Discussion on some issues concerning the current power market in China

On the basis of several issues concerning China's current power market, Wang Xifan, School of Electrical Engineering, Xi'an Jiaotong University, Shaanxi Xi'an Principles, and the interaction between market-optimized resource allocation and government regulation, this paper puts forward some questions that urgently need to be explored in China's bidding online. .

0 Overview The power industry is a traditional monopoly industry in all countries of the world.

In recent years, in order to increase the vitality of the power industry, improve efficiency, and reduce electricity prices, many countries have successively carried out power industry reforms. Breaking the monopoly of the power industry and establishing a power market that is conducive to fair competition is the key to solving the problem. This has been recognized by economists and power workers around the world, confirmed by most governments, and put into the reorganization of the power industry, deregulation, or more precisely, the action of reform regulation. In China, although the Ministry of Electric Power has been changed to a national power company, and regional companies and provincial power companies have been established, the issue of industry monopoly and separation of government and enterprise has not been fundamentally resolved. At present, the State Power Corporation is conducting pilot projects in the electricity market in six provinces and cities, implementing the 'separation of factories and networks, bidding on the Internet, and establishing corresponding technical support systems.

However, no substantial progress has been made in breaking the monopoly and fair competition, and it is impossible to provide valuable experience for future marketization, both in strength and in depth.

The root cause of this phenomenon is that there is no consensus on some key issues related to the electricity market, so that the implementation of the electricity market lacks clear policy guidelines. The core question here is: Does China need to carry out market-oriented reforms in the power industry? Who is the promoter of China's power market? Who is the relationship between the main market mechanism of the power market and government regulation? How should China's electricity market adopt in the electricity market? The structure of electricity trading mechanism and bidding online should consider which principles can only be clearly reached on these issues, and based on this, the policy can be formulated before the power market can be pushed forward. This article only expresses its own views on the above issues, hoping to cause discussion and jointly provide programs and recommendations for China's power industry reform.

1 The Necessity and Urgency of China's Power Industry Reform In the past, 20a was the period of rapid development of China's power industry, making China's installed capacity and annual power generation both ranked second in the world. However, there is a lack of fair competition and transparency in the approval of construction projects and investment channels, which has led to widespread competition for equipment and equipment in the electrical industry. Many engineering projects are greedy and the equipment cannot fully play its role. The project lacks scientific argumentation, and there is no input-output benefit analysis, which makes it difficult to repay the loan. The old factory price and the new factory new price policy have caused the abnormal development of the power industry and become an important factor for the rising electricity price.

If the past has restricted the development of the national economy due to lack of electricity, the current high electricity price and poor service quality of the electric industry will also seriously affect the development of the national economy. In addition to the 30R, the power supply in China is mostly a coal-fired thermal power plant with low power generation costs. However, the National User Fund Project: National Natural Science Foundation of China (Project supported by the National Natural Science Foundation of China, 59937150) discusses the average price of electricity and is close to the United States, exceeding many medium-developed countries. Such high electricity prices are extremely disproportionate to China's relatively backward economy and low per capita income. In the era of this information age, the era of electrification is coming to an end. Many rural areas in China have not yet connected to power and cannot afford electricity. This not only limits the economic and social development of the countryside, but also limits the growth of China's macro consumption. The high price of electricity has reduced the international competitiveness of many industries in China. After joining the World Trade Organization, it will form a threat to certain national industries.

Due to the monopoly of the industry, China's power industry has long lacked the power of technological progress, making various technical and economic indicators clearly behind the world level. The economic operation of the power system has not been taken seriously due to lack of electricity. Now it cannot be considered due to the situation caused by many power-savings. As a result, on the one hand, water plants are abandoned, and on the other hand, electricity is used. In the 1960s, China's thermal power plants also conducted thermal efficiency tests to test heat loss or coal consumption curves. At present, most thermal power plants do not do this test at all, and the operating personnel do not care about the coal consumption characteristics of the plant.

Benefit considerations have become a major obstacle to technological innovation in power systems. China's power grid is relatively weak, and the construction of transmission lines is relatively lagging behind. In this case, the transmission line power limit is set to be low, making the extremely valuable power transmission and transformation equipment not fully utilized. The transmission capacity of China's 500kV transmission line is only 70'~80' abroad, which not only affects the economic benefits of the power system, but also reduces the reliability of the system power supply.

China's power industry has high power generation costs, and has not fully utilized the investment benefits and economic and technological indicators behind. If we do not reform the power industry system, promote competition, and exert market mechanisms, it will inevitably affect the healthy development of China's national economy and the power industry itself.

2 The start of the electricity market The first country to implement electricity marketization was Chile, which started in the late 1970s. Its purpose is to eliminate the corruption, inefficiency and lack of funds of state-owned enterprises. In 1982, Chile officially promulgated the new power law, which established the principle that the transmission system is open to all power plants and users in the form of law, broke the regional monopoly, and officially launched the contract power trading and real-time power trading methods to push the power companies. To the competitive market.

The marketization of electricity in England, which is well known, began in July 1987 with the Electricity Law promulgated by the government of Mrs. Thatcher. In April 1990, the Central Power Generation Bureau (CEGB), which monopolized operations, was revoked, generating electricity, transmission, and distribution. The functions are separated and operated according to the mode of State Grid Corporation, three power generation companies and 12 regional power sales companies.

The Australian government decided in July 1991 to establish the State Grid Bureau to promote the electricity market. Later, the State Grid Management Committee was formally established to regulate grid operations. In December 1992, the Commission promulgated the 'State Grid Statute', which stipulated that more than 30,000 kW of power plants and more than 10,000 kW users can be freely traded on the State Grid as a member of the Statute.

Sweden's electricity marketization process began in 1990, but a crucial step was the Swedish Parliament's adoption of a new electricity bill in 1994, which was enacted in January 1995.

The US power marketization began with the Energy Act approved by President Bush in 1992 and is marked by the opening of the power grid. Due to the high electricity prices in California, people from all walks of life are most active in promoting the electricity market. In December 1995, California's power industry completed the restructuring of the power industry by 1998 at the latest.

In summary, the promoters of the electricity market in various countries are all governments or parliaments rather than the power industry itself. Most of China's power industry is state-owned. The current state power company is a state-owned enterprise, which is different from the nature of foreign private power companies. However, as a company, its main goal is to focus on profit, and it has no legislative rights and market supervision functions. Therefore, the national power company itself cannot be the main force driving the marketization of electricity.

The process of China's power marketization must be promoted by the central government, mainly including legislation and restructuring of the power industry and the establishment of an effective regulatory system. In this regard, electric power workers should take this challenge with a positive attitude and participate in this process from the perspective of social benefits, the long-term interests of the country and the healthy development of the electric power industry.

3 The main body of the electricity market and the trading mechanism According to the market theory in microeconomics, the electricity market can be defined as: the electricity market is a collection of buyers and sellers that interact and make electricity exchange possible. It should be noted that commodities in the electricity market include a variety of ancillary services in addition to electrical energy. Auxiliary services include the delivery of electrical energy, provision of spares, reactive power compensation and voltage regulation, etc., mainly to ensure the reliability and power quality of the power system operation.

As the mainstay of the electricity market are buyers and sellers of electricity and related services. The buyer is a power user and an intermediary, and the seller is a power producer and ancillary service provider for electric energy production. Both the buyer and the seller should be independent legal entities that operate autonomously and are responsible for their own profits and losses.

Commodity trading is fundamentally carried out directly between buyers and sellers. As a commodity, electricity should emphasize the market behavior of bilateral transactions. However, due to the characteristics of simultaneous production and consumption of electricity, considering the error of load forecasting, power loss, etc., the balanced market in power trading is “essential. This balanced market operates by bidding online.” The distinctive part 2. The market mechanism refers to the mechanism for determining the market clearing price from the supply and demand relationship of commodities. Here, the relationship between supply and demand reflects the interaction between the buyer and the seller in the electricity market. “To play the role of the market mechanism in optimizing resource allocation, we must fully respect the independent management rights of market entities and the independent decision-making power of power producers when bidding online. However, the market is not omnipotent. At the same time, it is necessary to emphasize the role of government regulation. To this end, it is necessary to solve the two key problems that Comrade Deng Xiaoping proposed that the power of China's original economic management system is too concentrated and that government and enterprises are separated.

At present, the electricity price of power users in China is not open, so the bidding online is strictly limited to the power producer side. In this kind of electricity market, the discussion and suggestion of the electric power China power is zero, which makes it difficult to form the interaction between the buyer and the seller. From an economic point of view, this kind of market is unsound and unstable. In response to this situation, the following suggestions are made: ") Strengthening the analysis of electric energy costs and forecasting of electricity prices, and conducting government regulation on bidding online. Studies have shown that the use of appropriate control methods can maintain the price of electricity in the vicinity of the marginal cost of electricity.) While conducting the power generation side of the Internet, it should actively carry out research and simulation tests on the power supply side of the electricity market. The long-term planned economy constraints, the price elasticity of China's electricity demand research is almost blank, should immediately organize the investigation and research in this field.!) To play the role of the power market to optimize resource allocation, electricity prices must be gradually liberalized, and ultimately by the market The mechanism is determined. Opening the price does not mean raising the price. This has been confirmed in the price reform of other industries in China. The key is still the supervision and regulation of the government.

4 China's power market framework structure Now the world has proposed a variety of power industry restructuring programs, and practice in different countries. The main commodities in the electricity market are electricity and ancillary services. The special feature of the electricity market compared to other markets is that the production and consumption of electricity is done simultaneously, so the existence of the transmission system is a significant sign of the electricity market.

Transmission services generally have the nature of natural monopoly due to their economies of scale. Therefore, the common feature of marketization in various countries is that the plant and the network are separated, and the government regulates the transmission part appropriately to create a level playing field for power generation and distribution. To this end, it is also necessary to emphasize and realize the opening of the grid. Different treatments of the transmission part have formed the characteristics of the electricity market structure of each country.

In order to ensure fair and orderly competition and healthy development of the market, market managers should not participate in market transactions, just as managers of the stock market should not participate in speculative activities of stocks. This is the basic truth that is well known. Therefore, the dispatching mechanism of the power system should be separated from the main body of the power market economically and organizationally, and the dispatching organization is not allowed to make profits from the electric energy trading in the electricity market. This independent dispatching agency should select and arrange the power of the power plant according to the principle of optimal resource allocation or the optimal operation mode of the entire power system, and should not deal with any power plant preference and discrimination. Therefore, when considering the structure of China's electricity market, three conditions must be met, namely, separation of plant and network, opening of power grid and independence of dispatching.

In order to macro-control the operation of electricity market transactions and the operation of power systems, it should also form a supervision and management institution at the national level and the regional level, which is temporarily referred to as the “Electric Power Supervision Administration.” The macro-control of the power market is the Electricity Regulatory Authority. An important task should reflect the characteristics of the socialist market economy. In addition, the superiority of the socialist market economy should be fully exerted in the application of new technologies, environmental protection, power market forecasting, power supply and power grid planning. The main functions of the Electricity Authority include: ") Supervision of the power industry: promoting competition in power generation and power supply, setting service standards for power generation companies; safeguarding user interests in terms of price and service quality; and controlling electricity prices macroscopically. Management of electricity market transactions: managing long-term, medium-term, and short-term markets of electricity, bilateral trading contracts, bidding online, optimization of operating modes, and formation of market electricity prices. 3) Power system operation and scheduling: real-time operation and scheduling to ensure the safe and reliable operation of the system; organization of auxiliary service market, frequency modulation and voltage regulation, cleaning up blocking, and accident handling. 4) Forecasting and planning: load forecasting, electricity price forecasting, power supply optimization planning, power grid optimization planning.

%) Promote the adoption of new technologies and new energy by power companies and the impact of the power industry on the environment.

The Electricity Regulatory Authority does not have power generation equipment and power transmission and transformation equipment, but has related measurement and information systems. These devices are only tools for electricity industry regulation and are not targeted at profitability.

Propose a power market structure plan suitable for China's situation. The Central Electric Power Supervision Administration is directly led by the State Power Supervision Administration, and the Regional Electricity Authority directly leads several local power bureaus. The area under the jurisdiction of the Central Electric Power Supervision Administration is not the administrative area, but the area covered by the power system developed by the power supply and the power grid. 'Province as an entity' is contrary to the principle of open grid, and it is easy to form local protection and local administrative intervention, which is not conducive to the optimal allocation of resources. This problem is particularly prominent when considering the uneven distribution of energy in China. .

The main responsibility of the local power bureau is to manage regional energy trading and regional grid dispatching. It can be seen that the main body of the power market is the power generation company, the transmission company, the power supply company, the power distribution company and the majority of users. Conduct electricity, auxiliary services, and cash settlement between them. This transaction and settlement is carried out under the supervision and management of the Regional Electricity Regulatory Authority and the local power authority. There is exchange of power flow, auxiliary service flow and cash flow between them. There is only information flow exchange between the Regional Electricity Regulatory Authority and the local power bureau and the main body of the electricity market.

5 About trading methods and rules The electricity market is the place where electricity and related auxiliary services are bought and sold.

Due to the simultaneous occurrence of the production and consumption of electric energy commodities, the transaction discussion and the proposed method and trading rules have an important impact on the fair competition of the market and the development of the market mechanism. The purpose of the bidding is to promote fair competition in the power generation market and to promote power producers to increase power generation efficiency and reduce costs. The principle of formulating bidding rules should facilitate the rational organization of power supplies and optimize the operation of the power system to improve the overall efficiency of the power industry.

From the above point of view, the following points in the current domestic and international bidding rules should be clarified: 1) The electricity market should be settled separately according to the quotation or the clear settlement according to the clear price. The goods should enjoy the same price and the same price. The treatment, but how to measure the power quality peak and valley electricity prices should be recognized, but in the peak load period, whether all the power suppliers of the power supply at this time have the same power quality, the problem is that the price is unified Whether the settlement is reasonable") Is it necessary to require the power producer to report 24 or 48 in 1d?) The electricity price curve has a strong continuity requirement for the operation of the thermal power plant. The start and stop of thermal power units is not only very complicated, but also consumes a lot of resources. The hourly quote increases the randomness of the operating state of the thermal power unit. No matter the economic efficiency and safe operation of the power plant or the entire power system. The quotation of the power producer should be based on its cost analysis. The average cost of a thermal power plant is 80 () 90 of its rated capacity (before it was declining. The pricing rules at home and abroad require the power plant to report a monotonously rising electricity price curve. This deviation from the cost of the quotation is difficult for the power producer to improve its operation. Efficiency has a beneficial effect, but instead it focuses more on speculation.

The root of the above problems lies in the fact that the characteristics of electric energy production are not fully considered when designing the bidding rules. How to better coordinate the relationship between bidding and power generation will have a major impact on the efficiency of the electricity market and the safety of power system operation.

Another important form of trading in the electricity market is bilateral contract transactions. At present, China lacks research and regulation on such transactions. In fact, bilateral contract transactions should be the main form of energy trading. Bilateral transactions not only account for a large proportion of the electricity market, but also a key mechanism for flat electricity prices and the elimination of electricity price spikes, which have a direct impact on the bidding strategies of power producers. Therefore, it is necessary to conduct a comprehensive and in-depth study on the impact of electricity prices, contract management and the operation of power systems in bilateral transactions. In addition, research on forward contract transactions should be strengthened. Forward contract transactions can stabilize electricity prices, facilitate investment decisions, and reduce the risk of market entities. For China, where water resources are abundant, long-term contract transactions are conducive to the rational use of hydropower and avoiding water abandonment. Only the combination of the above three types of transactions can make the electricity market more perfect and reasonable.

6 Conclusions China's power industry has high power generation costs, and has not fully developed electricity to play a role in investment efficiency and economic and technical indicators behind. If we do not reform the power industry system, promote competition, and exert market mechanisms, it will inevitably affect the healthy development of China's national economy and the power industry itself.

The experience of countries around the world shows that the prerequisite for the formation of the electricity market is to achieve the restructuring of the power industry, the core of which is to break the traditional monopoly of the power industry. The promoters of this process are governments or parliaments and are regulated in the form of legislation. In order to promote the market-oriented operation of the power industry in China, the government must also restructure the power industry into a system in which government and enterprises are separated and suitable for fair competition.

The main body of the electricity market is the buyer and seller of electricity. Due to the characteristics of the operation of the power system, in addition to bilateral contract transactions, the form of power trading should also have a real-time power balance market in the form of bidding online. In order to ensure fair competition and give full play to the role of market mechanism in optimizing resource allocation, the structure of the electricity market must meet the three principles of separation of plant and network, opening of power grid and independence of dispatching.

China's transition from a planned economy to a socialist market economy is accumulating experience and paying sufficient attention to the government's macro control. Therefore, it is recommended to set up a power supervision and management department including the dispatching agency to supervise and manage power trading, power system operation and planning.

In the transaction mode and planning, research should be intensified to provide a theoretical basis for the pilot of China's electricity market. Although electric energy has the commonality of general commodities in the electricity market, it must pay full attention to the characteristics of its production and consumption.

At present, the electricity price of electric energy users in China has not been released, and the electricity market is limited to the bidding on the power generation side. This kind of market is difficult to play the role of optimizing the resource allocation of the market mechanism, which easily leads to fluctuations in the on-grid price of the power generation side. It is recommended to gradually relax the government's control over electricity prices and strengthen research on the characteristics of electricity demand. When the user-side electricity price has not been released, the state should conduct macro-control on the bidding process in the electricity market to avoid the situation that the price of electricity in California is out of control.

Taffeta Coated Fabric

Suiting Lining Fabric,Taffeta Coated Fabric,Polyester Lining Fabric,Viscose And Elastane Fabric

shaoxing sherry import and export co.,ltd , https://www.sherryfabric.com