Focus | Establish a scientific coal-power capacity electricity price mechanism to support the construction of new power systems

In order to help achieve the goals of carbon peak and carbon neutrality, adapt to the transformation of coal-fired power to both basic guarantee and system regulation power, and ensure the safe and stable supply of electricity,11moon10On the 2018th, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Establishing a Coal Power Capacity Electricity Price Mechanism" (hereinafter referred to as the "Notice"), optimizing and adjusting the coal-fired power price pattern. The "Notice" is an important guarantee mechanism designed to further ensure safe and stable energy supply under the requirements of accelerating the planning and construction of new power systems.

Background of policy introduction

First, coal-fired power, as a reliable power generation resource, assumes an important responsibility for safe supply of the power system. In order to meet users' electricity needs, the power system needs to be connected to sufficient reliable power generation capacity to ensure the safe and stable operation of the system. For my country, coal-fired power is still the most important and reliable power generation resource in the system in the near future. It is necessary to ensure sufficient coal-fired power grid-connected capacity to meet the safe operation needs of the power system.

Second, with the rapid advancement of the construction of the electricity spot market, there is a risk that market revenue cannot meet the needs of coal-fired power operation. Recently, the General Office of the National Development and Reform Commission and the Comprehensive Department of the National Energy Administration issued the "Notice on Further Accelerating the Construction of the Spot Power Market" (Development and Reform Office System Reform [2023〕813No.) Once again, the relevant requirements for accelerating the construction of the spot power market are clarified. Spot market prices will change rapidly due to the output characteristics of new energy. Spot market prices are generally low during periods of large new energy generation, and coal-fired power revenue is limited due to market price limits, which will reduce the on-grid electricity price of coal-fired power to a certain extent and further affect the medium and long-term prices. If the income obtained by coal-fired power through the electricity energy market cannot make up for its power generation costs, it will cause losses to coal-fired power companies.

Third, under the goal of building a new power system, renewable energy installed capacity has increased rapidly, squeezing the space for coal-fired power generation. At present, the total installed capacity of renewable energy in my country is about13.84100 million kilowatts, accounting for the total installed capacity49.6%, the installed capacity has exceeded the thermal power. Affected by this, the number of hours of coal-fired power utilization will be2022Yearly4379The hours gradually decrease,2030It will drop to4000～4100Hour,2060The year may only be1500About hours. Under the electricity price mechanism where coal-fired power revenue is mainly linked to the utilization hours, reducing utilization hours will further reduce the living space of coal-fired power, resulting in losses or withdrawal of coal-fired power, threatening the safe and stable operation of the power system.

Fourth, we have relatively mature experience in capacity compensation and capacity market construction in the international community, which provides a good reference for the design of my country's coal-power capacity electricity price mechanism. During the construction of foreign power market, the power generation cost that is not recovered due to factors such as the reduction in utilization hours and market price limits is called "lost money" (Missing Money), In order to solve this problem, many countries have explored and designed a price mechanism that supports the value of regulating capacity. United Kingdom, United StatesPJM,USATELLCountries and regions have designed a capacity market mechanism to support the adjustment of capacity prices through market competition; Zhili, Argentina, Shandong, my country and other places have designed a capacity compensation mechanism based on the government's determination to support the adjustment of capacity prices. By fully learning from foreign experience and referring to my country's practice, the design of my country's coal power capacity electricity price mechanism will be more scientific and reasonable, and the smooth transition with the current mechanism will be better, reducing the impact of mechanism changes on end users' electricity prices.

Therefore, establishing a coal-power capacity electricity price mechanism is an important measure to ensure the safe and stable operation of the power system and help the steady construction of new power systems.

The main contents of the Notice

Building a new model of coal-fired electricity price

The "Notice" proposes that the electricity price of coal-fired power reflects changes in power supply and demand and fuel costs, and the electricity price of coal-fired power capacity fully reflects the value of supporting and adjusting coal-fired power capacity, ensuring the sustainable and healthy operation of the coal-fired power industry and the long-term sufficient effective capacity of the power system.

From the policy purpose, coal-fired power actually forms "electricity price".+The price mechanism of capacity electricity price can better utilize price signals to reflect different value signals under the new model. By distinguishing the electricity price of coal-fired power and capacity electricity price, it reflects the changing cost of coal-fired power generation and supply and demand situation, as well as the value of reliable power generation capacity. On the one hand, the fixed cost of coal-fired power accounts for about the total cost of coal-fired power30%After compensating for part of the fixed cost, the electricity price of coal-fired power in the market can be closer to the marginal cost, thereby improving market operation efficiency; on the other hand, it reveals that the future market-oriented reform of electricity will develop towards refinement, make full use of different markets, and sensitively reflect the different values of electricity.

Clarify the scope of compensation, reasonably determine the compensation standards and clarify future development requirements

The "Notice" clearly states that the electricity price of coal-power capacity is applicable to unified coal-power units. Self-produced power plants and units that do not meet the national planning, energy consumption requirements, environmental protection and flexible adjustment capabilities requirements will not implement coal-power capacity compensation; based on the survey of typical machine cost, it is reasonably determined that the annual fixed cost expenditure during the coal-power operation period is330The compensation standards for coal-power capacity electricity price were designed in a differentiated manner based on factors such as economic affordability and coal-power utilization; further clarifying2026The compensation ratio for capacity electricity price recovery after the year shall not be lower than50%Requirements.

Through the design of coal-power capacity electricity price, compensation for coal-power capacity is achieved, and differentiated compensation standards are also set based on the development situation in various places.2024～2025In 2019, the compensation standards for coal-power capacity electricity prices in various provinces and cities are mostly used to recover fixed costs of coal-power30%or50%As the goal, only provinces such as Sichuan and Yunnan, which account for a high proportion of hydropower and coal-fired power play a more significant role in supporting and regulating the implementation.70%The standard achieves differentiated compensation according to the operation conditions of coal-fired power in each province, and is closer to the operation needs of the power system. The gradual change mode of compensation costs has been further clarified.2026After the year, the compensation ratio in various places will be increased to no less than50%, which is more conducive to ensuring the management of coal-electric motors that undertake safe supply and ensure the management of coal-electric motors and improving the enthusiasm of power generation enterprises to reasonably build new coal-electric motor units. If the price of coal-power capacity in the future is too low, it will be detrimental to distinguish the fixed cost of coal-power, and the price signal cannot be used to fully reflect the support and adjustment value of coal-power capacity.

Clarify the subject of expenses

The "Notice" clearly states that coal-power capacity electricity charges are included in the system operating fee and are distributed to industrial and commercial users on a monthly basis. The cost of coal-fired power units that transmit power across provinces and regions shall be shared by the provinces at the power receiving end according to the principle of "who benefits, who bears it"; for power transmission directions involving multiple provinces, the capacity electricity bill shall be calculated in principle according to the power transmission capacity.

The coal-power capacity electricity price mechanism designed this time further implements the "Notice on Further Deepening the Market-oriented Reform of the on-grid Electricity Price of Coal-fired Power Generation" (Development and Reform Price [2021〕1439Notice on the Provincial Grid Transmission and Distribution Price and Related Matters in the Third Supervision Cycle (Development and Reform Price [2023〕526Document requirements such as the requirements of documents such as the number) ensure the stability of electricity prices for residents and agriculture, and include relevant expenses in the system operation fees to guide industrial and commercial users, which better fits the current price mechanism. At the same time, the electricity charges for coal-fired power supply capacity involving multiple exported provinces are calculated separately according to the power transmission capacity, so that the responsibilities of the power receiving provinces are better clarified according to the benefits.

Clarify supporting mechanisms to ensure the smooth implementation of the mechanism

The "Notice" stipulates that, first, the units that receive compensation must meet the maximum available adjustment capabilities clearly defined in the grid-connected scheduling agreement, and compensation costs will be deducted for units that cannot respond in accordance with the scheduling instructions; second, the punishment will be increased for units that cannot meet the adjustment requirements during peak summer and peak winter; third, the standard upper limit of the electricity price of emergency backup power supply capacity is clarified; fourth, specific measures such as organizational coordination, policy coordination, and implementation supervision are refined to help the mechanism be better implemented.

On the one hand, a complete supporting mechanism can promote the reasonable implementation of coal-power capacity electricity prices, and restrict the behavior of coal-power enterprises that receive compensation, and reasonably punish units that cannot meet the requirements. Countries and regions that implement capacity compensation and capacity markets internationally have also designed punishment measures for failing to fulfill capacity to urge coal-fired power enterprises to perform their contracts reasonably. On the other hand, before the coal-power capacity electricity price mechanism was implemented, the electricity energy market guided some coal-power capacity expenses. Therefore, after the coal-power capacity electricity price mechanism was formed, it was proposed to further improve the market trading rules, which fully reflects the rationality of the mechanism design. Not only that, the "Notice" proposes that localities can study and establish a capacity electricity price mechanism on the power generation side, guide other power generation resources including coal-fired power to participate, and form a capacity electricity price mechanism covering the power generation side, further reflect the support and regulation value of various power sources, and help the power system operate stably.