Policy Interpretation: Power Industry Policy is under development

In the future, China will vigorously develop hydropower, actively promote nuclear power, and accelerate the development of renewable energy and new energy power generation such as wind power.

â—‹ Zhongtou

In 2004, "Automotive Industry Policy" and 2005 "Steel Industry Policy"... From automobile, coking, to steel, aluminum and other industries, China's major industries have successively issued a series of industrial development policies. As one of the macro-control targets, the power companies are also keenly aware of the pace of the upcoming national power sector policy.

Indeed, the "Power Industry Policy (Draft for Comment), which is currently led by the National Development and Reform Commission and co-ordinated with relevant departments, is widely listening to the opinions of all parties and is promptly revised and improved.

Determine the direction for power development

According to the data released by the National Development and Reform Commission, after the construction of power station projects of 21.4 million kilowatts, 23.37 million kilowatts and 31.11 million kilowatts respectively from 2001 to 2003, in 2004, 61 million kilowatts of power plant projects were approved, and the scale of power plants exceeded 50 million kilowatts. The speed has exceeded the growth rate of the national economy.

At the same time as the scale of the power station is expanded, power station projects that violate the relevant national policies and regulations and are blindly and disorderly constructed are also common. In August 2005, the National Development and Reform Commission and other four ministries and commissions issued cleanups of power station projects in various places. The results showed that the total number of illegally started projects reached 125 million kilowatts. Most of these projects have not completed environmental, land, water and expert review procedures.

The rushing construction of a large number of illegal power stations has intensified the shortage of power supply equipment, which requires not only the import of materials and components, but also the hidden dangers of equipment manufacturing and engineering construction, posing a serious threat to the safe operation of the power system. The construction and commissioning of a group of high-energy small units has made the technical level of the power industry fall back, making it difficult to adjust the power structure and industrial layout in the future.

The relevant person in charge of the Industry Development and Reform Commission's Industry Department believes that the illegal power station project has disrupted the implementation of the overall national energy strategy, causing confusion in the layout of power construction and aggravating the contradiction between coal supply and transportation capacity. “This situation will continue to cause power and coal industry. The ups and downs of development have affected the normal development of related industries, which has brought serious negative impacts on the sustainable development of the national economy.

Therefore, as an important basic energy industry and a public utility that affects the national economy and the people's livelihood, the power industry urgently needs a sound industrial policy. Through the release of industrial policies, the industrial structure is adjusted to guide the stable and healthy development of the industry. This is also the fundamental starting point for the formulation of the power industry policy and one of the important functions of the industrial policy.

At the same time, the role of industrial policies in the entire economic plate is not to be underestimated. At the National Industrial Policy Work Conference in May this year, Ou Xinyu, deputy director of the National Development and Reform Commission, stressed: "Industrial policy is an important means for the state to strengthen and improve macroeconomic regulation and control, give full play to the role of industrial policies, and guide through policies and information. The coordination and cooperation between economic policies is an important part of macroeconomic regulation and control."

Therefore, in the proposed "Power Industry Policy (Draft for Comment)", the development of "strengthening power grid construction, vigorously developing hydropower, optimizing the development of coal-fired power, actively promoting nuclear power development, moderately developing natural gas power generation, and accelerating new energy power generation" was clarified. According to China's primary energy and in line with the national conditions, we have established a regional layout strategy of “West-to-East Power Transmission, North-South Mutual Aid, National Networking” and actively promoted the reform of the power system to promote continuous optimization of power structure and layout. Promote the strategic objectives of comprehensive, coordinated and sustainable development of the power industry.

Increase in thermal power policy threshold

According to reports, in the current "Power Industry Policy (Draft for Comment)", the principle of "West-to-East Power Transmission, North-South Mutual Supply" will not change, but "water and fire" will no longer be a "mutually friendly" relationship. Turn to "Developing hydropower and reducing the proportion of thermal power."

Zhang Guobao, deputy director of the National Development and Reform Commission in charge of energy, supported this statement when answering a reporter's press conference at the State Council Information Office. He said that in the future, China's energy medium- and long-term planning emphasizes the adjustment of energy structure, and the power sector should vigorously develop hydropower. Speed ​​up the development of nuclear power.

In 2004, electricity increased by 15.3%, and in the first half of this year, it increased by 13.2% over the same period of last year. The rapid growth of electricity demand has also driven the growth of coal demand. However, since 2003, the tight supply of energy such as coal, electricity and oil has become a bottleneck restricting economic development. In the new round of macroeconomic regulation and control, although this bottleneck has eased, it still fails to completely resolve the contradiction between energy supply and demand.

At the same time, due to the low level of power station equipment and technology, coal-fired power and oil-electricity enterprises inevitably have a certain degree of impact on the local environment during the power generation process. Therefore, in view of energy conservation and pollution reduction, the future thermal power industry is not a key industry encouraged by China, and its development will be subject to various restrictions.

In the future, small thermal power plants with high power generation costs and poor performance of scale filial units will be weakened due to weak market competitiveness, and the relevant national ministries and commissions will strictly implement the regulations for shutting down small thermal power units during the 10th Five-Year Plan period. As well as the "environmental storm" caused by the State Environmental Protection Administration, the small thermal power in the future will face the situation of being eliminated.

On the other hand, because power companies have obvious economies of scale, large units and large power plants have incomparable cost advantages over small units and small power plants. Some large units with advanced equipment and strong strength have obtained good development opportunities. After bidding on the Internet, the unified trend of electricity prices will inevitably lead to a large differentiation in the profitability of thermal power companies. Enterprises with large units such as Huaneng Power and Datang Power will undoubtedly benefit from the reform of the power system, and their power generation and efficiency will increase.

Although China will vigorously develop other power generation methods based on hydropower in the future, due to China's abundant coal resources, coal-fired power generation has always been the primary component of China's power generation, accounting for more than 70% of the power generation share. The position in electricity plays a key role. According to the "Report on Thermal Power Enterprises" issued by China Electric Power Association, from the perspective of energy composition, thermal power generation is still the focus of China's current fixed assets investment, and will still occupy the leading share of the power generation market for a long time.

Therefore, in order to alleviate the shortage of raw materials supply for power companies, especially coal-fired power generation enterprises, the forthcoming "Power Industry Policy" will encourage power companies to invest in the coal industry and support coal enterprises and power companies to achieve integrated operations through asset restructuring. According to China's coal resources, water resources and electricity, thermal load distribution, combined with grid access systems, transportation and other conditions, the "Policy" plans a series of coal-fired power plant projects that can be prioritized.

For newly-built coal-fired power stations, the area of ​​land per unit capacity should be controlled within 0.32 square meters/kW; for new gas-steam combined cycle power plants, the area per unit capacity should be controlled within 0.13 square meters/kW. The coal consumption for power generation of 600,000 kW and above units should be controlled below 286 g of standard coal/kWh. The coal consumption of coal power generation in the pit or mining power plant should be lower than 295 standard coal / kWh (the coal consumption of air-cooled units should be controlled below 305 g standard coal / kWh). In the eastern coastal areas lacking coal resources, it is encouraged to build coal-fired power stations with a coal consumption of no more than 275 grams of standard coal/kWh. For power plants with comprehensive utilization of coal gangue, the average heating value of fuel should be no higher than 12550 kJ/kg.

However, in the "Power Industry Policy", some "fire power bans" have been explicitly proposed. For example, in addition to Tibet, Xinjiang Autonomous Region and Hainan Province, coal-fired power stations should be constructed with high parameters, large capacity, high efficiency, and For water-saving and environmentally-friendly units, the unit capacity of the selected units should be 300,000 kilowatts or more. It is forbidden to build coal-fired condensing thermal power units with a single unit capacity of 200,000 kW and below.

Construction of fuel generator sets is prohibited. In addition to heating units that meet the needs of the effective heat load market, the eastern region should phase out coal-fired condensing thermal power units with a unit capacity of 100,000 kilowatts or less as soon as possible, and phase 50,000 kW and below coal-fired condensing thermal power units in the central and western regions.

Clean energy welcomes development opportunities

Compared with thermal power, the combined cost of hydropower is relatively low. Although the construction cost is higher than that of thermal power, with the increase of national environmental control requirements, if the capital required for environmental protection requirements such as desulfurization, denitrification and dust removal of thermal power plants is taken into account (about 1/3 of the total investment), the construction cost of hydropower After the thermal power gap has been greatly reduced and put into production, the operating cost of hydropower plants is much lower than that of other types of power plants, and the price of hydropower without fuel (such as coal and fuel) increases and the cost increases.

The "Policy" for the development of large-scale river hydropower projects, proposed to implement the "watershed, cascade, comprehensive, coordinated" development guidelines to set up a basin development company, the implementation of unified construction and unified management of river basin cascade power stations. Encourage river basin development companies to actively absorb other investment entities to invest in shares. The development of small and medium-sized river hydropower projects should give full play to the enthusiasm of all aspects and adopt a flexible development management model.

Moreover, with the introduction of the environmental protection discount standard for power generation emissions and the corresponding supporting tax policy, under the policy of the state's strong support for hydropower enterprises, the power generation cost of hydropower will be lower, and the competitive advantage it brings will inevitably bring more power to thermal power enterprises. Big impact.

Nuclear power, as a clean energy source, is also favored. At present, there are 11 nuclear power units in China with a total capacity of 8.7 million kilowatts. In addition to the construction of two nuclear power plants in Lianyungang, Jiangsu, nine other units have been completed and put into operation. The share of nuclear power in the total installed capacity of power generation is still small, less than 2%. The "Power Industry Policy (Draft for Comment)" mentioned that priority is given to building nuclear power plants in areas with developed coastal economies and lack of energy resources. In areas where coal resources are lacking in the central region, a number of nuclear power plant sites are actively reserved to protect the nuclear power plant sites. The technical route for nuclear power development is unified into a million kilowatt class pressurized water reactor. However, nuclear power is still dominated by state investment, and non-state-owned investment has not yet obtained clear policy permission to enter the nuclear power sector.

The Policy encourages the development of renewable energy and new energy power generation technologies such as wind, solar, biomass and ocean energy, and lists them as priority areas for the development of science and technology and high-tech industrialization, and incorporates national science and technology development plans and high technology. Industrial development planning. Focus on the research and application of wind power technology, especially the design, manufacture and application of wind turbines with megawatts and above capacity, and accelerate the realization of industrialization and localized manufacturing. Support the development of solar photovoltaic technology. Support technical research using biomass energy (including garbage) to generate electricity. "Increase the development and utilization of renewable energy and new energy, in line with the requirements of the Electricity Law and the Renewable Energy Law, and the reality of optimizing China's energy structure and ensuring national energy security." Li of the Second Research and Design Institute of Nuclear Industry Worker told reporters.

However, in the drafting of the draft for comment, rural hydropower at the distribution end has not been included in the list of “renewable energy”. Therefore, in the design, formulation and implementation of policy measures, there are still factors that hinder the development of rural hydropower power grids, hydropower, Rural electrification projects, small hydropower generation fuel ecological protection projects, and rural hydropower income increase and relief projects are still difficult to implement in rural areas.

In addition to the adjustment of the industrial structure, the promotion of preferential policies to encourage development is also an important part of industrial policy. Compared with the limited development of thermal power, in the field of hydropower, nuclear power and renewable energy and new energy power generation, the "Power Industry Policy" will also propose a series of economic preferential policies and measures to promote its development, such as taxation policies. The capital market will also be tilted towards hydropower companies, and hydropower companies will get better financing opportunities. For example, the listing of Changjiang Power is indisputable.

Industrial policy boosts monopoly icebreaking

The reform of the power industry to break the monopoly began in 1985, and successively implemented a series of reforms such as power management and foreign investment in power projects. The situation of “exclusive power” was broken. At the end of 2002, the power system carried out the most profound change to date: the State Council approved the “Power System Reform Plan”, and 11 newly established and restructured power companies were officially announced. The power industry realized the separation of the plant network and introduced a competition mechanism. The average size of the five major power generation groups is 32 million kilowatts of controllable capacity and 20 million kilowatts of equity capacity. It also limits the geographical distribution of “the share of the regional power market does not exceed 20% in principle”.

But this split-type integration is just the first step in breaking the monopoly of the industry. The restructured state power company, as the “electricity boss”, still owns 46% of the country’s power generation assets and 90% of its transmission assets (power grid). The monopoly position of the power “big Mac” has not wavered, and the monopoly of the power industry is still serious.

Chen Wangxiang, vice president of the China Investment Association's large and medium-sized enterprise committee and consultant of the National Electric Power Reform Leading Group, believes that the "Power Industry Policy", which guides the nation's power reform and development, should actively promote the reform of the power system. Experts suggest that the contents of the reform of separate transmission and distribution be accelerated in the general rules, create a fair institutional environment for diversified power investment entities, and mobilize multiple enthusiasm to accelerate the development of the power industry.

In the past, the government’s restrictions on certain industries have been persuading the market access system. Government agencies often adopt approval, registration, licensing, and licensing to manage the investment entities and market participants in the market. Into the reform, the "Power Industry Policy" should distinguish between competitive links and the need to continue to maintain monopoly, continue to relax market access for power generation, electricity sales and other services, and encourage non-state-owned capital to enter transmission and distribution through equity participation. In the monopoly field, the existing reforms are biased towards restructuring, ignoring the entry of new manufacturers and new capital.

The investment system reform in 2004 expanded the investment decision-making power of large power enterprise groups, but did not establish a convenient channel for the power supply structure. A power group boss who has carefully studied the "Power Industry Policy (Draft for Comment)" believes that the power investment system should further simplify and reform the approval method from the perspective of power supply structure optimization, and establish a distributed energy and cogeneration approval. Convenient access to promote the development of distributed energy and cogeneration.

The department in charge of local energy project approval also believes that the industrial policy should allow all localities to consider the development plan for cogeneration according to the urban development plan, and the project approval authority within the plan can be delegated to the local government. The content of power project approval should be transferred from economic indicators to social indicators such as strengthening land use, safety, environmental protection and impact on the public.

Experts suggest that in order to promote the advancement of power, it is necessary to accelerate the reform of the market-oriented power system. Raising funds through markets such as capital, finance, bonds, stocks, and property rights transactions, and implementing multiple investment entities, multiple capital channels, and multiple power-generating modes will be important sources of funding for the development of the power industry.

In this regard, the "Policy" encourages the diversification of investment entities in power projects. Non-state-owned capital and foreign capital participate in power construction and market competition to enjoy equal treatment, and their legitimate rights and interests are protected by law. The investment entities of the dedicated network power grid project can be diversified, and competition can also be introduced to grant franchise rights. After the power grid enterprise management facilities are perfected, the public network investment of the power grid can also be competitively tendered to achieve diversification of investment entities. The capital of the power supply and grid projects should account for no less than 20% of the total investment of the project. In the regional electricity market, the share of a single power generation group should not exceed 20%.

For new power generation methods such as wind power and waste-to-energy, the state is open to all types of capital, encouraging all types of investment entities to participate in power plants. Chongqing Tongxing Waste Incineration Power Plant is a state-owned and privately-owned power plant with a total investment of 101 million yuan. The investment company of Tongxing Waste Treatment Co., Ltd., its construction and operation company, has both state-owned enterprises such as China Environmental Protection Corporation and Chongqing Development Investment Corporation. It also includes private enterprises such as Beijing Paul Investment Co., Ltd. The waste-to-energy plant built in the BOT mode is currently operating at a low investment and becoming the first garden-type waste incineration power plant in the west. In the future, private capital and foreign capital will become the main force for new energy and renewable energy power generation.
(Reprinted in "China Investment")
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.

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