On November 8th, the establishment of the National Electric Power Trading Association "title="National Alliance of Power Trading Institutions" target="_blank"> the National Electricity Trading Institution Coalition was seen as a major event in deepening the reform of the power system. Currently, the power trading market Still fragile, the power market competition is not sufficient, and the establishment of the National Electricity Trading Institution Coalition (hereinafter referred to as the "Alliance") has positive significance for the construction of China's power market and the standardized operation of trading organizations. To be further excavated, so that more people use clean, cheap electricity, build beautiful China, enjoy a better life, there is still a long way to go for the power trading market.

The National Association of Power Trading Institutions convened on November 8th was regarded as a grand event in the field of power trading. The main leaders of the 34 power trading centers across the country were present. Unlike other professional conferences, the atmosphere of the founding of the alliance is particularly warm. 20 minutes before the official start of the meeting, many people have arrived inside and outside the venue. Most of them are the heads of various trading organizations. They shake hands and greeting each other. Obviously they are already old friends.

This kind of event is few in the power trading industry. On this day, the alliance was formally established. Wang Qiang, inspector of the National Development and Reform Commission's Department of Structural Reform, said at the meeting: "The formal establishment of the alliance is a major event in deepening the reform of the power system. It is of great significance for China's power market construction and the standardized operation of trading institutions."

Electricity trading is an important part of the power market construction. As an integral part of the power system reform, with the establishment of Beijing Electric Power Trading Center and Guangzhou Power Trading Center in March 2016, power trading centers of various provinces have also been established one after another, fully completing the task of establishing a relatively independent power trading organization. Since then, the construction of the electricity market has been gradually implemented through transactions, local enthusiasm has been mobilized, major breakthroughs have been made in market construction, and the reform dividend has been fully released.

Take the Beijing Electric Power Trading Center as an example. Since its establishment, it has organized a total of 1.32 trillion yuan in various provincial transactions. The UHV transmission of electricity, Tibet Power and Beijing, and power assistance in Xinjiang have achieved good resource allocation and social benefits. Since the beginning of this year, Beijing Electric Power Trading Center has used a number of UHVDC channels to consume 119.7 billion KWh of hydropower in the southwest and completed 41.2 billion kWh of new energy energy, an increase of 39% year-on-year, and the percentage of new energy delivered by DC has reached 58%. Reduce water abandonment in the Southwest.

Over the past year or so, the most stubborn illness in the industry has probably been the "provincial trade barrier." The conditions for the adverse distribution of China's energy supply and demand and the intensification of new energy development and the demand for large-scale consumption and utilization have objectively determined that the large-scale cross-regional transportation and consumption of electricity is the only way to optimize the allocation of resources and achieve green development. However, the prominent problems of provincial barriers have restricted the nation’s electricity market construction and the full and efficient allocation of resources.

For the economically developed eastern provinces, the growth of electricity demand has slowed down. Local governments are not willing to purchase electricity from outsiders based on the protectionism of thermal power and other resources in the province; while the installed capacity of clean energy in the western region has grown too fast and supply exceeds demand. However, the party’s contradictions have in some cases exacerbated the abandonment of water, the abandonment of wind, and the abandonment of light.

The establishment of the alliance can be said to be timely. Yang Xinfa, director of the Beijing Electric Power Trading Center, commented: “The increasing demand for market participants to participate in transactions will allow the market to gradually play a decisive role in the allocation of resources. There is an urgent need to strengthen the coordination and interconnection between trading institutions and further reduce the market players. Transaction costs and the promotion of a wide range of energy resources to optimize the allocation."

As Yang Xinfa said, the birth of the alliance is the result of the in-depth development of the electricity market. On July 12 of this year, at the special meeting of the power system reform jointly held by the National Development and Reform Commission and the National Energy Administration, two power trading centers in Beijing and Guangzhou were established as the preparatory establishment units. The “National Electricity Trading Institution Alliance Formation Program” formulated together was approved in principle. . On September 6, Beijing Power Trading Center received the "Minute of the National Electricity Development Commission of the National Development and Reform Commission" immediately after the Guangzhou Power Trading Center issued a proposal for the establishment of a national electric power trading organization alliance with 34 power trading centers that have been established nationwide. On September 13, the 34 power trading centers all submitted applications and registration forms for joining the alliance.

The speed with which the alliance is formed is unpredictable, which is a reflection of the continuous deepening of the reform of the power system. The reporter learned that the alliance of electric power trading organizations belongs to the industry alliance and aims to promote the standardization and unification of technical standards in different provinces across the country. This is of great significance in promoting the standardized operation of trading institutions, strengthening transaction and communication, and improving the construction of the electricity market.

Improve the mechanism and call for a unified power market

The agenda of a conference is quite interesting. The heads of the 34 power trading organizations across the country went ahead to write the “National Electric Power Trading Organization Alliance” kanban, and signed their names solemnly in the blanks corresponding to each center.

The reporter saw that there are 12 conventions on the kanban. Article 6 reads: Alliance members should strengthen communication and collaboration, promote the coordination and convergence of market rules and technical standards, strengthen the sharing of information among power trading organizations, and promote power trading institutions. Exchanges and cooperation, the establishment of information sharing between power trading institutions.

This sentence points out the role of the National Electricity Trading Association and points out the difficulties that the Alliance will face when it is established. With the continuous deepening of reforms, the construction of trading institutions and the operation of the electricity market face more severe challenges. On the one hand, all parties in the market place higher requirements on the operational efficiency and service level of power trading institutions; on the other hand, each local market has its own governance and differentiated development, which imposes certain constraints on the optimal allocation of electric power resources and coordinated development of the electric power market. .

It is undeniable that China's trans-provincial and inter-provincial power trading market has not yet formed a unified platform and lacks a unified transmission and distribution pricing mechanism. There are still unregulated and untrustworthy behaviors such as insufficient competition, high transaction costs, conspiracy, and administrative intervention in power trading. Problems; each province of the power trading organization is fighting each other and the transaction costs are too high. All these have hindered the optimal allocation of power resources in a wider range.

In the process of market-oriented power trading, to truly reduce costs and increase efficiency, market rules and technical standards are crucial. At this time, it is particularly important to establish a unified national power market that will coordinate the inter-provincial and intra-provincial transactions and promote new energy consumption. The establishment of the National Electric Power Trading Association should be said to have arisen at the historic moment.

The reporter noted in the “Notes on the Establishment of the Articles of Association and Rules of Procedure of the National Electric Power Trading Institution Alliance” that the rules of procedure elaborated on matters such as the convening of the meeting, the principle of deliberation, voting at meetings and other matters. Among them, one of the comments solicited clearly states: “The Beijing Electric Power Trading Center solicited opinions from 34 Power Trading Centers on the “Constitution of the National Electricity Trading Institution Alliance”, receiving 24 feedbacks and adopting 22 articles.”

Fair and equitable and standardized operation is the principle of the power trading organization's principle of action. This has been well reflected in the initial consultation of the alliance, and it has also become a necessary condition for barrier-free communication between power trading organizations.

What is the significance of power trading? For ordinary power users, it is to reduce the cost of electricity. For the whole society, it is effective in promoting the absorption of clean energy in the entire society, rationally optimizing the allocation of energy resources, and achieving green development. .

However, problems such as barriers to inter-provincial trade in the power trading process, low degree of marketization, and lack of market mechanisms have hindered the optimal allocation of resources. Therefore, all along, industry experts have unanimously called for accelerating the promotion of a nationwide unified electricity market, establishing a trans-regional and inter-provincial trading mechanism and pricing policy to absorb new energy in a wider range.

At present, the reform of the power system has entered the deep-water region, and the electricity market construction has been further advanced. The importance of strengthening cooperation, exchange, information exchange, and coordinating operations among power trading organizations has become increasingly prominent. The establishment of a national power trading organization alliance is not only to promote power trading institutions better The innovative measures to play a role in the local economy are also an urgent need to provide better services for market players, and are of great significance to promoting the reform of the electricity market.

Industry insiders have dubbed the idea of ​​this round of power system reform as “controlling the middle and letting go of both ends”. This is to strengthen the management of the power grid, transmission and distribution, and to allow the power generation, sales, and use of electricity to increase the market. Degree, to achieve full competition. For power trading, systematicity, integrity, and synergy are the necessary conditions for establishing a unified national power market, and are sufficient support for the establishment of inter-provincial cross-regional power trading markets. The establishment of the alliance is to promote regional market rules and technical standards. The coordination of convergence, strengthen information sharing, promote exchanges and cooperation, improve the operating efficiency and service level of trading institutions, coordinate and promote the reform and development of electricity marketization, and promote the construction of a unified national power market.

Representatives of several power trading organizations said that the challenges in power system reform should be overcome and difficulties must be resolved. It is imperative that all power trading institutions in the country strengthen synergies and information sharing, and bring together strong forces that promote reform and development to jointly explore.

Let the market return to the market and the government return to the government. The market fully plays its role, places where competition can compete fully, and parts that are not suitable for competition are effectively supervised. This is the original intention of the power reform. Establishing a unified national electricity market, deploying resources on a large scale, giving play to the advantages of large power grids, such as energy mutual assistance and mutual backup, lowering the cost of market construction and improving the efficiency of the industry is the purpose of power trading.

The electricity reform has entered the deep water area, and the potential for economic and social development is huge. A lot of reform dividends need to be further excavated, allowing more people to use clean and cheap electricity to build beautiful China and provide a better life. There is still a long history of electricity trading market construction. The way to go. We expect the establishment of the alliance to play a greater role.

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