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"Energy Law" for comments? What is the fate of thermal power and power grid? 2020-04-13


On April 3, the National Energy Administration issued an announcement for public consultation on the "Energy Law of the People's Republic of China (Draft for Comment)". As early as 2015, the legislative work of the "Energy Law" was included in the State Council's "projects that are urgently needed to comprehensively deepen reform and comprehensively govern the country according to law", and is also a "leading" project for the entire energy law system.

 

Now, the introduction of the consultation draft means that the Energy Law is one step further from the official introduction. So what are the key contents of the most important legal project in China's energy field for the construction of electricity and the electricity market?

 

Clean, efficient and low-carbon is the future of thermal power

 

The fourth rule of general rules is structural optimization. "The state adjusts and optimizes the energy industry structure and consumption structure, giving priority to the development of renewable energy, developing nuclear power safely and efficiently, increasing the proportion of non-fossil energy, and promoting the clean and efficient use of fossil energy and low-carbon development."

 

There is no doubt that the future development of fossil energy thermal power is necessarily clean and efficient use and low carbonization. This is also clarified in Chapter 3 Energy Development and Processing Conversion, Section 2 Fossil Energy, and Article 42 Thermal Power Development: "Energy authorities should take measures to develop clean, safe and efficient thermal power generation and related technologies , Improve energy efficiency, reduce pollutant emissions, optimize the structure of thermal power generation, and develop co-generation, cogeneration of heat and power, and co-generation of cogeneration of heat and power according to local conditions. "

 

Grid access without discrimination

 

In Chapter 4 Energy Supply and Use, and Article 53 Pipeline Network Management, it is clarified that "grid, oil and gas pipeline network and other energy transmission pipeline network facilities should improve the fair access mechanism and legally produce and sell qualified energy Enterprises and other market entities are fair and open without discrimination. No unit or individual may restrict market entities from applying for access to the energy transmission pipeline network in accordance with relevant state regulations. "

 

This will greatly facilitate the connection of renewable energy power generation to the power grid, as well as the connection of various microgrids and other projects to the large power grid.

 

In addition, the content of supply supervision also regulates the fair opening of the power grid. "Energy authorities and relevant departments shall, in accordance with the division of responsibilities, legally supervise the fair opening and investment operation efficiency of energy transmission and distribution networks such as power grids and oil and gas pipeline networks with natural monopoly characteristics, promote fair competition, and protect consumer rights and interests . "

 

Market and price

 

In Chapter V Energy Market and Article 65 Market Construction Goals, the country is divided into varieties to establish an energy market system with diverse subjects, unified and open, orderly competition, and effective supervision, so as to realize the optimal allocation of energy resources in a larger range. "

 

In terms of price formation mechanism, "the competitive link in the energy field is mainly formed by the market, and the state promotes the formation of a mechanism that determines energy prices mainly by factors such as the status of energy resources, market supply and demand, environmental costs, and inter-generational equity and sustainability.

 

Considering the domestic power market situation and the ongoing power system reform, the future power prices will be mainly formed by the power trading market and spot trading. Become a price signal that reflects market supply and demand.

 

And another concern of the electricity market is price cost supervision. "The price authority shall carry out energy price cost supervision and review in accordance with regulations. Energy enterprises shall provide price cost data in a timely, truthful and accurate manner in accordance with the requirements of the price authority and accept price cost supervision. The price authority shall consider the market supply and demand of energy products or services Factors such as conditions, resource scarcity, environmental damage costs, national economic and social development requirements, and social affordability, formulate and adjust energy prices that are included in government pricing in accordance with the principles of allowable costs, reasonable profits, tax calculation according to law, and fair burden. "

 

This mainly affects the cost accounting and final price verification of power grid transmission and distribution prices. This also means that the calculation of transmission and distribution prices in the future will have a legal basis, and the public will have more transparency on the key factors such as the cost composition of transmission and distribution prices.


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