The National Development and Reform Commission and the Energy Bureau issued guidance on speeding up the construction of a national unified electricity market system and speeding up the construction of the national electricity market. We will give full play to the role of power trading centers in Beijing and Guangzhou, and improve the operation and management of power trading platforms and the inter-provincial and inter-regional market trading mechanism. According to the layout of power infrastructure construction and interconnection, we will study and promote the timely establishment of a national power trading center, introducing market entities such as power generation enterprises, power sales companies, users and relevant strategic investors, establish a corporate governance system and operation mechanism that is standardized in accordance with the law and with clear powers and responsibilities, set up corresponding market management committees, and improve the mechanism of deliberation, coordination and supervision.

It is suggested that by 2025, the national unified power market system will be initially completed, the national market will operate in coordination with the provincial (autonomous regional and municipal) / regional markets, and the electric power medium-and long-term, spot and auxiliary service markets will be designed and operated jointly. The market allocation of resources across provinces and regions and the scale of green power transactions have increased significantly, and market transactions and price mechanisms conducive to the development of new energy and energy storage have been initially formed.

It is pointed out that the adaptability of the electricity market to a high proportion of new energy should be enhanced. We will strictly implement laws, regulations, policies and measures that support the development of new energy, improve the market mechanism adapted to a high proportion of new energy, promote new energy to participate in electricity market transactions in an orderly manner, attract social capital with market-oriented gains, and promote sustainable investment in new energy. Establish a medium-and long-term power trading mechanism suited to the characteristics of new energy, and guide new energy to sign long-term medium-and long-term contracts. New energy quotations are encouraged to participate in the spot market, and the amount of electricity that fails to win the bid will not be included in the assessment of abandoned wind and light electricity. Peak shaving services are promoted in the spot market, and areas with a high proportion of new energy can explore the introduction of new auxiliary services such as climbing.

The full text is as follows

People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, ministries and commissions of the State Council, agencies directly under the State Council, State Electroweb Co., Ltd., South China Electroweb Co., Ltd., Inner Mongolia Electric Power (Group) Co., Ltd., China Nuclear Industry Corporation, China Huaneng Group Co., Ltd., China Datang Group Co., Ltd., China Huadian Group Co., Ltd., SPIC, China Yangtze River three Gorges Group Co., Ltd., State Energy Investment Group Co., Ltd., China Development Investment Group Co., Ltd., China Resources (Group) Co., Ltd., China Guangzhou Nuclear Group Co., Ltd.:

Since the CPC Central Committee and the State Council deployed and implemented a new round of power system reform, the construction of China's power market has advanced steadily and orderly, the pattern of multiple competitive subjects has initially taken shape, and the role of the market in the optimal allocation of resources has been significantly enhanced. At the same time, there are still some problems in the electricity market, such as incomplete system, imperfect functions, disunified transaction rules, market barriers in cross-provincial and inter-regional transactions, and so on. In order to speed up the construction of a national unified power market system, realize the sharing and optimal allocation of power resources on a larger scale, and enhance the stability and flexible regulation capacity of the power system, to promote the formation of a new power system suitable for China's national conditions and with stronger capacity for new energy consumption, with the consent of the State Council, the following suggestions are put forward.

I. overall requirements

(1) guiding ideology. Under the guidance of Xi Jinping's thought of socialism with Chinese characteristics in the new era, comprehensively implement the spirit of the 19th CPC National Congress and the 19th Plenary session, fully, accurately and comprehensively implement the new concept of development, and follow the laws of electric power operation and market economy. To meet the new requirements of the carbon peak carbon neutralization goal, better overall development and security, optimize the overall design of the power market, and improve the multi-level unified power market system. We will unify trading rules and technical standards, break down market barriers, promote the construction of a power market mechanism adapted to the transformation of the energy structure, and accelerate the formation of a unified, open, orderly, safe and efficient electricity market system with sound governance.

(2) working principles.

Overall design, steady progress. Do a good job in the overall design of the functional structure of the electricity market, and realize the efficient coordination and organic connection of different levels of markets. Adhere to the problem-oriented, actively and steadily promote market construction, and encourage exploration in line with local conditions.

Support the transformation, safe and reliable. We will improve the system and mechanism, innovate the market model, promote the investment, production, trading and consumption of new energy, and give full play to the supporting role of the electricity market in the clean and low-carbon transformation of energy. Coordinate the promotion of market construction and the operation and management of Electroweb, prevent the risks of market construction, and ensure the safe and stable operation of the power system.

Based on the national conditions, learn from the international. Based on China's energy and resources endowment, economic and social development and other actual conditions, learn from the international mature power market construction experience, give full play to the advantages of the domestic market, adapt to the production and operation laws and development needs of the power industry, and design the market mode and path scientifically and rationally.

Make overall plans and do a good job of convergence. We should make an overall consideration of the power cost affordability of enterprises and society, do a good job in the connection between the supply of basic public services and the construction of the electricity market, and ensure the relative stability of the supply of power public services and the electricity prices of residents and agriculture.

(3) overall objectives. By 2025, the national unified power market system will be initially established, the national market will operate in coordination with the provincial (autonomous regional and municipal) / regional markets, and the power medium-and long-term, spot and auxiliary service markets will be designed and operated jointly. The market allocation of resources across provinces and regions and the scale of green power transactions have increased significantly, and a market transaction and price mechanism conducive to the development of new energy and energy storage has been initially formed. By 2030, the national unified power market system will be basically completed to meet the requirements of the new power system, the national market will operate jointly with provincial (autonomous regional and municipal) / regional markets, new energy will fully participate in market transactions, and market subjects will compete equally and choose independently. Power resources have been further optimized throughout the country.

Second, improve the multi-level unified electricity market system

(1) to speed up the construction of the national electricity market. We will give full play to the role of power trading centers in Beijing and Guangzhou, and improve the operation and management of power trading platforms and the inter-provincial and inter-regional market trading mechanism. According to the layout of power infrastructure construction and interconnection, we will study and promote the timely establishment of a national power trading center, introducing market entities such as power generation enterprises, power sales companies, users and relevant strategic investors, establish a corporate governance system and operation mechanism that is standardized in accordance with the law and with clear powers and responsibilities, set up corresponding market management committees, and improve the mechanism of deliberation, coordination and supervision.

(2) steadily promote the construction of provincial (autonomous regional and municipal) / regional power markets. Give full play to the basic role of the provincial (autonomous regional and municipal) market in the national unified power market system, improve the efficiency of the allocation of power resources in the province, and ensure the basic balance of local power. We will implement major national and regional strategies such as the coordinated development of Beijing, Tianjin and Hebei, the integration of the Yangtze River Delta, and the construction of Guangdong-Hong Kong-Macau Greater Bay Area, encourage the construction of corresponding regional power markets, and carry out cross-provincial and inter-regional medium-and long-term power transactions and auxiliary service transactions such as frequency modulation and reserves. optimize the allocation of regional power resources.

(3) to guide the coordinated operation of electricity markets at all levels. We will promote the construction of national markets, provincial (autonomous regional, municipal) / regional power markets in an orderly manner, and strengthen the coupling and orderly connection of different levels of markets. When the conditions are ripe, support the integration and development of the provincial (autonomous region, municipal) market and the national market, or the integration and development of multiple provinces (autonomous regions and cities) to form a regional market. We will promote the exploration and establishment of a joint venture of power trading centers, and establish a sound cooperative operation mechanism.

(4) to promote the opening up and cooperation among inter-provincial and trans-regional markets in an orderly manner. On the basis of implementing Electroweb's safety guarantee to support power supply, and in accordance with the principle of increment first and stock later, we will classify and open priority power generation plans across provinces and regions, and promote the transformation of national power transmission plans and local government power transmission agreements into medium-and long-term contracts authorized by the government. We will establish a mechanism for diversified market entities to participate in cross-provincial and inter-regional transactions, and encourage and support power generation enterprises to carry out direct transactions with power sales companies and users. We will strengthen the dynamic connection between inter-provincial and inter-regional markets in terms of economic responsibility and price formation mechanism. We will speed up the establishment of a market-oriented mechanism for the distribution and transaction of trans-provincial and trans-regional transmission rights, and maximize the use of cross-provincial and trans-regional affluent channels to optimize the allocation of power resources.

III. Perfecting the functions of a unified electricity market system

(1) continue to promote the construction of the medium-and long-term electricity market. We will further give play to the basic role of the medium-and long-term market in balancing long-term supply and demand and stabilizing market expectations. We will improve the market-oriented adjustment mechanism for medium-and long-term contracts, shorten the transaction cycle, increase transaction frequency, enrich transaction varieties, encourage long-term medium-and long-term transactions, and standardize the process of medium-and long-term transaction organization and contract signing. Promote market players to form electricity prices at all levels of the market through market transactions, better widen the price gap between peak and valley, and guide users to cut peaks and fill valleys.

(2) actively and steadily promote the construction of the spot electricity market. Guide the spot market to better find the real-time price of electricity and accurately reflect the relationship between power supply and demand. We will organize and implement power spot market pilot projects, support the uninterrupted operation of qualified pilot projects, and gradually form a long-term and stable power spot market. We will encourage all kinds of priority power generation entities and users to jointly participate in the spot market, strengthen the connection between spot transactions and the liberalization of priority power generation and consumption plans, medium-and long-term transactions, and establish a reasonable cost diversion mechanism.

(3) continuously improve the power auxiliary service market. We will promote the power auxiliary service market to better reflect the market value of flexible regulatory resources, establish and improve auxiliary service markets such as frequency modulation and reserve, and explore users' adjustable load to participate in auxiliary service transactions. we will promote the construction of the integration of load and storage in the source network and the coordinated operation of multi-capacity complementarity, and improve the mechanism of cost sharing and income sharing. We will make overall efforts to promote the construction of medium-and long-term, spot and auxiliary service markets for electric power, strengthen orderly coordination among markets, and link up well in terms of transaction sequence, market access, price formation mechanism, and so on.

(4) to cultivate the main body of the market with diversified competition. Develop power consumption plans in an orderly manner, classify and promote priority power generation entities such as gas, cogeneration, new energy and nuclear power to participate in the market, and promote the full participation of business users in the market in batches, we will promote the transformation of priority power generation and priority power purchase plans into medium-and long-term contracts authorized by the government. Strict access standards and conditions for power sales companies, guide social capital to participate in power sales business in an orderly manner, give full play to the important role of Electroweb enterprises and state-owned power sales companies, improve the bottom-guaranteed power supply system to ensure the reliability of power supply, encourage power sales companies to innovate their business models, and provide value-added services such as comprehensive energy management and load integration. Guide new market players such as adjustable load resources, energy storage, distributed energy and new energy vehicles on the user side to participate in market transactions, so as to fully stimulate and release the flexible adjustment ability of the user side.

IV. Improve the trading mechanism of a unified electricity market system

(1) standardize and unify the basic trading rules and technical standards of the market. The Development and Reform Commission and the Energy Bureau organize relevant parties to formulate basic trading rules such as market access and exit, transaction varieties, transaction time series, transaction execution and settlement, as well as unified trading technical standards and data interface standards. All localities shall organize provincial (autonomous regional and municipal) power trading centers to formulate local trading rules in accordance with the basic trading rules. Promote effective convergence and overall consistency between trading centers in terms of technical and data standards.

(2) to improve the formation mechanism of electricity prices. We will reform and improve the formation mechanism of the marketization of coal and electricity prices, improve the electricity price transmission mechanism, unify and standardize the price rules of local electricity markets, and effectively balance power supply and demand. We will promote all industrial and commercial users to enter the electricity market in an orderly manner, and ensure that electricity prices for residents, agriculture and public welfare undertakings are relatively stable. Users of clean heating are encouraged to reduce heating costs by participating in the electricity market. We will strengthen the supervision of Electroweb's permitted income from power transmission and distribution, promote separate accounting for Electroweb's transmission and distribution business and electricity purchase and sale business, and properly handle policy cross-subsidies. Improve the flexibility of inter-provincial and inter-regional transmission price mechanism, and explore ways to charge transmission fees according to the optimal path combination of inter-provincial and inter-regional transactions.

(3) do a good job in the efficient connection between market-oriented transactions and dispatching operation. On the premise of ensuring the safe operation of Electroweb and reliable power supply, we should coordinate and optimize the operation of the electricity market and the dispatching operation of Electroweb, and improve the relevant business processes and institutional standards of Electroweb enterprises. Strengthen the business coordination between the power trading center and Electroweb enterprises, and promote the sharing of planning, marketing, measurement, finance, dispatching and other information. We will enhance the intelligence of Electroweb, strengthen power operation, dispatching and safety management, and implement the results of electricity market transactions in accordance with the law.

(4) strengthening information sharing and disclosure. We will promote the sharing of registration information among the main players of the national electricity market. Implement the requirements of the information disclosure system, standardize the disclosure process, and disclose key information such as Electroweb security constraints and inter-provincial and inter-regional available transmission capacity in accordance with the law. We will build a unified information disclosure platform, improve the information security guarantee mechanism, and ensure the security and controllability of electric power operation information.

V. strengthening overall planning and scientific supervision of electric power

(1) to improve the electric power planning system adapted to the market-oriented environment. We will coordinate the planning and layout of renewable energy and conventional power sources, strengthen the connection between national power planning and local power planning, power planning and Electroweb planning, power planning and market construction, and pay attention to giving full play to the guiding role of market price signals in power planning and construction.

(2) to improve the supervision system of the modern electricity market. Enhance the ability of scientific supervision of the electricity market, strengthen monitoring and early warning, strengthen the operational monitoring and risk prevention and control responsibilities of power trading institutions and dispatching institutions, and do a good job in the supervision and evaluation of information disclosure in the electricity market. We will strengthen the supervision of the natural monopoly business of Electroweb enterprises, improve the fair and open supervision system of Electroweb, and strengthen the evaluation of operation safety and service quality.

(3) improve the credit system of the electricity market. We will improve the self-discipline and social supervision mechanism of market subjects, improve the credit evaluation system of the electricity market, carry out credit evaluation of market subjects, promote hierarchical and classified supervision, realize the sharing of credit information among market subjects, and improve the mechanisms of incentive and punishment for breach of faith. we will build a new type of supervision mechanism based on credit.

(4) improve the mechanism of emergency supply of electric power. Speed up the capacity building of emergency reserve and peak-shaving power supply, establish and improve the cost recovery mechanism, and achieve reasonable economic compensation through capacity cost recovery mechanism and auxiliary service market. We will improve the market emergency response mechanism, give priority to ensuring the supply of electricity for people's livelihood, and ensure the safety of power supply.

VI. constructing the market mechanism adapted to the new power system

(1) to enhance the adaptability of the electricity market to a high proportion of new energy. We will strictly implement laws, regulations, policies and measures that support the development of new energy, improve the market mechanism adapted to a high proportion of new energy, promote new energy to participate in electricity market transactions in an orderly manner, attract social capital with market-oriented gains, and promote sustainable investment in new energy. Establish a medium-and long-term power trading mechanism suited to the characteristics of new energy, and guide new energy to sign long-term medium-and long-term contracts. New energy quotations are encouraged to participate in the spot market, and the amount of electricity that fails to win the bid will not be included in the assessment of abandoned wind and light electricity. Peak shaving services are promoted in the spot market, and areas with a high proportion of new energy can explore the introduction of new auxiliary services such as climbing.

(2) to establish a cost recovery mechanism for power generation capacity in accordance with local conditions. Guide all regions to establish a market-oriented generation capacity cost recovery mechanism according to the actual situation, and explore various ways such as capacity compensation mechanism, capacity market, scarce electricity price and so on, so as to ensure the recovery of fixed cost of power supply and the security of long-term power supply. Encourage the investment and construction of regulating power sources such as pumped storage, energy storage and virtual power plants.

(3) to explore the development of green power trading. Innovate the system and mechanism, carry out pilot green power trading, discover the environmental value of green power in a market-oriented way, and reflect the priority of green power in transaction organization, Electroweb dispatching and other aspects. Guide users with demand to buy green power directly, and promote Electroweb enterprises to give priority to the implementation of direct trading results of green power. Do a good job in the effective connection between green power trading, green card trading and carbon emissions trading.

(4) improve the market-oriented trading mechanism of distributed power generation. We will encourage distributed photovoltaic and distributed wind power to trade directly with surrounding users, improve the transaction settlement, operation and scheduling mechanisms between microgrid, small Electroweb, incremental distribution network and large Electroweb, and enhance the ability to absorb new energy nearby and operate safely.

VII. Strengthen organizational implementation

(1) strengthen organizational implementation. We should always adhere to and strengthen the leadership of the party, and carry it through the whole process of building a unified electricity market system throughout the country. It is necessary to strengthen overall power planning, policies and regulations, and scientific monitoring, and scientifically guide power planning and effective investment. The Development and Reform Commission and the Energy Bureau should strengthen overall guidance on the construction of a unified power market system, comprehensively consider the endowment of energy and resources, the level of electricity prices, and the safe operation of Electroweb, strengthen systematic research and coordinated promotion, improve emergency regulation and control plans and guarantee supply mechanisms, improve relevant supporting policies, and strengthen organization and coordination, supervision and management, and risk prevention. The governments of all provinces (autonomous regions and municipalities) should clearly define the lead departments and the division of tasks, do a solid job in the construction of the local power market in accordance with the overall deployment, and promote comprehensive and coordinated supervision.

(2) to create an atmosphere for reform. Organize special research and training on power market construction, encourage and guide relevant market players to give full play to their respective advantages, actively adapt to the direction of new power system construction and marketization, and actively participate in the construction of power market. Through press conferences and other forms, we will strengthen the publicity, guidance and policy interpretation of the construction of a national unified power market system, build a consensus on the development of the power market, and create a good atmosphere for reform.

(3) follow up and evaluate in a timely manner. Power trading institutions and dispatching institutions shall, in accordance with the division of responsibilities, do a good job in recording, summarizing, analyzing and disclosing market operation information, so as to reflect the operation status of the electricity market timely and accurately. The Development and Reform Commission and the Energy Bureau carry out regular assessments on the operation of the electricity market, sum up experience in a timely manner, and strengthen supervision and guidance on the construction of the electricity market in various places.

National Development and Reform Commission

Guojia Energy Source Bureau

January 18, 2022