Electrical Equipment / Components & Telecoms

Recently, the National Development and Reform Commission and the National Energy Administration formally replied to the State Grid Corporation of China and China Southern Power Grid Corporation to promote the development of pilot green power transactions. Why launch the pilot work of green power trading? How to organize and implement green power trading? The reporter interviewed the relevant person in charge of the National Development and Reform Commission.

Question: After the Party Central Committee and the State Council put forward the carbon peak and carbon neutral targets, what is the background and starting point for launching the green power trading pilot work?

Answer: In order to implement the strategic deployment of the Party Central Committee and the State Council on carbon peaking and carbon neutrality, and to accelerate the construction of a new power system with new energy as the main body, it is necessary to take strong measures to vigorously develop new energy. Due to technical characteristics such as instability of new energy power generation output, the consumption and operating costs of the power system will increase significantly. To achieve the multiple goals of power low-carbon transformation, safety, reliability, and affordability at the same time, it is necessary to deepen the reform of the power system and make explorations and innovations in institutional mechanisms and market construction. By carrying out green power transactions, some users who are willing to take on more social responsibilities are distinguished, and they are directly traded with wind power and photovoltaic power generation projects to guide green power consumption in a market-oriented manner, reflecting the environmental value of green power and generating green power The proceeds will be used to support the development and consumption of green power, and to better promote the construction of new power systems.

Question: Are the conditions for green power trading mature and are technically prepared?

Answer: During the design and research process, the National Development and Reform Commission conducted in-depth investigations with the National Energy Administration, related companies, experts and scholars, and found that the conditions for developing a green power market are ripe. One is that enterprises have demand. Many companies have a strong willingness to participate in green power transactions, and many companies have expressed their willingness to pay extra for the environmental attributes of green power. In the future, as more willing companies participate in the transaction, the transaction scale will continue to expand.

The second is the willingness of the locality. Some regions have carried out in-depth research and basic work on green power trading, and are very enthusiastic about green power trading. At the same time, they also hope to conduct overall design at the national level and clarify basic standards and rules.

The third is technology achievable. Using new technologies such as blockchain, it is possible to comprehensively record the information of each link of green power production, transaction, consumption, etc., to ensure that it cannot be tampered with, and to achieve the full life cycle tracking of green power. At present, the State Grid has applied for a patent for the green certificate transaction system based on the blockchain. Fourth, transactions can be organized. The Beijing Electric Power Trading Center and Guangzhou Electric Power Trading Center have conducted a lot of research work. At present, the trading platform has realized the functions of price formation, contract signing, priority execution (clearing), and priority settlement to meet the needs of green power trading. Fifth, consensus has been formed in all aspects. All parties generally believe that my country's first green power transaction is of great significance. It will not only play an important supporting role in the implementation of the dual-carbon goal and build a new power system, but will also provide Chinese solutions for the development of global renewable energy. As new energy sources become the mainstay of the power system, green power trading will also play an increasingly important role in the power market system.

Question: What are the overall considerations for conducting green power trading pilots? How to promote my country's clean and low-carbon transition through green power trading?

Answer: The general consideration for pilot green power trading is to give full play to the decisive role of the market in resource allocation, better play the role of the government, and promote the priority of green power in terms of trading organization, grid dispatching, and price formation mechanism. The main body provides a fully functional, friendly and easy-to-use green power trading service, which fully reflects the environmental value of green power. Through the structural reform of the power supply side, the whole society shall be guided to form a consensus on the active consumption of green power, fully stimulate the potential of both the supply and demand sides to accelerate the development of green energy, and accelerate the promotion of my country's clean and low-carbon transition.

Question: Is there any difference between green power and general power trading? What is the trading mechanism? Which market players can participate?

Answer: Green power trading is to establish independent green power trading varieties under the existing medium and long-term trading framework, and actively guide users with green power needs to directly conduct transactions with power generation companies. Green power is given priority in power market transactions and grid dispatching operations. Organize, prioritize arrangements, prioritize implementation, and prioritize settlements, and use relevant policies and measures to encourage the enthusiasm of electricity consumers to purchase green power. The market entities participating in green power transactions have recently focused on wind power and photovoltaic power generation, and have gradually expanded to other renewable energy sources such as hydropower. Green power transactions will prioritize fully market-oriented green power on the Internet. If some provinces are fully market-oriented in the initial market The scale of power is limited, so you can consider buying government subsidies and guaranteed green power from power grid companies.

Question: How will the green power pilot work be organized and implemented in the next step?

Answer: Under the guidance of the National Development and Reform Commission and the National Energy Administration, the pilot work of green power trading will be carried out by the State Grid Corporation of China and China Southern Power Grid Corporation of Beijing Electric Power Exchange Center and Guangzhou Electric Power Exchange Center. Platform function, organizing the registration of market entities and green power trading. At the initial stage of the pilot, it is planned to select regions with strong green power consumption willingness. After the green power trading pilot work starts, other willing regions will also provide active support in the future. During the pilot process, relevant departments will strengthen guidance, improve related supporting policies, coordinate and solve related problems in a timely manner, and create a good environment for green power trading.