Solar PV Power Station Development and Construction Process and Analysis of Land Legal Issues

As environmental issues become increasingly prominent and fossil energy stocks are limited, the world will eventually shift to the development and utilization of renewable energy. The development and utilization of solar energy is an extremely important aspect of renewable energy development and utilization. Various countries have issued corresponding incentive policies to use solar energy resources in varying degrees to promote the full use of solar energy resources.

In recent years, governments at all levels in China have continuously introduced policies for using solar energy to encourage private capital to participate in the use and development of solar energy. In particular, there has been an upsurge in the development and construction of solar photovoltaic power stations. It can be said that investing in solar photovoltaic power plants is a business that has a stable return on investment and an environment that is beneficial to the benefit of future generations.

Under the current framework of China's laws and regulations and policies, what processes are required for the development and construction of solar photovoltaic power plants, and what are the legal issues of land? This article is intended to provide a preliminary introduction. In the next period, we will analyze and introduce the legal issues related to investment and financing in the development and construction of photovoltaic power plants.

First, the main work and process for the development and construction of solar photovoltaic power stations

First, we must first do a good job of the land

The main content of the work of land adjustment

In the early stage of PV power plant project, investors need to inspect and make adjustments to the topography and orientation of the land used for the project, the surrounding environment and the structure of the power grid, the conditions of the sending line, and the policies of the local power grid company. The contents of inspections and adjustments shall also include whether there are railways, highways, etc. that span the land used by photovoltaic power plants, whether the land used by the photovoltaic power station is a flood discharge area, and whether the pipeline corridor has oil depots, gas sources, underground pipe networks, and water sources.

Second, the main content of the application for filing

After completion of project land acquisition, it is confirmed that there is no problem. A development agreement (investment framework agreement) can be signed with the local government to enter the project filing application stage.

(1) Preparation

When filing an application for a project, it is necessary to entrust a qualified unit to assist in the preparation of a filing application report and feasibility study report for a large-scale photovoltaic grid-connected power station project.

(2) Work required during the project registration stage and the written opinions of the administrative department in need (partial written opinions may differ due to different provinces)

Mainly include the following:

1) The opinions of the Safety Supervision Bureau on the safety assessment report;

2) opinions of the water conservancy department on the water and soil conservation plan;

3) Opinions of the Ministry of Land and Resources on the issues related to the project's overriding of important mineral resources;

4) Opinions of the Ministry of Land and Resources on project geological hazard assessment;

5) The opinions of the environmental protection department on the project environmental impact report;

6) The housing and construction department has opinions on site selection for the project site;

7) The pre-examination opinions of the land department on land for project construction;

8) The cultural relics department selects sites for site selection of the project;

9) opinions of the agricultural sector;

10) opinions of the livestock sector;

11) opinions of the armed forces;

12) Apply for capital verification of the construction project bank (not less than 20% of the total project investment) and the loan intention of the construction project and the bank (not more than 80% of the total project investment);

13) Project feasibility study report and project access system design plan review comments;

14) Views of power companies accessing the power grid.

(3)Acquisition of Development and Reform Commission

Eventually obtained the record of the provincial-level Development and Reform Commission (some provinces have delegated authority).

III. Main work and process of project construction

(1) Selection of qualified EPC contractor's selection, components and other materials and equipment suppliers

For the construction of solar photovoltaic power stations, EPC mode is usually used for construction. Therefore, choosing an experienced and reputable EPC contractor is of utmost importance for building a solar photovoltaic power station. At the same time, qualified components and other materials and equipment suppliers should also be selected.

(2) Selection of supervisor

Choosing a good supervisor is very important for the quality control of solar photovoltaic power plant construction. The supervising party should have relevant experience in solar power station construction supervision. The designated personnel should be familiar with the components and other equipment and materials used by the EPC.

(3) Pre-acceptance and experimentation with all parties, as well as on-grid connection, electricity price approval and final acceptance

Before the final acceptance, the investor shall, together with all parties, carry out pre-acceptance of the solar photovoltaic power station and carry out tests on the various indicators of the photovoltaic power station; actively carry out related grid-connected work and power price approval work; and if the conditions are met, the organization will accept the final acceptance.

Second, legal issues in the development and construction of solar photovoltaic power stations

In China's land legal system, only collectively-owned land and state-owned land have two types of ownership. The construction of photovoltaic power plants is mostly located in rural barren hills, so it will inevitably involve how to deal with collectively owned land. Regrettably, due to various historical reasons, there are many problems in the collective land of our country, including the confirmation and transfer of ownership, including but not limited to the following:

(1) Most of the collective land has no license

Although the country has begun to notice the registration of real estate and proceed with it, at present, many collective lands have failed to register. This has caused great confusion for how to confirm the ownership of the land used by photovoltaic power plants. In other words, when an investor constructs a photovoltaic power plant, which entity should sign a land-related contract should be the first problem to be solved.

(2) Is it a signing of a lease contract or a contract, a subcontract, a contract for the transfer of contracted management rights or a circulation contract?

At present, the duration of most solar photovoltaic power plant projects is about 26 years, so the time limit for land use should also be matched. However, the term of the lease contract protected by law is limited to 20 years, and the exceeding period is not protected by law. Therefore, if a land-related contract is signed, it is not advisable to sign a lease contract.

According to Chinese law, rural land contracting adopts the family contracting method within the rural collective economic organization, and it is not appropriate to adopt rural contracted lands such as barren hills, wild ditch, barren hill, and deserted beach, and it can be contracted through bidding, auction, and open negotiation. . Therefore, if rural land, such as barren hills, deserted gullies, barren hills, and deserted beaches, owned by rural collectives, can directly sign contracts through tenders, auctions, and open negotiations.

According to the provisions of the laws and regulations of China, the contractor has the right to decide independently whether the contracted land is the object and method of circulation or circulation. No unit or individual may compel or obstruct the contractor to transfer its contracted land according to law. The transferee of rural land contractual management right transfer may be contracted farmers or other organizations and individuals that are allowed to engage in agricultural production and management in accordance with relevant laws and relevant regulations. Under the same conditions, members of this collective economic organization have priority. However, the transferee should have the ability to operate in agriculture. The rural land contractual management rights obtained by the contractor in accordance with the law may be subcontracted, leased, exchanged, transferred, or otherwise circulated in a manner that complies with relevant laws and state policies. Therefore, a solar photovoltaic power station project company may sign a contract for the transfer of contracted management rights to obtain the right to use the land for solar photovoltaic power station projects. However, after the contractor and the transferee have reached the intention of circulation and are subcontracted, leased, exchanged, or otherwise transferred, the contractor shall promptly file with the Employer; if it is transferred by way of transfer, the Employer shall file an application for transfer in advance. .

The transfer of contracted management rights also belongs to a form of circulation.

It should be noted that our country’s law stipulates that the contracted period of cultivated land is 30 years, that of grassland is 30 to 50 years, and that of forest lands is from 30 to 70 years. However, there is no provision for the term of the contracted land. For contracting wasteland in other ways, the time limit for the contract can be determined through consultation between the two parties.

(3) Limits of land use

According to Chinese law, the right to use land collectively owned by peasants must not be assigned, transferred or leased for non-agricultural construction; however, enterprises that meet the overall planning for land use and acquire land for construction in accordance with the law, cause land use rights due to bankruptcy, mergers, etc. Except for transfer according to law. If any unit or individual needs to use land for construction, it must apply for the use of state-owned land according to law; however, the township (town) village public must have the right to apply for the use of the collectively-owned land of the collective economic organization approved by the township and township enterprises and the villagers to build the house. The construction of facilities and public welfare undertakings shall, unless it is approved in accordance with the law, use land collectively owned by farmers.

Therefore, for the construction of solar photovoltaic power plant projects, most of the more conservative approach is to combine the photovoltaic power plant project with an agricultural project to meet the requirements of the Chinese laws on rural land use restrictions.

(4) Procedural issues

According to the provisions of the law of our country, the contracting party shall contract the rural land to a unit or individual other than the collective economic organization, and shall have obtained the consent of at least two-thirds of the members of the villagers' meeting of the collective economic organization or more than two-thirds of the villager representatives. , and reported to the township (town) People's Government for approval. Therefore, when using rural land to build photovoltaic power plant projects, it is important to pay attention to this procedure. (Author: Jincheng Tongda Law Firm Senior Partner reservoir Xiaoqing lawyer)

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