CITIC Securities: Multi-user green electricity direct connection policy issued to promote local consumption of new energy.

The CITIC Construction Investment Research Report believes that recently, the National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on Orderly Promoting the Development of Multi-User Green Electricity Direct Connection". Multi-user green electricity direct connection refers to new energy power generation such as wind power, solar power generation, biomass power generation, etc., not directly accessing the public power grid, but supplying green electricity to multiple users through dedicated lines and substation facilities, realizing a clear tracing and distribution mode of electricity supply. The "Notice" specifies that both new loads and existing loads can carry out multi-user green electricity direct connection. At the same time, the "Notice" supports new energy power generation projects that have not yet carried out grid access engineering construction, as well as new energy power generation projects that cannot be connected to the grid due to constraints on new energy absorption, to carry out multi-user direct connection of green electricity, opening up a channel for their power absorption. Overall, multi-user green electricity direct connection reduces the threshold for the implementation of green electricity direct connection projects, promotes the absorption of new energy in the vicinity and on-site, and reduces the pressure of wind and solar curtailment.