The hottest power reform is facing a dilemma as it

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The power reform is facing a "dilemma" and "how difficult" problems

the "quota system", which is known as China's most difficult renewable energy policy, was finally implemented after the end of the national two sessions in 2018

on March 30, the consultation on renewable energy quota system has ended. A week ago, the National Energy Administration issued the renewable energy power quota and assessment measures (Draft for comments) (hereinafter referred to as the draft for comments), requiring that renewable energy power consumption be taken as a binding indicator to monitor, evaluate and assess the renewable energy quotas of provincial governments on an annual basis. The index setting combines the renewable energy resources, total power consumption, national energy planning and annual construction plan, and the construction of major renewable energy bases in the country. Among the published renewable energy power quota indicators in 2018, there are great differences among regions, with Shandong being 8.5% and Sichuan being 91% at the highest; Among the quota indicators of non hydropower renewable energy, Guangdong, Guangxi and Chongqing have a minimum of 3%, while Ningxia and Qinghai have a maximum of 21%

"from the situation of each province, it is expected that the implementation of the two-level indicators of total amount and non hydropower quota will not be difficult." Lin Boqiang, Dean of the China Energy Policy Research Institute of Xiamen University, said in an interview with China Business Daily that the implementation of the quota system will help solve the dilemma of renewable energy consumption

main body changes

at the end of 2017, China's renewable energy installed capacity was 650million kW, accounting for 36.6% of the total power generation installed capacity. The installed capacity of hydropower, wind power and photovoltaic power ranked first in the world

in the 2018 group proposal of the all China Federation of industry and commerce, it was mentioned that due to the lack of supporting assessment mechanism, the proportion of renewable energy power and renewable energy consumption policies previously announced by the state have not been effectively implemented locally, resulting in the problems of water, wind and light abandonment in renewable energy development

as of the end of the 20th year, the hardness testing device (i.e. the auxiliary device for hardness testing) and the hardness tester should be kept at a complete level. At the end of the 17th year, China's cumulative installed capacity of wind power reached 164 GW, and the installed capacity of photovoltaic power reached 130 GW. In that year, the new capacity of photovoltaic power exceeded the thermal power capacity (46 GW) for the first time. In 2017, China's wind power and photovoltaic power curtailment rates were 12% and 6% respectively. The National Energy Administration estimated that the total power curtailment of wind power and photovoltaic power in China in 2017 was 49.2twh. According to the lowest electricity price standard on the renewable energy benchmark, this means that the owners of renewable energy power generation assets have lost at least 30.7 billion yuan (about 4.7 billion US dollars) due to power rationing

at the recent two sessions, representatives of the energy sector, such as WISCO, chairman of Goldwind technology, Zhang Lei, founder and CEO of vision energy, and Nan Cunhui, chairman of Chint Group, all expressed the call to implement the quota system as soon as possible

after ten years of delay, this policy, which is highly expected by new energy enterprises, has finally revealed the "true face of Lushan Mountain"

according to the exposure draft, the implementation subjects that undertake the obligation of renewable energy power quota are provincial power companies, local power enterprises, other types of power distribution enterprises (including incremental distribution enterprises with social capital investment), industrial enterprises with self owned power plants, direct power purchase users participating in power market transactions, etc. All kinds of market entities in the same provincial region bear the same quota indicators and participate in renewable energy power market transactions fairly. Government departments, power generation enterprises and power users are the guarantors of the implementation of the quota system

"compared with the previous design, the biggest change this time is to shift the obligatory subject of the quota system from the power generation side to the demand side." A scholar from the national development and Reform Commission told that 201 under the specified experimental conditions and requirements, the national energy administration had a discussion draft in the first year of the experiment, which proposed that the main body of the renewable energy quota system was the power generation enterprises with an installed capacity of more than 5million kW, and then made it clear that the power enterprises should bear 15% of the non-aqueous renewable energy power generation index. However, if the quota system is focused on power generation enterprises, "reconstruction and light use" is not conducive to solving the consumption problem

the scholar believes that since the distribution of resources in each province and the development of resources by each power generation enterprise are different, imposing constraints on renewable energy power generation obligations will not only push up the cost of thermal power enterprises, but also do not conform to the law of marketization. Now, the direct electricity transaction carried out by the power reform also pays more attention to the demand side response, guiding the main body of the quota system to the user side and the demand side, which in turn stimulates the development of the power generation side

for the quota formulation concerned by all parties, hydropower resources are not excluded from renewable energy power this time, but are divided into "total renewable energy power quota" and "non hydropower renewable energy power quota", including offshore wind power, onshore wind power, biomass power generation, solar (4.750, 0.03, 0.64%) photovoltaic power generation, solar thermal power generation, urban solid waste power generation, geothermal power generation Ocean power generation, etc

according to the published total quota index and non hydropower quota index in 2018 and the expected index in 2020, each province has great differences, which is no longer divided into four grades of 2% - 10% as previously planned. On the whole, the quota index of provinces rich in renewable energy is high, and vice versa

this time, it is clear that the power is delegated to the provincial governments, who will formulate policies and measures. In addition, the national energy administration has made Supplementary Provisions on trans provincial and trans regional transmission channels, power market transactions, and increasing the consumption of self owned power plants

Li Xiaoyang, China market analyst at make, a Danish wind energy consulting firm, believes that the implementation of the quota system will help solve the problem of discarding abundant and light stocks, and will have a limited impact on the new installed capacity of renewable energy

the certificate trading mechanism is fuzzy

in addition, it is worth mentioning that the renewable energy power certificate system is also mentioned this time. It is worth mentioning that degree, as a carrier for recording and measuring the production, actual consumption and trading of renewable energy power, is used to monitor and assess the completion of renewable energy power quota indicators

producers of renewable energy power are issued according to the standard of a certificate for the amount of electricity settled by 1 megawatt hour (i.e. 10million hours), and spontaneous self consumption electricity is issued according to the amount of electricity generated. There are over-current, over-voltage, overload and other protection devices between market entities, which can carry out certificate transactions to complete quota indicators, and the certificate price is formed by market transactions. The market entities that have not completed the quota must complete the quota by purchasing replacement certificates from the regional power enterprises. The replacement certificates are priced by the provincial power companies according to the consumption costs

"this certificate transaction is different from the green certificate transaction expected by the market before." Li Xiaoyang said that with the development of renewable energy, China's "fixed electricity price system" implemented through renewable energy electricity price subsidies for a long time is facing adjustment. Previously, the government proposed to solve the withdrawal of government subsidies for renewable energy through a market-oriented mechanism through the "quota system + green power certificate (hereinafter referred to as green certificate) trading system". However, what is mentioned in this document is the quota certificate transaction, and the subsidies of renewable energy enterprises have not stopped in the short term

Wang Sicheng, a researcher at the Energy Research Institute of the national development and Reform Commission, said at a photovoltaic forum held in mid March that this year alone, the renewable energy subsidy gap has been increasing. By the end of 2017, the renewable energy subsidy gap was 110billion yuan, causing a serious "triangle debt"

"the national subsidies for renewable energy are gradually decreasing, and the elimination will be the general trend." Lin Boqiang believes that only when the quota system is combined with compulsory certificate trading can it have practical effects, rather than being reduced to a "show" like the previous voluntary green card trading

from July 2017, power generation enterprises with green certificates can list and trade green certificates on the national green certificate platform. Data show that as of March this year, the national renewable energy information management center has issued about 17.6 million green certificates. In the past nine months, only more than 27000 pieces have been sold and only 10million yuan has been raised, accounting for about 0.15% of the approved issuance

"the trading and assessment methods for quota certificates in the exposure draft have not been clarified." In Li Xiaoyang's view, the final issuance and assessment of the certificate is of great significance to the implementation and supervision of the quota target. It is expected that after the official document is published, the corresponding supporting documents will also be issued for clarification

in fact, compared with the previous idea of bringing the renewable energy quota system into the performance evaluation of local governments, the evaluation of local governments by the quota system is not as strict as expected: the regions that fail to achieve the goal will reduce the suspension and reduction of fossil energy power construction in the region, cancel the qualification of applying for demonstration projects, and limit the approval of high-energy industrial projects

on the other hand, market entities that fail to meet the targets will be reduced their market trading electricity for the next year or disqualified from power trading; Enterprises that refuse to fulfill quotas will be listed in bad credit records and will be jointly punished

Lin Boqiang believes that the renewable energy quota system policy includes implementation, supervision and follow-up evaluation. Now the introduction of the opinion draft has only taken a small step

it is reported that supporting documents for power reform, such as the implementation measures for distribution area division of incremental distribution business (Trial), the guiding opinions on improving the regulation capacity of the power system, and the special treatment plan for the standardized construction and operation of coal-fired captive power plants, have also been released recently

after completing the first special reform of transmission and distribution electricity price, the current power reform is moving towards a new tough area: paying more attention to green and low-carbon power development, giving play to market mechanism, improving the efficiency of power energy system and other substantive issues, which are also the "dilemma" and "how difficult" problems faced by the previous power reform

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