The total scale has exceeded one trillion! A list of power transaction scales in provinces and regions across the country in 2020

Polaris Power Sales Grid News: With the start of 2020, provinces have begun to prepare for the 2020Electricity Market, the transaction scale in 2020 has been announced to the public recently. As of now, 9 provinces and regions across the country have announced their 2020Electricity Tradingscale,Market-oriented electricity tradingThe total scale is 1261.04 billion kilowatt-hours, which is a significant increase compared with the scale of electricity transactions in various provinces and regions in 2019.

Jiangsu: 315 billion kilowatt-hours

In the "Notice on Carrying out the Electric Power Market Trading in 2020" issued by Jiangsu, the scale of direct electricity transactions in the province in 2020 was determined. Among them, annual transactions adopt bilateral negotiation and listing methods, while monthly transactions adopt centralized bidding, listing and other methods.

It is worth noting that the access of power users in Jiangsu in 2020 is only for power users participating in the power market transactions in 2019 and 5G base station users who meet the requirements. This means that incremental users will not be able to enter the market in 2020.

Comment: Although Jiangsu Province has been relatively short in opening the electricity sales market, the speed of promotion has been relatively fast. In 2019, Jiangsu's total electricity consumption in 626.4 billion kilowatt-hours, ranking second in the country. But it is surprising that the incremental users in 2020 were unable to enter the market. Some people say that the electricity supply in Jiangsu is less than demand and the electricity on the power generation side is low. According to the data, Jiangsu's annual power generation in 2018 was 493.35 billion kWh, while the total electricity consumption of the whole society reached 612.83 billion kWh. The power demand is far greater than the province's power generation capacity, so that the Jiangsu power market cannot accommodate more new power users to participate in market-oriented transactions.

Guangdong: 260 billion kilowatt-hours

In the "Notice on Matters Related to the Scale of Electric Power Market and Market Access in 2020", Guangdong preliminarily determined that the transaction size of Guangdong's electricity market in 2020 was about 260 billion kilowatt-hours. Guangdong's transaction scale in 2020 increased by 60 billion kilowatt-hours again compared with 2019, and the degree of marketization has increased again.

In terms of power user access: All power users entering the market must meet the voltage level of 10KV and above. Among them, industrial and commercial enterprises with annual electricity consumption of 4 million kWh and above in the nine cities of the Pearl River Delta, industrial and commercial enterprises with annual electricity consumption of 2 million kWh and above in the 12 cities of the east and west, Guangdong, provincial high-tech enterprises have annual electricity consumption of 1 million kWh and above in the province, steel and building materials (cement, lime, gypsum manufacturing and their product manufacturing, glass products, building ceramics manufacturing) industries have annual electricity consumption of 2 million kWh and above in the Pearl River Delta region, property management enterprises in the Pearl River Delta region, non-Pearl River Delta region, industrial users of non-Pearl River Delta region, industrial threshold restrictions.

Comment: Guangdong's power sales market has always been relatively active. In 2020, the total transaction volume of Guangdong's bilateral negotiation transaction results was 211.713 billion kWh, and the average transaction price reached -47.1 cent/kWh. As the trial operation of the spot market settlement in the south (starting in Guangdong) is on track, a diversified trading model will also appear.

Zhejiang: 200 billion kilowatt-hours

In the "Several Opinions on Resolutely Winning the Battle against the New Coronavirus Pneumonia Epidemic and Strongly Stabilize Enterprises and Economic Development", the Zhejiang Provincial People's Government mentioned that it will arrange 200 billion kilowatt-hours of market-oriented electricity such as direct electricity trading and spot market trading in 2020, reducing the electricity costs of enterprises by more than 3 billion yuan. In the "2020 Zhejiang Province Energy Field System Reform Work Key Points" issued by Zhejiang Province on January 20, 2020, it also mentioned that by expanding market-oriented transactions, we will strive to fully release the development and electricity use plan within 1-2 years.

Zhejiang Power User Access in 2020 has not yet been announced.

Comment: Zhejiang's power market has always attracted much attention. In the second half of 2019, Zhejiang liberalized power sales companies to enter the market, and so far, there have been 90 power sales companies. In 2019, Zhejiang Province arranged four major industries to participate in electricity transactions with a scale of 18 billion kilowatt-hours. I believe that the trading space in 2020 will be further expanded and the participation scope of market entities will be wider.

Shanxi: 153.04 billion kilowatt-hours

Shanxi mentioned in the "Target Plan for the Power Generation Regulation of Provincial Power Generation Enterprises in 2020" that the power generation arrangement in the province is divided into two parts, namely the market transaction electricity volume of 153.04 billion kWh and the benchmark electricity volume of 70.111 billion kWh.

As for market entities, wind power and photovoltaics can participate. Among them, the pre-arranged base price electricity of wind power and photovoltaic units is 27.5 billion kilowatt-hours, accounting for 39% of the total base price electricity. The wind turbine unit is arranged for a benchmark utilization hour of 1,200 hours, and the photovoltaic unit is arranged for 900 hours. The newly put into production wind power and photovoltaic generator sets are arranged for a benchmark utilization hour in proportion according to the month of production. All electricity except the implementation of the benchmark electricity price will participate in market-oriented transactions.

Power users: Gradually and fully liberalize power users in business fields to participate in market transactions. Electricity users who implement large-scale industrial electricity use are not subject to voltage levels and electricity limits; electricity users who implement general industrial and commercial electricity use are not subject to voltage levels, but the electricity consumption in the previous year (November 2018-October 2019) must be above 5 million kilowatt-hours (except for fruit refrigeration electricity use and telecom base station electricity use); support high-value-added emerging industries, export processing and trade enterprises such as high-tech, Internet, big data, and high-end manufacturing industries, and "coal to electricity" users with "coal to electricity" priority to participate in market transactions, and are not subject to voltage levels and electricity limits.

Comment: Previously, Shanxi's annual transaction scale increased by 15 billion kilowatt-hours. In 2019, Shanxi's transaction scale was 80 billion wo-hours, and the increase in 2020 was close to 50%. The most critical reason is that more new energy generator sets enter the market and operating power users will be gradually relaxed.

Sichuan: 100 billion kilowatt-hours

In the "Notice on the Opinions on the Overall Plan for Market-based Electric Power Market-based Transactions in Sichuan Province in 2020" (Revised Draft)", Sichuan stated that the scale of market-based trading electricity in the province in 2020 will be around 100 billion kilowatt-hours.

Power user access scope: Sichuan Province has approved transmission and distribution prices for commercial formal electricity users who comply with national industrial policies, environmental protection policies and energy conservation and emission reduction policies, including specialized industrial users, as well as general industrial and commercial and other specialized users whose network purchase electricity exceeds 2 million kilowatt-hours in 2019. Users of important public utilities and public welfare services such as agriculture, residents' lives, party and government organs, schools, hospitals, public transportation, finance, communications, postal services, water supply, gas supply, etc. will not enter the market for the time being.

Comment: This is the second edition of the draft for soliciting opinions on the "Overall Plan for Market-based Electric Power Market Transactions in Sichuan Province in 2020" released by the Sichuan Provincial Power Market Management Committee. Compared with the first version of the draft for soliciting opinions, the scale of market-based electricity transactions in the province in 2020 is about 100 billion kilowatt-hours. In terms of market entities, we have also seen more users participating. All signs indicate that Sichuan's power sales market will definitely be lively in 2020.

Fujian: 80 billion kilowatt-hours

Fujian mentioned in its 2020 electricity trading plan that the scale is about 80 billion kilowatt-hours. Market transactions are generally arranged in the annual and monthly cycles, and within-month transactions are carried out in a timely manner. Among them, annual transactions are mainly bilateral negotiations, with centralized matching and listing as the supplement; monthly and monthly transactions are mainly centralized bidding, with bilateral negotiation and listing as the supplement.

The standards for accessing power users are:

1. Industrial users with voltage levels of 10KV or above within the province's power grid coverage (including direct supply areas and building and sales areas) comply with industrial and environmental protection policies, and annual electricity purchases of 8 million kilowatt-hours or above. The average monthly electricity purchase of newly put into production of industrial users should reach 600,000 kilowatt-hours or more before the end of August 2019.

2. In the pilot park of incremental distribution reform business and the pilot park of power purchase and sales business reform, industrial and commercial users with voltage levels of 10V or above and comply with industrial and environmental protection policies.

3. Power users with voltage levels of 10KV or above in the coal, steel, nonferrous metals, and building materials industries that comply with industrial and environmental protection policies.

4 Railways attract important non-industrial users such as power companies and expressways.

5. Implement electricity substitution and demonstrated power users.

Comment: Since 2018, the scale of electricity transactions in Fujian has increased by 10 billion kilowatt-hours per year. Fujian will further promote the construction of spot pilot projects in 2020, and more new energy companies will also enter market-oriented transactions.

Xinjiang: 53 billion kilowatt-hours

In the "Implementation Plan for Direct Power Transaction in Xinjiang Uygur Autonomous Region in 2020", it can be seen that the scale of direct power transactions in Xinjiang in 2020 is controlled at 53 billion kilowatt-hours. Among them, the annual electricity volume of targeted bilateral power users is about 15.2 billion kilowatt-hours. The annual transaction scale is expected to be 37.8 billion kWh, of which the annual direct transaction power scale in Xinjiang is controlled at 33 billion kWh, and the monthly transaction scale is controlled at 4.8 billion kWh.

In terms of power users: Xinjiang announced that it will open up commercial power users to participate in direct transactions in Xinjiang by 2020. Operating power users with annual electricity consumption of 5 million kilowatt-hours and above (300 kilowatt-hours and above in southern Xinjiang) and access voltage levels of 10 kV and above are large users, while other users are small and medium-sized users. Large users can participate in or entrust power sales company agents to participate in market-oriented transactions, while small and medium-sized users can only participate in market-oriented transactions through power sales company agents.

Comment: Xinjiang’s transaction scale was determined earlier this year, and it was also an early province and region that proposed to relax business users’ participation in market transactions. Market-oriented transactions in Xinjiang will be more active in 2020.

Hunan: 50 billion kilowatt-hours

The "2020 Hunan Province Power Market Trading Plan" clearly states that the annual transaction scale is 50 billion kWh, of which the total annual transaction volume is controlled at 28 billion kWh, and industrial and commercial users have basically been fully liberalized.

In 2020, Hunan's access entities increased, and new hydropower with installed capacity of more than 20,000 kilowatts must be included in market transactions, further promoting more market entities to enter the market, which is conducive to market fairness.

Hunan also stipulated the concession standards in 2020: in principle, the average concession given by the power sales company to its agent users is not less than 80% of the profit of its wholesale transaction electricity purchase price difference. In addition, in special trading, the price limit is limited to -4 minutes/kWh to -5.5 minutes/kWh.

Comment: In 2020, Hunan stipulated the concession standards for power sales companies, which to a certain extent guaranteed the interests of power sales companies and avoided vicious competition among industries.

Jiangxi: 50 billion kilowatt-hours

In the "Notice on Issuing the Implementation Plan for Market-based Electric Power Transactions in the Province in 2020", Jiangxi mentioned that the market-based trading power volume in 2020 will not be less than 50 billion kilowatt-hours, accounting for about 50% of the thermal power generation in the province.

In terms of power users: liberalize the power generation and use plans of large industries with voltage levels of 10 kV and above, four key industries (coal, steel, nonferrous metals, building materials), provincial and above industrial parks, and national incremental distribution and sales business reform pilot areas. Principle supports qualified high-speed rail, rare earth, 5G and other industries to participate in market-oriented transactions.

Comment: Jiangxi's market-oriented power transaction scale has always followed the principle of orderly liberalization. In 2019, the transaction scale was 35 billion kilowatt-hours, an increase of 15 billion kWh. Recently, the Jiangxi Electric Power Trading Center announced that it has exempted the assessment of market-oriented trading electricity deviations from January to February, which is considered to have given market entities peace of mind.

Guizhou: Not yet announced

The transaction scale of Guizhou in 2020 has not been announced yet.

However, in terms of power user access, Guizhou stated in the implementation plan for market-oriented power trading in 2020 that all types of operating power users with voltage levels and included in the government access catalog can participate in the transaction. Users with an annual electricity consumption of 5 million kilowatt-hours and above can directly trade with the power generation company, or choose to be represented by the power sales company.

Comment: Guizhou announced the release of commercial power users into the market in 2020, and I believe that the transaction scale will definitely increase.

Ningxia: The scale is no less than 50% of the electricity sold in the district

In the "Notice on Organizing Direct Electric Power Trading in 2020", the Ningxia Development and Reform Commission stated that in accordance with the requirements of orderly advancement and gradual liberalization, all electricity outside the base will enter the market. The transaction volume in 2020 will be determined at no less than 50% of the electricity sold in the region. The electricity users in the district, including coal, steel, nonferrous metals and building materials, participated in the transaction with all electricity. Eligible operating power users will voluntarily apply for registration at State Grid Ningxia Electric Power Trading Center Co., Ltd., and can participate in the transaction after the registration takes effect.

Comment: Ningxia, as my country's first comprehensive new energy demonstration zone, has always developed rapidly. As all commercial users enter the market, they will also contribute more to the consumption of new energy.

Anhui: Not yet announced

The Anhui Provincial Energy Bureau recently issued the "Notice on Issuing the Implementation Plan for Direct Power Transaction in the Province in 2020", which stated that the scale of direct power transactions in the province in 2020 will not be set at the upper limit.

Electricity users: Operating electricity users who implement industrial and commercial and other electricity prices (two-part systems). Operating power users who implement industrial and commercial and other electricity prices (single system) and whose annual electricity consumption is greater than 500,000 kilowatt-hours per household. Users who actively participate in the power market and meet the above-mentioned electricity consumption types and electricity consumption conditions are given priority.

Comment: There is no upper limit on the transaction scale in Anhui in 2020, which also gives market entities huge market space. In 2019, there were two high price spreads in Anhui's monthly centralized bidding, which made Anhui's power sales companies make a big profit. I hope that more surprises will appear in the Anhui power sales market in 2020.

Yunnan: Not yet announced

In the Yunnan "Implementation Plan for Market-based Transactions in Yunnan in 2020", the transaction scale is not clearly stated. However, the transaction price is stipulated. Among them, bilateral negotiated transactions do not limit prices. Direct electricity trading with centralized competition methods such as continuous listing and independent listing sets the minimum price limit and maximum price limit, with the minimum price limit of 0.15 yuan/kWh and the maximum price limit of 0.42 yuan/kWh.

Comment: Yunnan has always been at the forefront of the country in terms of power reform and liberalization. It is also the first province to relax business power users to participate in market-oriented transactions. It is estimated that the transaction scale will also be significantly improved.

Shandong: Not yet announced

In the "Notice on Implementing a Good Job in the Power Generation and Use Plan of Commercial Power Users in Our Province", Shandong mentioned that before the end of 2020, the annual electricity volume of more than 4 million kilowatt-hours (single electricity address) will be given priority to the release of electricity users who are more than 4 million kilowatt-hours (single electricity address), all high-voltage operating power users who are eligible by the end of 2021, and all low-voltage operating power users who are eligible by the end of 2022.

In terms of power user access: Based on the user access standards in 2019, power users will enter the market by entering the market by 4 million kilowatt-hours and above by voltage levels of 10 kV and above in 2020.

Comment: Shandong has always ranked among the top three in the country in terms of market-oriented electricity transactions, and its number of access power sales companies ranks first in the country. In 2019, the trading electricity volume in Shandong Province was 160 billion kilowatt-hours, but the transaction scale in 2020 has not been announced. I don’t know if the time has not come. I believe that the transaction scale in 2020 will definitely increase.

Henan: Not yet announced

The scale of Henan's transaction in 2020 has not been announced to the public yet.

For the participants, in the "Notice on Matters Related to Direct Power Transaction in Henan Province in 2020", it stated that industrial and commercial users in the administrative region of Henan Province and power distribution and sales enterprises that meet the access conditions can participate in the direct power transaction in 2020 after the trading platform is successfully registered. Users with annual electricity consumption exceeding 5 million kilowatt-hours can conduct direct transactions with power generation companies.

Comment: Many power sales companies have summarized the power transactions in Henan in 2019 as one word "difficulty". The price difference went through Waterloo directly, from the highest 5 minutes of electricity price difference to 5 minutes, to tiny, silk.

The current situation of Henan's power sales market is reflected in the fact that power generation companies are not very enthusiastic about participating in the market, and private power sales companies are struggling to make progress. What is the root cause of the problem? Industry insiders have different opinions. Some people believe that Henan has never established a strict assessment system, while others believe that the problem lies in the single-household settlement method of the power grid.

As the transaction scale of various provinces and regions gradually expands, it is a great benefit for market entities. For power sales companies, they should pay special attention to external factors such as control deviation assessment to avoid profit damage.