Core Viewpoint - The release of the "Notice on Improving Price Mechanisms to Promote Local Consumption of Renewable Energy" aims to clarify the economic responsibilities and boundaries of renewable energy projects, facilitating their development and integration into the power system [1][2]. Summary by Sections Price Mechanism Improvement - The notice establishes a "who benefits, who bears" principle for local consumption projects, mandating fair payment of transmission and distribution fees, and system operation fees [3][4]. - Projects not connected to the public grid are exempt from stability supply guarantee fees [3][4]. Project Requirements - Local consumption projects must have clear physical and safety responsibility interfaces, with at least 60% of their annual self-consumed electricity coming from renewable sources and at least 30% of total electricity consumption [2][6]. - From 2030 onwards, new projects must have at least 35% of their total electricity consumption from renewable sources [2]. Economic Responsibilities - The notice introduces the concept of "stability supply guarantee fees" to reflect the value of backup services provided by the grid, promoting fairness in cost-sharing among users [5][6]. - Projects will pay transmission and distribution fees based on their capacity rather than actual electricity consumption, which aims to prevent cost burdens from being shifted to other users [6][7]. Incentives for Development - The new pricing mechanism encourages projects to enhance their self-balancing capabilities and reduce grid connection capacity, thereby alleviating pressure on the power system [7][8]. - Projects with higher load factors than the average will benefit from lower transmission and distribution costs, incentivizing efficient use of grid resources [8][9]. Future Trends - The integration of distributed generation and user-side storage is expected to evolve into a unified investment and operational model, promoting the development of distributed energy resources [9].