PNI [2024] 05
14 June 2024

Requirements for the Use of Shore Power in Chinese
Ports
Dear Sir/Madam,

Huatai recently received inquiries from some Clubs and Shipowners, inquiring thespecific situation and relevant policies of the ship's use of shore power (AlternativeMaritime Power (AMP), Cold Ironing, Onshore Power Supply (OPS) ) in Chinese
ports. In response to this topic of general concern, we will explain the relevant
situation in the following article, hoping to provide useful information and reference tothe Clubs and their Members.

Background of Ships’ Using Shore Power in Chinese Ports
The use of shore power on ships at port refers to the suspension of the use of ship
diesel generators, and replace the ship's diesel engine with shore-based power
facilities to directly supply power supplies to ships to meet the electricity needs ofships during the berthing period. As a clean and efficient way of energy supply, theuse of shore power, which forms an important part of the ship's greenhouse gas
emission reduction strategy, can reduce fuel consumption, reduce the amount of air
pollutants and greenhouse gas emissions, and would be conducive to promote thedevelopment of a green and low-carbon shipping industry.

The major ports in China have made remarkable achievements in promoting shore
power technology. Many ports, especially those in the Yangtze River, have beenequipped with shore power service facilities and continue to optimize relatedservices. In order to promote the wider application of shore power, the Chinese
government and relevant institutions are implementing a series of policies,
including financial subsidies, tax reductions and exemptions and technologicalassistance, to encourage ports and the shipping industry to adopt the shore power
technology. On the other hand, despite the obvious environmental advantages ofshore power technology, the promotion and use of shore power is still facing certain
difficulties and challenges due to the fact that the installation of onboard devices
for the use of shore power is not mandatory at present, coupled with other practicalchallenges, including the unification of technical standards, infrastructure
construction, Shipowners and governments’ consideration of the cost on facility
installation/modification and the compatibility between ship and port devices.

Ships that should Use Shore Power during Berthing inChinese Ports
The following domestic laws and statutes have regulated the ships that should use
shore power during berthing in Chinese ports.

1. Marine Environmental Protection Law of the People's Republic of China

Article 88......
When reaching a port, a vessel with good conditions for the use of shore power,
other than one that uses clean energy, shall use shore power in accordance withthe relevant provisions issued by the state.
......

2. Measures for the Administration of Port and Ship on the Shore PowerArticle 11 Except in the cases such as temporary malfunctions of ship’s devices orshore power facilities, or under the emergency situations like adverse weather or
exceptional accidents, which rendered the use of shore power is impracticable, ships(except for tankers) equipped with onboard devices for the use of shore power should
use shore power when berthing at berths with shore power supply capabilities in thecostal ports for more than 3 hours, or berthing at berths with shore power supply
capabilities in the inland ports for more than 2 hours without using effective alternativemeasures (refer to the use of new energy such as LNG, clean energy, or adopt otherequivalent measures for example shutdown the auxiliary engines, etc.).

The use of shore power is encouraged for the ship whose berthing period is less than
the time specified in the preceding paragraph.

3. Implementation Scheme of the Domestic Emission Control Areas (DECA) for
Atmospheric Pollution from Ships

From 1 July 2019, the existing ships (except for tankers) with onboard devices for theuse of shore power should use the shore power when berthing at berths with shorepower supply capabilities inside the coastal emission control area for more than 3hours, or inside the inland river emission control area for more than 2 hours without
using other alternative or equivalent measures (including the use of clean energy,
new energy, onboard UPS or auxiliary engine shutdown, similarly hereinafter).

From 1 January 2021, cruise ships should use the shore power when berthing at aberth with shore power supply capabilities inside the DECAs for more than 3 hours
without using other alternative or equivalent measures.

Ships Failing to Use Shore Power as required will FacePenalties
Chinese port authorities encourage relevant units including port operators to
implement measures such as give priority on berthing, reduction of shore power
service fees, priority access to passage or transit for ships using shore power. In themeantime, the local MSA will also, in accordance with applicable laws and regulations,
impose penalties on ships that equipped with onboard devices for the use of shore
power if they fail to use shore power as required when berthing at berths with shore
power supply capabilities.

1. In accordance with the “Marine Environmental Protection Law of thePeople's Republic of China”, When reaching a port, a ship with the conditions forthe use of shore power fails to use shore power in accordance with the provisions
issued by the state is punishable by a fine of not less than 10,000 yuan nor more than
100,000 yuan, or if the circumstances are serious, a fine of not less than 100,000yuan nor more than 500,000 yuan.

2. Article 84 of the “Yangtze River Protection Law of the People's Republic of China”
regulates that a ship with the conditions for the use of shore power fails to use shore
power in accordance with the relevant provisions issued by the state is punishable bya fine of not less than 10,000 yuan but not more than 100,000 yuan, or a fine of notless than 100,000 yuan but not more than 500,000 yuan, if the circumstances areserious.

3. Additionally, for ships berthing in ports in the Yangtze River, the "Measures for theAdministration of Port and Ship on Shore Power" further details the penalty amountwhich stipulated in the “Yangtze River Protection Law of the People's Republic ofChina” based on the aggregated rated power of the generator sets of the ships thatviolate the regulations:(1) If the aggregated rated power of a ship's generator set is less than or equal to2,000 KW, a fine of not less than 10,000 yuan but not more than 20,000 yuan shall beimposed; If the circumstances are serious, a fine of not less than 100,000 yuan but
not more than 200,000 yuan shall be imposed;(2) If the aggregated rated power of a ship's generator set is between 2,000 KW and
8,000 KW (inclusive), a fine of not less than 20,000 yuan but not more than 50,000yuan shall be imposed; If the circumstances are serious, a fine of not less than
200,000 yuan but not more than 300,000 yuan shall be imposed;(3) If the aggregated rated power of a ship's generator set is more than 8,000 KW, afine of not less than 50,000 yuan but not more than 100,000 yuan shall be imposed; If
the circumstances are serious, a fine of not less than 300,000 yuan but not more than
500,000 yuan shall be imposed.

Circumstances that may be Exempted from Punishment
Ships or berths may be exempted from penalties if temporary malfunction occurred on
the shore power facilities either aboard or ashore, or under emergency situations suchas adverse weather conditions, exceptional accidents, which renders the use of shore
power impracticable. In addition, those who are recognized by the MSA as first-timeoffenders with minor circumstances and have made timely corrections may not besubject to administrative penalties, and shall be educated and corrected by the MSA.

Precautions for Using Shore Power
1. In accordance with the requirements of the management of data collection on
shipboard energy consumption, ships should record the use of shore power facilities
truthfully in their engine logbooks and retain such records for at least two years. Main
contents of the record should include name of the ship and berth, time of mooring andunmooring, duration of using shore power, and electricity consumption, etc. For ships
and shore power facilities that fulfill the conditions for the use of shore power, any
temporary failures of onboard devices or shore facilities, or other objective reasons
such as adverse weather or accidents that lead to the inability to use shore powershould be recorded truthfully, the record should include information such as the failure
time, content of the failure, the time of repair, and the specific objective reason, etc.

2. During berthing, if there is a malfunction on the ship's shore power receiving device,repairs should be arranged as soon as possible to restore its function, otherwise theMSA may impose penalties on the ship.

3. Ships shall formulate an emergency plan for accidents, clarify the emergency
response process of various accidents during the use of shore electricity, and conduct
regular drills and revise them in time to ensure the safety use of shore power bothaboard and ashore during the mooring period.

Our Suggestions
A ship equipped with onboard devices for the use of shore power should
communicate with her agent before entering the Chinese port in order to ascertain
whether the targeted berth is capable to provide shore power to ship. If the berth
has a power supply facility, the ship equipped with shore power receiving device
should make corresponding preparations for the use of shore power, and provide

the necessary technical parameters of the onboard device to the berth operator, sothat the berth staff have sufficient time to make necessary preparations for thesmooth supply of shore power to avoid any adverse impact on the ship's schedule.

The use of shore power by ships in Chinese ports is an important environmental
protection measure which has received strong support from the Chinese
government and a positive response from the shipping industry. through theimplementation of relevant policies and management methods, combined withpractical regulatory and incentive measures, the green and sustainable
development and environmental protection of ports have been effectivelypromoted. Huatai will continue to pay attention to the update and implementationof relevant policies in China, and provide you with the latest and reliable
information and suggestions.

Should you have any inquiries, please feel free to contact Huatai Beijing(pni.bj@huatai-serv.com) or our local branch offices.

Best regards,

CUI Jiyu
Head of Marine Team