Yunnan's incremental distribution network reform will achieve full coverage of cities at prefecture level and above

Recently, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Standardizing the Fourth Batch of Incremental Distribution Business Reform Pilots" (hereinafter referred to as the "Notice"). The "Notice" shows that a total of 84 projects across the country have been included in the fourth batch of incremental distribution business reform pilots, of which three projects in Yunnan have been shortlisted, namely the Chenggong Information Industry Park Incremental Distribution Network Project, the Yuxi Xinping Industrial Park Incremental Distribution Business Pilot, and the Dali Prefecture Yongping County Industrial Park Incremental Distribution Business Pilot.

Change the current situation of slow construction of distribution networks in some areas

For a long time, my country's distribution network can only be invested and operated by power grid enterprises, and its construction lags behind the development of transmission and transformation networks. As an important part of the power system reform, the pilot reform of incremental distribution business will orderly open up the distribution network business, break the monopoly, and change the current situation of slow construction of distribution networks in some areas. It has a demonstration significance for guiding social capital to invest in an orderly manner, reducing the electricity costs of enterprises in industrial parks, promoting the construction of distribution networks, and improving the operating efficiency of distribution networks. Therefore, in 2016, the National Development and Reform Commission and the National Energy Administration implemented the reform of incremental distribution business, aiming to "promote the construction and development of distribution networks and improve the operating efficiency of distribution networks" and create an external environment for innovation in distribution network power supply services and the development of comprehensive energy services.

According to the requirements, the pilot projects of incremental distribution business are open to qualified market entities in a fair and just manner, and the project owners are selected through market-oriented methods such as bidding in an open, fair and just manner. The project owners should be independent legal persons, and they also need to have business qualifications and investment capabilities corresponding to the investment and operation of the distribution network. Grid companies and social capital are encouraged to establish property rights diversified companies through equity cooperation and other means to participate in the competition. In this round, a total of 3 projects in Yunnan were included in the fourth batch of incremental distribution business reform pilot list.

In principle, the incremental distribution network refers to the 110 kV and below voltage level power grid and the 220 (330) kV and below voltage level industrial park (economic development zone) and other local power grids, and does not involve the 220 kV and above transmission network. The construction of the incremental distribution network shall comply with the provincial distribution network planning, the national power development strategy, industrial policies and the requirements of market entities for power distribution.

Tracking mechanism accurately controls project progress

It is worth noting that in order to promote the implementation of the pilot, the "Notice" established an evaluation and tracking system for the fourth batch of incremental distribution business reform pilot projects, requiring that from July 2019, local pilots must report progress once a month, including the determination of pilot project owners, equity structure, distribution area division, power business license (power supply) processing, and other situations, as well as problems and suggestions in the pilot process. The National Development and Reform Commission and the National Energy Administration will organize third-party institutions to carry out project evaluation work in a timely manner, evaluate the reform results of pilot projects and the support and cooperation of power grid companies for the reform work, summarize experience, find deficiencies, and continuously enrich and improve work measures. According to the evaluation results, some projects are selected as direct contact projects, and a project tracking mechanism is established to accurately control the progress of the project, promptly solve problems that arise during the project promotion process, and promote the implementation of the project.

Previously, the above two institutions announced the first, second and third batches of pilot lists for the reform of incremental distribution business in November 2016, November 2017 and June 2018 respectively. A total of 10 projects in Yunnan were identified as pilot projects for the reform of incremental distribution business.

Yunnan has unique resource endowments and locational advantages. The province's hydropower resources amount to 104 million kilowatts, and the developed installed capacity has exceeded 62 million kilowatts, ranking second in the country. At present, the power-based energy industry has become the second pillar industry in Yunnan Province after tobacco. Its share in the province's industrial added value and its contribution to GDP have increased year by year, and its status has become more prominent. At the same time, the problem of water abandonment caused by excess power capacity is one of the contradictions in Yunnan's power industry at present and in the future, and it is also a hot topic of concern to all parties.

The Yunnan Provincial Government's 2018 Government Work Report clearly stated that by 2020, the energy industry will be made the province's largest pillar industry. Electricity is undoubtedly an important foundation for Yunnan's energy industry. Therefore, deepening the reform of the power system, continuously improving the power market trading system, and orderly promoting the reform of the incremental distribution network will be of great significance to solving the unbalanced and insufficient development of Yunnan's power industry and further strengthening and optimizing the energy industry.

According to previously disclosed information, in addition to the first four batches of 13 projects included in the pilot list of incremental distribution business reform, several parks such as Yangzonghai Qidian Industrial Park and Airport New District in Kunming are currently being actively promoted. According to the timetable for the incremental distribution network reform, Yunnan will achieve full coverage of the incremental distribution network reform in cities above the prefecture level in the coming period.