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Power system reform into a deep stage of incremental distribution network reform will continue to heat up
In 2017, China's power system reform continued to advance in depth, the breadth and depth of reform was further expanded, and the reform dividend continued to be released.
This year, the power system reform entered the practical stage, the comprehensive pilot and special pilot were further expanded, and various reform measures were rolled out in an all-round way, forming a new pattern of comprehensive pilot and multi-mode exploration. The reform of transmission and distribution prices has become the first comprehensive special reform since the new round of electricity reform. Incremental distribution network, electricity sales, power in stock market and other areas of the highest attention and enthusiasm ushered in important progress. The scale of market-oriented transactions continues to expand, with more diversified market players and more flexible trading methods.
Over the past year, the power industry has persisted in solving problems by means of reform, the pace of reform has moved towards science and stability in practice, the rules of the market mechanism have moved towards maturity and perfection in innovation and exploration, and market behavior has moved towards rational norms in summary and reflection. Looking forward to 2018, the power system reform will enter a critical period and deep water area, and will also touch on key substantive issues more deeply.
As an important means of energy system construction in the new era, market-oriented reform will play a key role in promoting the quality change, efficiency change and power change of energy development. It can be expected that in the new year, the scale of power market transactions will be further expanded, and the construction of the power market will focus on reducing industrial energy costs, improving power supply quality, promoting the optimal allocation of energy resources on a large scale, and promoting the green development of energy.
Mechanism construction, stability, new market structure, accelerated improvement
Looking back on the course of the new round of electricity reform in the past three years, the reform of transmission and distribution prices is the area with the widest coverage and the most intensive reform measures.
In 2017, the reform ushered in the harvest period, the transmission and distribution price reform to achieve full coverage of the provincial power grid, the first round of reform was fully completed. After two and a half years of reform, a total of 32 provincial power grids have been reduced by about 48 billion yuan. Subsequently, the regional power grid and trans-provincial trans-regional transmission price reform started.
At the end of 2017, the National Development and Reform Commission issued a pricing method for transmission prices for regional power grids and cross-provincial and cross-regional special projects, and issued guidance on the distribution prices of local power grids and incremental distribution networks.
So far, my country has established a full-link transmission and distribution price supervision system framework covering trans-provincial and trans-regional transmission projects, regional power grids, provincial power grids, local power grids, and incremental distribution networks. The transmission and distribution price reform has also become the first in the field of power system reform. A fully completed special reform.
The clarification of transmission and distribution prices plays a fundamental role in further liberalizing competitive link electricity prices and further building a unified national electricity market. In 2017, the market heat of competitive links reignited, and the core areas and substantive issues in the reform of deep water areas became the theme of the reform in 2017.
Incremental distribution network reform made more progress than expected in 2017.
In November 2017, the second batch of 89 pilot incremental power distribution business reform was approved, and the number of pilot incremental power distribution business reform nationwide reached 195. The submission of the third batch of reform pilot projects was also launched at the end of 2017, and it is expected that full coverage of cities above prefecture level will be achieved in the first half of 2018.
At the same time, social capital to join the incremental distribution network business has been further promoted. In November 2017, the National Development and Reform Commission held a special meeting on power system reform and proposed to expand the pilot project of mixed reform in the field of electric power in combination with the reform of incremental power distribution business, and organize and promote a number of pilot projects of incremental power distribution business combining mixed ownership reform and power system reform. On December 22, 2017, the National Development and Reform Conference made it clear that in 2018, the reform of the power system should be deepened with the focus on direct transactions and incremental distribution marketization.
Incremental distribution network reform will continue to heat up in 2018, becoming a breakthrough in the new year's reform.
On the electricity sales side, the market competition mechanism has been initially established and the scale of market transactions has been further expanded. With the approval of the Jiangsu electricity sales side reform pilot, the national electricity sales side reform pilot reached 10 in 2017. By the end of 2017, there were more than 60000 market entities registered with power trading institutions at all levels, including more than 28000 power generation enterprises, more than 30000 power users and more than 2750 power sales companies. The enthusiasm of social capital investment in power sales business was high. According to statistics, with the exception of Tibet and Hainan, all provinces, autonomous regions and municipalities throughout the country have organized market-oriented transactions. The total amount of electricity traded throughout the year was 1.63 trillion kWh, an increase of 45 percent over the same period last year, accounting for about 26 percent of the electricity consumption of the whole society, an increase of 7 percentage points over the same period last year.
The construction of the power market is the core content of the power market reform. In 2017, the construction of the power in stock market was officially launched and became a major highlight of the reform. The first batch of pilot projects will cover eight regions and will start trial operation of the power in stock market by the end of 2018. Up to now, the work of various pilot areas has been started one after another, and actively promote the medium-and long-term power trading suitable for the power in stock market, and gradually build a power market system combining medium-and long-term trading with in stock-term trading. Liang Changxin, director of the Legal System and System Reform Department of the National Energy Administration, said that the establishment of a power in stock market is of great significance, which is conducive to the discovery of power prices through market mechanisms, the optimal allocation of resources, and the promotion of renewable energy consumption.
In 2017, the scale of cross-provincial and cross-regional power transactions was further expanded, and the exploration of breaking inter-provincial barriers was more active, which played an important role in promoting clean energy consumption.
By the end of 2017, the cross-provincial market-oriented trading electricity 299.1 billion kWh, up 45.7 percent year-on-year. Cross-provincial and cross-regional clean energy transmission of 587 billion kWh, accounting for 54.5 percent of the total power transmission, power trading institutions in the implementation of the priority power generation plan, on the basis of innovative trading mechanisms, through listing, water and fire substitution, centralized bidding, contract transfer transactions and other ways to carry out Sichuan, Yunnan hydropower transmission market-oriented transactions. Completed the southwest hydropower to send 263.8 billion kWh, an increase of 10.2 percent, to achieve wind power, photovoltaic power generation cross-provincial market-oriented trading power 36.6 billion kWh, an increase of 26% year-on-year, effectively alleviating the "three north" region abandoned wind pressure.
In 2017, the construction of the power market mechanism was frequent, and the market structure was accelerated. In October, the pilot market-oriented trading of distributed power generation was confirmed, and the first batch of pilot areas will start trading in February 2018. This move will drive the accelerated development of distributed power generation technology, market and policy system, and play the role of the market to tap the advantages of distributed power generation. In November, the National Energy Administration issued a work plan to improve the compensation mechanism for power auxiliary services, and the construction of the power auxiliary services market accelerated.
In terms of trading institutions, by the end of 2017, all provinces in China except Hainan had set up provincial power trading centers. On November 8, the National Alliance of Power Trading Institutions was established, covering two national power trading centers in Beijing and Guangzhou and 32 provincial power trading centers. The establishment of the alliance will effectively promote the more effective role of power trading institutions and provide market entities. Better service is of great significance to the construction of the power market.
The steady progress and bold exploration of the construction of the power market mechanism have accelerated the formation of a fully competitive, open and orderly market structure and market system, and the role of power market reform in increasing the proportion of clean energy power generation and optimizing and adjusting the structure of China's power installed capacity has also been further highlighted.
Exploring a new model of profitability, market behavior moving towards rational norms
With the construction of the power market to the depth, the scale of market-oriented transactions accelerated to expand, the reform dividend further released, the cost of enterprise energy further reduced. Although fuel costs rose in 2017 and the decline in direct electricity transaction prices narrowed, the electricity price per kilowatt-hour was still 0.05 yuan/kWh lower than the original government catalog, reducing electricity bills for industrial and commercial enterprises by 60.3 billion yuan, an increase of 5.2 percent over the same period last year.
At the same time, the continuous optimization of electricity price structure also promotes the reduction of electricity cost and the further promotion of market-oriented reform. In 2017, the national development and Reform Commission canceled the special fund for structural adjustment of industrial enterprises collected from power generation enterprises, 39 billion yuan, which will be used to raise the benchmark electricity price of coal-fired power plants and ease the operational difficulties of coal-fired power generation enterprises. Starting from December 1, the cancellation of temporary electricity charges can reduce the occupation of enterprise funds by about 8 billion yuan per year, cancel the urban public utility surcharge of 35.3 billion yuan levied on users, and cancel the electricity price of electrified railway loan repayment of 6 billion yuan.
The expansion of the scale of the power market and the accelerated exploration of the market subject need a standardized and orderly, competitive and effective market order. In 2017, the regulation of the electricity market hit a heavy blow, and the construction of the credit system in the energy industry accelerated. A leading group for the construction of the credit system in the energy industry was established, and the Measures for the Administration of Credit Evaluation of Market Entities in the Energy Industry (for Trial Implementation) were issued. In addition, the National Development and Reform Commission commissioned the China Power Union to strengthen the management of the list of rewards and punishments in the power industry. Henan, Hubei and other places have set up the power market management committee. A series of measures have long-term significance for creating a healthy market environment, regulating market entities, and promoting the sound development of the power market.
In 2017, in the continuous impact of the power system reform on the original interest pattern of the power market, various market entities and stakeholders more actively integrated into the market to explore new profit models and new business formats in the new market environment. Sustainable development. On the basis of the increasingly perfect market structure and market system, market subjects have a deeper understanding of the market in the practice of exploration, more calm judgment, and more rational and standardized market behavior.
Among them, after the transformation of profit model, power grid enterprises have transformed into integrated energy service providers. State Grid clearly regards integrated energy services as a new profit growth point, and proposes to achieve a cumulative business income of 50 billion billion yuan by 2020, significantly increasing market share. Guangdong Power Grid established Integrated Energy Investment Co., Ltd. to set up six new businesses, including incremental distribution network, distributed energy, electric vehicles and energy services.
The market consciousness of power generation enterprises is fully activated, and the income of enterprises comes from many aspects, such as striving for priority power generation plan, competitive market trading power, power generation right replacement and auxiliary service compensation, and the research on market trading rules and market strategy is more critical. At the same time, power generation enterprises have carried out electricity sales business, invested in new energy, gave full play to professional and market advantages, stabilized the overall income of enterprises, and enhanced the ability to resist risks.
2018 has been more than January, looking at the operation of the power market in January, China's power trading situation is active, and presents the characteristics of more varieties, wider range and larger trading volume. Looking forward to the new year, the pace of power market construction will be further accelerated, the proportion of market-oriented transactions will continue to increase significantly, and the cost of electricity for enterprises will continue to decrease. The rules and mechanisms of the power market need to be more perfect, and the trading of power in stock will be further explored and promoted, gradually building a power market combining medium-and long-term trading with in stock trading, and continuously promoting the construction of the auxiliary service market. In addition, incremental distribution network will become the key area of reform in 2018. Among them, common issues of widespread concern in the industry, such as project equity, differentiation between increment and stock, planning convergence, and division of power supply business areas, will usher in more operable guidance and methods, and the incremental distribution market will be further transparent and liberalized.
In 2018, a new journey of comprehensively deepening reforms and continuously releasing development vitality will begin. The scope of power system reform will be wider, measures will be more, and intensity will be stronger. The construction of the power market will grasp the various reform tasks proposed by the 2018 National Development and Reform Work Conference and the National Energy Work Conference, face the core areas and key issues of reform during the critical period of reform, and strive for major substantive progress.
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