"Steady progress", Zhejiang power market reform bold test road

2023-09-13 09:32:33

Zhejiang has established a provincial electricity market system in which the spot market and the contract market complement each other, with the electricity from outside the province as the boundary condition of the provincial market. Up to now, five trial operations of settlement have been carried out.

Since the launch of a new round of electric power system reform in 2015, Zhejiang's electric power system reform has provided a model for the national pilot electric power market reform under the promotion of all parties, boldly testing the road. In 2017, Zhejiang was listed as one of the first eight pilot areas for the construction of electric spot market, which is the first pilot province to introduce advanced concepts of foreign electric power market in China. On May 30, 2019, Zhejiang Electric Power Spot Market officially launched a simulated trial operation. With the goal of "safety, economy and green", it established a provincial electric power market system in which the spot market and the contract market complement each other, and formed a market model of "medium and long-term contract for difference + centralized clearing of all spot electricity". Basic situation of

Zhejiang power market development By the end of 2022, the installed capacity of Zhejiang power grid has reached 6754.15% year-on-year growth, of which: thermal power accounts for 82.4% (gas turbine installed capacity accounts for 7.2% of thermal power); hydropower accounts for 2.64%; nuclear power accounts for 4.22%; Photovoltaic power accounts for 6.14%; wind power accounts for 4. Zhejiang power grid is a typical receiving end grid with dense grid structure, frequent network congestion and high proportion of incoming external electricity. On the

electricity side, in 2022, the total electricity consumption of Zhejiang Province was 579.93 billion kWh, an increase of 5. The total electricity consumption was 494.38 billion kWh, an increase of 4. The maximum daily electricity consumption was 1.9 billion kWh. On July 11, 2022, the highest load of unified regulation was 88.97 million kilowatts, an increase of 2.

In terms of market transactions, Zhejiang organized 298 electricity market transactions in 2022, with a cumulative turnover of 275.886 billion kilowatt-hours. 47% of the annual electricity consumption. Among them, there were 50 green electricity trading organizations, with 2.503 billion kilowatt-hours of electricity traded and 21,000 green certificates traded;

As the first batch of pilot provinces of electricity spot market, the construction of Zhejiang electricity spot market aims at "safety, economy and green", and establishes a provincial electricity market system in which electricity spot market and contract market complement each other. Take the incoming calls from outside the province as the boundary condition of the provincial market. Up to now, five trial operations of settlement have been carried out. In September

2017, after Zhejiang was listed in the first batch of pilot provinces of spot electricity in China, the Zhejiang Provincial Government and the Provincial Development and Reform Commission respectively issued the Comprehensive Pilot Plan for the Reform of Zhejiang Electric Power System and the Zhejiang Electric Power Market Construction Plan. The construction goal of "establishing a provincial electricity market system with the electricity spot market as the main body and the electricity financial market as the supplement" is put forward.

As the first batch of construction pilot projects, in October 2017, Zhejiang fully drew on the experience of the international advanced power market construction at that time, and through international competitive negotiations, selected PJM Company and China Electric Power Research Institute Consortium as professional advisory teams to guide the design and construction of the spot power market. In March

2019, the eighth Zhejiang Electric Power Market Design and Rules Compilation Symposium was held, and the preliminary draft of Zhejiang Electric Power Market Operation Rules was issued, which comprehensively carried out the practical operation training for users of Zhejiang Electric Power Market Technical Support System and fostered market players.

The second stage: Zhejiang electric power market operation practice

Zhejiang electric power spot market started the simulated trial operation ceremony on May 30, 2019, and formally entered the trial operation stage. As of June 2023, five formal settlement trials have been carried out.

2021, due to the continuous rise of coal and natural gas prices in the upstream of the country, the cost of thermal power enterprises in Zhejiang Province has been hanging upside down for a long time, operating at a loss, and even the risk of cash flow rupture. In order to alleviate the operating conditions of thermal power enterprises, under the unified deployment of the state, Zhejiang has raised the upper limit of market-oriented transaction price, and the electricity price of end-users has increased. For a long time, Zhejiang Province and Jiangsu Province have taken the reduction of electricity price as the focus of their work in the field of electric power. Considering that Zhejiang's power supply and demand will inevitably be tight in 2022, if the trial operation of the electricity spot market is carried out in this case, it may lead to a further rise in electricity prices, and there is a downside risk to Zhejiang's economy in 2022. Zhejiang has suspended the operation of the electricity spot market until now.

In 2023, in order to speed up the construction of a new energy system, further deepen the reform of the power system, and comprehensively promote the construction of the "medium and long-term + spot" provincial power market system. Zhejiang has issued relevant documents such as the Three-year Action Plan for Promoting Green and Low-carbon Energy Development and Guaranteeing Supply and Price Stability in Zhejiang Province (Zhe Zheng Ban Fa [2022] No.60) and the Comprehensive Pilot Plan for the Reform of Zhejiang Electric Power System (Zhe Zheng Fa [2017] No.39) to promote the steady progress of Zhejiang Electric Power Market Reform. Characteristics of

Zhejiang Electric Power Spot Market Mode (Settlement Trial Operation Rules)

The provincial electric power market is composed of

market members, mainly including coal power, hydropower, gas power and nuclear power units. In principle, take the unit as the unit to participate in the market, and meet the requirements of environmental protection and ultra-low emission. In the initial stage of the market, mainly for the power generation side, wind power and photovoltaic and other new energy units do not participate in the market, timely release of 110 kilovolt and above voltage level users.

Contract market: to help market members lock in most of the trading volume and its price in advance through medium and long-term transactions, so as to avoid the price risk in the spot market. The initial market is mainly a government-authorized contract, which is a kind of contract for difference signed by power generation enterprises and power grid companies (acting for non-market users) under the leadership of the government, realizing the transformation from planning to market competition.

Spot market: mainly including day-ahead market and real-time market. The day-ahead market adopts unilateral centralized clearing on the generation side, and the power users do not quote. The bilateral clearing mode of user quotation will be introduced in due course in the future. Through the joint optimization of electric energy and reserve, the day-ahead market will be cleared with the goal of minimizing the generation cost, and the day-ahead dispatching plan will be prepared on the basis of the clearing results. The real-time market uses the declaration information sealed before the day, through the joint optimization of electric energy and frequency modulation, with the goal of minimizing the cost of power generation, to clear the real-time market.

Ancillary service market: In the initial stage of the market, the ancillary service market mainly includes reserve and frequency modulation. At present, the reserve market is still under development. Power generation enterprises carry out frequency modulation quotation a few days ago, centralized bidding in the spot market, and joint clearing with electric energy. Market positioning of

spot market

: Zhejiang power market is mainly positioned to optimize the allocation of resources in the province, and to establish a balanced power market on the premise of the balance of power supply and demand in the province and the safe and stable operation of the power grid. At present, the transaction results of the inter-provincial market are regarded as the boundary conditions of the intra-provincial market.

Pricing mechanism: The contract market adopts the form of contract for difference, which is settled with the spot market price. The spot market adopts the nodal price pricing mechanism. In the initial stage of the market, the nodal price includes the electric energy price and the congestion cost, the nodal price is adopted on the generation side, the weighted average comprehensive price is adopted on the user side, and the settlement period is 30 minutes.

Market settlement: The "zero-sum" settlement mode on the power generation side is adopted for the trial operation of the whole month settlement. According to the principle of "day-ahead benchmark, real-time difference and contract price difference", unbalanced funds are returned or apportioned among market participants, and power grid enterprises do not bear market profits and losses. Provincial electric power trading institutions are responsible for providing settlement basis, and power grid enterprises are responsible for settlement. One of the problems

in the development of

Zhejiang power market is that the construction and development of Zhejiang power market lags behind. After the successful completion of five trial operations of spot settlement in Zhejiang, considering that the operation of the electricity spot market may bring high electricity prices and affect the orderly and sound development of the economy, the construction of the electricity spot market has been postponed. Up to now, the basic rules of the spot market have not yet been released, and they are all implemented by the spot settlement trial operation scheme.

Two, the Zhejiang electricity spot market is not mature enough, and the user side has not entered the market. Zhejiang is a big province of national economic development, with many small and medium-sized users, sensitive electricity prices and weak price affordability.Therefore, Zhejiang pays attention to the construction of system and mechanism, the stability of electricity price for end-users, and the principle of gradual and batch entry into the market. Zhejiang spot in the follow-up process of unilateral and bilateral spot trading convergence, the main scope of the two sides to participate in the market is not clear, if the batch into the spot market may bring too much unbalanced funds and redundant rules.

Third, the key issues of the market need to be discussed and solutions put forward. Core issues such as the unequal scope of market participation, how to effectively link the medium and long-term market with the spot market (how to decompose the medium and long-term contract curve), and how to share the unbalanced market funds still need to be solved. In addition, the convergence of new market players (energy storage, virtual power plants, etc.), spot market and ancillary services, new energy spot and green power trading also need to be solved urgently.

As the "stormtrooper" of the power market reform, Zhejiang took the lead and dared to explore the way in the early stage of the reform, providing other provinces and cities with advanced foreign ideas to break through the barriers of power reform and a model of power reform combined with China's reality. However, the reform can not be achieved overnight, Zhejiang has encountered the bottleneck of its own development contradictions and conflicts, although the pace of reform has slowed down, but Zhejiang has never given up the determination to adhere to the reform, steady progress, has been actively exploring and practicing.

Under the general trend of deepening the reform of the national electric power system, Zhejiang will dare to break through the bottleneck in the reform and development, give full play to the role of the government's macro-control and effective market resource allocation, speed up the construction of the spot market of electric power, and form a unified, open, competitive and orderly electric power market system as soon as possible. In order to realize the sharing, mutual benefit and optimal allocation of power resources in a wider range of the country, we should move forward.

All can be viewed after purchase
Correlation

On September 28, Fuyang Ronglian Photovoltaic Technology Co., Ltd. was filed for bankruptcy by Qiao Gang, a natural person, to the People's Court of Yingquan District, Fuyang City, Anhui Province, with the case number of (2025) Anhui 1204 Poshen No.7.

2025-09-30 15:05:53

On September 28, the Development and Reform Bureau of Kongtong District, Pingliang City, Gansu Province, announced that it had decided to cancel the investment qualification of the 100MW photovoltaic power generation project in Xiamen Township of the State Power Investment Group Aluminum and Electricity Investment Co., Ltd.

2025-09-30 09:11:49

Digital New Energy DataBM. Com has learned that the administrator of Beijing Wanyuan Industrial Co., Ltd. will auction 49% of Inner Mongolia Datang Wanyuan New Energy Co., Ltd. held by Beijing Wanyuan Industrial Co., Ltd. through the litigation asset platform at 10 o'clock on October 6.

2025-09-29 16:52:08

Digital New Energy DataBM. Com has learned that the administrator of Datang Jianshan Tianshuo Arukhorqin Banner New Energy Co., Ltd. will publicly auction assets such as machinery and equipment (photovoltaic power generation equipment), electronic equipment, low-value consumables and raw materials under the name of the company on Taobao Online Judicial Auction Platform at 10 o'clock on September 29.

2025-09-28 17:48:01

This is the third time that China's new photovoltaic installed capacity has declined since May this year.

2025-09-26 11:19:25

"SNEC ES + 11th (2025) International Energy Storage and Battery Technology and Equipment (Shanghai) Conference and Exhibition" and "SNEC H2 + 9th (2025) International Hydrogen Energy and Fuel Cell Technology and Equipment and Application (Shanghai) Conference and Exhibition" (referred to as "SNEC The 2025 International Energy Storage and Hydrogen Energy Conference and Exhibition will be held in Shanghai Pudong Kerry Hotel (1388 Huamu Road, Pudong New Area) and Shanghai New International Expo Center (2345 Longyang Road, Pudong New Area) from October 9 to 12, 2025.

2025-09-25 10:26:30

These things happened in the cement industry today!

2025-09-23 18:01:06

What is happening in the cement industry?

2025-09-21 07:01:13

Jingke Energy lowered its quotation by 0.01-0.03 yuan/W

2025-09-17 15:49:01

On September 17, the 2025 World Energy Storage Conference was held in Ningde. Zeng Yuqun pointed out that China has the most complete and advanced energy storage industry chain in the world and is the largest energy storage market. Last year, the installed capacity of new energy storage exceeded 100 million kilowatt-hours. However, the industry is facing challenges, such as security risks, fierce price competition, false product parameters, technology homogenization, disorderly expansion and so on. He believes that the high-quality development of industry should adhere to the bottom line of safety, build an empirical and credible market environment, strengthen the protection of intellectual property rights, encourage innovation, and the Ningde era has also made many practices.

2025-09-17 13:19:15

On September 12, Guoneng e issued a tender announcement for the EPC general contracting project of Ganluo Phase II Photovoltaic Power Generation Project of Dadu River Company. The tenderer is Guoneng Dadu River New Energy Ganluo Co., Ltd.

2025-09-16 17:44:25

Digital New Energy DataBM. Com has learned that the 100% equity transfer of Fuma (Guangzhou) Photovoltaic Power Generation Co., Ltd. has been pre-listed on September 11, 2025, and the transfer base price has not yet been announced, and the information will be disclosed until October 15.

2025-09-15 17:55:29

On September 12, the announcement of the termination of the general contract for the 5700 kilowatt distributed photovoltaic project of Kashgar yuanfang International Logistics Port in Xinjiang was issued. The reason for termination was that the project was terminated due to the change in the amount of investment in the project.

2025-09-15 17:52:03

In August, industrial solar power increased by 15.9%, and the growth rate slowed down by 12.8 percentage points compared with July. Solar power generation from January to August was 386.7 billion kWh, up 23.4% year-on-year.

2025-09-15 14:36:40

The fire broke out around 4 A. M. and took several hours to extinguish.

2025-09-15 09:02:47

What is happening in the cement industry?

2025-09-15 07:01:16

Digital New Energy DataBM. Com was informed that on September 11, Jiangsu Yongquan Photovoltaic Technology Co., Ltd. was filed for bankruptcy, the court was the Intermediate People's Court of Zhenjiang City, Jiangsu Province, the applicant was Rongma Science and Technology Group Co., Ltd., and the case number was (2025) Su 11.

2025-09-12 15:46:09

Digital New Energy DataBM. Com learned that on September 8, four photovoltaic power generation project owners, such as Nongxian, Ruili City, Dehong Prefecture, Yunnan Province, issued a competitive consultation announcement with a total scale of 171 MW.

2025-09-11 17:45:31

On September 8, the Beijing Property Exchange disclosed that the 9% equity of Dezhou Jusheng New Energy Technology Co., Ltd. (Hereinafter referred to as "Jusheng New Energy") was listed at the transfer base price of 1 yuan, and the transferor was Jiangxi Electric Power Construction Co., Ltd. of China Electric Power Construction Group (hereinafter referred to as "Jiangxi Electric Power Construction").

2025-09-11 16:44:10

The 20-year right to use distributed photovoltaic construction resources on the roofs of 101state-owned assets in Ezhou, Hubei is being transferred

2025-09-11 16:44:03

On September 5, the procurement project of Pingchuan Substation 500000 kW/2 million kWh New Energy Storage Special Action Project (Phase I) in Tuquan County, Xing'an League, Henan Engineering Company of China Electric Power Construction was terminated. The reason for termination is that "the owner of this project requires the commencement date to be advanced, the construction period is urgent, and the content of the bid section needs to be adjusted and re-tendered.". This tender is terminated.

2025-09-11 10:58:56

On the evening of September 10, Jinfeng Science and Technology announced that the company intends to sign the Agreement on Investment and Development of Wind Power Hydrogen Ammonia Alcohol Integration Project with Bayannaoer Municipal People's Government. Goldwind Science and Technology said that it plans to invest in the construction of wind power hydrogen ammonia alcohol project within the jurisdiction of Bayannaoer City, with a total investment of about 18.92 billion yuan. The overall plan of the project is to build 3GW wind power, more than 80% of which is used to electrolyze water to produce green hydrogen, and to produce 600000 tons of green methanol per year and 400000 tons of green ammonia per year by coupling biomass gasification with green hydrogen.

2025-09-11 10:10:35

On September 10, Beijing Energy Group Co., Ltd. held a cadre meeting to announce the decision of the Beijing Municipal Committee and the Municipal Government.

2025-09-11 09:29:04

On September 10, China Nengjian issued a tender announcement for the centralized procurement project of photovoltaic modules in 2025. The tender announcement shows that the total scale of the tender is estimated to be 17 GW, which is divided into 8 packages, covering 182 mm TOPCon components, 210 mm TOPCon components, HJT components and BC components. For this tender, in addition to good reputation and relevant qualifications, the bidder's performance requirements are as follows:

2025-09-10 17:55:52

On September 8, Weining Branch of Bijie Ecological Environment Bureau of Guizhou Province issued the first announcement of public participation in environmental impact assessment of "Weining County 5GW XBC High-efficiency Photovoltaic Cell Production and Construction Project".

2025-09-10 17:34:25

On September 9, the temporary land for CGN Fengning Manchu Autonomous County 200MW Photovoltaic Composite Demonstration Project was approved. The construction unit of this project is CGN New Energy Fengning Manchu Autonomous County Co., Ltd. It is reported that the temporary land for the project is located in Wudaoying Township (Wudaoying Village, Jiudaogou Village), Tucheng Town (Sanjianfang Village, Sijianfang Village) and Dage Town (Saerying Village) of Fengning County, covering a total area of 7.8342 hectares.

2025-09-10 09:38:41

Li Lecheng, minister of the Ministry of Industry and Information Technology, said of irrational competition in photovoltaic and other industries: "The cultivation of enterprises and industries can be described as untold hardships, and irrational competition destroys an enterprise and an industry, which may happen overnight. We must not tolerate this kind of thing." He said that the next step would be to adhere to the rule of law, strengthen industry self-discipline, implement regulatory responsibilities, and enhance service capabilities, so as to "address both the symptoms and the root causes, systematically govern, focus on improving the system and mechanism, optimize the industrial ecology, and constantly improve the modernization level of industry governance."

2025-09-09 16:20:34

On September 5, Yunnan Green Energy New Energy Development Co., Ltd. The announcement shows that due to the need of project development, the bidding activities of this project are suspended.

2025-09-09 09:41:09

Digital New Energy DataBM. Com learned that on the evening of September 7, Robertko announced that the company planned to issue shares abroad (H shares) and list them on the Stock Exchange of Hong Kong Limited.

2025-09-08 18:01:43

From September 22, 2025 to September 28, 2025, the highest opening rate of cement kilns in all provinces in China is Tianjin, with the opening rate of 100.00%. Kiln opening rate of 50% and above: 66.72% in Anhui Province, 61.98% in Shandong Province, 59.02% in Henan Province, 56.68% in Jiangsu Province, 50.00% in Liaoning Province and 50.00% in Hainan Province.