New Electricity Reform Lightens Energy Internet

The long-awaited "Several Opinions on Further Deepening the Reform of the Electric Power System" has been issued internally. This round of reform calls for a clear main line of “three liberalizations, one independent, one research, and three enhancements”, positioning the power grid functions, opening up the sales side, and promoting the development of distributed power supply. According to the analysis, under the new power reform, in addition to highlighting the value of power stocks, the energy Internet is also one of the bright spots. Investors can diversify gold from the six dimensions to change cakes.

New Electricity Reform: Three Releases, One Independence, Three Strengthening

The “Opinions of the Central Committee of the Communist Party of China and the State Council on Further Deepening the Reform of the Electric Power System” was internally issued on March 15. Although it has not yet been formally released, the new electricity reform will soon open up to the trillion-dollar power market, energy internet, and other emerging productive forces. The new power industry has been eagerly awaited by the market.

The electrical reform document is divided into seven sections and 28 strips. The main contents can be summarized as “three liberalizations, one independence, and three reinforcements”. Let go of the newly-added electricity distribution market, liberalize the operating electricity price other than transmission and distribution, liberalize electricity generation plans other than public welfare adjustment, and make the trading institutions relatively independent, strengthen government supervision, strengthen the overall planning of electricity, and strengthen and improve the safe and efficient operation of electric power. And reliability supply levels.

For the hot-separated grid division and transmission and distribution separation of monopoly problems, the document stated that “the study of regional power grid construction and the transmission and distribution system suitable for China's national conditions is deepened” and there are no more details.

For the electric reform program, CITIC Securities (600030) is expected to change in three major areas. The first is the power generation side. In addition to the supply and demand situation, the supply and demand situation will affect the on-grid tariff. The current loose supply and demand situation is not conducive to power generation companies, especially thermal power companies; at the same time, the differentiation between enterprises will also increase, and low-cost and low-cost companies It is expected to take advantage (through the increase in electricity prices and the increase in utilization hours). Secondly, on the grid side, the price difference between the two ends was converted from the unified purchase and sales to the public utilities, and the stability of profitability was enhanced. At the same time, government regulation increased. Finally, on the side of power sales, access thresholds are liberalized, power products and pricing are differentiated by homogenization, and the source of incremental profits for the industry; after the increase in the number of power sales entities, new demand and profit models may emerge, and the power market Will gradually form.

What has changed in the new power?

The first is electricity price reform. In the first step, the transmission and distribution tariffs are separately approved; in the second step, the sale price of electricity other than public welfare is gradually formed by the market; and the third step is to properly handle the cross-subsidization of electricity prices.

The second is the reform of the electricity trading system. According to the access voltage level, energy consumption level, emission level, industrial policy, and regional differentiation policies, the access standards of power generation companies, power sales entities, and users that can participate in direct transactions are determined and announced. According to the voltage level, the users are allowed to participate in direct transactions in batches, and the unit energy consumption and environmental protection emissions of enterprises participating in direct transactions shall meet the national standards. Enterprises that do not meet the national industrial policy and products and processes are eliminated shall not participate in direct transactions.

The third is to establish relatively independent power trading institutions and continue to improve the separation between the main and auxiliary. The grid companies are mainly engaged in grid investment and operation, power transmission and distribution, and are responsible for the safety of the grid system, ensuring that the grid is fair and non-discriminatory and open, and fulfilling the universal power service obligations in accordance with national regulations.

The fourth is to promote the reform of electricity and electricity plans. The electricity and capacity of direct transactions are no longer included in the electricity generation plan. Encourage new industrial users and newly approved generating units to actively participate in the electricity market transactions, and their electricity will be mainly market transactions as soon as possible.

The fifth is to promote the reform of the power sales side and orderly release the power sale business to social capital. Allow qualified high-tech industrial parks or economic and technological development zones to set up power purchasers to purchase electricity directly; encourage social capital to invest in the establishment of power sales entities, allow them to purchase electricity from power generation enterprises to sell to users; allow users with distributed power supply or micro The network system is involved in power trading; public service industries such as water supply, gas supply, and heat supply, and energy-saving service companies are encouraged to engage in power sales; qualified power generation companies are allowed to invest in and establish power sales entities to enter the power sales market and engage in power sales.

The sixth is to establish a new mechanism for the development of distributed power. We will fully release the user-side distributed power supply market and support enterprises, institutions, communities, and households to invest in various distributed power sources such as solar energy, wind power, biomass power generation, and gas-fired “thermal-electricity-cold” cogeneration, depending on their conditions.

Sale side gives up bonus

In addition to reorienting the power grid functions, the new power reform program also includes the development of the power market and the power sales market, encouraging social capital to participate in power sales and incremental power distribution, and promoting the development of distributed power sources.

After this reform, electricity prices will be divided into power generation prices, transmission and distribution prices, and electricity sales prices, of which transmission and distribution tariffs will be separately approved by the government, and will be gradually transitioned to the principle of “allowed costs plus reasonable returns”, which will be assessed at the voltage level. The step-by-step implementation of the sale of electricity prices was formed by the market. Residents, agriculture, important public utilities and public welfare services continued to implement government pricing. Therefore, the variable of this round of electric reform is mainly the selling price of the competitive link.

According to the analysis, the electricity sales side reform is expected to become the biggest bonus for this round of reforms. The market-oriented reform of the power sales side will allow five types of enterprises to become the new main players in power sales, including the establishment of high-tech industrial parks and economic development zones for the sale of electricity main bodies, social capital investment in the establishment and sale of electricity main bodies, water supply and heat supply and other public utility companies, and energy saving. Service companies and power generation companies can invest in the formation of power sales entities.

At the same time, the plan is clear and social capital is encouraged to invest in the distribution business. To explore effective ways for social capital to invest in distribution business, gradually release incremental power distribution investment business to qualified market entities, and encourage the development of distribution business by way of mixed ownership.

New Electricity Reform Lightens Energy Internet

The sale of electricity in the market will open up to force companies to cooperate with Internet companies. After the electricity sales market is liberalized, six types of competitive enterprises will share the trillion market, with a large number of diverse user needs and a large number of smart terminal access requirements, information and data management will become the core competition for power sales companies. One of the forces. Data mining and analysis capabilities are critical. Based on big data analysis, energy and power companies can provide deep insight into consumers, provide accurate services and marketing, acquire scientific management decision-making capabilities, maximize asset effectiveness, minimize pollution and Greenhouse gas emissions open.

Shen Wanhongyuan (000166) expects that the sale of electricity company touch network is a general trend, refused to touch the network with a high probability will be eliminated by the market. The multi-dimensional supply of power generation, power transmission, distribution, and distribution in the upstream of the electricity sales business, and downstream multi-dimensional customers such as industrial and commercial, residential, and industrial parks will undoubtedly become the data centers in the entire energy trading system. Therefore, the electric power reform will open up the power market. It is a necessary condition for the Internet of energy. It opens the door to Internet applications and truly integrates energy flow, information flow, and business flow.

It can be foreseen that under the market energy internet system after the electricity reform, the diversity of service needs of users is expected to break out geometrically in the future. Regional grid companies with distribution network resources have a large number of user data resources and they have access to the best energy Internet portals, benefiting the explosion of demand for energy Internet