Electricity market: barrier problems highlight various types of transactions to be co-ordinated

As the electricity reform continues to deepen, the establishment and improvement of the electricity trading market is welcoming new opportunities and challenges. While the local power trading platforms have explored their experiences, they are also facing various problems brought about by the “growth” market.

At the "2018 Economic Situation and Power Development Analysis and Prediction Conference" held recently by the China Electricity Council, Shi Lianjun, Party Secretary of the Beijing Electric Power Trading Center, and Wu Jianhong, General Manager of the Guangzhou Power Trading Center, said that while the market vitality has been strengthened, the power Market-oriented transactions still face more problems in the top-level design and the elimination of inter-provincial barriers, and the relevant systems need to be improved.

Active market players promote clean energy consumption

On March 1, 2016, Beijing and Guangzhou Electric Power Trading Center were established. After two years, the number of market participants participating in the transaction has grown rapidly, and remarkable results have been achieved in optimizing the allocation of power resources and promoting the elimination of clean energy.

Statistics show that there are currently 55,746 market members registered in the national grid business, including more than 27,161 power generation companies and 26,317 power users. Among the power users, the users who participate in the transaction through the agent of the sales company and the large users who directly participate in the transaction each account for half. As of the end of 2017, the number of registered companies for electricity sales was 2,233. In 2017, there were 2,011 newly registered power users and power sales companies, an increase of 3.7 times in 2016.

Wu Jianhong said that as of the end of 2017, the number of power users involved in intra-provincial transactions in the southern region was 12,516, with 613 power generation companies and 565 power sales companies. The market participants registered in the Guangzhou Electric Power Trading Center to participate in inter-provincial transactions in the southern region are 130, including the five southern provinces and regions, and 125 power generation companies.

In terms of transaction scale, within the scope of the operation of the State Grid, the marketized transaction power in 2017 totaled 129.5 billion kWh, and the market-oriented transaction power accounted for 31.2%, releasing the reform dividend of 29.5 billion yuan; in the southern power grid operating area, except Hainan Since the power trading center has not yet started trading, the market power of the other four provinces and regions has reached 268 billion kWh, accounting for 30.1% of the total electricity sales, and the user side reduced electricity expenditure by 21.7 billion yuan.

In terms of clean energy consumption, data from the Beijing Electric Power Trading Center showed that in 2017, the electricity consumption of wind power and photovoltaic power generation reached 230 billion kWh and 93 billion kWh, respectively, an increase of 29.6% and 76.6% over the same period of the previous year. Inter-provincial non-water renewable energy transactions reached more than 49 billion kWh. The total amount of abandoned wind and light has dropped from 46.4 billion kWh in 2016 to 41.2 billion kWh, a decrease of 11.3%, and the rate of abandoned electricity has also decreased by 5.3 percentage points year-on-year to 11%. ".

"This achievement is hard-won." Shi Lianjun pointed out that in 2017, wind power installed capacity increased by 10%, photovoltaic installed capacity increased by 70%, and the goal of "double down" in the case of a large increase in installed capacity is inseparable from the joint efforts of all parties. .

According to the statistics of Guangzhou Electric Power Trading Center, in 2017, the power supply from west to east reached 202.8 billion kWh, and the proportion of clean energy power reached 86%; Yunnan surplus hydropower increased by 27.7 billion kWh. “In the southern region, non-fossil energy power generation accounts for more than 50%, and coal machines accounted for only 41.4%.

Wu Jianhong said that Yunnan hydropower installed capacity accounted for 73% of the total installed capacity in the province, non-fossil energy installed capacity accounted for 85%, while Guangdong installed capacity accounted for 37% of the southern region, power generation can only support the province's electricity use three points of two. While promoting the elimination of clean energy, inter-provincial transactions have somewhat alleviated the mismatch between power production and consumption.

Electricity market: the problem of barriers is outstanding. All kinds of transactions are to be co-ordinated.

Barrier issues highlight various types of transactions to be co-ordinated

Although the power trading centers have been established in various places, as of 2017, there are only 15 provinces that allow the sales companies to sell and sell electricity within the scope of the State Grid, and there are only 475 power sales companies that actually carry out business, accounting for about 20 %. “Most of the electricity sales companies are still in their infancy and are not fully involved in the electricity trading market, which is also related to the degree of policy liberalization in different regions.” Shi Lianjun said.

The reporter also noted that inter-provincial transactions, as an important means of resource allocation across regions, are still dominated by long-term contract transactions.

According to statistics from the Beijing Electric Power Trading Center, the amount of inter-provincial transactions that are truly market-based is only 31%.

"At this stage, the agreement accounts for the majority of the provinces and provinces." Wu Jianhong believes that the "protocol + market" model will help to stabilize the market. "Medium and long-term transactions, especially long-term coordination, are still very important and can be avoided. Electricity and electricity prices have been turbulent. While ensuring stable supply of electricity, we can also ensure the effective use of resources."

The heads of the two major trading centers in Beijing and Guangzhou said that the biggest problem facing inter-provincial transactions is still the inter-provincial barriers. Some provinces directly prohibit enterprises from purchasing electricity from other provinces, or restrict the purchase of electricity by local enterprises by setting the upper limit of purchased electricity or the lower limit of electricity price. Some provinces and regions have different interests and different differences in the process of power system reform. Market entities still have concerns, which is not conducive to flexible allocation of resources.

In addition, the power system reform is in the process of continuous exploration. The trading rules and market formation modes formulated by the provinces are not the same. Shi Lianjun believes that the complete market system design and construction has become a top priority. “On the basis of the deviation assessment alone, the regulations of each province are varied, and the assessment methods, cycles, and quotas are different. When a power sales company deals with inter-provincial power transactions, it must face every aspect of clearing, settlement, and assessment. For complex rule differences, this contradiction will become more and more obvious as the scale of inter-provincial transactions expands."

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