Core Viewpoint - The National Development and Reform Commission has released a draft for public consultation regarding the implementation of minimum renewable energy consumption ratio targets and renewable energy power consumption responsibility weight system, aimed at promoting high-quality development of renewable energy and achieving carbon peak and carbon neutrality goals [1]. Group 1: General Principles - The purpose of the draft is to promote high-quality development of renewable energy and ensure its minimum consumption ratio in energy use, in accordance with the Energy Law and the Renewable Energy Law of the People's Republic of China [3]. - The draft applies to the establishment, monitoring, and assessment of minimum renewable energy consumption ratio targets for energy users and provincial administrative regions [3]. Group 2: Minimum Renewable Energy Consumption Ratio Targets - The minimum renewable energy consumption ratio refers to the proportion of renewable energy consumed by energy users in their total energy consumption, divided into electricity consumption and non-electric consumption targets [4]. - The government will identify key energy-consuming industries and set minimum renewable energy consumption ratio targets along with transition periods, with ongoing monitoring and evaluation [4][5]. - The Ministry of Energy will issue annual minimum renewable energy consumption ratio targets, which provincial energy departments will implement [6]. Group 3: Renewable Energy Power Consumption Responsibility Weight - The renewable energy power consumption responsibility weight indicates the proportion of renewable energy consumed in each provincial region relative to the total electricity consumption [7]. - The Ministry of Energy will conduct unified calculations of these weights and issue them annually [11]. - Provincial energy departments are responsible for implementing plans to ensure stable utilization rates of wind and solar power [12]. Group 4: Monitoring, Evaluation, and Accountability - The Ministry of Energy will monitor the implementation of minimum renewable energy consumption ratio targets and responsibility weights quarterly and publish the results [19]. - Annual evaluations will be conducted to assess the completion of these targets, with reports submitted by provincial energy departments [20]. - Non-compliance with the targets will lead to regulatory actions, including mandatory completion through green certificate trading [10].

Core Insights - The article highlights significant policy developments from China's National Development and Reform Commission (NDRC) and the Ministry of Ecology and Environment (MEE) that favor the hydrogen and ammonia industry, particularly in renewable energy hydrogen production [3][4][6]. Group 1: Policy Developments - On October 13, the NDRC announced that renewable energy hydrogen and ammonia will be included in the non-electric consumption minimum ratio assessment, establishing methods for calculating raw material utilization and fuel utilization [3][4]. - The NDRC's draft outlines that the minimum ratio targets for renewable energy consumption will encompass various non-electric uses, including renewable energy heating, hydrogen and ammonia production, and biofuels [4]. - The MEE released a draft methodology for renewable energy electrolysis hydrogen production, applicable to new projects that derive at least 90% of their electricity from self-owned renewable energy plants [6][7]. Group 2: Industry Implications - The methodology aims to support the transition from initial industry development to large-scale production by facilitating voluntary greenhouse gas reduction trading mechanisms for renewable hydrogen projects [6][7]. - As of the end of 2024, electrolysis hydrogen production capacity is projected to account for only 1% of total national capacity, indicating significant technical and investment barriers that currently hinder economic viability [6][7]. - The new policies are expected to enhance the competitiveness of renewable hydrogen by allowing it to replace fossil fuel-based hydrogen, thus generating measurable reductions in emissions without double counting between upstream and downstream processes [7].