These areas did not hit the minimum guaranteed hours.
Minimum guaranteed purchasing hours is required in China's new warning mechanism, according to a research note by MAKE. According to the NEA’s Notice Regarding Establishing the Monitoring and Warning System to Facilitate Sustainable Development of the Wind Power Industry, published on 18 July 2016, provinces whose annual wind utilisation hours are lower than the minimum guaranteed hours will receive a red warning.
All six provinces that have received red warnings in 2017 have failed to reach the respective minimum guaranteed purchasing hours in 2016. However, the warnings issued to provinces in 2017 will only effect the grid connection of projects in 2017.
Here's more from MAKE:
Provinces issued a red warning in 2017 will be allowed to connect new projects to the grid in 2018 if the minimum guaranteed purchasing hour level of the warning mechanism is met.
New installed capacity will decrease significantly in these provinces (which are all in the northern regions) because of the red warning.
IMAR and Xinjiang, which traditionally have substantial project capacity installed and connected annually, will be particularly impacted by the NEA’s evaluation.
The Notice will intensify a shift in industry growth to Class IV regions, especially to the provinces with good wind resources and limited curtailment, such as Hebei, Shanxi and Shandong provinces.
IPPs are also striving to secure new projects in low wind-speed provinces, such as Hunan, Hubei and Henan.
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