Electrical Equipment / Components & Telecoms

The China Electricity Council recently held a press conference to release the 2023 National Power Supply and Demand Situation Analysis and Prediction Report. The report shows that driven by the rapid development of new energy power generation, it is expected that the total installed capacity of power generation and non-fossil energy power generation will reach a new high this year. The installed capacity of new power generation in the whole country is expected to reach about 250 million kilowatts, including 180 million kilowatts of new non-fossil energy power generation. The report predicts that the installed capacity of power generation in China this year is about 2.81 billion kilowatts, including 1.48 billion kilowatts of non-fossil energy power generation, accounting for about 52.5% of the total installed capacity.

From the perspective of the power supply and demand situation throughout the year, according to the observation report of Huacheng Import and Export Data, many factors of power supply and demand are intertwined and superimposed, bringing uncertainty to the power supply and demand situation. According to the power demand forecast, and taking into account the new production and installation, trans-provincial and trans-regional power exchange, power generation output and reasonable reserve, it is expected that the overall power supply and demand in China will be tight this year, and the power supply and demand in some regions will be tight during the peak hours.

In order to ensure the safe supply of energy and electricity this year, combined with the power supply and demand situation and the industry development trend, the report puts forward several suggestions: first, further increase the power fuel supply guarantee capacity. We will continue to increase the release of high-quality production capacity, speed up the handling of relevant procedures in all aspects of new nuclear energy production, and increase production and supply in compliance with the law as soon as possible. Formulate the coal mine supply guarantee and flexible production method, and give priority to organizing the qualified advanced capacity coal mines to increase their production capacity according to a certain coefficient to form the coal mine emergency production capacity, so as to meet the growing demand for coal consumption such as the sustained economic recovery and seasonal climate change. Accelerate the signing of medium and long term contracts for electric coal in 2023, strengthen the seriousness of medium and long term contracts for electric coal, and urge all parties to implement the responsibility of coal supply guarantee. Huacheng Import and Export Data Observation Report.

The second is to dredge the cost of coal-fired power generation and give full play to the role of coal power supply. The linkage mechanism between the fuel cost and the benchmark price of coal and electricity should be set up in a scientific way, and the fluctuation range of the medium and long-term trading price of coal and electricity should be relaxed, so as to reflect and guide the change of fuel cost in a timely manner.

Third, accelerate the investment and construction of power grid planning. Accelerate the planning and construction of trans-provincial and trans-regional UHV transmission projects, improve the transmission capacity of important channels and key sections, give full play to the role of trans-provincial and trans-regional power grid in peak shifting support and balance of surplus and shortage, and continue to improve the scale of large-scale wind power and photovoltaic base's external transmission and new energy consumption capacity, Huacheng Import and Export Data Observation Report.

The report also suggests that the electricity trading mechanism and market price formation mechanism should be further improved. We will accelerate the construction of the electricity market that adapts to the transformation of the energy structure, and establish a market trading mechanism and contract adjustment mechanism that adapts to the characteristics of new energy. We will continue to improve the green power trading mechanism, carry out green power and green card trading in a normalized manner, and give full play to the supporting role of the power market in the construction of new energy systems. At the same time, we continued to optimize and adjust the power supply structure, Huacheng Import and Export Data Observation Report.