China to Launch Multi-User Green Power Direct Connection Policy

On April 27, 2026, the National Energy Administration of China announced that detailed implementation rules and technical specifications for multi-user direct green power connection — specifically targeting industrial parks — will be officially released in mid-May 2026. This development is particularly relevant for export-oriented manufacturing enterprises, renewable energy procurement service providers, and carbon compliance professionals operating in EU and U.S. markets subject to carbon border mechanisms.

Event Overview

At its press conference on April 27, 2026, the National Energy Administration confirmed that formal regulatory documents governing multi-user direct green power connection (Multi-User Direct Green Power Connection) will be issued in mid-May 2026. The policy explicitly permits clustered export manufacturing enterprises in industrial parks to jointly procure wind and solar power via virtual power plant (VPP) aggregation and obtain internationally recognized International Renewable Energy Certificates (I-RECs).

Industries Affected by This Policy

Export-oriented manufacturing enterprises
These firms face rising compliance costs under external carbon regimes such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and the U.S. Inflation Reduction Act (IRA). The policy directly enables them to reduce verified Scope 2 emissions through traceable, certified green electricity procurement — lowering third-party verification expenses and improving documentation efficiency for carbon footprint reporting.

Industrial park operators and energy service providers
As facilitators of aggregated procurement and VPP integration, these entities are positioned to support multi-user coordination, metering infrastructure upgrades, and I-REC claim management. Their role shifts from passive infrastructure providers to active enablers of cross-enterprise green power orchestration.

Renewable energy developers and traders
The policy introduces a new off-taker channel: aggregated industrial demand within parks. Unlike single-buyer PPAs, this model may require standardized contract frameworks, shared grid interconnection arrangements, and synchronized settlement protocols — creating both operational complexity and scalability opportunities.

What Enterprises and Practitioners Should Monitor and Do Now

Track official publication timing and scope definitions

The mid-May release window is confirmed, but the final text will determine eligibility criteria (e.g., minimum park size, required VPP certification level, or I-REC issuance pathways). Stakeholders should monitor the NEA’s official website and affiliated notice platforms for exact document titles, annexes, and effective dates.

Assess readiness for virtual power plant participation

Participation hinges on technical capability to join or form a VPP — including compatible metering, telemetry systems, and data-sharing agreements among co-located enterprises. Firms should review existing energy management systems and assess interoperability with emerging national VPP standards referenced in the upcoming guidelines.

Distinguish between policy signal and near-term operational feasibility

This announcement confirms regulatory intent, not immediate commercial availability. Grid dispatch rules, provincial-level implementation guidance, and I-REC registry alignment remain pending. Companies should avoid premature procurement commitments but begin internal scoping for pilot readiness — especially those already engaged in CBAM reporting or IRA-aligned decarbonization roadmaps.

Prepare cross-enterprise coordination frameworks

Since multi-user connection requires joint action, early-stage engagement with neighboring manufacturers in shared industrial parks is advisable. Focus areas include data confidentiality protocols, cost-allocation models for shared infrastructure, and governance structures for collective procurement decisions — all of which may inform future contractual templates.

Editorial Perspective / Industry Observation

Observably, this policy represents a structural shift in how China institutionalizes green electricity access for export industries — moving beyond individual corporate PPAs toward coordinated, location-based aggregation. Analysis shows it functions primarily as a regulatory signal rather than an immediately executable program: while the framework is now confirmed, actual deployment depends on complementary updates to grid codes, provincial energy planning, and I-REC tracking integration. From an industry perspective, its significance lies less in immediate scale and more in signaling long-term alignment between domestic energy policy and international carbon market requirements. Continued attention is warranted as implementation details unfold — particularly regarding whether the rules enable retroactive claims or apply only to new procurement contracts.

Concluding, this policy marks a targeted step toward harmonizing China’s green power market design with transnational carbon accountability systems. It does not eliminate compliance complexity, but it introduces a standardized, scalable pathway for clustered industrial users to address upstream electricity-related emissions. Currently, it is best understood as a foundational regulatory milestone — one that sets conditions for future procurement innovation, rather than delivering turnkey solutions.

Source: National Energy Administration of China, Press Conference, April 27, 2026.
Note: Implementation timeline, technical annexes, and provincial-level adoption mechanisms remain subject to ongoing observation.