New Strategy for Energy Security | Innovative Experiences from Ten Years of Energy Regulation in Our Country
In June 2014, General Secretary Xi Jinping creatively proposed the new energy security strategy of "Four Revolutions, One Cooperation." Over the past decade, the energy sector has deeply implemented this strategy, achieving historic accomplishments in energy development. Energy regulation, as an important part of China's energy governance system and modernization of governance capabilities, has played a significant role in ensuring energy security, supporting green transformation, promoting market construction, and enhancing people's well-being. Recently, six main responsible comrades from the National Energy Administration wrote a signed article discussing the implementation of the new energy security strategy, advancing new practices in energy regulation with Chinese characteristics, and facing new situations and challenges.
(Secretary of the Party Leadership Group and Director of the North China Energy Regulatory Bureau)
In June 2014, General Secretary Xi Jinping clearly proposed the new energy security strategy of "Four Revolutions, One Cooperation" at the sixth meeting of the Central Financial and Economic Leading Group, pointing out the direction for energy development in our country during the new era and opening up a new path for high-quality energy development. The North China Energy Regulatory Bureau, guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, has deeply implemented the new energy security strategy, prioritizing energy supply security as its primary responsibility, focusing on green efficiency, strengthening regulatory services, and continuously contributing to energy regulation in the North China scenario of Chinese-style modernization.
Over the past decade, North China has actively implemented the new energy security strategy and achieved good results.
Local governments have made significant progress in promoting high-quality energy development. Beijing has vigorously implemented energy-saving and carbon-reduction policies, set annual targets for renewable energy consumption ratios, and strongly reduced coal consumption. Tianjin focuses on green development, strengthens clean and efficient use of coal, promotes an increase in net external electricity supply ratio, and supports enterprises in green technology transformation. Hebei Province has proposed building a strong province for new-type energy, continuously optimizing its energy structure and introducing regulations to promote renewable energy development. Inner Mongolia Autonomous Region has implemented General Secretary Xi Jinping's requirements during his inspection of Inner Mongolia by vigorously developing green energy and strengthening its status as a national important energy base while ensuring coal supply for over two-thirds of provinces nationwide.
The energy industry has achieved fruitful results in increasing production and ensuring supply. Over the past decade, energy investment in North China has maintained rapid growth, successfully completing the "13th Five-Year" energy plan with steady progress on key projects for the "14th Five-Year" period. The energy structure has been continuously optimized with a significant increase in renewable energy's share. In the power sector, a UHV network that accommodates both AC and DC has been established in the region with significantly improved grid adjustment capabilities. The construction of distribution networks has accelerated to meet basic requirements for clean heating and distributed energy access. Installed power generation capacity has exceeded 640 million kilowatts with renewable energy accounting for 43.7%, expected to surpass 50% by the end of this year. In oil and gas sectors, pipelines such as the Shaanxi-Beijing Fourth Line and China-Russia East Line have been put into operation; LNG storage and transportation facilities in Tianjin and Tangshan have been continuously improved; and a natural gas supply system is being rapidly constructed. In coal sectors, Inner Mongolia has increased coal production significantly, accounting for one-quarter of national output while effectively ensuring coal supply for over two-thirds of provinces nationwide.
New breakthroughs have been made in energy regulation work. Energy regulatory agencies have shouldered their responsibilities for ensuring supply while adhering to goals for green development and shared benefits. They have strengthened institutional supply while integrating regulation into service to promote green development through market-oriented means while effectively serving grassroots needs and public demands. Relying on three platforms—a regulatory platform for planning construction, a coordination platform for supply assurance, and an emergency response platform for electricity—efforts have been made to ensure regional energy security. Last year saw a record peak load of 317 million kilowatts in North China without any orderly power cuts occurring within the Beijing-Tianjin-Tangshan grid despite overall stable supply-demand conditions; active promotion of electricity market construction in Beijing-Tianjin-Hebei led to establishing China's first trading mechanism aimed at grid parity renewable energies; implementation of governance concepts around "Four Safeties" successfully completed major power supply tasks during significant events such as national two sessions and Belt and Road Forum; systematic efforts were made to address frequent power outages through innovative initiatives like ten actions to enhance power service quality.
In practice under the "Four Revolutions, One Cooperation" new energy security strategy, although certain achievements have been made in North China region, gaps and deficiencies still exist. Currently, North China's energy development is at a critical period of transformation with a rapidly constructed new-type energy system where various types of energy entities are emerging amidst complex situations facing both development and regulation with urgent demands for transformation.
Regarding energy supply, regional consumption maintains rigid growth with significant pressure on supply assurance; electricity supply shows overall balance but faces difficulties during peak times in certain areas—Inner Mongolia experiences tight electricity supplies while Hebei faces high-pressure situations regarding affordable natural gas during peak hours; demand for green electricity is strong but relatively insufficient in Beijing and Tianjin regions.
In terms of energy consumption, currently coal consumption remains high in North China region where traditional industries like coal and coal-fired power are still dominant while constraints exist regarding absorption and delivery of green electricity making low-carbon transition tasks challenging. Facing issues like poor power quality alongside rising public awareness regarding legal rights protection raises new demands on complaint handling through hotline 12398.
In terms of technology related to energy systems within North China region where west-to-east electricity transmission flows are large alongside complex operational modes compounded by high proportions of renewable energies integrated into grids along with large-scale access from diverse generation facilities significantly increases systemic risks within power networks. Advanced technologies such as flexible transmission systems, new storage solutions like V2G (Vehicle-to-Grid), big data analytics along with artificial intelligence are emerging but widespread application requires breaking down barriers alongside strong support.
Regarding institutional mechanisms within the sector where a unified national electricity market has yet to form; both spot markets along with ancillary service markets require accelerated promotion; virtual power plants as effective means for peak shaving within power systems are hindered by incomplete market transaction mechanisms limiting their full potential.
The North China Energy Regulatory Bureau will continue to deeply implement the "Four Revolutions, One Cooperation" new energy security strategy by enhancing process regulation alongside digital regulation while promoting cross-departmental collaborative oversight deepening assurance mechanisms across three platforms focused on creating a "Safe North China, Green North China, Innovative North China, Efficient North China" overall approach while advancing regulatory transformations aimed at promoting high-quality regional development.
Shoulder responsibilities for ensuring supply alongside safety regulation. Focus on strengthening analysis regarding supply-demand situations while enhancing coordination among regional planning efforts; actively utilize market-oriented means to improve electricity assurance capabilities while advancing digital regulatory measures aimed at enhancing quality effectiveness; promote grounding governance concepts around "Four Safeties," strengthen dual prevention systems while pushing forward establishment alongside continuous deepening local electricity safety committees conducting solid special regulatory actions aimed at stabilizing regional safety conditions positively.
Increase efforts towards building electricity markets alongside regulatory oversight. Emphasize connections between mid-to-long-term markets along with spot markets alongside ancillary service markets while advancing construction within Beijing-Tianjin-Hebei electricity markets promoting expansion within green electricity trading scales while continuing progress towards virtual power plant developments; systematically conduct comprehensive oversight alongside special regulations within power sectors maintaining order within electricity markets.
Enhance the regulatory level of the energy industry. Implement the "14th Five-Year Plan" for energy and supervise the landing of major energy projects in the region, carrying out pilot work for "process supervision"; organize research on the separation of pipeline facilities and sales, implement special supervision, and promote fair and open access to pipeline facilities; strengthen the signing and performance supervision of coal and natural gas contracts to ensure stable supply of primary energy.
Optimize the quality of energy services for grassroots enterprises and people's livelihoods. Improve the monthly work analysis meeting mechanism for 12398, establish a power supply service quality supervision system, track remediation progress, report on governance situations, and optimize the energy service experience for the public. Conduct research on qualification-related policies, strengthen credit system construction, promote the implementation of electronic licenses, and further optimize services for enterprises.
Comprehensively strengthen administrative law enforcement. Enhance legal publicity, administrative law enforcement education and training, increase the intensity of handling regulatory issues legally, and strengthen law enforcement effectiveness through "penetrating supervision."
(Secretary of the Party Leadership Group and Director of the Southern Energy Regulatory Bureau)
Ten years, a major strategic blueprint implemented. Ten years, a historical record of spring flowers and autumn fruits. Looking back over the past decade, the Southern Energy Regulatory Bureau has been guided by the new energy security strategy of "four revolutions and one cooperation," actively integrating energy regulation into and serving national key strategies such as the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen Pilot Demonstration Zone, and Hainan Free Trade Port construction under the strong leadership of the Party Leadership Group of the National Energy Administration, playing "four roles" and providing strong regulatory guarantees for high-quality energy development in the southern region.
Over the past decade, closely focusing on serving the overall situation through regulation, new achievements have been made in ensuring energy power safety. Based on stationed advantages, a supply-demand monitoring and early warning mechanism has been established with "daily monitoring, weekly consultations, monthly analyses, and annual forecasts," deepening non-stop assessment and supervision of units to improve reliability; adhering to joint prevention and control of grid safety risks with a focus on headquarters; strengthening inter-provincial market transactions and emergency dispatching to leverage the collaborative supply guarantee role of Southern Power Grid.
Over the past decade, closely focusing on deepening reforms through regulation, a new pattern has been formed in regional market construction. In August 2018, Southern (starting from Guangdong) was the first to launch simulated operation of the spot market; in July 2022, China's first regional electricity spot market began trial operation; by December 2023, it transitioned to formal operation. Continuous exploration and practice have fully utilized market mechanisms to guide actions, forming a trading rule system based on "1+N" rule architecture with "1+N+5X" regional market trading rules that integrate inter-provincial trading mechanisms for medium-long term transactions, spot transactions, and ancillary services.
Over the past decade, closely focusing on industry development through regulation has achieved new breakthroughs in energy green transformation. A clean energy consumption analysis mechanism has been established; regulatory oversight has been strengthened over adjustable power sources' construction operations and grid monopoly links; a data verification mechanism for green certificate issuance in southern regions has been formulated to create a favorable environment for new energy development. Over ten years, an additional installed capacity of 140 million kilowatts of new energy has been added with an average annual growth rate exceeding 130%, offshore wind power installed capacity has surpassed 10 million kilowatts, and an advanced manufacturing industry chain for new energy has basically formed.
Over the past decade, closely focusing on serving people through regulation has led to new improvements in energy use in people's livelihoods. Deepening power supply services and "accessing electricity" supervision has comprehensively solved electricity issues for populations without power; "three zeros" and "three savings" services have saved users over 69.399 billion yuan in investment; facilitated integrated development between local grids in Guangxi and main grids has enabled over 18 million people to transition from "using electricity" to "using electricity well"; actively served Hong Kong and Macao enterprises by recognizing their qualifications to participate in mainland electricity construction.
"Four revolutions and one cooperation" is both an epistemological methodology as well as a starting point for implementation that clarifies ideas and directions for effective energy regulation work while continuously enhancing our sense of responsibility and mission in performing energy regulatory duties in this new era.
Achieving high-quality regulation must adhere to the new strategy for energy security. The new historical position determines that energy must follow a path of clean low-carbon safety efficiency. In energy regulation, high-quality development, green transformation, and safety assurance should be promoted as a systematic approach. We must enhance our "four consciousnesses," especially our awareness of overall situations while actively considering from social development perspectives why we do energy regulation, what we do it for, how we do it—fully unfolding around the new strategy for energy security from ideological understanding to work deployment to regulatory guidance to administrative law enforcement.
High-quality regulation should anchor two goals: ensuring energy security and promoting green low-carbon transformation. Ensuring energy security and green transformation are core objectives of energy work in this new era that relate directly to economic social development and people's well-being. Currently facing complex situations regarding markets and oil-gas reforms along with insufficient development strength in new technologies, new business formats, and new models—there is an urgent need for energy regulation to demonstrate greater effectiveness in ensuring energy security while promoting green low-carbon transformation.
"Four regulations" are important supports for modernizing systemic energy regulation. The "four regulations" are interconnected and complementary while showcasing a more powerful, efficient, collaborative model of regulatory work across industries. Effective process supervision involves monitoring all aspects ensuring safe supply of energy throughout various stages while strongly safeguarding national planning implementation for major projects. Strengthening digital regulation involves improving non-site regulatory methods while advancing digital collection, quantitative assessment, auxiliary decision-making—achieving digital empowerment. Implementing penetrating supervision focuses on grid monopoly links across group companies responsible units affiliated enterprises—resolving issues from their source at deeper levels. Deepening cross-departmental collaborative regulation strengthens regional collaboration while integrating top-down coordination forming comprehensive regulatory synergy.
"One part deployment requires nine parts implementation." The Southern Energy Regulatory Bureau will be guided by the new strategy for energy security while focusing on high-quality development tasks within southern regional energies—strengthening thought processes along with style capabilities discipline as "four guarantees," conducting "four regulations," adhering to "five ones" continuously promoting fresh chapters in regulatory work supporting high-quality development within both energies sectors as well as economic society.
Focusing on "one main line," efforts will be made to ensure both energy security as well as green transformation. Improving supply-demand monitoring early warning systems will enrich Guangdong-Hainan gas-electric linkage mechanisms while strengthening regional platform mutual assistance; enhancing policy implementation oversight regarding new energies business formats etc., tracking key project progress such as interconnectivity large wind-solar bases while piloting large-scale renewable energies participating within markets applying market means enhancing adjustable power source utilization efficiency—taking multiple measures promoting clean energies consumption.
Establishing "a complete system" aims at deepening southern regional electricity market construction. Accelerating pilot construction within southern regional electricity markets will improve under spot environments “1+N+5X” rule systems supporting full-cycle settlement trial operations across five provinces (regions) within southern areas—promoting multi-entity participation mechanisms within inter-provincial market transactions enriching southern (starting from Guangdong) spot markets ancillary service market trading varieties exploring participation from new business formats within spot trials along with user-side clearing ensuring smooth connections between optimal generation purchasing along with market.
Deepen the "one platform" approach, focusing on strengthening essential safety construction and electricity safety supervision. Fully leverage the joint management of central and local authorities and the regional joint prevention and control platform, enforce local regulatory responsibilities, enhance supervision and inspection of network security and cybersecurity, ensure special supervision of distribution network safety, and implement a three-year action plan for fundamental safety production. Focus on weak links such as power engineering construction and maintenance of power generation facilities, strictly implement the "five musts" for accident handling, comprehensively use the "four regulatory" methods to improve essential safety levels.
Adhere to the "one concept" approach, focusing on enhancing the well-being of people's livelihoods in the energy sector. Uphold the concept of regulation for the people, deeply promote special rectification of frequent power outages, strengthen electricity quality supervision in urban villages, remote rural areas, and islands, and improve the effectiveness of standardized governance for "overall line (area) enhancement of distribution network power supply quality"; create experimental fields and model areas for people's livelihood electricity in Conghua, promote experiences of "interconnected and mutually assured" rural power grids, continuously enhance the efficiency of handling public energy demands through the 12398 hotline, and focus on solving urgent energy issues faced by the public.
Forge "a team", focusing on enhancing modern energy regulatory capabilities.Adhere to party building leadership, strengthen ideological guidance, improve work style quality, support capacity building, and ensure discipline. Use "create brands, clarify positioning, strengthen work style, uphold bottom lines, enhance capabilities" as a grasping point to reinforce awareness of discipline and rules to create a "strict, detailed, practical, and fast" work style. Coordinate warning education with risk prevention mechanisms and integrity culture construction to deepen the integrated promotion of the "three no's". In the new era, continuously explore digital energy regulatory methods in seven major special actions for strengthening cadre team capacity building. Ensure strong organizational discipline to enhance the modernization level of energy regulatory systems and capabilities, striving to build a loyal, clean, responsible high-quality professional southern energy regulatory team to comprehensively promote high-quality regulation.
(Secretary of the Party Leadership Group and Regulatory Commissioner of Jiangsu Energy Regulatory Office)
Over the past decade, under the guidance of General Secretary Xi Jinping's new energy security strategy of "four revolutions and one cooperation", following the work deployment of the National Energy Administration's Party Leadership Group, Jiangsu Energy Regulatory Office has adhered to comprehensive deepening reform as a driving force. Based on Jiangsu's energy development reality, it has innovated while maintaining integrity and taken responsibility to contribute regulatory strength for China's modernization practices in Jiangsu. It has fully served to ensure that Jiangsu's energy high-quality development achieves new results.
The level of energy security supply continues to improve. Adhere to coordinating high-quality energy development with high-level safety. As of now, installed electricity capacity has reached 186 million kilowatts, an increase of 1.16 times compared to 2014. In 2023, external electricity supply to Jiangsu reached 156 billion kilowatt-hours; summer and winter peak loads reached 132 million kilowatts and 131 million kilowatts respectively, achieving overall balance between supply and demand while effectively ensuring energy needs for people's livelihoods and economic social development.
The transition to clean low-carbon energy is accelerating. Adhere to structural reform on the supply side of energy. As one of the first provinces in China to carry out coal-fired power energy-saving emission reduction transformations, it has taken the lead in completing ultra-low emission transformations for major power generation units across the province. The proportion of non-fossil energy consumption has reached 18%, while clean energy installed capacity accounts for 41.44%. The proportion of renewable energy electricity consumption exceeds 13% of total social electricity consumption; thus creating a more flexible supply structure that effectively adapts to changes in demand structure.
Support from energy technology is becoming stronger. Adhere to technological innovation leading high-quality energy development; actively explore applications such as "±800 kV flexible DC power interconnection" and "±200 kV embedded DC", forming a super high voltage mixed grid with "one AC four DC", a backbone grid framework with "seven verticals and seven horizontals" at 500 kV level; actively promote research and development of innovative technologies in wind power, photovoltaics, storage technologies as well as third-generation nuclear power applications. A complete wind power industry chain covering key components such as wind turbine units and motors has been formed; achieving international leadership in areas such as polysilicon preparation technology and photovoltaic module production while striving to create new productive forces in the energy sector.
The pace of electricity system reform is becoming more solid. Adhere to building an efficient energy-saving system; deepening construction of an electricity market system with mid-to-long-term markets and ancillary service markets operating successively while spot market trial operations are underway. In 2023, market-based trading accounted for 56.3%, with Jiangsu being home to China's first distributed photovoltaic market-based trading pilot project.
Regulatory service guarantee capabilities have significantly enhanced. Adhere to a people-centered development philosophy; vigorously promote "three zeros" and "three savings" services; take the lead in achieving "zero investment" for electricity access projects; cumulatively saving users over 19 billion yuan in electricity investment costs; reliability rates for urban and rural electricity have reached 99.9915% and 99.9832% respectively; deeply implement a notification commitment system for electricity business licenses as well as installation (repair/testing) licenses allowing same-day processing upon application.
Facing a new era and new journey, Jiangsu Energy Regulatory Office will unswervingly follow the path of new strategies for energy security while striving to push forward high-quality development in Jiangsu's energy regulatory cause to new heights.
Highlight bottom-line thinking to ensure energy security supply. Play roles as "monitor" and "sentinel", strengthen monitoring and early warning for supply-demand situations regarding electricity, coal, natural gas etc., closely monitor critical periods such as peak summer (winter), supervise coal resource organization reserves, natural gas resource supply for power generation, external electricity procurement efforts as well as ensuring stable full output from power generation units. Leverage flexible resources on user sides for system regulation participation while promoting new entities into the electricity market. Strengthen supervision over compliance with medium-to-long-term coal contracts as well as natural gas purchase-sale contracts ensuring overall stable orderliness in coal and natural gas supplies. Conduct supervision over implementation status regarding objectives set forth in the “14th Five-Year” Energy Planning while actively exploring establishment processes for ongoing regulatory mechanisms dynamically tracking major energy project construction progress. Improve technical supervision mechanisms for secondary electrical systems while conducting special supervision over distribution network safety.
Highlight green development while optimizing energy consumption structure. Based on energy regulation efforts; vigorously promote national energy planning implementation ensuring steady increases in renewable electricity proportions while constructing a diversified green low-carbon energy supply structure. Deepen promotion encouraging user-side flexible resources' participation in ancillary service markets guiding new types of storage projects (including grid-side, user-side & source-side), interruptible loads aggregators as well as virtual power plants into system regulation while exploring new models for green electricity trading improving green certificate trading mechanisms. Urge grid enterprises further optimize services related to renewable integration supporting charging infrastructure construction.
Highlight market dominance while releasing dividends from institutional reforms. Effectively utilize mid-to-long-term electricity markets solidifying foundational market mechanisms ensuring supply stability while advancing auxiliary service market construction prudently promoting Jiangsu's spot market establishment facilitating orderly connections between spot markets with mid-to-long-term markets along with ancillary service markets. Focus on constructing an "effective electricity market + effective energy regulation", strengthening oversight over natural monopoly sectors exploring penetrative regulation while implementing new requirements regarding information disclosure management within electricity markets enhancing scrutiny over information disclosure behaviors among market participants including grid enterprises & market operation institutions. Strengthen oversight regarding compliance with coal-fired capacity pricing mechanisms by dispatching agencies & generating enterprises ensuring effective implementation of coal-fired capacity pricing policies.
Highlight regulation for the people, enhance the sense of energy access. Use a combination of indicator regulation, on-site inspections, undercover investigations, and third-party surveys to further reduce electricity application time, simplify electricity application processes, lower electricity application costs, and improve power supply reliability, continuously enhancing the service level of 'access to electricity'. Utilize the 12398 energy regulation hotline as a 'bridge' to promptly address urgent issues faced by the public. Fully leverage the resident gas quantity verification mechanism of urban gas companies to ensure the implementation of new resident gas quantities. Continuously consolidate and deepen the effectiveness of the qualification licensing notification commitment system, promote the application of electronic licenses, and continuously optimize service processes. Strictly investigate and deal with illegal activities in the energy sector to protect the legitimate energy use rights of the public.
(Secretary of the Party Leadership Group and Regulatory Commissioner of Gansu Energy Regulatory Office)
The Gansu Energy Regulatory Office always insists on implementing General Secretary Xi Jinping's new energy security strategy of 'four revolutions, one cooperation', especially the important directive spirit made during his inspection in Gansu Province to 'build an important national base for new energy and new energy equipment manufacturing' as the 'first topic', providing a strong political guarantee for promoting high-quality energy development and improving regulatory efficiency.
Gansu is a key base for new energy development in China, a major hub for ultra-high voltage direct current transmission, a central node in the Northwest power grid, and a main channel for west-to-east electricity transmission. The Gansu Energy Regulatory Office is fully committed to promoting local implementation of electricity safety management responsibilities and has established a professional committee for energy safety in Gansu Province. The effectiveness of joint management of electricity safety is significant; scientifically assess Gansu's energy supply and demand situation, oversee energy supply during peak winter seasons and compliance with medium- and long-term coal contracts, continuously strengthen supervision over unplanned outages and output restrictions of coal-fired power units, ensuring that Gansu has not implemented orderly electricity use for four consecutive years; solidly carry out special supervision for clean heating during the 2022-2023 heating season, clearly proposing 12 regulatory requirements to ensure reliable supply of electricity and natural gas in winter; promptly respond to emergency rescue and recovery work following the 6.2 magnitude earthquake in Jishi Mountain.
Gansu has a comprehensive energy advantage with diverse categories including 'coal, oil, gas, wind, solar, water, fire, and nuclear', having established a wind power base with a capacity of ten million kilowatts in Jiuquan and four photovoltaic power bases with capacities of one million kilowatts in Zhangye, Jinchang, Wuwei, etc., as well as a one million kilowatt wind power base in Tongwei. A multi-energy complementary comprehensive energy base with a capacity of ten million kilowatts is under construction in Longdong. Large-scale wind-solar power bases focusing on desert areas such as Tengger Desert, Badain Jaran Desert, and Kumtag Desert have been included in national planning. As of now, Gansu's installed capacity for new energy has exceeded 50 million kilowatts, accounting for over 61% of total installed capacity, ranking second nationwide. The Gansu Energy Regulatory Office insists on establishing before breaking ground and advancing in an orderly manner. It conducts high-quality supervision over key tasks related to national '14th Five-Year Plan' energy planning implementation and key coal-electricity-gas planning construction; supervises the orderly progress of major energy projects such as the ±800 kV DC transmission project from Longdong to Shandong and supporting power sources, Hexi new energy base, and Gansu's first batch of large-scale wind-solar bases focusing on desert areas; on-site supervises construction progress of Guolang-Hekou pipeline project and sections three and four of West-to-East Gas Transmission project in Gansu province to promote safe construction and steady development of key oil and gas projects.
Gansu is one of the first provinces in China to pilot an electricity spot market, maintaining continuous operation for 37 months over a long period while taking the lead in promoting grid parity renewable energy participation in spot markets; it was also the first to establish an uninterrupted rolling trading system for medium- and long-term electricity markets based on natural days; it pioneered peak-shaving capacity markets and established a cost-sharing mechanism for auxiliary services based on 'who benefits pays'. The Gansu Energy Regulatory Office leads improvements in auxiliary service market rules and medium- and long-term market trading rules to enhance system adjustment capabilities through market-oriented methods. It incentivizes flexible transformation of thermal power generation while guiding investments into new storage capacity reaching 3.64 million kilowatts with an increase rate of 616%, tapping into demand-side response loads reaching 1.65 million kilowatts which accounts for 7.86% of maximum electricity load; vigorously promotes electricity market construction while guiding green low-carbon consumption among electricity users simultaneously. In 2023, despite a year-on-year growth rate of 47% in new energy installed capacity in Gansu, utilization remains above 95%; clean electricity from Gansu was sold to 25 provinces (municipalities) nationwide with cross-province delivery reaching 52.233 billion kilowatt-hours where renewable energy accounted for 48.47%, ranking second nationwide.
The Gansu Energy Regulatory Office has made 'access to electricity' a 'golden brand' for optimizing the business environment. It has clarified goals, key tasks, and guarantee measures for improving 'access to electricity' during the '14th Five-Year Plan' period while urging power supply companies to fully implement 'three zeros' and 'three reductions' services. It aims to build a user-centered relationship between power supply and consumption while promoting 'one certificate for electricity application' and 'face recognition for electricity application'. It strives to create four model projects for 'access to electricity' including Lanzhou New Area while demonstrating rural network construction counties to enhance overall business environment for electricity use. In 2023, Gansu saved a total of 837 million yuan in electricity application costs benefiting approximately 494600 households; resolved complaints regarding power supply services and power quality totaling 239 cases with further highlighting the role of the 12398 energy regulation hotline as a 'bridge'; effectively conducted special rectification on frequent power outages addressing 19 key supervisory issues while completing governance on 567 lines and 96 transformer stations benefiting approximately 1.2706 million households. At the same time, utilizing an 'Internet + regulation' platform plays an important role in facilitating enterprises while benefiting citizens by ensuring strict entry barriers for licensing approvals where new applications under notification commitment system account for 91.4%, higher than national average levels.
(Secretary of the Party Leadership Group and Regulatory Commissioner of Yunnan Energy Regulatory Office)
In June 2014, General Secretary Xi Jinping proposed the new energy security strategy of 'four revolutions, one cooperation', opening up a new path for China's unique energy development while pointing out directions for high-quality development in energy. Over ten years under strong leadership from the Party Leadership Group at National Energy Administration, Yunnan Energy Regulatory Office has deeply studied Xi Jinping's thoughts on socialism with Chinese characteristics for a new era along with his important discussions on energy security while adhering strictly to responsibilities at local levels by promoting Yunnan Province's adherence to this new strategy actively building a strong green energy province providing robust energy guarantees for writing a new chapter in China's modernization practice in Yunnan.
Over the past decade, Yunnan has continuously optimized and adjusted its energy consumption structure, prioritizing the absorption of clean energy and promoting a green and low-carbon transformation of energy. The total energy consumption in Yunnan increased from 104.3367 million tons of standard coal in 2014 to 141.5853 million tons of standard coal in 2022, a growth of 35.70%, with the proportion of fossil energy consumption decreasing from 58.32% to 48.54%. The total electricity consumption in society grew from 152.938 billion kWh in 2014 to 251.348 billion kWh in 2023, supporting a growth rate of 134.67% in the province's GDP with a growth rate of 64.35% in total electricity consumption. As an important starting province for the
Over the past decade, Yunnan has aimed at ensuring energy supply and improving structural contradictions, focusing on the development and construction of green power sources, optimizing the spatial and temporal layout of the energy supply system, ensuring national energy security, and supporting high-quality sustainable economic development in Yunnan. Major projects such as Wudongde, Baihetan, Xiluodu, and Xiangjiaba have been put into operation successively, along with the Three Gorges and Gezhouba forming the world's largest clean energy corridor. A large number of major energy engineering projects such as new energy, hydropower stations, power grids, and oil and gas pipelines have been steadily advanced. Yunnan's first million-kilowatt pumped storage power station - Yunnan Fumin Pumped Storage Power Station has officially started construction, with solid progress in 'integrated wind-solar-hydro-thermal storage' and 'integrated source-grid-load-storage'. In 2023, Yunnan added new installed capacity of renewable energy amounting to 20.856 million kilowatts, maintaining its position as second in the country for newly installed centralized photovoltaic and wind power capacity. Photovoltaic and wind power installations have become the second and third largest power sources in Yunnan Province after hydropower. By the end of 2023, Yunnan's installed power capacity exceeded 130 million kilowatts, with nearly 90% being green power installations, effectively supporting the construction of a new type of power system and a clean low-carbon transformation in Yunnan.
Over the past decade, Yunnan has based its actions on provincial realities, characteristics of energy resources, and development processes to promote industrial transformation through energy technology innovation, achieving significant breakthroughs in multiple technologies and indicators. Deeply learning and implementing General Secretary Xi Jinping's important instructions on the commissioning of the first batch of units at Wudongde and Baihetan hydropower stations, adhering to new development concepts to reach new heights in technology, striving to create quality projects that set multiple world records. The world's largest single-unit capacity hydroelectric generator set with a power output of one million kilowatts has achieved a major breakthrough in China's high-end equipment manufacturing. The most technologically advanced asynchronous sending end large power grid has been built; the Kunliulong flexible DC project put into operation in 2020 is the world's first ultra-high voltage multi-terminal hybrid DC project that has set records for highest voltage level, largest transmission capacity, and longest transmission distance for flexible DC projects; both technical difficulty and engineering complexity are currently at their peak in the field of power transmission and transformation. Significant breakthroughs have also been made in projects such as photovoltaic power generation connected to electrolytic aluminum production; newly built electrolytic aluminum project process equipment and energy efficiency levels are at domestic benchmarks and international leading levels. The silicon photovoltaic industry in the province has basically formed a relatively complete industrial chain, laying a solid foundation for building a 'photovoltaic capital'.
Over the past decade, Yunnan has steadfastly promoted institutional reforms and innovations in the energy sector; electricity system reforms are at the forefront nationally while oil and gas system reforms are steadily advancing. As one of the first pilot provinces for electricity system reform nationwide, it was among the first to open up large industries and general commercial enterprises to market participation while actively promoting sales-side reforms; a diverse market structure with fair competition is gradually improving. The number of market entities in Yunnan's electricity market grew from less than one hundred in 2014 to over 80 thousand by the end of 2023; market transaction volumes as a proportion of total electricity consumption increased from 6.13% to 73.6%. A sound price linkage mechanism for upstream and downstream natural gas pipelines for non-residential users has been established to ensure balance between supply and demand for natural gas.
Over the past decade, Yunnan has fully leveraged its geographical advantages while earnestly implementing General Secretary Xi Jinping's important instructions on 'three positions', focusing on becoming a 'radiation center towards South Asia and Southeast Asia', actively serving and integrating into national development strategies and diplomatic frameworks while participating in high-quality co-construction of the 'Belt and Road', continuously deepening bilateral energy cooperation with South Asian and Southeast Asian countries. A cross-border electricity channel connecting Vietnam, Myanmar, and Laos with voltage levels above 110 kV has been established; cumulative trade volume exceeds 67 billion kWh; high-level interconnections such as China-Vietnam, China-Myanmar (Bangladesh), China-Laos (Thailand) are actively being promoted. Since its commissioning in 2013, the China-Myanmar oil and gas pipeline has stably delivered a cumulative total of natural gas amounting to 41.674 billion cubic meters by the end of 2023 while cumulatively delivering over 66 million tons of crude oil domestically. International capacity cooperation has yielded significant results; over eighty foreign purchasing entities have participated in cross-border transactions within Yunnan's electricity market with cumulative trade volume exceeding 32 billion kWh.
(Secretary of Guizhou Energy Regulatory Office Party Group)
In June 2014, General Secretary Xi Jinping proposed a new strategy for energy security called 'Four Revolutions, One Cooperation', which provides fundamental guidance for our work on energy regulation. Under the strong leadership of the Party Group at the National Energy Administration, Guizhou Energy Regulatory Office adheres to people-centered principles while deeply implementing this new strategy for energy security; it focuses on addressing bottlenecks that restrict people's access to quality electricity services while comprehensively enhancing service levels for 'accessing electricity', solidly carrying out frequent power outage rectifications aimed at providing high-quality reliable electricity supply for citizens while forging a path unique to Guizhou that guarantees satisfactory electricity use for people's livelihoods.
Entering a new era, Guizhou has made significant progress with rapid economic growth year after year; it was the first among western provinces to achieve highway access across all counties; particularly notable is its successful fight against poverty by 2020 as scheduled. With continuous improvements in people's living standards, electricity demand has shifted from merely having access to quality usage. In recent years, Guizhou Province has continuously strengthened grid construction achieving full coverage by county-level substations at voltage levels of 220 kV; average customer outage time decreased by 4.61 hours year-on-year; reliability rate reached 99.93%, voltage qualification rate reached 99.756%, average transformer capacity per household was at 2.75 kVA; it was also among western provinces that first implemented 'face recognition for electricity services' or 'one certificate for electricity services', achieving an internet service handling ratio reaching up to 99.8%, saving an investment totaling CNY6.876 billion for over three million households cumulatively from 2020 to 2023; complaints regarding power quality reported through Guizhou's complaint hotline (12398) have significantly decreased but there remains considerable disparity when compared with developed eastern regions regarding supply reliability levels; how to continuously enhance quality usage for citizens remains an unavoidable issue for regulatory agencies.
Guizhou is a major province for labor export, with the proportion of labor-exporting population reaching as high as 20% of the registered population. Every year during the Spring Festival, about 9 million migrant workers return home at once, leading to significant increases in personnel that put pressure on the distribution network load in some areas and cause severe overloads. This has resulted in frequent low voltage outages over many years, leading to considerable public dissatisfaction. The people's call is met with our response. In recent years, the Guizhou Energy Regulatory Office has carefully analyzed the operational characteristics of distribution networks and actively explored relevant measures to ensure that public electricity needs are met. It has urged power supply companies to leverage Guizhou's big data industry advantages by establishing a customer service monitoring and early warning platform for those returning to Guizhou during the Spring Festival. By obtaining population flow data from telecommunications operators and combining it with historical data to build risk models, early warnings can be issued. Guidelines for Spring Festival customer service have been developed to ensure proactive communication regarding key issues and timely information dissemination to cover 9.11 million customers while effectively addressing their demands. For the Spring Festival of 2024, 4,057 overloaded transformers will be replaced ahead of schedule, reducing average outage time by 39%, decreasing overloaded transformers by 36%, and complaints through 12398 decreasing by 68% year-on-year.
Over the years, facing shortcomings that affect high-quality development of distribution networks and guarantee people's energy needs, the Guizhou Energy Regulatory Office has taken proactive responsibility and actively urged power supply companies to focus on key issues and solve problems while practicing "People's Electricity for People". Regarding power supply service issues in super-large residential areas, it guided power supply companies to carry out comprehensive electricity management for Huaguoyuan, a super-large residential area with a population of 500,000, investing 23 million yuan to complete renovations for 38,000 businesses, saving them an average of 1.5 million yuan per month on electricity costs. An investment of 121 million yuan was made to complete grid renovations in 219 urban villages benefiting approximately 78,900 people. Addressing historical reliability issues related to power supply in submerged areas of hydropower stations—represented by electricity issues faced by residents in Bijiang Huangnitang Town—the office guided power supply companies to complete renovations for over 30 submerged hydropower stations significantly improving electricity quality for 50,000 users. To tackle difficulties related to charging piles entering communities, it promoted the implementation plan for advancing charging infrastructure construction in residential communities in Guizhou Province while strengthening collaboration with electric vehicle suppliers for timely installation services; as a result, the number of residential charging piles increased by 460% year-on-year in 2023.
In the next step, the Guizhou Energy Regulatory Office will carry out pilot projects for process supervision of distribution networks according to key work deployments from the National Energy Administration. It aims to support high-quality development of distribution networks contributing to new power system construction while providing high-quality and reliable electricity supply for people’s needs.
(Source: China Electric Power News)
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