1 reform of electricity industry & construction of electricity market in china northeast east...

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Reform of Electricity Industry & Construction of Electricity Market In China

Northeast

East

South

Centre

Northwest North

Sitsang

Taiwan

Zhang Diansheng Market & Trade Dept.

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Introduction of CSG Part A : Reform of Electricity Industry in China part B : Construction of Electricity Market In China

- Northeast Electricity Market

- East Electricity Market

- South Electricity Market

Contents

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By the end of 2006 :

Power supply population (million) - 230 Total asset (billion $) - 380 Sales (TWh) - 397.3 Revenue (billion $) – 284 Rank in top 500 world enterprises - 237thCHINA

Covering 5 provinces : Guangdong Guangxi Yunnan Guizhou Hainan

Area (km2): 100 million

Sales (TWh)

Year

257

308

397

348

0

100

200

300

400

500

2003 2004 2005 2006

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The reform fell into 3 stages:

- 1st stage : 1980s~1990s

- 2nd stage : 1995~2002

- 3rd stage : from 2002 to today

Part A Reform of Electricity Industry in China

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Reform of Electricity Industry & Development of Electricity Market In China

1st stage

Source of funds: Central Government

Power shortages

Source of funds:

- Central government - Local government - Foreign capital - Other capital

Diversification of electricity investment

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2nd stage

-1997: State Power Corporation was established

-1998: Ministry of Electric Power was cancelled

- The policy on the reform of electricity industry was promulgated

- Bidding for dispatch was first experimented - The general scheme of the reform was begun to research.

Separation of plant and grid Separation of government and enterprise

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3rd stage

In 2002: - Electricity Sector Reform Project was approved. - State Power Corporation recomposed to two grid corporations, five generation companies and four assistant groups. - State Electricity Regulation Commission was set up

- The construction and regulation of the Chinese power market was started

Electricity Sector Reform Project was approved

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Since 2002, active progress has been achieved :

- Northeast & east market : In trial operation

- South market : In simulative operation

- Central market : A construction scheme is completed

- Northwest & north market : Construction schemes are

being studied

Part B Construction of Electricity Market in China

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NORTHEAST ELECTRICITY MARKET

Single-buyer Whole energy competition Two-part price

Bidding

Demand

MCP

MWh

￥ /MWh

Main model of trading: Mid-long-term contract trading Partial energy competition Generation right trading The direct power-purchase for large customer in the marketIn

th

e fu

ture

In t

he

pas

t

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EAST ELECTRICITY MARKET

Multilateral trading Whole energy competition & CFD One-part price Yearly / monthly / day-ahead

Trading monthly Bilateral trading Generation right trading

In t

he

futu

reIn

th

e p

ast

MWh

￥ / MWh

Bidding

Bidding

MCP

No

w

Settlement: LMP

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SOUTH ELECTRICITY MARKET

Multilateral trading : provincial power grid companies & power producers Partial energy competition : 15% of all bidding units’ scheduled energy One-part price Up and down matching Yearly & monthly

Bidding

Bidding

MWh

￥ /MWh

Settlement

Price upper limit

Price lower limit

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Policies on saving energy and cutting emissions in 2007

Energy-saving dispatching in several provinces Energy-saving dispatching will impact on the electricity market in the future

Energy-saving Dispatching

Renewable Hydro Nuclear Thermal

Thermal

Standard coal consumption per kWh of the power plant

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The End

THANK YOU

2007/10/15

1 reform of electricity industry & construction of electricity market in china northeast east...

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