Yunnan’s Free Hydropower Green Certificates Exceed 300 Million, Slashing Corporate Green Energy Costs

Yunnan province has hit a new milestone in green energy development, with the cumulative number of free green certificates for existing conventional hydropower surpassing 300 million. According to China Southern Power Grid Yunnan Power Grid Company, the latest batch of allocated certificates has lifted the total volume to 303 million, corresponding to over 303 billion kilowatt-hours of clean power generation. The initiative currently benefits 76,000 power-consuming enterprises across the province, cutting their overall green energy expenditure by approximately 1.68 billion yuan.

Xinhua News Agency reports that Yunnan remains the national leader in the scale of free green certificate allocation for existing conventional hydropower, pioneering a complete industrial chain covering certificate allocation, transfer and traceability. The province leverages its abundant renewable energy endowments to deliver low-cost green energy support for industrial enterprises, effectively facilitating the low-carbon transformation of local industries.

The policy framework supporting the green certificate mechanism took shape through progressive national and provincial rollouts. National regulatory guidelines clarified in July 2023 that green certificates serve as the sole official proof of green power production and consumption in China. The rules stipulated that green certificates generated from conventional hydropower projects commissioned before January 1, 2023, should be transferred to power users free of charge alongside electricity supply.

Yunnan further solidified the implementation of the favourable policy with the official release of the Yunnan Green Power Trading Implementation Rules in December 2024, laying a standardized institutional foundation for large-scale free green certificate allocation. This targeted policy design exempts enterprises from mandatory green certificate procurement expenses, forming a distinctive competitive advantage for green industrial development in the province.

The tangible cost reduction brought by the mechanism has greatly boosted corporate operational vitality and green development momentum. Local manufacturing enterprises continue to benefit substantially from the ongoing policy implementation. Major industrial enterprises stationed in Yunnan are expected to save more than 10 million yuan in green certificate procurement costs throughout 2025, effectively lowering operational burdens and improving the cost-effectiveness of green energy consumption.

Boasting outstanding clean energy resources, Yunnan maintains a high proportion of clean power generation in its energy mix, with renewable energy installed capacity and power output ranking among the highest nationwide. The province’s mature hydropower industry and improved green power trading system provide solid practical support for the sustainable advancement of the green certificate allocation mechanism.

Moving forward, Yunnan will continue to optimise its green power trading and green certificate management systems. The province will further expand the coverage of free green certificate allocation, refine whole-process supervision and traceability mechanisms, and deliver more stable and cost-effective green energy support for industrial and commercial users. The continuous improvement of relevant policies will further unlock the value of local clean energy and drive steady high-quality development of the regional green low-carbon economy.