Nation sets green power usage benchmarks

China has taken a landmark step in its green transition by establishing its first-ever mandatory minimum consumption target system for renewable energy, a move experts say represents a fundamental paradigm shift from supply-driven expansion to demand-led integration in the country's pursuit of its carbon peak and neutrality goals.

Jointly issued by four ministries — including the National Development and Reform Commission and the Ministry of Industry and Information Technology — the measures for implementing the minimum target of renewable energy consumption and the responsibility weight of renewable energy power absorption officially took effect on Saturday.

"The policy fundamentally transforms the responsibility structure of China's energy transition as it enters deep waters," said Wang Yongli, deputy director of the Energy Internet Research Center at North China Electric Power University.

"In the past, the main challenge was insufficient grid capacity to absorb rapid supply growth. Now, by shifting mandatory green consumption obligations from local governments and grid companies down to key energy-consuming enterprises, the policy uses demand to anchor renewable energy investments and market expectations."

According to the National Energy Administration, the new framework establishes a dual-driven mechanism combining "rigid obligations on the consumer side" with "territorial responsibilities on the absorption side".

While provincial administrative regions will continue to optimize the regional allocation of green power, key energy-intensive industries will face strict, quantifiable baselines for renewable energy use in their total energy mix, it said.

The initial wave of monitoring and assessment will target sectors with high emissions or rapid electricity demand growth, including electrolytic aluminum, steel and cement, polysilicon production, as well as newly built data centers at national computing hubs.

Analysts note that for these enterprises, green power procurement capabilities and energy structure optimization will rapidly evolve into core market competitiveness.

"High-energy-consuming, high-emission industries and those with rapidly growing power demand will be the first to face tougher green energy constraints," said Wang.

"The ability to procure green electricity and certificates, along with the capacity to adjust energy consumption structures, will become a defining core competitiveness for enterprises."

Crucially, the regulation integrates non-electric renewable consumption — such as green hydrogen, ammonia, methanol and biomass heating — into the national assessment for the first time.

According to the NEA, this expansion aims to ease grid bottlenecks and unlock new avenues for deep industrial decarbonization by promoting localized, multiscenario utilization of clean energy.

By diversifying how renewable energy can be legally consumed, the policy addresses the structural mismatch between large-scale clean energy bases in western China and the consumption limits of local power grids.

Another game-changing shift is the elevation of Green Electricity Certificates into legally binding compliance instruments. Companies failing to meet their quarterly or annual targets must purchase GECs to bridge the gap or face regulatory penalties, including public reprimands and credit downgrades.

"This thoroughly clarifies how companies calculate and execute their green targets, which will effectively boost market demand for green power and GEC trading," said Tao Ye, deputy director of the renewable energy development center at the NDRC's energy research institute.

Regarding market concerns over potential price surges, experts emphasize that the policy aims to form a credible, stable and predictable green premium rather than fuel speculation.

The GEC market will see internal differentiation based on certificate credibility, said Wang.

"The future value of a GEC will hinge on its availability, verifiability and its alignment with carbon markets, product carbon footprints and international supply chain standards, rather than just raw supply volume," he said.