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Actively Promote The Marketization Of Electricity Transactions And Further Improve The Trading Mechanism
- Jul 24, 2018 -

In the afternoon of July 18th, the State Development and Reform Commission (NDRC) and the State Energy Bureau jointly issued the notice on the further improvement of the trading mechanism of the electricity market transaction.

1、Release qualified users to enter the electricity market. Orderly release user voltage level and power consumption limit, eligible 10 thousand volt and above voltage level users can participate in the transaction. Those who support annual electricity consumption exceeding 5 million kwh or above will conduct direct electricity trading with power generation enterprises.

In principle, in 2019, 10kV will become the threshold for all users of electricity market transactions. The 5 million year electricity users will be directly traded with power plants. At present, Hunan, Guangxi and other smaller market provinces, user access threshold has been sinking to 10kV. But the access threshold of users in Jiangsu, Guangdong and Shandong is high. Once the access conditions of 10kV are implemented, it will greatly enhance the participation and transaction scale of the users, which is a great benefit to the promotion of electrical reform. But at the same time, scheduling, settlement and so on also face greater challenges. Small and medium users should be implemented as soon as possible.

2、2018 selected coal, steel, colored, building materials and other key sectors of the power users, the first to cancel the power users to participate in the market voltage level and power scale restrictions, to further expand the scale of the transaction, improve the transaction mechanism, and form a new breakthrough point and focus.

In the past few years, the four industries of coal, steel, nonferrous metals and building materials are not ideal. A large part of the cost is mainly energy cost. If the cost of energy consumption is reduced through the marketization of electricity market, it will usher in a rare development opportunity for the four industries.

Public data showed that in 2017, four high energy consumption industries, such as iron and steel, colored, chemical and building materials, accounted for 40% of the industrial sector's power consumption, with an increase of 1.7% over the same period of 18190 billion kilowatt hours. Replace the chemical industry into the coal industry, assuming that coal, steel, colored, building materials four high energy consumption consumption of 1 trillion and 500 billion kilowatt hours (actual electricity consumption is higher than this), assuming all participation in the electricity market transactions, if calculated according to about 0.02 yuan per kilowatt hour, will save 30 billion yuan per year.

3、To improve the scale of market volume of electricity. Especially in the trans provincial trans regional electricity transaction, the market restrictions must be abolished in all provinces. We encourage cross provincial network to directly deal with the network and network to the point, and support the point to point and point to point direct transactions for the conditional areas.

4、Promote all kinds of power generation enterprises into the market. Guide nuclear power, hydropower, solar energy and wind power to enter the electricity market transactions. The promotion of renewable energy, such as wind power and solar power in the planning, will ensure the participation of direct transactions, alternative thermal power generation rights transactions and cross provincial spot trading pilot projects.