Establishing electricity spot market transactions will provide more possibilities for new energy consumption

China Energy Storage Network : The spot market is the inevitable direction of the power system reform. The construction of the power spot market is the requirement for implementing the national power system reform and energy strategic transformation, and is necessary to give play to the complementary characteristics of regional economic energy and solve the problem of new energy consumption. It is crucial to improve the quality and efficiency of the energy and power industry and adjust the energy structure.

State Grid Corporation of China: Please briefly introduce the current development status of China's new energy industry?

Zeng Ming: In recent years, with the rapid development of the new energy industry, China has become the country with the largest scale of new energy utilization in the world. After 2010, new energy entered a period of rapid growth, especially the scale of new energy power generation represented by photovoltaic power generation and wind power generation has experienced explosive growth. Among them, policy support has provided great help to the development of the new energy industry, such as new energy subsidies and tax incentives for related enterprises, which has provided a good environment for giving full play to China's new energy resource advantages and promoting the development of the new energy industry.

Qin Haiyan: Since the 1980s and 1990s, China's wind power industry has grown rapidly with the wave of energy revolution, becoming one of the few high-tech industries in China with international competitiveness and achieving remarkable achievements. Relying on policy support and technological innovation, China's wind power industry has maintained high-quality development: the scale of installed capacity is growing. The scale of wind power installed capacity in China has shown a steady upward trend, and the scale of newly installed capacity and cumulative installed capacity have ranked first in the world for many years. As of the end of September this year, the national wind power installed grid-connected capacity reached 198 million kilowatts; from January to September this year, the country's new wind power installed capacity was 13.08 million kilowatts, continuing to maintain a steady growth momentum. The consumption situation continues to improve. In the past 10 years, the annual grid-connected power of wind power has grown steadily, and the proportion of total grid-connected power has also steadily increased. In 2018, wind power generated 366 billion kilowatt-hours of electricity throughout the year, accounting for 5.2% of the total power generation; from January to September 2019, the national wind power generated 291.4 billion kilowatt-hours, an increase of 8.9% year-on-year. The industrial structure is constantly optimizing. In recent years, the focus of wind power development has shifted to the central and southeastern regions, and the development model has been further enriched. In 2018, the newly installed capacity in the central and southeastern regions once again exceeded that of the "three northern" regions, accounting for 56.8%. Offshore wind power has become an important force in promoting the development of wind power, with a cumulative installed capacity of 4.44 million kilowatts. Innovation capabilities have made great strides. After years of technological innovation, my country's complete machine manufacturing capabilities have continued to improve, and wind turbine technology research and development has reached international levels. International competitiveness is increasing day by day, and over the years, a large number of Chinese companies have successfully opened up the international market.

Wang Shijiang: The photovoltaic industry is still a very young industry in China. In the past less than 20 years, China's photovoltaic industry has developed into a world-class industry, and it is also one of the few industries in China that can participate in international competition and gain a leading edge.

Since the end of 2013, the average initial investment cost of photovoltaic power generation projects has dropped by more than 55%. Photovoltaic power generation has become the most economical form of energy use in many countries and regions around the world, and its cost is still in a range of rapid decline.

In China, in the 13 years since the implementation of the Renewable Energy Law of the People's Republic of China, China's share of global polysilicon production has increased from 0.3% to 58.1%; the global share of photovoltaic cell module production has increased from 11% to 72.8%, ranking first in the world for 12 consecutive years; the global share of new photovoltaic power generation installed capacity has increased from 0.36% to more than 40%, ranking first for 6 consecutive years; the global share of cumulative photovoltaic power generation installed capacity has increased from 1.35% to more than 30%, ranking first in the world for 4 consecutive years. It has made important contributions to effectively promoting global photovoltaic power generation technology innovation and the rapid reduction of costs, and has achieved remarkable results.

At present, my country's photovoltaic industry maintains a good development momentum. As of the end of September 2019, my country's cumulative installed capacity of photovoltaic power generation was 190.19 million kilowatts, a year-on-year increase of 15%, with an additional 15.99 million kilowatts. Among them, the installed capacity of centralized photovoltaic power generation increased by 11% year-on-year; the installed capacity of distributed photovoltaic power generation increased by 28% year-on-year. In the first three quarters of this year, my country's photovoltaic power generation was 171.5 billion kWh, a year-on-year increase of 28%; the amount of abandoned photovoltaic power was 3.25 billion kWh, a year-on-year decrease of 750 million kWh; the abandonment rate was 1.9%, a year-on-year decrease of 1.0 percentage points, achieving a "double reduction" in the amount of abandoned photovoltaic power and the abandonment rate. In terms of imports and exports, in the first three quarters of this year, my country's total exports of photovoltaic modules totaled US$16.22 billion, which has exceeded the total amount for the whole year of 2018, a year-on-year increase of 32.8%.

"State Grid": In the first three quarters of this year, the national wind power abandonment and wind abandonment rate both decreased, and the photovoltaic power abandonment and photovoltaic abandonment rate both decreased. What trend does this reflect?

Qin Haiyan: Wind power abandonment is a chronic disease that plagues the development of wind power. However, with the concerted efforts of the government and power grid companies, the overall wind power abandonment rate in China has been on a downward trend in recent years. In 2018, the situation of wind power abandonment and power rationing has improved significantly, with the amount of wind power abandoned reaching 27.7 billion kWh, a year-on-year decrease of 14.2 billion kWh, and the average wind power abandonment rate of 7%, a year-on-year decrease of 5 percentage points; from January to September this year, the average wind power abandonment volume and abandonment rate hit a new low, further demonstrating that the situation of wind power consumption in China has been greatly improved.

In order to ensure the consumption of wind power, on the one hand, the government departments have introduced a number of powerful measures. For example, in 2016, the National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on the relevant requirements for the management of full guaranteed purchase of wind power and photovoltaic power generation", which clarified the minimum annual utilization hours of wind power and photovoltaic power generation purchase in wind and photovoltaic power generation areas; since 2016, the National Energy Administration has regularly released wind power investment monitoring and early warning information every year to ensure the rationality of wind power project development, investment and construction. In 2017, the National Development and Reform Commission and the National Energy Administration issued the "Implementation Plan for Solving the Problems of Abandoned Water, Wind and Solar Power Generation", proposing to take effective measures to promote the effective solution of the problems of abandoned water, wind and solar power generation, and effectively solve the problems of abandoned water, wind and solar power generation nationwide by 2020. On the other hand, through the joint efforts of multiple parties, power grid companies have effectively controlled the wind power curtailment rate by playing the role of the platform, strengthening the priority dispatch of wind power, and expanding the inter-provincial power generation rights trading.

Wang Shijiang: For a long time, the challenges faced by photovoltaic power generation have mainly concentrated in three aspects: first, photovoltaic power generation resources and market demand are distributed inversely, and the pressure on inter-provincial power transmission is relatively large; second, the speed of photovoltaic power generation installation and the growth rate of electricity consumption in the whole society do not match; third, affected by natural conditions, photovoltaic power generation has large volatility, which brings challenges to the stable operation of the power grid.

Over the years, power grid companies have done a lot of work in the consumption of new energy, which has effectively promoted the development of the photovoltaic industry and achieved large-scale resource optimization. In addition, relevant companies have actively carried out photovoltaic poverty alleviation, which not only promoted the consumption of photovoltaic power nearby, but also provided local people with a new way to get rich and increase income. At present, the scale of photovoltaic power generation installation continues to grow, but the amount of abandoned photovoltaic power and the abandonment rate are declining, which shows that the consumption of photovoltaic power generation is moving in a good direction. Although the phenomenon of abandoned photovoltaic power still exists in some local areas, it is generally on a downward trend. With the development of the photovoltaic industry in recent years, our understanding of photovoltaic power generation consumption has also changed. Photovoltaic power generation consumption cannot be viewed only from the perspective of grid connection, but also the economic utilization of resources such as thermal power, hydropower, and nuclear power, as well as the social carrying capacity, rather than simply talking about photovoltaic power generation consumption.