echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Chemicals Industry > China Chemical > Build a national unified energy market to resolve supply structural problems

    Build a national unified energy market to resolve supply structural problems

    • Last Update: 2022-05-25
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    The "Opinions of the Central Committee of the Communist Party of China and the State Council on Accelerating the Construction of a Large National Market" was released on April 10, which clarified the overall requirements, main goals and key tasks for accelerating the construction of a large national unified market from an overall and strategic perspective
    .
    The opinions emphasize that it is necessary to speed up the establishment of a unified national market system and rules, break local protection and market segmentation, break through the key blocking points that restrict the economic cycle, promote the smooth flow of commodity factors and resources on a larger scale, and accelerate the construction of efficient, standardized, fair competition, and adequate An open national unified market

    .

    In an exclusive interview with Xinhua News Agency, the person in charge of the National Development and Reform Commission said that in recent years, important progress has been made in the construction of the national unified large market, the scale effect of the unified large market has continued to emerge, the basic system has been continuously improved, market facilities have been accelerated, and the construction of the factor market has taken important steps.
    , the consensus on building a unified large market is constantly condensed, and the concept of fair competition is deeply rooted in the hearts of the people

    .
    However, it should also be noted that there are still some problems that hinder the construction of a unified national market in practice.
    Market segmentation and local protection are more prominent, the construction of factor and resource markets is not perfect, the quality system of the commodity and service market is not yet perfect, market supervision rules, Standards and procedures are not unified, and the role of super-large-scale markets in technological innovation and industrial upgrading has not been brought into full play

    .
    Implementing the strategic deployment of building a new development pattern inevitably requires accelerating the construction of a unified national market and smoothing the national cycle

    .

    The opinion calls for "creating a unified market for factors and resources", and one of the key tasks includes building a unified energy market across the country
    .
    On the premise of effectively guaranteeing the supply of energy security, combined with the goal of achieving carbon peaking and carbon neutrality, the construction of the national energy market will be promoted in an orderly manner

    .
    On the basis of overall planning and optimized layout, improve the oil and gas futures product system, standardize the construction of oil and gas trading centers, and optimize the layout of key infrastructure such as trading venues and delivery warehouses

    .
    Promote the interconnection of oil and gas pipeline network facilities and open them to various market players fairly

    .
    Steadily promote the market-oriented reform of natural gas, and accelerate the establishment of a unified natural gas energy measurement and pricing system

    .
    Improve the multi-level unified power market system, study and promote the establishment of a national power trading center in a timely manner

    .
    Further play the role of the national coal trading center, and promote the improvement of a unified national coal trading market

    .

    Effectively resolve the structural problems of adequate supply and cost control

    Li Lei, head of the Strategic Research Department of the Shanghai Petroleum and Natural Gas Trading Center, a national energy trading platform, said in an analysis of The Paper that in the construction of a "unified big market" for energy, the oil and gas field is different from the power and coal fields.
    The latter two can basically be realized in China.
    Self-sufficiency, strong autonomy in market development and government regulation

    .
    However, China's foreign dependence on oil and gas exceeds 72% and 44% respectively, and it is necessary to take into account both the international and domestic markets

    .
    The price inversion of "external high and internal low" will swallow up the profits of the import link, resulting in a tight supply situation; and "external low and internal high" lead to a large number of imports, which will dampen the enthusiasm of China's upstream oil and gas industry, and is not conducive to the healthy development of the domestic oil and gas industry

    .

    Li Lei believes that the establishment of a unified national energy market can effectively resolve the structural problems of adequate supply and cost control
    .
    "After the price deviation between domestic and international, economics will drive the transformation or substitution of energy demand among oil and gas, electricity, coal and other energy sources, so as to adjust oil and gas demand, and dynamically realize the balance of oil and gas import volume and cost with domestic demand

    .
    "

    How to find oil and gas prices in this large market is an important issue
    .
    Li Lei said that the national unified market includes unified market transaction or trade rules, unified market infrastructure operation rules, and unified price formation mechanism

    .
    Specific to the oil and gas market, the system of the futures and spot markets is unified, and the futures and spot markets are combined; the regional markets are unified with each other, but there is no clear requirement for a single market operator

    .
    In view of the current situation in China, it is necessary to standardize the construction of oil and gas trading centers and establish a unified national oil and gas futures spot market system

    .
    Resolutely put an end to the "blooming" construction of local oil and gas trading centers, which is conducive to reducing homogeneous and vicious competition, breaking local barriers, improving the allocation efficiency of resources flow across regions, and forming international price influence as soon as possible

    .

    Among them, the establishment of the national unified spot market system is not a simple national "same price", but a comprehensive system combining the whole and the parts by combining the conditions of different regions and adapting to local conditions to realize the unification of factor market rules and supervision
    .
    "The regional price reflects the real-time supply and demand situation in the region, and the national price index has the functions of monitoring, tracking and forecasting, reflecting the overall domestic and international supply and demand changes, and deploying responses for the government and market players in advance to avoid extreme situations such as violent market price fluctuations.
    Happening provides a grip

    .

    The construction of the national unified power market system is accelerating

    In the field of electricity, prior to this, the construction of a unified national electricity market system has already begun, and will be fully accelerated during the "14th Five-Year Plan" period
    .

    The 22nd meeting of the Central Committee for Comprehensively Deepening Reforms held in November last year pointed out that it is necessary to follow the laws of the operation of the electricity market and the laws of the market economy, optimize the overall design of the electricity market, and realize the sharing, mutual benefit and optimal allocation of electricity resources across the country.
    , to accelerate the formation of a unified and open power market system with orderly competition, safety and efficiency, and sound governance

    .
    It is necessary to improve the multi-level unified power market system, accelerate the construction of the national power market, guide the coordinated operation and integrated development of the national, provincial (regional, municipal) and regional power markets, standardize unified transaction rules and technical standards, and promote the formation of a multi-competitive system.
    Electricity market structure

    .

    In January this year, the National Development and Reform Commission and the National Energy Administration announced the "Guiding Opinions on Accelerating the Construction of a National Unified Electricity Market System" (hereinafter referred to as the "Guiding Opinions"), which clearly stated that by 2025, a national unified electricity market system will be initially formed, and the national market and provincial Coordinated operation of (district, city)/regional markets; by 2030, a national unified power market system will be basically built, adapting to the requirements of the new power system, and realizing the joint operation of the national market and provincial (regional, municipal)/regional markets
    .

    According to the National Development and Reform Commission, since the new round of power system reform, the construction of China's power market has been steadily and orderly, the pattern of multiple competition entities has initially formed, the role of the market in the optimal allocation of resources has been significantly enhanced, and the proportion of market-based transaction electricity has increased significantly
    .
    At the same time, the electricity market still has problems such as incomplete system, imperfect functions, inconsistent trading rules, and market barriers in cross-provincial and cross-regional transactions

    .
    In order to accelerate the construction of a unified national electricity market system, realize the sharing, mutual assistance and optimal allocation of power resources on a larger scale, improve the stability and flexible adjustment capabilities of the power system, and promote the formation of a new type of power system that is suitable for China's national conditions and has stronger new energy consumption capacity.
    Electric power system, issued the above-mentioned "Guiding Opinions"

    .

    Feng Yongsheng, an associate researcher at the Institute of Financial and Economic Strategy of the Chinese Academy of Social Sciences, wrote an article at the time, saying that when the new round of electrical corrections has gone through seven years, some experiences need to be summarized and some lessons need to be learned
    .
    Especially with the emergence of the crux of the deep system and mechanism, the demand for policies with top-level design and system thinking characteristics is undoubtedly increasing

    .
    On the one hand, the inherent requirement for the power market boundary to go beyond the administrative boundary is becoming more and more intense

    .
    On the other hand, the allocation of large-scale power resources urgently needs to form a complete reform idea

    .
    The promulgation of the "Guiding Opinions" marks that the new round of electricity reform will begin to have the overall idea of ​​controlling the future reform direction of local pilots, and promote the in-depth expansion of China's electricity reform

    .

    Chen Qixin, deputy dean of the Energy Internet Research Institute of Tsinghua University, believes that the unified national power market will form a complete power market nationwide with full market coverage, fully compatible transaction timing, flexible transaction varieties, diverse market players, consistent basic rules, and unified transaction standards.
    market system

    .

    He said that China's clean energy is mainly concentrated in the "Three North" areas.
    Due to the low load intensity of the surrounding areas and the limited overall consumption, it is urgent to play the decisive role of the market in optimizing the allocation of resources, and guide the unified planning of clean energy through market price signals.
    , scientific layout, efficient utilization, unified trading rules and technical standards, breaking market barriers, and realizing optimal allocation and sharing of power resources nationwide

    .
    At the same time, China is in a critical period of building a new power system.
    The increase in the penetration rate of clean energy has put forward higher requirements for the comprehensive adjustment capability of the power system, and has posed challenges to the safe and stable operation of the power system.
    It is necessary to further improve the power market.
    System composition, unify the types and standards for the inclusion of diversified market entities, realize the integrated operation of the source, network, load and storage in a market-oriented way, fully stimulate the enthusiasm of market entities to participate, release flexible adjustment capabilities, and promote the balance of supply and demand in the power system and the operation of the power market orderly connection

    .
    Judging from international experience, with the continuous deepening of market-oriented reforms and the continuous improvement of the demand for optimal allocation of resources, on the basis of the steady expansion of market transaction scale, the scope of market transactions will gradually expand, and transaction behaviors will gradually become standardized

    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.