The reform of the power system and the expansion of market-oriented transactions

The meeting of the Political Bureau of the CPC Central Committee on April 23 pointed out that it is necessary to continue to reduce corporate financing, energy use and logistics costs. Starting today, this edition introduces a series of plans focusing on “high-quality development, reducing the energy cost of enterprises”, focusing on the direct effects of direct electricity trading, inter-provincial power trading, marketization of power sales companies, etc., and introduces the actual effects of reducing the cost of electricity used by enterprises. Experience, please stay tuned.

“From last year to March of this year, we purchased electricity directly through the power trading center for a total of about 337 million kilowatt hours. Each kilowatt hour is 3 cents cheaper than the original electricity price, and more than 10 million yuan is saved over a year.” Talking about the electricity market Weihua Zhao, deputy manager of the Thermal Energy Technology Department of Guangxi South-South Aluminum Processing Co., Ltd. said with excitement, "I hope to enjoy more power system reform dividends and promote the continuous transformation and upgrading of enterprises."

Power system reform, power market trading is the window. Li Xiangxing, deputy director of the Guangxi Zhuang Autonomous Region Development and Reform Commission and director of the Energy Bureau, said that in 2016, Guangxi became a pilot province for deepening the reform of the power system nationwide. Over the past two years, Guangxi has accelerated the work of reforming the power system, and the scale of market-oriented transactions has continued to expand. As of the end of April this year, the cumulative power of transactions in the Guangxi power market was 97.95 billion kWh, which reduced the cost of the enterprise by 6.1 billion yuan, covering 1466 household electric power enterprises and 48 power generation enterprises (33 hydropower stations).

Actively participate in power market transactions, and the cost of electricity for enterprises continues to decrease

The biggest impact of the reform of the power system on power users is the reduction in the cost of electricity for enterprises, and the promotion of production, production and stable development.

Taking the aluminum industry as an example, in recent years, due to the unfavorable factors such as the low aluminum price market and the cost upside down, the development of Baise's local aluminum industry has been difficult. In addition, electrolytic aluminum has always been an “electric tiger”, and the production cost remains high. In the face of difficulties, participating in the power market trading is tantamount to sending money in the snow.

“Our company originally had 320,000 tons of electrolytic aluminum production capacity, but in order to reduce losses and control losses, it was forced to reduce production to less than 160,000 tons in 2016. But it recovered to 240,000 tons last year, all thanks to direct electricity transactions.” Guangxi Xinxin The person in charge of the Aluminum Co., Ltd. said with emotion, "In February of this year, the production capacity of 320,000 tons of electrolytic aluminum has all resumed production."

Also benefiting from this is Baise Yinhai Aluminum Co., Ltd. This year, Beihai Power Plant and Baise Yinhai Aluminum signed a three-year long-term agreement to trade electricity, and promoted the reopening of 150,000 tons of electrolytic aluminum production capacity of Baise Yinhai Aluminum that has been discontinued for more than three years.

"The company's annual electricity consumption is about 270 million kWh, and the cost of the company has increased the company's resources to purchase raw materials, upgrade production equipment, and develop new products, thereby enhancing the market competitiveness of the company's products." Weihao Zhao said.

In Guangxi, in addition to large industries such as the aluminum industry, other companies are actively participating in the power market trading and sharing the dividends released by the reform. The Nanning Railway Bureau actively participates in various market-oriented transactions through the organization of various units within the system. Since 2016, it has reduced the cost of electricity by 35.87 million yuan, and in 2018 it is expected to reduce the cost of electricity by 22.4 million yuan.

Continue to promote policy measures, the role of the power trading center

Behind the market's main enjoyment of dividends is Guangxi's continuous exploration and cultivation in the reform of the power system.

In order to deepen the reform of the power system, in early 2016, Guangxi introduced the “Comprehensive Pilot Implementation Plan for Guangxi Electric Power System Reform” and related supporting management measures, from electricity price reform, electricity market construction, power sales side reform, power generation plan liberalization, and improvement of electricity. The trading mechanism and other aspects promote the reform of the power system. At the same time, a relatively independent power trading institution, Guangxi Electric Power Trading Center, was set up to gradually relax the access conditions for power market-based trading entities and continuously expand the scale of market-oriented transactions.

The deeper the reform of the power system, the more obvious the role played by the power trading center.

Huang Dongsheng, general manager of Guangxi Electric Power Trading Center, said that in the past two years, Guangxi Electric Power Trading Center has been based on the Guangxi electric power market and has continuously enriched its trading varieties. At present, it has formed five transactions including annual long association, monthly bidding, incremental trading, special trading and contract transfer. Variety, thermal power and electricity, nuclear power more than 2 / 3 of the power generation to participate in the market, power generation plans to open the country's leading level, 35 kV and above all large industrial users and some 10 kV industrial park and other users into the market. As of the end of April 2018, there were 1,596 users in the Guangxi power market registered at the trading center.

Thanks to the dividends brought about by the reform of the power system, Guangxi Industry continued to maintain a good development trend from January to April this year, based on the highest operating rate in the past five years. The operating rate reached 71%, an increase of 17 over the same period last year. The percentage of electricity used exceeds 4.3 million kilowatts.

Continue to deepen the reform of the power system, release dividends faster and more widely

However, with the deepening of the power system reform, the electricity prices are still high, and the reform dividends are not enough. The deep-seated problems are gradually emerging, and it is urgent to resolve them by further deepening the power system reform.

From the situation of electricity marketization transactions in April, the industrial park's 10 kV users and modern service industry clusters participated in market-oriented transactions with a scale of only 418 million kwh. Li Xiangxing said, “There are 138 households with 10 kV users in industrial parks and 25 users in the modern service industry gathering area, but they have not registered for market-oriented trading needs.”

In order to release electricity and dividends faster and more widely, and further reduce the cost of electricity for enterprises, the access scope of Guangxi's power market will be further expanded this year.

Li Xiangxing said: "This deepening of the power system reform, on the basis of the large industrial users of 35 kV and above last year, promoted 10 kV large industrial users in the industrial park to participate in market transactions, achieving full coverage of all voltage levels in large industries. The producers of the service industry, which is the first in the country to launch the modern service industry cluster, are included in the marketization of electricity market, and more widely benefit the industrial enterprises in Guangxi, especially the small and medium-sized enterprises."

It is understood that the Guangxi Zhuang Autonomous Region Development and Reform Commission, the Industrialization Information Commission and other parties have worked together to simplify the access registration process, organize and carry out publicity training, upgrade trading system functions, and optimize transaction scheduling. There are 1159 new registered users in the trading center, which is more than twice the total users of the original market.

The action is fast and the results are quickly highlighted. On April 26, Guangxi Electric Power Trading Center launched a monthly bilateral negotiation incremental transaction with a turnover of 4.936 billion kwh. 131 industrial enterprises in the pillar industries of ferroalloy, steel and nonferrous metals participated in the transaction, with an average decrease of 0.117 yuan/kW. At the time, it is expected to reduce the cost of purchasing electricity for enterprises by 576 million yuan.

Huang Dongsheng said: "In the future, Guangxi will also carry out market-oriented transactions in large industrial parks and modern service industry clusters on a monthly basis."

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