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 Recently, the State New Office held a regular briefing on the reform and upgrading of rural power grids by the State Council. Qi Chengyuan, deputy director of the State Energy Administration, said at the meeting that a central investment plan of 36.1 billion yuan for the upgrading of rural power grids in 2019 had been issued this year, of which 14 billion yuan had been invested in the central budget, all of which were used in poor areas.

Qi Chengyuan said that rural power grid is an important infrastructure in rural areas, and upgrading of rural power grid is an important livelihood project. In 2016, the State Energy Administration launched a new round of rural power grid upgrading. From 2016 to 2017, it concentrated on completing the "three major projects", namely, rural power grid upgrading project in central villages of small towns, power transmission project in rural machinery wells and power transmission project in poor villages.

Among them, the renovation and upgrading project of rural power network in central villages of small towns involves 78,000 villages in 30 provinces (districts and municipalities), benefiting 160 million rural residents; the project of rural power supply for mechanical wells is 1.6 million, involving 17 provinces (districts) and more than 10,000 townships of Xinjiang Production and Construction Corps, benefiting 150 million mu of farmland; the project of power supply for poor villages is 33,000 natural villages. About 8 million people live in poverty-stricken villages.

At present, the Energy Bureau is stepping up the implementation of the three-year plan of action (2018-2020) of "three districts, three states" and the two major rural network upgrading in Daibian Village to further promote this basic and livelihood work.

Qi Chengyuan pointed out that in accordance with the requirements of the Central Economic Working Conference, the Report on Government Work and the plan of the Standing Meeting of the State Council, a new round of rural power network upgrading should be completed this year, one year ahead of the original plan. To ensure the completion of the task, the State Energy Administration will continue to intensify its efforts to continuously promote the upgrading of rural power grids.

One is to refine the target tasks. According to the documents of the State Council, the reliability of power supply, the qualified rate of comprehensive voltage and the average capacity of household distribution transformer should be defined in provincial units. Convening national teleconference, issuing special documents for specific deployment, putting forward clear requirements, and implementing the objectives and tasks.

The second is to consolidate the responsibilities at all levels. Connect with the provincial energy authorities and power grid enterprises, formulate detailed plans, clarify the division of responsibilities, refine work objectives, and put forward specific measures. Increase investment efforts, this year issued a central investment plan of 36.1 billion yuan for upgrading the rural power grid in 2019, of which 14 billion yuan was invested in the central budget, all for poor areas, while urging grid enterprises and local governments to increase investment.

Third, we should strengthen supervision and inspection. Set up the dispatching mechanism, sort out the situation of each place regularly, find out the problems and solve them in time. Strengthen supervision, especially in remote and poor areas and local power grid supply areas, strengthen guidance and supervision, and promote the implementation of the work.

Fourthly, we should strengthen the service capacity, and at the same time promote the upgrading of rural power grids, we should adopt the way of point-to-area, comprehensive promotion and overall promotion to further shorten the time for enterprises to obtain electricity and optimize the business environment. Establish the monitoring and evaluation system of power supply in rural power grid, urge power grid enterprises to incorporate well power into their daily service scope, and improve the general service level of rural power. Each energy regulatory agency dispatched this year will focus on the completion of the transformation and upgrading of rural power grids, vigorously strengthen routine supervision, and ensure that all work is carried out in accordance with the plan with high quality.

    為凝聚各界創新力量，營造開放合作創新生態，服務創新型國家建設，國家電網有限公司提出“四個開放、四個合作”八大舉措加強科技創新，構建能源電力創新共同體。

International experience shows that the path of “first legislation and post-reform” is an important guarantee for the success of power reform. The Electricity Law of the People's Republic of China (hereinafter referred to as the "Electricity Law"), which was implemented on April 1, 1996, has been in use for nearly two decades, and some regulations are separated from the practice of development and change of the power industry. Modified to meet the needs of the development of the power industry. On April 24 this year, the National People's Congress deliberated and passed the decision to amend the six laws including the Electricity Law. Among the amendments to the Electricity Law, the original power supply business organization was removed from the original Article 25, paragraph 3. The Permit applies to the administrative department for industry and commerce for a business license before it can be opened." This is generally accepted by scholars as "opening up", and there will be a lot of content to be revised, and the process will be accelerated. In practice, some reform initiatives lack legal basis and even contradict the relevant provisions of current laws and regulations. For example, the direct purchase of electricity by large users lacks relevant legal basis because it violates the basic principles of fair trade. For the current electricity price formation mechanism and monopoly operation of power grids, the main legal basis lies in the power supply in the Electricity Law. A series of regulations on the licensing system of the business district and the franchise system for the power supply business. Therefore, in the future, it is necessary to realize the market mechanism to determine the electricity price and electricity price to guide the investment and consumption system, establish a grid without discrimination, open the access system, and achieve the goal of energy saving and low carbon. Etc., all need to amend the original laws and regulations.

On June 13, 2014, the sixth meeting of the Central Financial and Economic Leading Group. General Secretary Xi Jinping delivered an important speech, stressing that "China should promote the energy consumption revolution, the energy supply revolution, the energy technology revolution, the energy system revolution, and comprehensively strengthen international cooperation to achieve energy security under open conditions." The "four revolutions, one cooperation" new energy security strategy has become the fundamental follow-up of China's energy reform and development, and the theory of energy development with Chinese characteristics has achieved a major leap.

This year marks the fifth anniversary of the new energy security strategy. During the two sessions of the National People's Congress, the deputies visited the summary of the remarkable achievements and profound changes in energy development over the past five years, and studied the strategies to further promote the new strategy of energy security.

The deputies said that in the past five years, the energy system has thoroughly implemented the new energy security strategy, and the "four revolutions and one cooperation" have been deepened, and the energy development has been deeply promoted to achieve quality change, efficiency change and power change. The energy industry is moving towards a higher quality, more efficient, more equitable, and more sustainable direction, and the development of high-quality energy sources is a start.

Accelerated construction of green multi-supply system, major changes in energy supply quality

"Energy security is a global and strategic issue that affects the country's economic and social development. It is vital to the prosperity and development of the country, the improvement of people's lives, and the long-term stability of society." General Secretary Xi Jinping emphasized the important position of energy security when proposing a new energy security strategy. . It is the primary task of energy development to fully meet the energy needs of economic and social development and the people's better life.

Zhang Jianhua, director of the National Energy Administration, pointed out that improving the overall supply quality of the energy system is the main direction of promoting energy quality change. In the past five years, the energy system has deepened the supply-side structural reform, vigorously broke the energy supply constraints, and accelerated the construction of a green and diversified energy supply system. The clean and efficient use of fossil energy such as coal and petroleum has achieved remarkable results. The clean energy industry has grown steadily, the energy production structure has been continuously optimized, and the transition to clean and low carbon has accelerated, and the quality of energy supply has undergone major changes.

Ma Yongsheng, member of the National Committee of the Chinese People's Political Consultative Conference and deputy general manager of China Petrochemical Group Co., Ltd., introduced that Sinopec seriously implemented the important instructions of General Secretary Xi Jinping and increased the exploration and development of crude oil and natural gas. In 2018, the replacement rate of crude oil reserves reached 113%, and the replacement of natural gas reserves also maintained a good trend. The crude oil production capacity increased by more than 2.5 million tons, and the natural gas production capacity increased by about 2 billion cubic meters. "According to the current progress, through the work of the next 5-7 years, we believe that it will reverse the trend of increasing dependence on oil imports, and it is expected to control the external dependence to around 60%."

Energy sector de-capacity and clean low-carbon transformation achievements are widely recognized. Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference, Secretary of the Party Committee of the National Development and Reform Commission, and Li Feng, the chief of the National Development and Reform Commission, said at the first press conference of the Second Session of the 13th National People's Congress that China's supply-side structural reforms have made new and greater progress, and steel and coal have advanced capacity. In the past two years, the "Thirteenth Five-Year Plan" mission has been completed, and this has led to the improvement of other related industries, which has played a significant role in structural adjustment.

Liu Bingjiang, member of the National Committee of the CPPCC Population Resources and Environment Committee, the Standing Committee of the Democratic National Construction Association and the Director of the Atmospheric Environment Management Department of the Ministry of Ecology and Environment, said that at present, the national 810 million kilowatt coal-fired units have basically reached the level of natural gas emissions and built the world's largest clean. For the coal-fired power generation system, the proportion of coal in primary energy consumption fell below 60% for the first time, reaching 59%.

The steady growth of the clean energy industry is an important driving force for promoting China's energy production and consumption revolution and building a clean, low-carbon, safe and efficient energy system. At present, the proportion of clean energy power generation installed capacity in China has increased to about 40%, and the proportion of power generation has increased to 30%.

Zhang Chuanwei, deputy of the National People's Congress and chairman of Mingyang Smart Energy, said that China's wind power and solar energy have become the vane of global clean energy development, and it is a global leader in terms of innovative technology, installed capacity and equipment level. Last year, China's wind power and solar power installed capacity totaled nearly 70 million kilowatts, accounting for 70% of the nation's newly added power installed capacity. In 2022, the country is expected to form a trillion-yuan offshore wind power equipment manufacturing industrial cluster.

Optimizing the allocation of energy resources, promoting the transformation of energy development efficiency

At present, the main contradiction of China's energy development has been transformed into a contradiction between the people's growing need for better living energy and the development of inadequate energy imbalance. The new energy security strategy is the path to the contradiction of energy development. The energy system resolutely reverses the extensive development model, deepens the innovation of energy system and mechanism, enhances the coordinated development of energy, promotes the decisive role of the market in allocating resources, optimizes energy resource allocation, comprehensively improves energy efficiency, and improves energy total factor productivity.

During an interview with People's Daily during the two sessions of the National People's Congress, Zhang Jianhua said that since the 18th National Congress of the Communist Party of China, General Secretary Xi Jinping personally led the promotion of deepening the reform work, accelerated the reform of the energy system, and made positive progress in the reform of key areas and key links. Substantial steps have been taken, the reform of the oil and gas system has been steadily advanced, and the degree of energy marketization has been continuously improved. The energy governance approach has initially realized a major reform from project approval to strategy, planning, policy, standards, supervision and service.

In the past five years, China's energy strategy and planning have played a more prominent role. The coordinated development of energy integration has been effectively improved, which has played an important role in improving energy production and operational efficiency. In 2018, the national average water energy utilization rate reached over 95%, the wind power utilization rate reached 93%, and the photovoltaic utilization rate reached 97%. The energy system optimizes the layout and construction timing of renewable energy development, and fully exerts its regulatory role. Renewable energy consumption continues to improve significantly.

Shu Yinbiao, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Huaneng Group, said that the increase in the number of restrictions has restricted the development speed of wind power generation in areas where wind abandonment and light is abandoned, and played a key role in the decline in the rate of abandonment.

Energy development needs to be efficient in the market. In the past five years, the energy sector has been steadily pushing forward market-oriented reforms, accelerating the construction of an effective competitive market structure and market system, gradually releasing market vitality, and improving the level of resource optimization and allocation. The new round of electricity reform pilots achieved full coverage, and the electricity market trading mechanism continued to improve. The market trading power accounted for 30% of the total electricity consumption. System reforms in oil and gas pipeline networks, exploration and development, etc. have been promoted in an orderly manner to improve the utilization efficiency of pipeline network facilities.

Ma Yongsheng said that the reform of oil and gas pipeline network can improve the level, quality and even safety of the entire pipeline network operation, and exert the function of the pipeline network to a greater extent. The distribution of oil and gas in China is uneven, and it is necessary to connect the pipelines. The smooth progress of the reform of the pipeline network can realize resource allocation in the whole country and even in the global region.

The role of global market allocation resources is accelerating in the energy sector. In the past five years, the energy system has promoted energy international cooperation in an all-round way, focused on expanding cooperation areas, continuously expanding the scale of cooperation, continuously improving the quality of cooperation, and continuously improving the ability to utilize international energy resources.

"At present, China National Petroleum Corporation has achieved remarkable results in international cooperation. In 2018, PetroChina's overseas oil and gas rights output equivalent exceeds 98 million tons, and it is expected to reach 100 million tons in 2019. China must base itself on global resources. International oil and gas cooperation, vigorously 'going out', promote oil and gas cooperation in accordance with the concept of cooperation and win-win." National Committee of the Chinese People's Political Consultative Conference, deputy director of the Economic Committee, chairman of the China National Petroleum Corporation, party group secretary Wang Yilin said.

Reform and innovation stimulate vitality and drive power conversion

"From the main investment in materials, capital, manpower, etc., to the more comprehensive investment in science and technology, system, management, technology, etc." Zhang Jianhua's discussion on the power conversion of energy development reflects the profound transformation of energy development concepts and methods. . In the past five years, China's energy development has entered a new stage of innovation drive. The energy technology revolution and the institutional revolution continue to release the dynamic vitality of development, and promote the development of the energy industry chain and value chain from the low end to the middle and high end.

In the past five years, a series of major energy technologies and demonstration projects have made breakthroughs. A number of major core equipments have achieved independent research and development, and major technological projects such as nuclear power, oil and gas, and gas turbines have made breakthroughs. A number of independent key technologies have leapt to the international level. Energy technology innovation capabilities to achieve more "and run", and a few "leading" breakthrough.

"China's nuclear power has reached the first international camp in terms of design, research and development, construction and operation. At present, China's nuclear power has the world's most advanced level and has the strength and conditions of 'going out'. 'Hualong No. 1' owns Complete independent intellectual property rights are completely unconstrained in 'going out'," said Luo Qi, member of the National Committee of the Chinese People's Political Consultative Conference and president of the China Nuclear Power Research and Design Institute.

Liu Hanyuan, deputy of the National People's Congress and chairman of the Board of Directors of Tongwei Group, said that with the continuous breakthrough of China's photovoltaic power generation industry technology, the price of photovoltaic modules has dropped by 94% in the past decade, achieving a qualitative leap. Photovoltaic products such as battery chips and modules manufactured in China have also achieved a high market share in overseas markets, and the technical level in some fields has been at the forefront of the world.

Technological innovation, industrial innovation, business model innovation, and the close integration of energy and other fields in high-tech, continue to release the driving force of energy development, and also cultivate energy and its related industries into a new growth point that drives China's industrial upgrading.

Zhang Lei, deputy of the National People's Congress and CEO of Vision Group, said that grid companies will create an open energy Internet platform that will foster an innovative ecosystem and promote the distributed transformation of energy systems. The distributed revolution of energy systems will provide the largest application scenarios for 5G, big data, cloud computing, artificial intelligence, network security and other technologies, leading the industrial Internet trend. The energy Internet will become an important practice area of ??the industrial Internet, empowering China's industrial and economic transformation and upgrading.

Iterative development of energy technology, the accumulation of power conversion is the development of stamina. The energy system and mechanism are broken and new, and the solution between the breaks is to solve the deep-seated contradictions of energy development and stimulate the dynamic vitality of releasing development.

Chen Xiuyan, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of the State Grid Fujian Electric Power Company, and party secretary, said that the market mechanism of power medium- and long-term trading, power spot market, and auxiliary services is active in the power market, mobilizing diversified market players to find the most suitable position in the market. Give full play to their respective roles.

The tide of the energy revolution is surging. Change is the unshakable direction of energy development in the past five years. Change, let energy quickly find the right time and space in the new era of high-quality development, and open up a new development pattern.

“Quality development is a big test that is related to the overall profound changes in the energy industry.” The new energy security strategy has delineated the waterway for this change. At present, the implementation of the new energy security strategy is an important time node for the development of the new energy security, and further promotes the new strategy of energy security, and grasps the key forces for the high-quality development of energy to push the mountain up and down.

After five years of departure, starting from the spring tide, China Energy entered the spring of high-quality development.

The "Opinions on Further Deepening the Reform of the Power System" (hereinafter referred to as the "Program") was published on the 23rd. The core content of this round of deepening power system reform can be summarized as managing the power grid, liberalizing electricity prices, and actively trading.

The focus and path of this round of reform is “three liberalization, one independent and three reinforcements”. "Three Releases" means that in accordance with the institutional structure of controlling the middle and releasing the two ends, the price of competitive links other than transmission and distribution will be released in an orderly manner; the distribution of electricity to the social capital will be released in an orderly manner; the public welfare and regulation will be released in an orderly manner. A power generation plan other than sex.

“Independent” means promoting the relative independence of the trading institutions and standard operation. “Three Strengthening” refers to continuing to deepen the research on the regional power grid construction and the transmission and distribution system suitable for China's national conditions, further strengthen government supervision; further strengthen power generation planning; further strengthen power safety and efficient operation and reliable supply.

 It is worth mentioning that although the grid has not been split, but the profit model of the grid has been changed, and the grid has been changed from a profitable unit to a public utility unit, and only the “toll fee” under government supervision can be collected.

Reform
Release of the distribution business to social capital
The "Proposal" was issued in a high-profile manner under the name of the Central Committee of the Communist Party of China (Zhongfa [2015] No. 9), highlighting the government's determination to reform the power. Looking at the full text, the key tasks of this round of electricity reform are seven large and twenty-eight strips. The core content can be summarized as: managing the grid, liberalizing the price of electricity, and actively trading (ie, the traditional "putting the two ends, the middle of the tube").

Among them, the electricity price reform is listed in the first of the seven major articles. The verification of the transmission and distribution price is the first step to promote the electricity price reform in an orderly manner. The second step is to distribute the price of electricity sold outside the public welfare, which is formed by the market. Properly handle the cross-subsidy of electricity prices.

After the reform, the electricity price will be mainly divided into power generation price, transmission and distribution price, and electricity sales price. The transmission and distribution price will be determined by the government, and the price of electricity sold will be formed by the market step by step. Residents, agriculture, important public utilities and public welfare services. Continue to implement government pricing when electricity is used. Therefore, the variable of this round of electricity reform is mainly the price of electricity sold in competitive links.

On the basis of further improving the separation of government and enterprises, the separation of factories and networks, and the separation of main and auxiliary, in accordance with the institutional structure of “management of the middle and release of the two ends”, orderly release the price of competitive links other than transmission and distribution, orderly to social capital. The distribution of electricity business will be liberalized, and the power generation plans other than public welfare and regulation will be released in an orderly manner.

According to a research report issued by Guotai Junan, according to the latest Electricity Price Supervision Report disclosed by the China Electricity Regulatory Commission, the national average selling price is 0.492 yuan/kWh. In 2014, the total electricity consumption in China was 5.52 trillion kWh. Simple calculation of the national electricity sales market capacity of 2.72 trillion yuan, if the first industry and urban and rural residents use electricity, the market capacity is about 2.3 trillion yuan.

However, from the content of the "Program", taking into account "replacement in place" and "guarantee stability" become its two key words. In the "Program", the frequency of "order", "step by step" and "step by step" appeared 16 times, 5 times and 2 times respectively, reflecting the cautious attitude of the decision-making department to "guarantee stability".

Influences
Or will spawn a trillion-level "emerging" market
Another highlight of the new power reform program is the opening of a “meeting” channel for buyers and sellers of electric goods – the power generation industry has always been isolated from users, while the power generation side and the sale side’s electricity price and access will be released. A huge “emerging” market where producers and users can “meet” directly and have long-term potential transactions in excess of one trillion.

"Let the sale side, although residents, agriculture, important public utilities and public welfare services continue to implement government pricing, but the industrial and commercial electricity trading market, which accounts for about 80% of the country's electricity consumption, is also a big one. Cake," said Han Xiaoping, CEO of China Energy Network.

The "Proposal" proposes to steadily promote the reform of the power-sales side and orderly release the distribution of electricity business to social capital. Among them, the new market entities include: qualified high-tech industrial parks or economic and technological development zones, and the formation of electricity-selling entities to purchase electricity directly; social capital investment to establish power sales entities, to purchase electricity from power generation enterprises to sell to users; Users or micro-grid systems participate in power trading; public service industries such as water supply, gas supply, and heating, and energy-saving service companies are engaged in power sales; eligible power generation companies invest and set up power sales entities to enter the electricity sales market.

There are also broken and standing. At the same time, the "Proposal" proposes to set up and standardize the operation of the power trading institution, and separate the trading business originally undertaken by the power grid enterprise from other businesses, so that the trading institutions can operate relatively independently. The power trading institutions provide services for power market transactions in accordance with government-approved rules and regulations, and relevant government departments implement effective supervision of power trading institutions based on their duties.

The “Solution” has repositioned the grid enterprises. The document mentions that the grid enterprises will mainly engage in power grid investment operation, power transmission and distribution, and responsible for grid system security in the future, ensuring fairness and non-discrimination of power grids, and fulfilling the universal service obligation of electricity according to national regulations. Improve the separation of the main and auxiliary.

In this regard, Guotai Junan analyst Wang Wei said that in this "emerging" market, the penetration rate of various business models or "playing methods" is basically "zero", which is enough to make the capital market excited, especially in the pan-energy Internet "It is in the stage of expected gradual emergence, and the imagination of the relevant participants can be imagined; users are allowed to participate in direct transactions in batches by voltage level. Units participating in direct enterprises should meet national standards for energy consumption and environmental protection. Enterprises that do not comply with national industrial policies and whose products and processes are eliminated should not participate in direct transactions.