional hydropower projects for the time being. The corresponding green certificates will be allocated through electricity transaction traceability to clarify the flow of electricity, serving as the basis for direct, non-compensatory transfer.
Electricity trading institutions will organize quarterly electricity transaction traceability and the transfer of green certificates for existing conventional hydropower, based on electricity trading contracts and settlement data. This plan also applies to historical annual traceability and transfers not conducted prior to its issuance, as well as to subsequent annual activities.
Electricity transaction traceability includes wholesale market traceability, retail market traceability, priority power plant traceability, generation project traceability, and end-user traceability.
For the wholesale market, traceability covers contract electricity volume traceability and balancing electricity volume traceability. Contract electricity traceability is conducted in a specific sequence: coal-power traceability, green electricity transaction traceability, existing conventional hydropower traceability, and finally, other power source traceability. The coal-power traceability provision is specifically applicable to the second half of 2025. Following the completion of contract traceability, any remaining electricity generation and consumption not accounted for enters the balancing electricity traceability process.
After wholesale market traceability is complete, retail market traceability is conducted. This involves initial matching, adjustment matching, and final matching between generation and consumption entities. Initial matching follows the sequence of green electricity transactions, coal-power matching, existing conventional hydropower matching, and finally, matching for other power sources. The coal-power matching provision is also specific to the second half of 2025. Subsequently, sellers can adjust the initial matching results among their retail customers, subject to certain conditions and confirmations.
Following retail market traceability, priority power plant traceability is carried out. This process determines the matching of electricity, specifically from existing conventional hydropower within these priority plants, to various end-user categories.
Generation project traceability is then performed to establish a direct link between specific existing conventional hydropower generation projects and end-users. Hydropower generation enterprises are required to register their projects and green certificate accounts in the relevant national systems and provide accurate information to trading institutions.
Finally, user traceability forms the definitive data used for the actual transfer of green certificates. For most end-users, the results from the generation project traceability are used directly. Specific entities like wholesale users and park users can apply to further allocate these results to the ultimate consumers within their domains.
Based on the traceability data, green certificates corresponding to existing conventional hydropower electricity traced to market-based end-users are transferred to those users. Certificates for electricity traced to priority users are transferred to a provincial green certificate account. Certificates that cannot be transferred will also be allocated to the provincial account.
The electricity trading institution is responsible for synchronizing relevant registration information and traceability results to the national green certificate system to facilitate account generation and certificate transfers. Matters not covered in this plan will be handled according to national and provincial regulations. The Yunnan Provincial Energy Bureau is responsible for interpreting this plan, which is effective immediately upon its announcement.
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