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In 2022, the power industry will accelerate the green and low-carbon transformation and increase the pace of construction of new power systems. The construction of China's electricity market is progressing steadily, and a multi-subject, competitive and orderly electricity trading market system has taken shape.

First, open a new stage of the construction of a unified national electricity market.

On January 18, 2022, the National Development and Reform Commission and the National Energy Administration issued the Guiding Opinions on Accelerating the Construction of a National Unified Electricity Market System, clarifying that by 2025, the national unified electricity market system will be initially completed; by 2030, the national unified electricity The market system is basically completed. Enhance the adaptability of the power market to high-proportion new energy, improve the market mechanism that adapts to high-proportion new energy, and orderly promote new energy to participate in power market transactions. By 2030, new energy must fully participate in the power market. Since then, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Accelerating the Construction of the Electricity Spot Market", and successively approved the "Work Plan for the Southern China Regional Electricity Market" and the "Implementation Plan for the Southern China Regional Electricity Market" to promote The construction of a multi-level unified power market system is accelerated.

According to the statistics of transaction settlement, the total amount of electricity traded in the national market in 2022 was 5.25 trillion kWh, an increase of 39 percent over the same period last year, accounting for 60.8 percent of the electricity consumption of the whole society, an increase of 15.4 percentage points over the same period last year. Among them, cross-provincial and cross-regional market-oriented trading power exceeded 1 trillion kWh for the first time, up nearly 50% year-on-year. In 2022, the amount of electricity traded in the regional market operated by the State Grid reached 4.16 trillion kWh, up 42.7 percent year-on-year; the amount of electricity traded in the regional market operated by the Southern Power Grid 0.85 trillion kWh, up 27.4 percent year-on-year; and the amount of electricity traded in the regional market operated by the Inner Mongolia Power Grid 0.24 trillion kWh, up 24.9 percent year-on-year. The number of market entities registered with power trading institutions exceeded 600000 for the first time, up 29% year on year.

Second, the country to carry out the time-sharing electricity price market-oriented reform.

The National Development and Reform Commission's "Notice on Further Deepening the Market-Oriented Reform of Feed-in Tariff for Coal-fired Power Generation" clarifies the orderly liberalization of feed-in tariffs for all coal-fired power generation, further liberalizing various power generation plans, and strengthening the convergence with time-of-use tariff policies. In 2022, the average transaction price of coal-fired generating units in the national market will reach 0.449 yuan/kWh, which is about 18.3 percent higher than the national average benchmark electricity price. 31 provinces, municipalities and autonomous regions across the country have carried out time-of-use electricity price reform, and 16 provinces and regions have an average price difference of more than 0.7 yuan/kWh.

Third, medium-and long-term transactions have grown steadily and substantially, and green power trading rules have been issued.

According to CLP data, in 2022, the total amount of electricity directly traded in the national electricity market in the medium and long term will be 4140.75 billion kWh, up 36.2 percent year-on-year. Among them, the total amount of electricity directly traded in the province (including green power and power grid purchasing) is 4014.1 billion kWh, and the total amount of electricity directly traded in the province (received from outside) is 126.65 billion kWh, accounting for 96.9 and 3.1 of the medium-and long-term electricity directly traded in the national power market, respectively.

In February 2022, the Southern Regional Green Power Trading Rules (Trial) was released. In May of the same year, the "Beijing Electric Power Trading Center Green Power Trading Implementation Rules" was released, explaining in detail the details of the green power trading process. According to CLP data, green power transactions in the province will be 22.78 billion kWh in 2022.

Fourth, China's inter-provincial power spot market to start trial operation.

The National Development and Reform Commission and the National Energy Administration formally approved the Inter-provincial Electricity Spot Trading Rules (Trial) in November 2021. On January 1, 2022, the inter-provincial electricity spot market started trial operation. During the period, the market operation was generally stable, and the market participants actively participated.

According to data from the State Grid Corporation of China, in 2022, the cumulative transaction power in the inter-provincial spot market was 27.8 billion kilowatt-hours, the average daily transaction power was 0.088 billion kilowatt-hours, and the maximum transaction power in a single day exceeded 19 million kilowatts. From the perspective of electricity sales, more than 6000 new energy, thermal power and hydropower enterprises in 21 regions have participated in the spot electricity sales between provinces. New energy enterprises participate in the transaction in the inter-provincial spot market "quotations. From the purchase side, 25 provincial power grid enterprises in accordance with the requirements of local governments to participate in the inter-provincial spot purchase of electricity. From the perspective of power supply types, the annual thermal power transaction volume is the largest, followed by hydropower, wind power, and photovoltaics. New energy is the main source in spring, thermal power is the main source in summer and winter, and southwest hydropower is the main source in May-June and October-November. During the period, hydropower is the main. From the average transaction price, the spot market is higher during the peak period of summer and winter electricity consumption, and the rest of the month is lower than the medium and long-term market. For the whole year of 2022, the cumulative transaction power of clean energy in the inter-provincial spot market was 13.31 billion kilowatt-hours, and the wind power and photovoltaic power abandonment were reduced by 4.77 billion kilowatt-hours. Even though the installed capacity of new energy increased by more than 70 million kilowatts, the utilization rate was still maintained at more than 97%.

On July 23, 2022, the southern regional power market started trial operation. On the same day, more than 157 power plants and users in Yunnan, Guizhou and Guangdong reached the first cross-provincial spot transaction in the southern region through the southern regional power market trading platform, with a total of 2.7 billion kWh of market-oriented electricity throughout the day. With the inclusion of Guangxi and Hainan, the spot market in the southern region has entered the trial operation of the full model in five provinces and regions.

Five power spot pilot projects to achieve full-year trial operation

In March 2022, the National Development and Reform Commission and the National Energy Administration issued the ''Notice on Accelerating the Construction of the Electric Power Spot Market'', clarifying the overall requirements for accelerating the promotion of the electric power spot market. The first batch of pilot areas will in principle have a long-term spot market in 2022. Continuous trial operation, in principle, the second batch of pilot areas will start trial operation of the spot market before the end of June 2022.

With regard to the provincial spot market, the first batch of pilot long-cycle settlement trials formed a continuously operating spot market. Among them, the State Grid Corporation operating area has 20 provincial power grids to carry out spot market trial operation. Shanxi, Gansu, Shandong, Fujian and Guangdong have achieved full-year trial operation of the spot market in 2022, and the spot markets in Shanxi and Gansu have been in trial operation for nearly two years. Shandong achieved the country's first energy storage project to participate in the spot market, increasing the peak capacity of 500000 kilowatts. The second batch of six power spot pilots-Shanghai, Jiangsu, Anhui, Liaoning, Henan, and Hubei, have all started simulated trial operation.

VI. Ancillary services increase service revenue for coal power

By the end of 2022, China's power auxiliary services have achieved full coverage of the power grids in 6 major regions and 33 provinces and regions, and a unified auxiliary service rule system has basically been formed. Through the market-oriented mechanism of auxiliary services, in 2022, the country will tap a total system-wide adjustment capacity of more than 90 million kilowatts, and the average annual promotion of clean energy generation will exceed 100 billion kilowatt-hours; coal power enterprises will receive compensation income of about 32 billion yuan due to auxiliary services.

In terms of trading varieties, in addition to the traditional FM and peak-shaving markets, Shanxi has increased the primary FM auxiliary service market, and the peak-shaving capacity market and standby market have been built in North China and Northwest China respectively. In terms of participants, in addition to conventional power supplies, 18 network provincial companies promote energy storage, virtual power plants and other new market entities to participate in the auxiliary services market.

In addition, the Sichuan-Chongqing integrated auxiliary service market was officially launched on July 6, 2022. On the same day, through the recent market trading electricity 1.18 million kWh, Sichuan and Chongqing peak-adjusting resources for the first time to achieve cross-provincial optimal allocation.

7. incremental distribution business reform pilot project continues to advance

The Measures for the Administration of Electricity Sales Companies issued by the National Development and Reform Commission and the National Energy Administration replace the Measures for the Administration of Access and Exit of Electricity Sales Companies, which have been implemented for five years. The new version of the management measures clearly defines the registration conditions, registration procedures and related rights and obligations of electricity sales companies, totaling 9 chapters and 46 articles. It has three bright spots, one is that the registration conditions and registration procedures are more targeted, the other is to pay more attention to the dynamic management and risk management of electricity sales companies, and the third is to start the guaranteed electricity sales service and connect the power grid enterprise agent purchase mechanism.

In terms of incremental power distribution business reform, there are currently 459 pilot projects for incremental power distribution business reform nationwide. The China Energy Research Association's "2022 Incremental Distribution Development Research White Paper" shows that 328 pilot projects have completed distribution network planning, an increase of 36 year-on-year; 358 pilot projects have identified owners, an increase of 58 year-on-year; 318 pilot projects have announced shares, An increase of 94 year-on-year; 330 pilot owner units passed industrial and commercial registration, an increase of 90 year-on-year. A total of 249 pilot projects have determined the scope of power supply, an increase of 29 over the same period last year, including 1 in the first batch, 8 in the third batch, 6 in the fourth batch and 11 in the fifth batch. A total of 217 pilots obtained power business licenses (power supply), an increase of 32 year-on-year.