National unified power market construction, press "fast forward" →
2022-02-18
2022 is the seventh year for China to carry out a new round of power system reform. Recently, the national development and Reform Commission issued the guiding opinions on accelerating the construction of a national unified power market system, which calls for accelerating the formation of a unified and open, orderly competition, safe and efficient power market system with perfect governance, and clearly puts forward that the construction of a national unified power market will be promoted in two stages in 2025 and 2030. As one of the core links of China's power system reform, the national unified power market construction pressed the "fast forward" key, marking another key step in China's power market reform.
In recent years, the construction of China's power market system has been steadily and orderly promoted, and the pattern of multi subject market competition has initially taken shape. The most significant change is the marketization of electricity. Statistics show that the national market-oriented trading electricity reached 3.7 trillion kwh in 2021, which is almost seven times that of 2015. In particular, the first batch of power spot pilot areas represented by Shanxi have realized the long-term continuous operation of the spot market, and the role of the market in the optimal allocation of power resources has been significantly enhanced.
Power sector workers are setting up lines. Photo by Chen Qihai (Zhongjing vision)
However, the phenomenon of "switching off and power rationing" and "orderly power consumption" in some areas in the second half of last year has so far left many people unable to let go. On the surface, the tight power supply is the fuse, but fundamentally, the upside down of coal power price is the main reason. One of the reasons why the "top cow" of coal power can not be solved for a long time is the lack of effective transmission mechanism between coal price and electricity price.
In fact, the above phenomenon is by no means accidental. With the advancement of the new round of power system reform, some deep-seated problems have gradually become prominent. The development of the power industry will inevitably face the practical contradictions such as incomplete market system, imperfect functions, inconsistent trading rules, cross regional trading barriers and so on. To solve the above problems, we must make overall planning and improve the top-level design from a higher level, and realize the sharing, mutual assistance and optimal allocation of power resources in a wider range.
At the same time, with the goal of carbon peaking and carbon neutralization fully integrated into all aspects of economic and social development, it is also an internal requirement for the high-quality development of the power industry to promote the low-carbon transformation of energy through the construction of a national unified power market. In the future, to accelerate the construction of a new power system with new energy as the main body, China needs to further improve the penetration of clean energy such as wind energy and solar energy. However, China's clean energy is mainly concentrated in the "Three North" areas. Limited by the load intensity of the regional power grid, its overall consumption is not high, and the phenomenon of "power abandonment" occurs from time to time. In this context, accelerating the construction of the national unified power market system will help guide the scientific layout and efficient utilization of clean energy through the market price signal, mobilize all parties in the market to actively participate in promoting the supply and demand balance of clean energy and power system, and help achieve the "double carbon" goal.
Workers carry out power supply line transformation in Wuhu City, Anhui Province. Photo by Xiao Benxiang (Zhongjing vision)
From international experience, a unified power market will effectively promote the continuous optimization and upgrading of power resource allocation. On the basis of the steady growth of power market-oriented transaction scale, it will promote the market transaction to a more standardized development track, thus forming a positive role in the overall development of the power industry. However, it should also be noted that China's power market reform has changed from the primary stage of learning from European and American countries to the exploration stage of deepening reform and innovation. The future reform may face not only deep-water areas, but also no man's land. For this, we must make preparations in advance, pay attention to innovation and seek development according to local conditions in combination with China's national conditions.
It should be pointed out that power is related to the national economy and the people's livelihood, which can be said to affect the whole body. However, no matter how important power is, it is still a commodity in the final analysis, and it still needs to follow the objective law of power operation and the development law of market economy. On the one hand, on the premise of ensuring the safe and stable operation of the power grid, we should restore its commodity attributes as much as possible, and form a price transmission mechanism conducive to cost dredging by playing the role of price signal lamp; On the other hand, to break the existing path dependence and interest barriers of the power industry and give better play to its supporting role in the high-quality development of economy and society is not only the goal of the construction of the national unified power market, but also an important direction of the reform of the power system.
Source: International Energy Network
In recent years, the construction of China's power market system has been steadily and orderly promoted, and the pattern of multi subject market competition has initially taken shape. The most significant change is the marketization of electricity. Statistics show that the national market-oriented trading electricity reached 3.7 trillion kwh in 2021, which is almost seven times that of 2015. In particular, the first batch of power spot pilot areas represented by Shanxi have realized the long-term continuous operation of the spot market, and the role of the market in the optimal allocation of power resources has been significantly enhanced.
Power sector workers are setting up lines. Photo by Chen Qihai (Zhongjing vision)
However, the phenomenon of "switching off and power rationing" and "orderly power consumption" in some areas in the second half of last year has so far left many people unable to let go. On the surface, the tight power supply is the fuse, but fundamentally, the upside down of coal power price is the main reason. One of the reasons why the "top cow" of coal power can not be solved for a long time is the lack of effective transmission mechanism between coal price and electricity price.
In fact, the above phenomenon is by no means accidental. With the advancement of the new round of power system reform, some deep-seated problems have gradually become prominent. The development of the power industry will inevitably face the practical contradictions such as incomplete market system, imperfect functions, inconsistent trading rules, cross regional trading barriers and so on. To solve the above problems, we must make overall planning and improve the top-level design from a higher level, and realize the sharing, mutual assistance and optimal allocation of power resources in a wider range.
At the same time, with the goal of carbon peaking and carbon neutralization fully integrated into all aspects of economic and social development, it is also an internal requirement for the high-quality development of the power industry to promote the low-carbon transformation of energy through the construction of a national unified power market. In the future, to accelerate the construction of a new power system with new energy as the main body, China needs to further improve the penetration of clean energy such as wind energy and solar energy. However, China's clean energy is mainly concentrated in the "Three North" areas. Limited by the load intensity of the regional power grid, its overall consumption is not high, and the phenomenon of "power abandonment" occurs from time to time. In this context, accelerating the construction of the national unified power market system will help guide the scientific layout and efficient utilization of clean energy through the market price signal, mobilize all parties in the market to actively participate in promoting the supply and demand balance of clean energy and power system, and help achieve the "double carbon" goal.
Workers carry out power supply line transformation in Wuhu City, Anhui Province. Photo by Xiao Benxiang (Zhongjing vision)
From international experience, a unified power market will effectively promote the continuous optimization and upgrading of power resource allocation. On the basis of the steady growth of power market-oriented transaction scale, it will promote the market transaction to a more standardized development track, thus forming a positive role in the overall development of the power industry. However, it should also be noted that China's power market reform has changed from the primary stage of learning from European and American countries to the exploration stage of deepening reform and innovation. The future reform may face not only deep-water areas, but also no man's land. For this, we must make preparations in advance, pay attention to innovation and seek development according to local conditions in combination with China's national conditions.
It should be pointed out that power is related to the national economy and the people's livelihood, which can be said to affect the whole body. However, no matter how important power is, it is still a commodity in the final analysis, and it still needs to follow the objective law of power operation and the development law of market economy. On the one hand, on the premise of ensuring the safe and stable operation of the power grid, we should restore its commodity attributes as much as possible, and form a price transmission mechanism conducive to cost dredging by playing the role of price signal lamp; On the other hand, to break the existing path dependence and interest barriers of the power industry and give better play to its supporting role in the high-quality development of economy and society is not only the goal of the construction of the national unified power market, but also an important direction of the reform of the power system.
Source: International Energy Network