Streamlining power control requires policy support

In 2013, the new government of our country once again launched the New Deal of “Separation of Government and Enterprises”, with emphasis on the removal of approval authority, reflecting the government’s determination and actions to actively adjust the economic structure and comprehensively upgrade China’s open economy. Recently, the General Office of the State Council issued the "Decision of the State Council on Canceling and Decentralizing a Batch of Administrative Approval Items," and cancelled 71 administrative approval projects and devolved 20 management-level administrative approval projects. It involves the cancellation and decentralization of a number of energy project approvals, such as large-scale consumer direct electricity purchase pilots for power generation companies, approval of electricity market share, investment in hydropower, wind power and cogeneration power plant projects.

1. Rely on China's power industry to develop sustainable energy to promote steady economic growth

Looking at the development status of the world's energy and electricity markets, the energy structure under the pressure of the environment is rapidly advancing the development of energy markets in various countries. Multi-power products have gradually changed the balance mechanism of electricity supply and demand.

With the help of shale gas, the United States put forward a new slogan for the energy revolution, through politics, economics, and military affairs, especially through macroeconomic policies in the capital market, international trade, and pillar industries, they quickly emerged from the energy structure optimization and re-industrialization of the economy. The road to recovery. What does China rely on? China is stuck too deeply in the quagmire of solar energy. Can we use the second power reform to lead China's new energy revolution and emerge from the next phase of China's economy's steady growth revival?

From the perspective of the power industry, large-scale energy bases are still controlled by the state. At present, decentralization involves small and medium-sized renewable energy power generation enterprises. The prerequisite for the development of their powers for approval is that the regional power market must be dynamic, and the regional power market should be The distributed power supply, microgrid and the national power market are symbiotic and co-prosperous with each other, integrated with the local economic structure and market system, and form the regional market economy ecology. Only the decentralization of simple government will receive the effect of stimulating growth. Otherwise, it would be difficult to see the effect of re-deployment of local land finance under the current high fever, and there is no corresponding ability to control and control in the short-term. It is easy to implement decentralization and construction, and good management, good development, and good operation are really difficult. Because the objectives and scope of decentralization are unknown, and the regional electricity market is not alive, local renewable energy power generation industry will remain uncertain if there is no external market acceptance after local development of relevant production capacity.

In a word, the precondition for the approval and decentralization of this time is the local electricity price right, which in turn has to be traced back to the issue of separate pricing and related taxation system for transmission and distribution services in cross-regional transactions.

2. Simplify power control

The power industry regulatory reform has achieved relatively good results in developed countries (OECD, 2000). China's traditional power system is dominated by coal-fired power generation, and it has long been planned and managed under the safe and economic dispatching method. This kind of management system supports China's socialist economic construction and the improvement of people's quality of life. However, when competition in the energy market is fierce, climate change is severe, and new energy generation enters the electricity market, the previously controllable production methods and processes for transmission, distribution, and distribution are bound to face adjustment pressures. Although the government has introduced energy-saving scheduling reforms, the attempt to open up the market gap from the dispatching mode has been short-lived and the power system is still in the government. However, the market mechanism, market structure, trading patterns, and the immature and imperfect electricity prices are trying to open the market gap. The department operates under centralized control.

The author believes that the ultimate performance of China's energy will still depend on the power market dispatch. The ownership of the pricing system determined by the property rights system, management organization, market mechanism, and incentive compatibility are at the macro and micro level. The goal is also a valve for leverage adjustment at all levels of government.

The current government's control of the power industry is mainly reflected in the power of administrative examination and approval, manifesting itself as direct and indirect control over investment, financing, operations, prices, and performance systems. After the first reform in 2002, the separation of power plants and networks and the transformation from a planned economy have made the electric power industry achieve a great deal of development, leading to a significant improvement in China’s economy and people’s livelihood through electrification. Undoubtedly, the start of a new round of economic reforms in China still holds hope for some of the vitality of the main business of the power industry.

The new decentralization policy is more focused on the clean energy sector, especially the new energy industry. Then, can the decentralization power guarantee that its goals and feasibility have been achieved steadily? At present, the failure of some new energy power generation markets is caused by insufficient decentralization? Will there be further failure of the energy market due to decentralization? Dispersed power production decision-making power After going on, local government and enterprise powers do not correspond. If local government management efficiency and coordination control power are not in place, the currently outdated solar power generation industry will affect the already-developed renewable energy industry, making it more likely to lead to systemic crisis. Large, and with it, will lead to new issues such as how to monitor local protectionism in the future. Due to the weakening of share control, it is also possible that local and corporate cooperation will once again slip back into fossil fuel production and sales.

What needs to be seriously considered is that the new energy companies have no way of clearing their lives? First, the electricity generated by renewable energy sources, whether local power grids are acquired or not acquired, how to acquire them, and if small companies are used for production, then the first is to put small businesses first. After the production environment is built, let go. New energy industry management should be reversed in terms of methods - starting from how consumers buy and designing the "new energy industry ecosystem". Large consumers buying electricity directly also need to rationalize the power supply and supply energy supply chain instead of simply producing electricity. Implement decentralization.

In the long run, the fundamental goal of the government’s efforts to improve governance and relax power control is to create a highly competitive and competitive power wholesale and retail market. Only in this way can we have the power of the power industry itself and drive the continuous growth of the entire economy. It is necessary to adopt legislation to determine the structure and mode of the electricity market before it is possible to mobilize the power companies to continue to innovate their production and services along the lines of the main business.

It is necessary to establish in advance a set of government performance evaluation systems that are scientific, standardized, and emphasize clean power generation and electricity saving, reduce the burden on power companies due to government actions or aggravation of power companies and excessive competition, and closely monitor and maintain the healthy operation of the market economy.

3. Continuous innovation and stable operation

As a power company, continuous and steady operation is its consistent goal. In the face of decentralization of the government, we need to consider the question of how China's power industry will integrate into the market economy in the face of the new economic recovery in the post-crisis era, the re-industrialization of developed countries, the constraints of energy and resource environment, and the reality of China’s economic opening up. With its own adaptability and flexibility, where is the sustainable internal viability of power companies?

In any economy, core technology will be the cornerstone of recovery and growth, and the flexible response to market signals will be a boost for crisis resistance, innovation and sustainable development. In the information society where traditional power technologies and management methods have entered the Internet, the business advantages of enterprises will no longer depend on investment, but rely on technological innovation and the management innovations that they adapt to, and the two are restricted and separated from each other. China's power industry is already building a smart grid core technology group and its operating platform, but how to operate efficiently on this platform will be a new challenge for the future development of the power industry. The smart grid is a prerequisite for ensuring the electric power company to innovate in a sustainable energy environment. What we are most concerned about is whether it can bring about a steady growth rate of the electric power industry and adapt it to the globalization, market economy system and industrial structure optimization to promote Social, economic and environmental harmony.

First of all, China's renewable energy generation from the main network channel into the power market is no longer a problem. The National Grid and China Southern Power Grid have vigorously resolved the issue of UHV transmission and nationwide networking, but this is only for large-scale hydropower, wind power, solar power stations, etc. Energy base. Although there is still a key issue left in this block, that is, who is doing the balancing service for new energy generators? The academic community is trying to use energy storage strategies. From the commercial value, this is extremely expensive and unrealistic. We Can find more cheap and efficient countermeasures - a complete electricity market mechanism.

Secondly, if renewable energy power generation enters the electricity market from the distribution network, ask who can enter and how to enter the distribution network. The distribution network is willing to accept or not to connect, and how to connect it, such as wind power and solar power, is not stable. Which intermittent power supply is the primary voltage distribution network? Is it a medium- or low-voltage distribution network? Can consumers see them and open their wallets for purchase? People all know that new energy is clean and PM2.5 is dirty, but Beijing's air cleaner sells out of stock, the more dirty the air, the more people buy it, the more people buy this kind of large power, the power generators have to use more electricity to generate electricity, air The dirtier it is, it leads to a vicious cycle. Conversely, if the market price leverage allows consumers to invest the money for air cleaners in the distribution network and invest in new energy generators, relying on market mechanisms can effectively adjust the structure and promote growth. I think this is the newest in China. The focus of the energy revolution issue is also the core value of the government’s decentralization.

The key issue in the current renewable energy power generation industry is how to survive. In the face of intermittent problems in dispatching, scheduling risks, the new energy generation market and the main market network and the mechanism is not perfect. It is like the new energy market is a tunnel, which consumes its power grid to “dig tunnel” at one end to build a tunnel. The new energy power generation company digs the hole at the other end, with two heads misdirected, misplaced, and not connected, ie, the supply of new energy power generation. "Chain Tunnel" can't connect.

There is also an important issue here. The central authority will remove the power of review and approval to local governments, so that it is convenient for new energy producers to have a right to kill. Since new energy is only a small part of the power grid, the electricity it sends is expensive and unstable. No one can buy and deliver outside the local market. The result of this new decentralization may be that the local government considers that tax revenue is low and cannot be supported. From the perspective of grid companies, the decentralization of power grid approval powers of 330 kilovolts and below has strengthened the power of investment and financing of local distribution grids, but power tariffs are still held centrally, and the plight of market coal and planned electricity still exists. Power companies have no pricing mechanism. There is no transmission price for delivery, and the market size for optimizing the allocation of electric energy resources is limited. The motivation and environment for rational decision-making in the market are not perfect, and the corresponding rent-seeking, blind investment, and excess capacity may be even worse.

To invigorate the electricity market, supply and demand are the lifeblood. We can only open up the “supply chain” of electricity and have a platform for market competition. All kinds of power manufacturers can live up to the new energy generation supply chain. Consumers see the benefits of renewable energy generation before they willingly pay for it. , Electricity prices are automatically motivated, renewable energy generators have a living path, China's energy and power generation market transformation, sustainable, clean, low-carbon, diversification can be achieved, renewable energy collection, transportation, large-scale production and fair sales possible. Therefore, the author believes that the renewable energy generation, the vitality and competitiveness of the smart grid are rich in the distribution network! But the crux of the current is that the electricity market mechanism is not perfect. The lack of vitality of electric power companies is due to the fact that managers' rights and responsibilities are not equal, rather than the government's decentralization but reform issues. So, in order to win tomorrow's economy, we must change our business today.