Analysis and thinking on power market construction based on energy transformation

First, relevant national departments have clarified more operational policy measures. Local governments have been urged to issue detailed policies and open up the inter-provincial market to the retail side. The spirit of the State Council's executive meeting has been implemented, and pilot projects have been launched to allow industrial enterprises above a certain scale to participate in inter-provincial market-based transactions to reduce the electricity costs of the manufacturing industry. In accordance with the principle of "free competition, standardized and orderly", factors such as market access and transaction organization have been clarified, cross-regional and cross-provincial direct electricity transactions have been increased, and the market has been opened up to the retail side first in intra-regional and inter-provincial transactions.

The second is to build a cross-regional and cross-provincial market with multiple trading entities. With the opening of the inter-provincial market on the retail side, a cross-regional and cross-provincial market with multiple trading entities such as power sales companies, power generation companies, and power grid companies (such as marketing department agents) will gradually be formed.

The third is to provide services to optimize the electricity business environment. According to the national new industry development catalog, we encourage the opening of inter-provincial markets to military-civilian integration, new energy vehicle charging facilities and clean heating projects, as well as the retail side (power users) that provide value-added services such as contract energy management and integrated energy.

(This article only represents the author's personal views)

This article was published in the 3rd issue of China Electric Power Enterprise Management in 2020. The authors Liu Ruifeng, Chen Tianen, Li Yan and He Yuankang work for the Northwest Branch of State Grid Corporation of China.