Breakthrough in electricity reform in the open market

Polaris Smart Grid Online: Establishing and improving a socialist market economic system is the basic direction and overall goal of China's economic restructuring. As long as the direction of the marketization of China’s economic system reform remains unchanged, there is no reason to shake the direction of the reform of the power market, nor can it be shaken. It is impracticable to count on going back and there is no way out. Marketization is the only way for the development of power reform. The top priority is to combine China's national conditions, combined with the technical and economic characteristics of the power industry, combined with the characteristics of China's power development stage, and focus on research and exploration of China's power market reform mode, path and strategy.
The lack of qualified power purchasing entities is the main factor restricting power reform
An important goal of power market reform is to form a market mechanism in the power industry and establish the basic role and dominant position of the market in the allocation of power resources. Transmission and distribution and market construction are important means to achieve this goal. At present, the power market reforms are progressing slowly. The key reason why the power resource market allocation mechanism cannot be established is the lack of necessary market transaction entities and, more precisely, the failure to form qualified power purchasing entities. The main reason for not forming a qualified purchasing entity is that it does not give power purchasers the right to purchase power, and does not open up the power-supply-side market on the basis of opening up the power generation-side market, and thus cannot form a market mechanism for buying more, selling more, and independently trading. . The purchase of power-side markets is restricted, and the power purchaser's freedom of choice of power products is restricted. Even if the power-generation-side market is opened, a multi-on-one buyer monopoly pattern of market transactions can be formed. Since no real market trading mechanism has been formed, under this kind of market structure, it is necessary for the government to adopt the current management methods in electricity, electricity, and investment in many aspects.
There is no contradiction between the open-purchase-side market and the separation of transmission and distribution, and the construction of regional markets. All three are important components of the power system reform. In comparison, the open-purchase-side market has a more fundamental position in the power reform. Regional market construction can provide a trading platform for market trading activities. However, if you do not release the electricity-supply-side market, even if the regional electricity market is established, the real market trading mechanism still cannot be formed. The separation of transmission and distribution is conducive to the formation of a diversified power purchasing entity. However, under the condition that transmission and distribution are not separated temporarily, as long as the market of the power purchase side is liberalized and power purchasers are allowed to directly enter power trading, the market mechanism can still establish and play a role.
Take the open purchase side market as a breakthrough in reform
Based on the above analysis, the next step of reform should be to open up the power-supply-side market and give the power purchaser the right to purchase power as a breakthrough in the reform of the power market. The basic idea is to let go of both ends and take control of the middle.
The so-called liberalization of both ends is to open up the power generation side of the market to attract multiple investment entities to invest in power supply construction to form a multivariate power generation entity. This has basically been achieved; the second is to open up the power purchase side market and purchase options for power purchases. The electrician encourages and attracts electric power users to enter the power trading market and forms a multi-element power purchaser. The so-called control of the middle is to strengthen the supervision of transmission and distribution links, so as to provide quality assurance and reasonable price transmission services for both parties. Under such a reform model, power generation companies naturally become suppliers (producers, sellers) of electric power products, and electric power users naturally become purchasers (users, consumers) of electric power products, and power grid companies (transport and distribution companies). Naturally, it is the transporter of electric products. All parties have restored their original features in the electricity market and power trading according to their original functions. They have clear division of labor, clear rights and responsibilities, can form a true market trading relationship, and can establish market supply and demand relationships and reflect market competition. The market mechanism that conforms to the law of product value can form an accurate market signal, which is conducive to the smooth advancement and effective development of electricity market transactions, and is conducive to the scientific development of the electric power industry.
Let go of both ends, and control the middle of the core is to open up the purchase side of the market. To advance and liberalize the two reforms and to control the reforms in the middle, we need to do the following supporting work: First, we must reasonably determine the transmission and distribution prices on the basis of accurately verifying the cost of transmission and distribution. This is directly related to the conduct of market transactions and has a direct impact. The economic interests of power transmission and distribution companies; the second is to determine the access standards for market opening on the demand side, forming a qualified power purchasing entity; the third is to explore an effective way to achieve fair scheduling; the fourth is to establish a market trading platform, this platform can It is tangible, it can be intangible, it can be bilateral, it can also be multilateral.
Under this model, the government is still necessary for power management. This kind of management is mainly reflected in: first, the review of power supply construction and energy saving and environmental protection standards; secondly, the economic review of power grid investment; third, the verification of transmission and distribution prices; and fourth, access qualification for market entities. Review; fifth, supervision of trading orders in the electricity market; sixth, supervision of power quality and power supply services; and seventh, under certain circumstances, necessary interventions in the sale price.
The steps to implement the open purchase side market
Under the circumstances that the transmission and distribution prices are determined, letting go of the two ends and taking control of the middle can take a step-by-step approach and gradually implement the implementation model.
In the first step, considering that some localities already have some local power companies that are independent of the big power grid, they can first give these companies the right to purchase electricity and carry out pilot projects.
The pilot local power companies no longer purchase power from the big grid, allowing them to directly trade electricity with the power generation companies, and at the same time pay network fees to the grid companies according to the transaction power.
In the second step, on the basis of opening up local power companies’ right to purchase power, pilots in certain regions are allowed to open power end users with certain load levels into the power trading market.
The third step, on the basis of summarizing the aforementioned pilot experience, gradually expands the scope of open territory and user range, until it can allow all power users including all resident users to enter the market for direct transactions (empowering resident users to buy their own rights does not mean that all residents All users actually exercise this right, and resident users can still purchase electricity from wholesalers.)

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