Problems in China's Power Industry

At present, China’s reform has entered a period of hardship and deep water. With the upcoming Third Plenary Session of the 18th CPC Central Committee, all sectors of society are full of expectations for China’s comprehensive deepening of reforms. The voice of power system reform is also growing louder and louder. Since there are no unified models for power management systems in various countries in the world, the power system reform has become a focus issue both within and outside the industry. It also affects and determines our confidence and determination in the scientific development of the power industry to some extent. The time has come for the power system reform to have to unify ideas and clear directions.

The ultimate goal of any reform is to solve problems and increase efficiency and efficiency. The same holds true for the reform of the power industry. We must first clarify the main problems existing in the electric power industry under the current management system, and then determine the reform ideas and goals based on the existing problems.

I. Main problems in China's power industry

Since the reform of the power system in 2002, China's power industry has made tremendous achievements in its development. The power system has been operating safely and stably, the power supply is abundant, the electricity price level has been generally stable, and the power supply service has been steadily increasing, basically satisfying the economic and social development demand for electricity. Although the development of China's power industry has achieved remarkable results, the outstanding problems cannot be ignored.

First, there is no fundamental change in the way that electricity is developed. Most of the energy bases in China are concentrated in the north and west of China. Hydroelectric power is mainly distributed in the southwest region. New energy sources such as wind power and solar energy are mainly concentrated in the Three North Regions. The reality of the reverse distribution of energy resources and power demand determines that China’s power resources must be The allocation of resources throughout the country can achieve the maximum level of efficiency in the use of resources. The development of local balance and local balance leads to an irrational energy structure, over-dependence on energy allocation to coal transport, and a serious lack of capacity to optimize the allocation of resources on a large scale. In recent years, the abandonment of water in the southwest region and the abandonment of wind in the Sanbei region have been widely criticized by the society. The inadequacy of the ability to optimize the allocation of power resources over a large area has become a major problem affecting the scientific development of the power industry.

Second, the national electricity market has not formed. On the power generation side, the market coal and planned electricity management system has caused the contradiction between coal and electricity to remain unsolved, and the market mechanism for bidding online has not been formed. On the power sale side, the state's direct purchase of large power users has basically stopped for various reasons, and the market-oriented reform experiment has basically stopped. The electricity price reform did not get rid of the original approval mechanism. The power generation link is still the cost-plus-approve approval mechanism. The power grid link is still the price formation mechanism for the difference between purchase price and sales price. The market mechanism that determines the price based on the supply-demand relationship has not been formed.

Third, the lack of a unified power planning mechanism. Up and down the basic business of the enterprise. The blindness and disorder of power supply development are prominent. The development of power grids and power supplies, new energy sources and conventional power sources are inconsistent, resulting in the coexistence of the overall prosperity of power and the tight supply of electricity in local regions. The phenomenon of inefficient use of power resources and waste of investment is further promoted. Intensified, the contradiction between electricity, resources, and the environment is also increasing.

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